HF 1008 — A bill for an act relating to the creation of land redevelopment trusts.

House File 1008 - IntroducedReprinted HOUSE FILE 1008 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 28) (COMPANION TO SF 45 BY LOFGREN) (As Amended and Passed by the House April 17, 2025) A BILL FOR An Act relating to the creation of land redevelopment trusts.

TLSBHF 1152HV1008 (1)(2) 91 js/jsjs/js/md H.F.

LSBHF 1152HV1008 (1)(2) 91 -1- js/jsjs/js/md 1/231/21 H.F.

A land redevelopment trust organized under this chapter LSBHF 1152HV1008 (1)(2) 91 -2- js/jsjs/js/md 2/232/21 H.F.

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When in actual conflict, the ordinances, resolutions, or LSBHF 1152HV1008 (1)(2) 91 -4- js/jsjs/js/md 4/234/21 H.F.

A LSBHF 1152HV1008 (1)(2) 91 -5- js/jsjs/js/md 5/235/21 H.F.

A land redevelopment trust shall not possess or exercise the LSBHF 1152HV1008 (1)(2) 91 -6- js/jsjs/js/md 6/236/21 H.F.

If a land redevelopment trust receives a gift or devise of real property located outside of the geographical boundaries of the land redevelopment trust, LSBHF 1152HV1008 (1)(2) 91 -7- js/jsjs/js/md 7/237/21 H.F.

A municipality may in the ordinance or resolution creating a land redevelopment trust, or in the chapter 28E agreement in the case of any combination of municipalities creating a single land redevelopment trust, require that a particular form of disposition of real property or a disposition of real property located within a specified jurisdiction be subject to specified voting and approval LSBHF 1152HV1008 (1)(2) 91 -8- js/jsjs/js/md 8/238/21 H.F.

Each municipality may, in the enabling ordinance, resolution, or chapter 28E agreement creating the land redevelopment trust, include the right of LSBHF 1152HV1008 (1)(2) 91 -9- js/jsjs/js/md 9/239/21 H.F.

If the school district sends a written objection to the proposed extinguishment of such liens and claims to the land redevelopment trust within thirty days of receipt of such LSBHF 1152HV1008 (1)(2) 91 -10- js/jsjs/js/md 10/2310/21 H.F.

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A land redevelopment trust shall not acquire any real property from a board member, employee of the LSBHF 1152HV1008 (1)(2) 91 -12- js/jsjs/js/md 12/2312/21 H.F.

(1) Outside employment or an activity that involves the use of the land redevelopment trust’s time, facilities, equipment, LSBHF 1152HV1008 (1)(2) 91 -13- js/jsjs/js/md 13/2313/21 H.F.

For purposes of this subparagraph, “official action” or “official duty” includes but is not limited to participating in any vote, LSBHF 1152HV1008 (1)(2) 91 -14- js/jsjs/js/md 14/2314/21 H.F.

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Upon timely receipt of the verified statement and payment of the total amount due cumulatively for all identified LSBHF 1152HV1008 (1)(2) 91 -16- js/jsjs/js/md 16/2316/21 H.F.

Any tax sale certificate issued to a land redevelopment trust under the provisions of this section shall secure a one redevelopmenthundred trust percent interest in the parcel.

After one year and nine months from the date of sale, or after nine months from the date of a sale made under section 446.18, or after three months from the date of a sale made LSBHF 1152HV1008 (1)(2) 91 -17- js/jsjs/js/md 17/2317/21 H.F.

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A city may shall not dispose of an interest in real property LSBHF 1152HV1008 (1)(2) 91 -19- js/jsjs/js/md 19/2319/21 H.F.

No sooner than the later of thirty days after the responsible building official’s findings have been provided LSBHF 1152HV1008 (1)(2) 91 -20- js/jsjs/js/md 20/2320/21 H.F.

EXPLANATIONHF The1008 inclusion(2) of91 this-21- explanationjs/js/md does21/21 not constitute agreement with the explanation’s substance by the members of the general assembly.

This bill provides for the establishment of land redevelopment trusts.

Division I of the bill authorizes one or more municipalities to establish a land redevelopment trust as a method to return dilapidated, abandoned, blighted, and tax-delinquent properties in their communities to economically productive status.

An established land redevelopment trust is a public agency LSB 1152HV (1) 91 -21- js/js 21/23 H.F.

1008 for the purpose of joint exercise of governmental powers, a governmental body for purposes of public meetings requirements of Code chapter 21, and a government body for purposes of public records requirements of Code chapter 22.

Land redevelopment trusts are subject to periodic examination by the auditor of state under Code chapter 11.

The bill requires the board of directors of a land redevelopment trust to establish bylaws addressing matters necessary to govern the conduct of the land redevelopment trust.

Division I of the bill also grants a land redevelopment trust various powers and duties, including the authority to acquire properties through certain procedures, including the purchase of tax sale certificates and the foreclosure of properties acquired at a tax sale if not redeemed.

However, the bill explicitly prohibits a land redevelopment trust from possessing or exercising the power of eminent domain.

The bill establishes financing procedures that govern land redevelopment trusts, including allowing to be remitted to the land redevelopment trust up to 75 percent of real property taxes collected on a real property conveyed or leased by a land redevelopment trust that remains after the division of taxes for an urban renewal area and exclusive of any amount levied by a school district for five consecutive years after the property is again put on the tax rolls.

The bill requires a land redevelopment trust to submit annual reports to the governing body that created the land redevelopment trust.

The bill provides procedures for disposing of property that is acquired by the land redevelopment trust.

The bill also provides procedures for dissolving a land redevelopment trust.

Division II of the bill creates a land redevelopment trust tax sale procedure, which allows a land redevelopment trust to acquire abandoned, blighted, or dilapidated properties through an exclusive tax sale.

In order to acquire property through a land redevelopment trust tax sale, the land redevelopment trust shall file a verified statement identifying the parcels for LSB 1152HV (1) 91 -22- js/js 22/23 H.F.

1008 which the land redevelopment trust intends to purchase the tax sale certificates and shall pay the delinquent total amounts due on each parcel before May 15.

Upon timely receipt of the land redevelopment trust’s verified statement and payment, the county treasurer shall remove the identified parcels from the regular annual tax sale and place those parcels in the land redevelopment trust tax sale.