HF 1037 — A bill for an act modifying economic development provisions relating to housing and residential development in urban renewal areas.

Bill Text

• Introduced View text Current pdf

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The bill modifies existing economic development and urban renewal provisions to enhance support for workforce housing and adjust requirements for low and moderate income family housing in Iowa.

• Section 15A.1

  For purposes of this chapter, “economic development” means private or joint public and private investment involving the creation of new jobs and income or the retention of existing jobs and income that would otherwise be lost. → For purposes of this chapter, “economic development” means private or joint public and private investment involving the creation of new jobs and income or the retention of existing jobs and income that would otherwise be lost or the provision of workforce housing.

  This change adds the provision of workforce housing to the existing definition of economic development.

• Section 15A.1

  Development policies that advance the development of workforce housing.

  This addition requires consideration of development policies that advance workforce housing before public funds are used.

• Section 403.17

  “Low or and moderate income families” means those families, including single person households, earning no more than eighty percent of the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest United States department of housing and urban development, section 8 income guidelines. → “Low and moderate income families” means those families, including single person households, earning no more than eighty percent of the higher of the median family income of the county or the statewide nonmetropolitan area as determined by the latest United States department of housing and urban development, section 8 income guidelines.

  This change corrects the terminology from 'low or and moderate income families' to 'low and moderate income families'.

• Section 403.17

  “Low and moderate income family housing” means housing for low and moderate income families and includes housing that meets the requirements of section 15.353.

  This addition provides a clear definition of low and moderate income family housing.

• Section 403.22

  (1) For municipalities of any population size, and notwithstanding any minimum low and moderate income family housing requirement, if the public improvement project is approved on or after July 1, 2025, and is related to housing and residential development in an economic development area containing property that has been located entirely within the corporate limits of a city for twenty years or more, the amount to be provided for low and moderate income family housing for such projects shall not be required to be greater than an amount equal to twenty percent of the original project cost.

  This new provision allows lower minimum requirements for low and moderate income family housing contributions for certain municipal projects, thereby easing restrictions.

• Section 403.22

  (2) In addition, notwithstanding subsection 5, the division of the revenue under section 403.19 for each project under this paragraph shall be limited to tax collections for twenty fiscal years beginning with the second fiscal year after the year in which the municipality first certifies to the county auditor the amount of any loans, advances, indebtedness, or bonds which qualify for payment from the division of the revenue in connection with the project.

  This change extends the period for tax collections related to certain projects to twenty fiscal years, doubling the previous limit.

• Amendment S-3174 Show changes
• Amendment H-1346 Show changes

Action History

1. May 20, 2025

   Explanation of vote.

2. May 14, 2025

   Fiscal note.

3. May 13, 2025

   Senate amendment H-1346 filed.

4. May 13, 2025

   Message from Senate.

5. May 13, 2025

   Immediate message.

6. May 13, 2025

   Passed Senate, yeas 45, nays 0.

7. May 13, 2025

   Amendment S-3174 filed, adopted.

8. May 13, 2025

   Substituted for SF 652.

9. May 12, 2025

   Read first time, attached to SF 652.

10. May 12, 2025

    Message from House.

11. May 12, 2025

    Immediate message.

12. May 12, 2025

    Passed House, yeas 90, nays 0.

13. April 28, 2025

    Introduced, placed on Ways and Means calendar.

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• COMMITTEE ON WAYS AND MEANS · Primary

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