Bill Text: IA HF2466 | 2013-2014 | 85th General Assembly | Enrolled

---

Bill Title: A bill for an act relating to the assessment of certain housing rented or leased to low-income individuals and families and including applicability provisions. Effective 7-1-14.

Spectrum: Committee Bill

Status: (Passed) 2014-05-30 - Signed by Governor. H.J. 897. [HF2466 Detail]

Download: Iowa-2013-HF2466-Enrolled.html

---

House File 2466
AN ACT
RELATING TO THE ASSESSMENT OF CERTAIN HOUSING RENTED OR LEASED
TO LOW-INCOME INDIVIDUALS AND FAMILIES AND INCLUDING
APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. subparagraph (1), Code 2014, is amended to read
as follows:
(1) Property that is rented or leased to low-income
individuals and families as authorized by section 42 of the
Internal Revenue Code, as amended , and that is subject to
assessment procedures relating to section 42 property under
section 441.21, subsection 2 , for the applicable assessment
year .
Sec. 2. Section 441.21, subsection 2, Code 2014, is amended
to read as follows:
2. In the event market value of the property being assessed
cannot be readily established in the foregoing manner, then
the assessor may determine the value of the property using
the other uniform and recognized appraisal methods including
its productive and earning capacity, if any, industrial
conditions, its cost, physical and functional depreciation
and obsolescence and replacement cost, and all other factors
which would assist in determining the fair and reasonable
market value of the property but the actual value shall not
be determined by use of only one such factor. The following
shall not be taken into consideration: Special value or use
value of the property to its present owner, and the goodwill or
value of a business which uses the property as distinguished
from the value of the property as property. However, in
assessing property that is rented or leased to low-income

House File 2466, p. 2
individuals and families as authorized by section 42 of the
Internal Revenue Code, as amended, and which section limits
the amount that the individual or family pays for the rental
or lease of units in the property, the assessor shall , unless
the owner elects to withdraw the property from the assessment
procedures for section 42 property, use the productive and
earning capacity from the actual rents received as a method of
appraisal and shall take into account the extent to which that
use and limitation reduces the market value of the property.
The assessor shall not consider any tax credit equity or other
subsidized financing as income provided to the property in
determining the assessed value. The property owner shall
notify the assessor when property is withdrawn from section 42
eligibility under the Internal Revenue Code or if the owner
elects to withdraw the property from the assessment procedures
for section 42 property under this subsection . The property
shall not be subject to section 42 assessment procedures
for the assessment year for which section 42 eligibility is
withdrawn or an election is made . This notification must
be provided to the assessor no later than March 1 of the
assessment year or the owner will be subject to a penalty of
five hundred dollars for that assessment year. The penalty
shall be collected at the same time and in the same manner
as regular property taxes. An election to withdraw from the
assessment procedures for section 42 property is irrevocable.
Property that is withdrawn from the assessment procedures
for section 42 property shall be classified and assessed as
multiresidential property unless the property otherwise fails
to meet the requirements of section 441.21, subsection 13.
Upon adoption of uniform rules by the department of revenue
or succeeding authority covering assessments and valuations
of such properties, the valuation on such properties shall be
determined in accordance with such rules and in accordance with
forms and guidelines contained in the real property appraisal
manual prepared by the department as updated from time to time
for assessment purposes to assure uniformity, but such rules,
forms, and guidelines shall not be inconsistent with or change
the foregoing means of determining the actual, market, taxable
and assessed values.
Sec. 3. Section 441.21, subsection 13, paragraph d, as
enacted by 2013 Iowa Acts, chapter 123, section 28, is amended
to read as follows:
d. In no case, however, shall property Property that is

House File 2466, p. 3
rented or leased to low-income individuals and families as
authorized by section 42 of the Internal Revenue Code, and
that is subject to assessment procedures relating to section
42 property under section 441.21, has not been withdrawn from
section 42 assessment procedures under subsection 2 of this
section , or a hotel, motel, inn, or other building where rooms
or dwelling units are usually rented for less than one month
shall not be classified as multiresidential property under this
subsection .
Sec. 4. APPLICABILITY. This Act applies to assessment years
beginning on or after January 1, 2015.
______________________________
KRAIG PAULSEN
Speaker of the House
______________________________
PAM JOCHUM
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 2466, Eighty-fifth General Assembly.
______________________________
CARMINE BOAL
Chief Clerk of the House
Approved _______________, 2014
______________________________
TERRY E. BRANSTAD
Governor