Bill Text: IA HSB599 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to matters under the purview of the Iowa finance authority, including the purchase of single-family or multifamily residences by a first-time homebuyer, the creation of the first-time homebuyer grant fund, providing for fees, and making an appropriation.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-04 - Placed on calendar. [HSB599 Detail]
Download: Iowa-2019-HSB599-Introduced.html
House
Study
Bill
599
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
WHEELER)
A
BILL
FOR
An
Act
relating
to
matters
under
the
purview
of
the
Iowa
1
finance
authority,
including
the
purchase
of
single-family
2
or
multifamily
residences
by
a
first-time
homebuyer,
the
3
creation
of
the
first-time
homebuyer
grant
fund,
providing
4
for
fees,
and
making
an
appropriation.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
NEW
SECTION
.
16.43
First-time
homebuyer
grant
1
fund
——
appropriation.
2
1.
As
used
in
this
section,
unless
the
context
otherwise
3
requires:
4
a.
“First-time
homebuyer”
means
an
individual
who
is
5
a
resident
of
this
state
and
who
does
not
own,
either
6
individually
or
jointly,
a
single-family
or
multifamily
7
residence,
and
who
has
not
owned
or
purchased,
either
8
individually
or
jointly,
a
single-family
or
multifamily
9
residence
for
a
period
of
ten
years
prior
to
the
date
the
10
individual
submits
an
application
to
the
authority
pursuant
to
11
subsection
4.
12
b.
“Household
income”
means
all
income
received
by
the
13
first-time
homebuyer
and
all
individuals
eighteen
years
of
age
14
or
older
who
reside
with
the
first-time
homebuyer.
15
2.
A
first-time
homebuyer
grant
fund
is
created
within
the
16
authority.
Moneys
in
the
first-time
homebuyer
grant
fund
are
17
appropriated
to
the
authority
to
be
used
to
provide
grants
18
to
first-time
homebuyers
with
a
household
income
that
does
19
not
exceed
eighty
percent
of
the
national
average
to
assist
20
them
in
paying
down
payment
and
closing
costs
associated
with
21
purchasing
a
single-family
or
multifamily
residence.
22
3.
For
the
fiscal
year
beginning
July
1,
2020,
and
each
23
fiscal
year
thereafter,
there
is
appropriated
from
the
general
24
fund
of
the
state
to
the
first-time
homebuyer
grant
fund
the
25
sum
of
two
hundred
fifty
thousand
dollars
to
be
used
for
grants
26
as
provided
in
this
section.
Notwithstanding
section
8.33,
27
moneys
in
the
fund
that
remain
unencumbered
or
unobligated
28
at
the
close
of
the
fiscal
year
shall
not
revert
but
shall
29
remain
available
for
expenditure
for
the
purposes
designated.
30
Notwithstanding
section
12C.7,
subsection
2,
interest
or
31
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
32
4.
A
first-time
homebuyer
seeking
an
award
pursuant
to
this
33
section
shall
make
application
to
the
authority
in
the
manner
34
prescribed
by
the
authority.
The
authority
shall
establish
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by
rule
criteria
for
the
review
and
approval
of
submitted
1
applications.
Authority
may
determine
and
collect
a
reasonable
2
application
fee.
The
application
fees
collected
shall
be
used
3
exclusively
for
costs
associated
with
the
review
and
approval
4
of
applications.
5
5.
To
qualify
for
a
grant
under
the
fund,
all
of
the
6
following
requirements
shall
be
met:
7
a.
The
single-family
or
multifamily
residence
must
serve
8
as
the
first-time
homebuyer’s
primary
residence
after
the
9
purchase.
10
b.
Prior
to
the
purchase,
the
first-time
homebuyer
must
11
complete
the
financial
literacy
program
established
under
12
the
federal
affordable
housing
program,
codified
at
12
13
U.S.C.
§1430(j),
or
a
similar
program
to
be
developed
by
the
14
authority.
15
c.
The
maximum
purchase
price
for
the
single-family
or
16
multifamily
residence
to
be
purchased
must
not
exceed
an
amount
17
determined
by
the
authority
by
rule.
18
6.
The
maximum
amount
of
a
grant
the
authority
may
award
to
19
a
first-time
homebuyer
under
this
section
is
two
thousand
five
20
hundred
dollars.
21
7.
To
the
extent
possible,
the
authority
shall
track
22
when
a
first-time
homebuyer
who
received
a
grant
pursuant
to
23
this
section
sells
a
single-family
or
multifamily
residence
24
purchased
using
the
grant
funds.
If
a
first-time
homebuyer
who
25
received
a
grant
pursuant
to
this
section
sells
a
single-family
26
or
multifamily
residence
purchased
using
the
grant
funds
within
27
five
years
following
the
date
of
purchase,
the
first-time
28
homebuyer
shall
notify
the
authority
of
the
sale,
and
shall
29
pay
to
the
authority
an
amount
equal
to
forty-one
dollars
and
30
sixty-seven
cents
multiplied
by
the
difference
between
sixty
31
less
the
number
of
months
the
first-time
homebuyer
owned
the
32
single-family
or
multifamily
residence.
The
payments
received
33
by
the
authority
under
this
subsection
shall
be
deposited
in
34
the
fund.
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8.
The
authority
may
adopt
rules
as
necessary
for
the
1
implementation
and
administration
of
this
section.
2
EXPLANATION
3
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
4
the
explanation’s
substance
by
the
members
of
the
general
assembly.
5
This
bill
relates
to
matters
under
the
purview
of
the
Iowa
6
finance
authority,
including
the
purchase
of
single-family
7
or
multifamily
residences
by
a
first-time
homebuyer,
the
8
creation
of
the
first-time
homebuyer
grant
fund,
and
making
an
9
appropriation.
10
The
bill
defines
“first-time
homebuyer”
as
an
individual
11
who
is
a
resident
of
this
state
and
who
does
not
own,
and
12
who
has
not
owned
for
the
last
10
years,
either
individually
13
or
jointly,
a
single-family
or
multifamily
residence.
The
14
bill
defines
“household
income”
as
all
income
received
by
the
15
first-time
homebuyer
and
all
individuals
18
years
of
age
or
16
older
who
reside
with
the
first-time
homebuyer.
17
The
bill
establishes
a
first-time
homebuyer
grant
fund
18
within
the
authority.
The
bill
authorizes
the
authority
to
19
provide
grants
from
the
fund
to
first-time
homebuyers
with
20
a
household
income
that
does
not
exceed
80
percent
of
the
21
national
average
to
assist
them
in
paying
down
payment
and
22
closing
costs
for
a
single-family
or
multifamily
residence.
23
The
bill
appropriates
$250,000
to
the
fund
beginning
July
1,
24
2020,
and
each
fiscal
year
thereafter.
25
The
bill
requires
a
first-time
homebuyer
seeking
an
award
26
from
the
fund
to
submit
an
application
to
the
authority.
The
27
bill
provides
that
the
authority
is
to
establish
criteria
for
28
the
review
and
approval
of
applications
by
rule
and
that
the
29
authority
may
determine
and
collect
a
reasonable
application
30
fee.
In
addition,
the
bill
directs
that
such
application
fees
31
be
used
exclusively
for
costs
associated
with
the
review
and
32
approval
of
the
applications.
33
The
bill
also
establishes
three
requirements
that
must
be
34
met
before
moneys
can
be
awarded
from
the
fund:
the
residence
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must
serve
as
the
first-time
homebuyer’s
primary
residence;
1
the
first-time
homebuyer
must
complete
a
financial
literacy
2
program;
and
the
maximum
purchase
price
for
the
residence
to
3
be
purchased
must
not
exceed
the
amount
determined
by
the
4
authority.
5
The
bill
limits
the
amount
the
authority
may
award
to
a
6
first-time
homebuyer
from
the
fund
to
$2,500.
7
The
bill
directs
the
authority,
to
the
extent
possible,
to
8
track
when
a
first-time
homebuyer
sells
a
residence
that
was
9
purchased
using
moneys
from
the
fund.
The
bill
also
requires
10
first-time
homebuyers
to
notify
the
authority
of
the
sale
of
11
the
residence
purchased
and
repay
moneys
to
the
fund
in
certain
12
circumstances.
If
a
first-time
homebuyer
who
received
a
grant
13
from
the
fund
sells
the
residence
purchased
within
five
years
14
following
the
purchase,
the
first-time
homebuyer
shall
notify
15
the
authority
of
the
sale
and
shall
pay
to
the
authority
an
16
amount
equal
to
$41.67
multiplied
by
the
difference
between
60
17
less
the
number
of
months
the
first-time
homebuyer
owned
the
18
residence.
The
bill
provides
that
these
payments
are
to
be
19
deposited
in
the
fund.
20
The
bill
requires
the
authority
to
adopt
rules
as
necessary
21
for
implementation
and
administration
of
the
grant
fund.
22
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