Bill Text: IA SF2406 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the establishment of a disaster recovery homeowner assistance program and fund administered by the Iowa finance authority, transfers of moneys to certain funds, and including effective date provisions.(Formerly SF 2314, SSB 3092.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2020-06-04 - NOBA: Senate Floor [SF2406 Detail]
Download: Iowa-2019-SF2406-Introduced.html
Senate
File
2406
-
Introduced
SENATE
FILE
2406
BY
COMMITTEE
ON
APPROPRIATIONS
(SUCCESSOR
TO
SF
2314)
(SUCCESSOR
TO
SSB
3092)
A
BILL
FOR
An
Act
relating
to
the
establishment
of
a
disaster
recovery
1
homeowner
assistance
program
and
fund
administered
by
the
2
Iowa
finance
authority,
transfers
of
moneys
to
certain
3
funds,
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
16.43
Use
of
revolving
loan
funds.
1
Notwithstanding
any
other
provision
of
law
to
the
contrary,
2
the
authority
may
transfer
any
unobligated
and
unencumbered
3
moneys
in
any
revolving
loan
program
fund
created
pursuant
to
4
section
16.46,
16.47,
16.48,
or
16.49,
for
deposit
in
any
other
5
fund
created
under
this
part.
6
Sec.
2.
NEW
SECTION
.
16.44
Disaster
recovery
homeowner
7
assistance
program
and
fund.
8
1.
As
used
in
this
section,
unless
the
context
otherwise
9
requires:
10
a.
“Disaster-affected
home”
means
any
of
the
following:
11
(1)
A
primary
residence
that
is
destroyed
or
damaged
due
to
12
a
natural
disaster
that
occurs
on
or
after
the
effective
date
13
of
this
Act,
and
is
located
in
a
county
that
due
to
the
natural
14
disaster
is
the
subject
of
a
state
of
disaster
emergency
15
proclamation
by
the
governor
that
authorizes
disaster
recovery
16
homeowner
assistance.
17
(2)
A
primary
residence
that
is
destroyed
or
damaged
due
to
18
a
natural
disaster
that
occurred
on
or
after
March
12,
2019,
19
but
before
the
effective
date
of
this
Act,
and
is
located
in
a
20
county
that
has
been
declared
a
major
disaster
by
the
president
21
of
the
United
States
on
or
after
March
12,
2019,
but
before
the
22
effective
date
of
this
Act,
and
that
is
also
a
county
in
which
23
individuals
are
eligible
for
federal
individual
assistance.
24
b.
“Fund”
means
the
disaster
recovery
homeowner
assistance
25
fund.
26
c.
“Local
program
administrator”
means
any
of
the
following:
27
(1)
The
cities
of
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
28
Bluffs,
Davenport,
Des
Moines,
Dubuque,
Iowa
City,
Waterloo,
29
and
West
Des
Moines.
30
(2)
A
council
of
governments
whose
territory
includes
at
31
least
one
county
that
is
the
subject
of
a
state
of
disaster
32
emergency
proclamation
by
the
governor
that
authorizes
disaster
33
recovery
homeowner
assistance
on
or
after
the
effective
date
34
of
this
Act.
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(3)
A
qualified
local
organization
or
governmental
entity
1
as
determined
by
rules
as
adopted
by
the
authority.
2
d.
“Program”
means
the
disaster
recovery
homeowner
3
assistance
program.
4
e.
“Replacement
housing”
means
housing
purchased
by
a
5
homeowner
to
replace
a
disaster-affected
home
that
is
destroyed
6
or
damaged
beyond
reasonable
repair
as
determined
by
a
local
7
program
administrator.
8
f.
“State
of
disaster
emergency”
means
the
same
as
described
9
in
section
29C.6,
subsection
1.
10
2.
a.
A
disaster
recovery
homeowner
assistance
fund
11
is
created
within
the
authority,
and
the
authority
shall
12
administer
the
fund
in
a
manner
to
award
forgivable
loans
to
13
eligible
homeowners
for
purposes
of
this
section.
14
b.
The
fund
may
consist
of
any
moneys
appropriated
by
the
15
general
assembly
for
purposes
of
this
section
and
any
other
16
moneys
that
are
lawfully
available
to
the
authority.
The
17
authority
shall
use
any
moneys
specifically
appropriated
for
18
purposes
of
this
section
only
for
the
purposes
of
this
section.
19
The
authority
may
use
all
other
moneys
in
the
fund,
including
20
interest,
earnings,
and
recaptures,
for
purposes
of
this
21
section.
22
c.
Notwithstanding
section
8.39,
subsections
1
and
3,
23
and
notwithstanding
any
other
law
to
the
contrary,
with
24
the
prior
written
consent
and
approval
of
the
governor,
the
25
executive
director
of
the
Iowa
finance
authority
may
transfer
26
any
unobligated
and
unencumbered
moneys
in
any
fund
created
27
pursuant
to
section
16.5,
subsection
1,
paragraph
“s”
,
for
28
deposit
in
the
disaster
recovery
homeowner
assistance
fund.
29
The
prior
written
consent
and
approval
of
the
director
of
the
30
department
of
management
shall
not
be
required
to
transfer
the
31
unobligated
and
unencumbered
moneys.
32
d.
Notwithstanding
section
8.39,
subsections
2
and
3,
and
33
notwithstanding
any
other
law
to
the
contrary,
with
the
prior
34
written
approval
of
the
director
of
the
economic
development
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authority
and
the
prior
written
approval
of
the
governor,
the
1
executive
director
of
the
Iowa
finance
authority
may
transfer
2
any
unobligated
and
unencumbered
moneys
in
any
fund
created
3
pursuant
to
section
15.106A,
subsection
1,
paragraph
“o”
,
for
4
deposit
in
the
disaster
recovery
homeowner
assistance
fund.
5
e.
Notwithstanding
section
8.33,
moneys
in
the
fund
at
the
6
end
of
each
fiscal
year
shall
not
revert
to
the
general
fund
or
7
any
other
fund
but
shall
remain
in
the
fund
for
expenditure
for
8
subsequent
fiscal
years.
9
f.
The
authority
shall
not
use
more
than
five
percent
of
10
the
moneys
in
the
fund
at
the
beginning
of
a
fiscal
year
for
11
purposes
of
administrative
costs
and
other
program
support.
12
3.
The
authority
shall
establish
and
administer
a
disaster
13
recovery
homeowner
assistance
program
and
shall
use
moneys
in
14
the
fund
to
award
forgivable
loans
to
eligible
homeowners
of
15
disaster-affected
homes.
Moneys
in
the
fund
may
be
expended
16
following
a
state
of
disaster
emergency
proclamation
by
17
the
governor
that
authorizes
disaster
recovery
homeowner
18
assistance.
The
authority
may
enter
into
an
agreement
with
one
19
or
more
local
program
administrators
to
administer
the
program.
20
4.
To
be
considered
for
a
forgivable
loan
under
the
program,
21
a
homeowner
must
register
for
the
disaster
case
management
22
program
established
pursuant
to
section
29C.20B.
The
disaster
23
case
manager
may
refer
the
homeowner
to
the
appropriate
local
24
program
administrator.
25
5.
To
be
eligible
for
a
forgivable
loan
under
the
program
a
26
homeowner
must
meet
all
of
the
following
requirements:
27
a.
The
homeowner’s
disaster-affected
home
must
have
28
sustained
damage
greater
than
the
damage
that
is
covered
by
the
29
homeowner’s
property
and
casualty
insurance
policy
insuring
the
30
home
plus
any
other
state
or
federal
disaster-related
financial
31
assistance
that
the
homeowner
is
eligible
to
receive.
32
b.
A
local
program
administrator
must
deem
the
homeowner’s
33
disaster-affected
home
suitable
for
rehabilitation
or
damaged
34
beyond
reasonable
repair.
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c.
If
the
homeowner
is
seeking
a
forgivable
loan
for
the
1
repair
or
rehabilitation
of
the
homeowner’s
disaster-affected
2
home,
the
homeowner’s
disaster-affected
home
cannot
be
proposed
3
for
buyout
by
the
county
or
city
in
which
the
disaster-affected
4
home
is
located.
5
6.
a.
If
a
homeowner
is
referred
to
the
authority
or
to
a
6
local
program
administrator
by
the
homeowner’s
disaster
case
7
manager,
the
authority
may
award
a
forgivable
loan
to
the
8
eligible
homeowner
for
any
of
the
following
purposes:
9
(1)
Repair
or
rehabilitation
of
the
homeowner’s
10
disaster-affected
home.
11
(2)
Down
payment
assistance
on
the
purchase
of
replacement
12
housing
and
the
cost
of
reasonable
repairs
to
be
performed
13
on
the
replacement
housing
to
render
the
replacement
housing
14
decent,
safe,
sanitary,
and
in
good
repair.
Replacement
15
housing
purchased
by
a
homeowner
shall
not
be
located
16
in
a
one-hundred-year
floodplain.
For
purposes
of
this
17
subparagraph,
“decent,
safe,
sanitary,
and
in
good
repair”
18
means
the
same
as
described
in
24
C.F.R.
§5.703.
19
b.
The
maximum
forgivable
loan
that
the
authority
may
20
award
to
any
one
eligible
homeowner
shall
be
determined
by
the
21
authority
by
rule.
22
c.
All
forgivable
loans
that
are
awarded
to
an
eligible
23
homeowner
shall
have
a
five-year
term
and
shall
be
24
interest-free.
25
d.
A
forgivable
loan
awarded
to
an
eligible
homeowner
shall
26
be
forgiven
by
the
authority
by
a
uniform
percentage
on
a
27
monthly
basis
as
determined
by
rules
adopted
by
the
authority.
28
e.
If
a
homeowner
who
has
been
awarded
a
forgivable
loan
29
sells
a
disaster-affected
home
or
replacement
housing
for
which
30
the
homeowner
received
the
forgivable
loan
prior
to
the
end
31
of
the
five-year
loan
term,
the
remaining
principal
on
the
32
forgivable
loan
shall
be
due
and
payable
pursuant
to
rules
33
adopted
by
the
authority.
34
7.
The
authority
shall
adopt
rules
pursuant
to
chapter
17A
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to
implement
and
administer
this
section.
1
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
2
importance,
takes
effect
upon
enactment.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
the
establishment
of
a
disaster
7
recovery
homeowner
assistance
program
and
fund
administered
by
8
the
Iowa
finance
authority,
and
transfers
of
moneys
to
certain
9
funds.
10
The
bill
creates
a
disaster
recovery
homeowner
assistance
11
fund
(fund)
within
the
Iowa
finance
authority
(authority).
The
12
fund
may
consist
of
any
moneys
appropriated
by
the
general
13
assembly
and
any
other
moneys
that
are
lawfully
available
to
14
the
authority.
The
authority
may
use
all
moneys
in
the
fund,
15
including
interest,
earnings,
and
recaptures
for
the
purposes
16
of
the
fund.
Moneys
in
the
fund
at
the
end
of
each
fiscal
year
17
do
not
revert
to
any
other
fund
but
remain
in
the
fund
for
18
expenditure
for
subsequent
fiscal
years.
The
bill
prohibits
19
the
authority
from
using
more
than
5
percent
of
the
moneys
in
20
the
fund
at
the
beginning
of
a
fiscal
year
for
purposes
of
21
administrative
costs
and
other
program
support.
22
Notwithstanding
any
other
law
to
the
contrary,
the
bill
23
permits
the
authority
to
transfer
any
unobligated
and
24
unencumbered
moneys
in
the
revolving
loan
program
funds
25
created
pursuant
to
Code
sections
16.46,
16.47,
16.48,
or
26
16.49,
for
deposit
in
any
other
fund
created
under
Code
27
chapter
16,
part
4.
Notwithstanding
Code
sections
8.39(1)
28
and
8.39(3),
and
notwithstanding
any
other
law
to
the
29
contrary,
the
bill
permits
the
executive
director
of
the
30
authority
to
transfer
any
unobligated
and
unencumbered
moneys
31
in
any
fund
created
pursuant
to
Code
section
16.5(1)(s),
32
for
deposit
in
the
disaster
recovery
homeowner
assistance
33
fund
with
the
prior
written
consent
and
approval
of
the
34
governor.
The
prior
consent
and
approval
of
the
director
of
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the
department
of
management
is
not
required
to
transfer
the
1
funds.
Notwithstanding
Code
sections
8.39(2)
and
8.39(3),
2
and
notwithstanding
any
other
law
to
the
contrary,
the
bill
3
permits
the
executive
director
of
the
Iowa
finance
authority
to
4
transfer
any
unobligated
and
unencumbered
moneys
in
any
fund
5
created
pursuant
to
Code
section
15.106A(1)(o),
for
deposit
in
6
the
disaster
recovery
homeowner
assistance
fund,
with
the
prior
7
written
approval
of
the
director
of
the
economic
development
8
authority
and
the
prior
written
approval
of
the
governor.
9
The
bill
directs
the
authority
to
establish
and
administer
a
10
disaster
recovery
homeowner
assistance
program
(program)
and
to
11
use
moneys
in
the
fund
to
provide
forgivable
loans
to
eligible
12
homeowners
of
disaster-affected
homes.
“Disaster-affected
13
home”
is
defined
in
the
bill
as
a
primary
residence
that
is
14
destroyed
or
damaged
due
to
a
natural
disaster
that
occurs
on
15
or
after
the
effective
date
of
the
bill,
and
that
is
located
16
in
a
county
that
due
to
the
natural
disaster
is
the
subject
17
of
a
state
of
disaster
emergency
proclamation
by
the
governor
18
that
authorizes
disaster
recovery
homeowners
assistance;
or
a
19
primary
residence
that
is
destroyed
or
damaged
due
to
a
natural
20
disaster
that
occurred
on
or
after
March
12,
2019,
but
before
21
the
effective
date
of
the
bill,
and
is
located
in
a
county
that
22
has
been
declared
a
major
disaster
by
the
president
of
the
23
United
States
on
or
after
March
12,
2019,
and
that
is
also
a
24
county
in
which
individuals
are
eligible
for
federal
individual
25
assistance.
26
The
authority
may
enter
into
an
agreement
with
one
or
more
27
local
program
administrators
(administrator)
to
administer
the
28
program,
and
moneys
in
the
fund
may
be
expended
following
a
29
state
of
disaster
emergency
proclamation
by
the
governor
that
30
authorizes
disaster
recovery
homeowner
assistance.
“Local
31
program
administrator”
is
defined
in
the
bill
as
the
cities
of
32
Ames,
Cedar
Falls,
Cedar
Rapids,
Council
Bluffs,
Davenport,
Des
33
Moines,
Dubuque,
Iowa
City,
Waterloo,
and
West
Des
Moines;
and
34
a
council
of
governments
whose
territory
includes
at
least
one
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county
that
is
the
subject
of
the
state
of
disaster
emergency
1
proclamation
by
the
governor
that
authorizes
disaster
recovery
2
homeowner
assistance;
or
a
qualified
local
organization
or
3
governmental
entity
as
determined
by
rules
as
adopted
by
the
4
authority.
5
To
be
considered
for
a
forgivable
loan
under
the
program,
6
a
homeowner
must
register
for
the
disaster
case
management
7
program
established
pursuant
to
Code
section
29C.20B.
8
The
disaster
case
manager
may
refer
the
homeowner
to
the
9
appropriate
administrator.
10
To
be
eligible
for
a
forgivable
loan
under
the
program,
11
the
bill
requires
a
homeowner
to
own
a
disaster-affected
home
12
(home)
located
in
a
county
that
has
been
proclaimed
a
state
13
of
disaster
emergency
by
the
governor;
the
home
must
have
14
sustained
damage
greater
than
the
damage
that
is
covered
by
the
15
homeowner’s
property
and
casualty
insurance
policy
insuring
16
the
home
plus
any
other
state
or
federal
disaster-related
17
financial
assistance
that
the
homeowner
is
eligible
to
receive;
18
an
administrator
must
deem
the
home
suitable
for
rehabilitation
19
or
damaged
beyond
reasonable
repair;
and
if
the
homeowner
is
20
seeking
a
forgivable
loan
for
the
repair
or
rehabilitation
of
21
the
homeowner’s
disaster-affected
home,
the
home
cannot
be
22
proposed
for
buyout
by
the
county
or
city
in
which
the
home
is
23
located.
24
If
a
homeowner
is
referred
to
an
administrator
by
the
25
homeowner’s
manager,
the
bill
allows
the
authority
to
award
26
a
forgivable
loan
to
the
eligible
homeowner
for
repair
or
27
rehabilitation
of
the
disaster-affected
home,
or
for
down
28
payment
assistance
on
the
purchase
of
replacement
housing,
29
and
the
cost
of
reasonable
repairs
to
be
performed
on
the
30
replacement
housing
to
render
it
decent,
safe,
sanitary,
and
31
in
good
repair.
Replacement
housing
purchased
by
a
homeowner
32
cannot
be
located
in
a
100-year
floodplain.
All
awarded
33
forgivable
loans
must
be
interest-free
and
have
a
five-year
34
term.
The
maximum
forgivable
loan
that
may
be
awarded
to
any
35
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one
eligible
homeowner
shall
be
determined
by
the
authority
1
by
rule.
“Decent,
safe,
sanitary,
and
in
good
repair”
is
2
defined
in
the
bill
to
mean
the
same
as
described
in
24
C.F.R.
3
§5.703.
“Replacement
housing”
is
defined
in
the
bill
as
4
housing
purchased
by
a
homeowner
to
replace
a
disaster-affected
5
home
that
is
destroyed
or
damaged
beyond
reasonable
repair
as
6
determined
by
a
local
program
administrator.
7
A
uniform
percentage
of
a
forgivable
loan
awarded
to
a
8
homeowner
must
be
forgiven
by
the
authority
on
a
monthly
9
basis
as
determined
by
rules
adopted
by
the
authority.
If
10
a
homeowner
who
has
been
awarded
a
forgivable
loan
sells
a
11
disaster-affected
home
or
replacement
housing
for
which
the
12
homeowner
received
the
forgivable
loan
prior
to
the
end
of
13
the
five-year
term,
the
remaining
principal
on
the
forgivable
14
loan
becomes
due
and
payable
pursuant
to
rules
adopted
by
the
15
authority.
16
The
authority
is
required
to
adopt
rules
to
implement
and
17
administer
the
fund
and
the
program.
18
The
bill
takes
effect
upon
enactment.
19
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8
