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Amendment S-5073 to HF 626
Relating to revitalization areas by authorizing cities and counties to provide property tax exemptions for certain owner-occupied residential property located in areas previously subjected to lending discrimination and including applicability provisions
Never voted onStrike everything: replaces the whole bill
Filed March 21, 2022 in the Senate by
What it changes
AI summary This amendment replaces the entire bill and changes the focus from property tax exemptions to property tax rebates. It allows municipalities to offer tax rebates to owners of small residential properties in specific federal targeted areas if they make improvements that increase the property's value.1
Read the amendment’s wording
- By striking everything after the enacting clause and inserting: “Section
- Section 403.22, subsection 1, unnumbered paragraph 1, Code 2022, is amended to read as follows: With respect to any urban renewal area established upon the determination that the area is an economic development area, unless exempted under section 403.22A, subsection 6, a division of revenue as provided in section 403.19 shall not be allowed for the purpose of providing or aiding in the provision of public improvements related to housing and residential development, unless the municipality assures that the project will include assistance for low and moderate income family housing. Sec.
- Section 403.22, subsection 2, Code 2022, is amended by adding the following new paragraph: NEW PARAGRAPH . e. For urban renewal areas established before July 1, 2022, rebates provided under section 403.22A. Sec.
- NEW SECTION . 403.22A Federal targeted area —— rebate agreements.
- For purposes of this section, unless the context otherwise requires: a. “Actual value added by the improvements” means the actual value added by improvements made to the qualified real estate as of the first assessment year for which the rebate was received. b. “Federal targeted area” means an area that has previously been identified by the home owners’ loan corporation or similar entity as less desirable, declining, hazardous, or risky for mortgage lending in accordance with or as the result of implementation of the National Housing Act, Pub. L. No. 73-479, 48 Stat. 1246, the United States Housing Act of 1937, Pub. L. No. 75-412, 50 Stat. 888, or a subsequent enactment of Congress or successor provision of law prior to enactment of Tit. VIII of the Civil Rights Act of 1968, commonly referred to as the Fair Housing Act of
- c. “Improvements” means rehabilitation and additions to existing structures as well as new construction on vacant land or on land with existing structures. However, new construction on land assessed as agricultural property shall not qualify as “improvements” for purposes of this section. d. “Qualified real estate” means real property, other than land, which is located in that portion of an urban renewal area that is a federal targeted area and to which improvements have been added during the time the area was designated by ordinance under subsection 2 that have increased the actual value by at least the percentage specified in the ordinance adopted by the municipality under subsection 2, or if no percent is specified, then by at least thirty percent. “Qualified real estate” also means land upon which no structure existed at the start of the new construction that is located in that portion of an urban renewal area that is a federal targeted area and upon which new construction has been added during the time the area was so designated.
- A municipality may, by ordinance, designate an urban renewal area as being eligible for the municipality to authorize property tax rebates under this section to eligible property owners within the portion of an urban renewal area that is a federal targeted area.
- Following the designation under subsection 2, the municipality may enter into agreements to provide property tax rebates using moneys from the special fund of the municipality referred to in section 403,19, subsection 2, to owners of qualified real estate that is owner-occupied residential property containing two or fewer dwelling units. The rebate amount each year shall not exceed an amount equal to the actual value added by the improvements while the owner owned the property, not to exceed fifty thousand dollars, multiplied by the assessment limitation percentage under section 441.21, subsection 4, divided by one thousand dollars, and then multiplied by the consolidated levy rate or average consolidated levy rate per one thousand dollars of taxable value applicable to the property.
- The rebate provided under an agreement shall be allowed for a period not to exceed fifteen consecutive years. Rebates under this section shall be allowed for the authorized period as long as the qualified real estate is legally or equitably owned by the owner who added the improvements to the property or the owner’s spouse and is occupied by the owner or the owner’s spouse. If the military service or medical care conditions of section 425.11, subsection 1, paragraph “d” , subparagraph (1), subparagraph divisions (a) and (b), relating to homesteads apply to the qualified real estate, such real estate shall be considered owner occupied.
- If the owner of qualified real estate that receives a rebate under this section sells the qualified real estate or no longer occupies the qualified real estate, the agreement shall be void for the remaining years of the agreement and if the sale or move occurs within five years of the date of the agreement, the owner shall be required to repay all rebate amounts received under the agreement.
- An urban renewal area established on or after July 1, 2022, upon the determination that the area is an economic development area and which contains in whole or in part a federal targeted area, is exempt from the requirements of section 403.22, so long as the ordinance adopted under subsection 2 remains in effect.”
- Title page, by striking lines 1 through 5 and inserting “An Act relating to urban renewal areas by authorizing municipalities to provide property tax rebates for certain owner-occupied residential property located in areas previously subjected to lending discrimination.”