Creating a vacant school building demolition grant program and fund and making appropriations

This bill creates a vacant school building demolition grant program to be administered by the economic development authority for the demolition of vacant buildings owned by a political subdivision of this state or proposed to be acquired by a political subdivision of this state that were at any time previously used as school attendance centers or school administration buildings, but which are no longer used for any political subdivision purpose. The bill creates a vacant school building demolition grant fund in the state treasury under the control of the authority. The fund shall consist of moneys appropriated to the authority and any other moneys that are lawfully available to the authority. The bill appropriates from the rebuild Iowa infrastructure fund for deposit in the vacant school building demolition grant fund, for each fiscal year beginning on or after July 1, 2023, but on or before July 1, 2025, $2 million. Interest or earnings on moneys deposited in the vacant school building demolition grant fund shall be credited to the vacant school building demolition grant fund and moneys credited to the vacant school building demolition grant fund shall not revert at the close of a fiscal year. If, however, the authority receives no qualifying applications for three consecutive years, the moneys in the vacant school building demolition grant fund shall be transferred for deposit in the rebuild Iowa infrastructure fund. The authority is required to provide grants using a competitive scoring process. Grants shall not, however, be awarded to political subdivisions with a population that exceeds 2,500. The authority may require a local match from a political subdivision participating in the program, which may be in a form other than cash and may be for costs of the project other than demolition. Grants may be awarded for up to the total demolition cost of the project. However, the minimum amount of any grant awarded under the program shall be percent of the project’s demolition cost and the authority shall seek to provide higher percentages to political subdivisions with the lowest populations as compared to other grant applicants. The authority is also required to coordinate with each political subdivision to develop a plan for the use of grant funds that is consistent with the community development, housing, or economic development goals of the political subdivision and to ensure that the condition and use of the property following demolition is consistent with the property’s surroundings. The political subdivision shall not be required to sell the property after demolition as a condition of the grant. However, if the property is sold by the political subdivision following demolition, proceeds from sale of the property, following subtraction of the political subdivision’s costs related to the demolition, including costs to acquire the property if applicable, shall be paid to the authority for deposit in the vacant school building demolition grant fund. Under the bill, the authority may use not more than percent of the moneys in the fund at the beginning of the fiscal year for purposes of administrative costs, finance, compliance, marketing, and program support. The authority is required to submit a report to the general assembly and the governor’s office on or before January of each year, describing the results of the program implemented pursuant to this section and making recommendations for additional program changes.