Overtime Continues – Iowa Housing Partnership

Overtime Continues!

May 7, 2021

Last week marked the targeted end of session, however legislative work at the statehouse continues and is almost certain to continue for another couple of weeks before adjourning. Some floor debate occurred but major differences persist between the two chambers over spending, mental health funding, and tax policy, among other issues.

In an effort to find middle ground, both chambers introduced compromise bills covering several legislative issues, including housing initiatives. These new bills signal the main movement on affordable housing this session, primarily a significant increase to the State Housing Trust Fund, increased funding to Workforce Housing Tax Credit, and establishing a disaster recovery program. While other bills remain viable, this week’s legislation will be the path for affordable housing this session. More details are below, along with other bills that the Iowa Housing Partnership continues to track.

HF 893 (formerly HSB 278): Introduced as a compromise bill, this legislation have several divisions. The housing sections include:

Increase funding to the State Housing Trust Fund by raising the cap from the current $3 million to $7 million.
Increase the Workforce Housing Tax Credit funding from $25 million to $30 million. It proposes a permanent increase, however there is no larger temporary increase, unlike the Governor’s proposal or previous House version.
Establishes a disaster recovery program.
Increased funding to the Revitalization Credit program, brownfield/grayfields, to $15M (up from $10M).

The bill moved very quickly through the process earlier this week, being approved by the subcommittee and House Ways and Means in one day. Iowa Housing Partnership SUPPORTS.

SSB 1276: This is the Senate’s proposed compromise bill. The housing sections include:

Increase funding to the State Housing Trust Fund by raising the cap from the current $3 million to $7 million, same as the House’s proposal.
Proposes increased funding to the Workforce Housing Tax Credit program with one year increase to $40M with $12M rural set aside and a permanent increase to $30M with $15M rural set aside.
Establishes the disaster recovery program
Increased funding to the Revitalization Credit program, brownfield/grayfields, to $15M (up from $10M).

The bill will have a subcommittee hearing on Monday, May 10 and we expect it to be on the agenda for the Senate Ways and Means meeting on Tuesday of next week. Iowa Housing Partnership SUPPORTS.

SF 609: This legislation addresses several economic development pieces, including affordable housing. The housing division include increasing the workforce housing tax credit for to $40 million for one year, with an increase in the rural set-aside from $10 to $12 million dollars. It also extends the repeal date for the Revitalization Tax credit to June 30, 2031. It also strikes the $200k dwelling cost unit cap and replaces with IEDA rules authority. While it does not include language for the State Housing Trust Fund or disaster recover, the Senate addressed that in separate legislation. It is eligible for consideration by the Senate. Iowa Housing Partnership SUPPORTS.

SF 612 (formerly SS B 1270 ): This pertains to the State Housing Trust Fund and increases the funding from the real estate transfer tax from $3 million to $5.5 million. With the introduction of the compromise bills in both chambers this week, it is expected that those bills will be the path for increased funding to the State Housing Trust Fund. Iowa Housing Partnership SUPPORTS.

SF 611 (formerly SSB 1272 ): This legislation creates a disaster recovery program fund and a granting mechanism for unobligated funds. With the introduction of the compromise bills in both chambers this week, it is expected that those bills will be the path for affordable housing programs this session. Iowa Housing Partnership SUPPORTS.

HSB 274: This legislation introduces several measures for affordable housing. It removes the $3 million State Housing Trust Fund cap. It also increases Workforce Housing Tax Credit program from $25 million to $50 million and increases the small city allocation from $10 million to $20 million. After 3 years, the bill repeals these increases (back to $25m and $10m). It also strikes the $200K dwelling cost unit cap and replaces with IEDA rules authority. With the introduction of the compromise bills, it is expected that those bills will be the vehicle for affordable housing programs. Iowa Housing Partnership SUPPORTS.

SF 295/ HF 582: This is Governor Reynolds’ Omnibus Housing bill with several divisions aimed at boosting affordable housing throughout Iowa. As overall budget negotiations continue, the bill is in the Senate Ways and Means committee for consideration. Similarly, a House Ways and Means subcommittee with Reps. Hite, Boden and Jacoby has been assigned. With the introduction of the compromise bills in both chambers this week, it is expected that those bills will be the vehicle for any affordable housing programs and the Governor’s bills, as introduced will not see additional movement.

Iowa Housing Partnership continues to work with housing advocates and stakeholders in targeted legislative districts across the state to encourage greater grass-roots contacts with key legislators. Iowa Housing Partnership SUPPORTS.

SF 252/ HF 720: This legislation prohibits cities and counties from passing ordinances that bar landlords from refusing to accept housing vouchers. Governor Reynolds signed the bill on Friday, April 30. For most Iowa cities, it goes into effect immediately and postpones enactment for towns with existing city ordinances on housing vouchers. Iowa Housing Partnership is AGAINST.

SF 373: Introduced by Senator Lofgren, this legislation establishes a homeownership development tax credits for charitable contributions to certain low-income housing developers in Iowa. The bill is in the Ways and Means committee for future consideration. Iowa Housing Partnership SUPPORTS.

HF 626 : This legislation aims to provide property tax exemptions for properties located in areas previously ‘redlined’ and subjected to lending discrimination. The House passed the bill unanimously, 96-0. Being funnel proof, it is eligible for consideration by the full Senate Ways and Means committee. Iowa Housing Partnership SUPPORTS.

SF590 : Senator Mark Lofgren’s legislation, formerly SF 100, provides for the creation of land banks. Senators Dawson, Jochum, and Roby Smith held a subcommittee on the bill and moved it forward for consideration by the full Ways and Means committee, where it was also approved. Iowa Housing Partnership SUPPORTS.

HF 833: This legislation (formerly HF 442) allows for the termination of a tenancy only for material violations of the lease, for legitimate business reasons and due to changes in use for the land for mobile and manufactured homes. The bill did not receive a floor vote in the House, however, the bill’s sponsor, Rep. Brian Lohse, has filed an amendment with similar protections onto another bill, SF 469, relating to mobile homes. SF 469 is currently on the unfinished business calendar and awaits potential consideration by the House Chamber. Client is unregistered/monitoring.

Thank You!

We would like to thank Polk County Continuum of Care for their renewal this past week!

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From the President's Desk...

After a slight detour, we are back to introducing board members, with this week it being Mr. Bret Mills (pictured left).

I first met Mr. Mills at an open house for The Antlers project in Spirit Lake, Iowa. As with many things being Iowa, there was not six degrees of separation, but literally just one.

It turned out that Bret was from Linn Grove, which was close to Royal, Iowa (“A Prince of a Community”), the same town my wife is from, and where my father-in-law was the football coach and actually coached Bret’s brother!

Bret currently serves as president for Conlin Properties, Inc., which he joined in 2011 after serving as the director of the Iowa Department of Economic Development (IDED). Prior to working in economic development, Bret served as the executive director of the Iowa Finance Authority (IFA) after serving as its Chief Financial Officer. Prior to joining IFA, Bret worked at the Iowa Treasurer of State’s office as a deputy treasurer.

He has also enjoyed his service to various community organizations. Bret has bachelor’s degrees from the University of Iowa and Drake University as well as a MBA from Drake University. He is a CPA, has also earned the HCCP designation, and NDC’s Housing Development Finance Professional.

I recall from our initial meetings, Bret made not only a great impression on me for his genuine concern about affordable housing, but his calm approach to it. Indeed, he made a comment to me, upon his being the Executive Director of IFA, he asked me “What can we do better?”

That stuck with me, because it is a great question – not only one that deserves an answer, but also, a question that should be continuously asked.

So I ask you:

What can we do better for affordable housing in Iowa?

Let’s join together and push to a common goal of improving access to affordable housing in Iowa and create a network which supports our efforts. We invite you to participate in our upcoming events and welcome your suggestions and ideas.

—Dan Garrett