The proposed bill allows local governments in Iowa to create Economic Property Assessed Capital Expenditure (E-PACE) programs, enabling property owners of agricultural, commercial, industrial, or multifamily residential properties to secure low-cost, long-term financing for qualifying improvements. It outlines the definitions, requirements, and processes for implementing E-PACE assessments, emphasizing the public benefits such as economic development, reduced insurance costs, and enhanced sustainability. Key provisions include the establishment of a framework for local governments, the definition of qualified improvements, and the stipulation that E-PACE assessments can only be imposed after project approval.

Additionally, the bill ensures that E-PACE assessments will run with the land, preventing acceleration of payments due to foreclosure of a property tax lien, and prohibits local governments from making permits or licenses contingent upon entering into E-PACE agreements. It also clarifies that public funds cannot be used to finance loans between capital providers and property owners, and that local governments are not pledging their full faith and credit in relation to E-PACE programs. Overall, the legislation aims to promote sustainable property improvements while providing financial support to property owners without imposing undue conditions.