This bill aims to enhance economic development and housing in Iowa by modifying existing provisions related to economic development programs and urban renewal laws. It expands the definition of economic development to include the provision of workforce housing and introduces new development policies that prioritize workforce housing. Additionally, the bill redefines "low or moderate income families" to align with updated terminology and establishes a new category for "low and moderate income family housing," which includes housing that meets specific workforce housing requirements.

Furthermore, the bill alters the requirements for municipalities regarding low and moderate income family housing in urban renewal projects. For projects approved after July 1, 2025, municipalities of any population size will only need to allocate 20% of the original project cost for low and moderate income family housing, regardless of previous minimum requirements. It also extends the duration for tax increment financing from 10 to 20 years for these projects. The bill excludes school district foundation property taxes from the division of revenue for urban renewal, ensuring these taxes are collected and paid directly to the school districts. Lastly, it sets limitations on the amount of taxes that can be allocated to the municipality's urban renewal special fund after a specified period, directing excess amounts to the respective taxing districts.

Statutes affected:
Introduced: 15A.1, 403.17, 403.19, 403.9