This bill aims to enhance economic development and housing in Iowa by modifying existing laws related to economic development programs and urban renewal. 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" and establishes a new category for "low and moderate income family housing," which encompasses housing that meets specific workforce housing requirements.

Furthermore, the bill alters the conditions under which municipalities can utilize tax increment financing for housing projects. It allows municipalities of any population size to reduce the required contribution for low and moderate income family housing to 20% of the original project cost for public improvement projects approved after July 1, 2025, in areas that have been within city limits for at least 20 years. The bill also extends the duration for tax revenue allocation related to these projects to 20 fiscal years and excludes certain school district property taxes from the division of revenue, ensuring they are collected and paid directly to the school district.

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