This bill modifies economic development provisions related to housing and residential development in urban renewal areas in Iowa. It expands the definition of economic development to include the provision of workforce housing and adds development policies that promote workforce housing as factors to be considered when public funds are allocated for economic development. Additionally, the bill redefines "low or moderate income families" to "low and moderate income families" and introduces a new definition 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 public improvement projects. For projects approved on or 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 fiscal years for these projects, thereby providing municipalities with greater flexibility in funding housing initiatives within established urban renewal areas.

Statutes affected:
Introduced: 15A.1, 403.17, 403.22