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 a consideration for public funding decisions. Additionally, it 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 encompasses 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, in areas that have been within city limits for 20 years or more, 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 requirements. It also extends the duration for tax increment financing from 10 to 20 fiscal years for these projects, thereby providing greater flexibility and support for housing development in urban renewal areas.

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