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 policies that prioritize the development of such housing. Additionally, it clarifies the definition of low and moderate income family housing and adjusts the terminology used in the relevant legal framework. The bill also outlines specific provisions regarding the allocation of property taxes related to urban renewal projects, particularly emphasizing the exclusion of certain school district taxes from tax increment financing.

Furthermore, the bill establishes limitations on the amount of property value that can be included in urban renewal areas over time, starting with a cap of 96.25% of total property value in the fiscal year beginning July 1, 2026, and gradually reducing this percentage in subsequent years. It also modifies requirements for low and moderate income housing assistance in urban renewal projects, allowing for reduced obligations under certain conditions. Overall, the legislation seeks to balance the need for urban renewal with the financial interests of municipalities and the provision of affordable housing.

Statutes affected:
Introduced: 15A.1, 403.17, 403.19, 403.9, 403.5A