Senate File 100 - Introduced
SENATE FILE 100
BY LOFGREN and DAWSON
A BILL FOR
1 An Act relating to the creation of land banks.
2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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1 DIVISION I
2 LAND BANKS
3 Section 1. NEW SECTION. 358A.1 Short title.
4 This chapter shall be known and may be cited as the “Iowa
5 Land Bank Act”.
6 Sec. 2. NEW SECTION. 358A.2 Legislative intent.
7 The general assembly finds and declares all of the
8 following:
9 1. Iowa’s communities are important to the social and
10 economic vitality of this state. Whether urban, suburban,
11 or rural, many communities are struggling with dilapidated,
12 abandoned, blighted, and tax-delinquent properties.
13 2. Citizens of Iowa are affected adversely by dilapidated,
14 abandoned, blighted, and tax-delinquent properties,
15 including properties that have been abandoned due to mortgage
16 foreclosure.
17 3. Dilapidated, abandoned, blighted, and tax-delinquent
18 properties impose significant costs on neighborhoods and
19 communities by lowering property values, increasing fire
20 and police protection costs, decreasing tax revenues, and
21 undermining community cohesion.
22 4. There is an overwhelming public need to confront the
23 problems caused by dilapidated, abandoned, blighted, and
24 tax-delinquent properties; to return properties that are in
25 non-revenue-generating, non-tax-producing status to productive
26 status in order to revitalize urban, suburban, and rural
27 areas, provide affordable housing, and attract new industry;
28 and to create jobs for the citizens of this state through the
29 establishment of new tools that enable communities to turn
30 abandoned spaces into vibrant places.
31 5. Land banks are one of the tools that communities can use
32 to facilitate the return of dilapidated, abandoned, blighted,
33 and tax-delinquent properties to productive use.
34 Sec. 3. NEW SECTION. 358A.3 Definitions.
35 As used in this chapter, unless the context otherwise
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1 requires:
2 1. “Abandoned” means a parcel containing a building has
3 remained vacant for a period of at least twelve consecutive
4 months and is in need of rehabilitation.
5 2. “Blighted” means a parcel containing a building is unsafe
6 with objectively determinable signs of deterioration sufficient
7 to constitute a threat to human health, safety, and welfare.
8 3. “Board” means the board of directors of a land bank.
9 4. “Dilapidated” means a parcel containing a building is in
10 a state of deterioration as a result of age or neglect.
11 5. “Geographical boundaries of the land bank” means the
12 jurisdiction of the municipality that created the land bank
13 or in the case of any combination of municipalities creating
14 a single land bank or joining an existing land bank, the
15 combined jurisdictions of the municipalities. In the case of a
16 land bank created by a county, such land bank’s jurisdiction
17 includes only the area of the county not included within an
18 incorporated city.
19 6. “Land bank” means an entity created under section 358A.4.
20 7. “Local employee” means a person employed by a
21 municipality of this state and does not include an independent
22 contractor.
23 8. “Local official” means an officeholder of a municipality
24 of this state.
25 9. “Municipality” means a city, county, or township.
26 10. “Rehabilitation” means the action of restoring to its
27 former condition something that has deteriorated or has been
28 damaged.
29 Sec. 4. NEW SECTION. 358A.4 Creation.
30 1. A land bank organized under this chapter shall be a
31 body corporate and politic, with the name under which it was
32 organized, and may sue and be sued in its own name, contract
33 and be contracted with, acquire and hold real and personal
34 property necessary for corporate purposes, adopt a corporate
35 seal and alter the same at pleasure, and exercise all the
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1 powers conferred in this chapter.
2 2. a. Any municipality may create a land bank. Creation
3 shall be by ordinance in the case of a city or by resolution in
4 the case of a county or township. The ordinance or resolution
5 shall make reference to the purposes listed under section
6 358A.2.
7 b. Any municipality may create a land bank in combination
8 with other municipalities. Municipalities seeking to create
9 such a land bank shall comply with the procedures set forth in
10 chapter 28E. A land bank shall be considered a public agency
11 for the purposes of chapters 28E and 28H.
12 c. (1) Any city or township passing an ordinance or a
13 resolution or entering into a chapter 28E agreement creating
14 a land bank pursuant to this section shall promptly deliver
15 copies of the ordinance, resolution, or agreement to the
16 auditor, treasurer, and the county attorney of each county in
17 which the municipality is situated.
18 (2) Any board of supervisors adopting a resolution or
19 entering into a chapter 28E agreement creating a land bank
20 pursuant to this section shall deliver a copy of the resolution
21 or agreement to the county auditor, county treasurer, and
22 county attorney.
23 3. a. The enabling ordinance or resolution, or chapter 28E
24 agreement, shall set forth all of the following:
25 (1) The initial members of the board and the initial terms
26 of those members.
27 (2) General term lengths and limits for members of the
28 board.
29 (3) Procedures that the board shall follow in exercising
30 discretionary provisions of this chapter.
31 b. A chapter 28E agreement relating to a land bank shall
32 include procedures for the distribution of assets between
33 participating municipalities upon the dissolution of the land
34 bank.
35 c. Unless otherwise limited in the ordinance, resolution,
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1 or chapter 28E agreement, the powers and procedures of a newly
2 created land bank shall be the powers and procedures specified
3 in this chapter.
4 4. A council of governments established in section 28H.1
5 shall not form a land bank. However, pursuant to a chapter
6 28E agreement, a council of governments may provide community
7 development services, planning services, and technical
8 assistance to a land bank.
9 Sec. 5. NEW SECTION. 358A.5 Board of directors.
10 1. a. A land bank shall have a board of directors in which
11 all powers of the land bank shall be vested.
12 b. Unless restricted by the enabling ordinance, resolution,
13 or agreement as specified in section 358A.4, the provisions of
14 this section shall apply to the governance of a land bank.
15 2. a. The membership of the board shall be established in
16 the bylaws of the land bank and shall consist of an odd number
17 of members, which shall be not less than five nor more than
18 eleven.
19 b. Unless otherwise specified by the ordinance, resolution,
20 or agreement under section 358A.4, the default length of a term
21 for a board member shall be four years. The maximum length of a
22 term for a board member shall be five years.
23 c. A land bank may, as determined in the bylaws, limit the
24 number of terms or consecutive terms that members of its board
25 may serve.
26 3. a. A local official may serve as a board member, and
27 service as a board member shall neither terminate nor impair
28 the local official’s office.
29 b. A local employee shall be eligible to serve as a board
30 member.
31 c. The members of a board shall all be voting members.
32 Board members shall, to the extent practicable, include
33 representatives of each of the following:
34 (1) A local government.
35 (2) A chamber of commerce.
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1 (3) Persons with experience in financial services.
2 (4) Persons with experience in real property acquisition or
3 real property development.
4 (5) Persons with experience in nonprofit or affordable
5 housing.
6 (6) Persons who meet all of the following:
7 (a) The person resides in the geographical boundaries of the
8 land bank.
9 (b) The person is not a local official or local employee.
10 d. Requirements provided in paragraph “c” may be satisfied
11 by the appointment of a single voting member who meets more
12 than one of the criteria.
13 e. A member removed under subsection 9 shall be ineligible
14 for reappointment to the board unless the reappointment is
15 confirmed unanimously by the board.
16 4. Annually, the board shall select from the board
17 membership a chair, vice chair, secretary, and treasurer and
18 such other officers as the board deems necessary.
19 5. A vacancy on the board shall be filled following the
20 procedure adopted pursuant to subsection 9. Removal of a
21 member shall cause the position to become vacant.
22 6. Board members shall serve without compensation.
23 However, the board may reimburse a member for expenses actually
24 incurred in the performance of duties on behalf of the land
25 bank as provided in bylaws adopted pursuant to subsection 9.
26 7. The board shall meet as follows:
27 a. In regular session according to a schedule adopted by the
28 board.
29 b. In special session convened by the chair or upon written
30 petition signed by a majority of the members.
31 8. a. A majority of the board, excluding vacancies,
32 constitutes a quorum.
33 b. A board may permit any or all members to participate in
34 a regular or special meeting by, or conduct a meeting through
35 the use of, any means of electronic communication by which all
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1 directors participating can simultaneously hear each other
2 during the meeting. A member participating in a meeting by
3 means of electronic communication is deemed to be present, in
4 person, at the meeting.
5 9. a. The board shall adopt bylaws establishing all of the
6 following:
7 (1) Duties of officers selected pursuant to subsection 4.
8 (2) Requirements for attendance and participation of
9 members at regular and special meetings of the board.
10 (3) A procedure for removal of a member for failure
11 to comply with a bylaw. Removal shall only be made by the
12 affirmative vote of no less than a majority of all of the other
13 members of the board.
14 (4) A procedure detailing prioritization of what and which
15 types of properties to acquire, a procedure for acquisition of
16 properties, and a statement of purpose.
17 (5) A procedure for the terms and conditions relating
18 to disposition of properties, including but not limited to a
19 process for distribution of any proceeds to any claimants or
20 taxing entities, and to any other land bank.
21 (6) A procedure for the establishment, membership, and
22 duties of committees of the board.
23 (7) Rules to determine which expenses may be reimbursed.
24 (8) A procedure for making an appointment to fill a vacancy
25 on the board. The procedure shall include a simple majority
26 vote by the board to approve the appointment.
27 (9) Other matters necessary to govern the conduct of a land
28 bank.
29 b. When in actual conflict, the ordinances, resolutions, or
30 agreements described in section 358A.4 shall control over any
31 bylaws adopted by the board.
32 10. a. Except as set forth in paragraph “b” or “c”, the
33 enabling ordinance, resolution, or agreement, or as set forth
34 by a land bank in its bylaws, an action of the board must be
35 approved by the affirmative vote of a majority of the board
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1 present and voting.
2 b. Action of the board on the following matters must be
3 approved by a majority of the entire board membership excluding
4 vacancies:
5 (1) Adoption of bylaws.
6 (2) Hiring or firing of an employee or contractor of the
7 land bank.
8 (3) Incurring of debt.
9 (4) Adoption or amendment of the annual budget.
10 (5) Sale, lease, encumbrance, or alienation of real
11 property or personal property with a value of more than fifty
12 thousand dollars.
13 c. A resolution regarding dissolution of the land bank under
14 section 358A.17 must be approved by two-thirds of the entire
15 board membership.
16 d. A member of the board shall not vote by proxy.
17 e. A member may request that a vote on any resolution or
18 action of the land bank be recorded.
19 11. Members of the board shall not be liable personally on
20 the obligations of the land bank, and rights of creditors of a
21 land bank shall be solely against the land bank.
22 Sec. 6. NEW SECTION. 358A.6 Staff.
23 1. A land bank may employ or contract for the employment
24 of a secretary, an executive director, legal counsel and legal
25 staff, including the use of student clinicians from a reputable
26 law school in this state with a clinical law program, and such
27 other technical experts and agents and employees, permanent
28 or temporary, as the land bank may require. The land bank
29 may determine the qualifications and fix the compensation and
30 benefits of such persons. A land bank may also enter into
31 contracts and agreements with municipalities or nonprofit
32 entities for staffing services to be provided to the land
33 bank or for a land bank to provide such staffing services to
34 municipalities or agencies or departments of municipalities.
35 2. An employee of the land bank is not and shall not be
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1 deemed to be an employee of the municipality for whose benefit
2 the land bank is organized solely because the employee is
3 employed by the land bank.
4 3. A land bank is an employer as defined in section 97B.1A,
5 subsection 9, paragraph “a”, and an employee of the land bank is
6 an employee as defined in section 97B.1A, subsection 8.
7 4. The land bank shall determine the compensation for an
8 executive director who shall manage the operations of a land
9 bank and employ or contract for the employment of others for
10 the benefit of the land bank as approved and funded by the
11 board of directors.
12 Sec. 7. NEW SECTION. 358A.7 Powers.
13 1. In furtherance of the purposes set forth in section
14 358A.2, a land bank shall have all of the following powers:
15 a. To borrow money for any of the purposes of the land bank
16 by means of loans, lines of credit, or any other financial
17 instruments or securities other than through the issuance
18 of bonds, debentures, or notes. A land bank may secure its
19 indebtedness by mortgage, pledge, deed of trust, or other lien
20 on its property, franchises, rights, and privileges of every
21 kind and nature or any part thereof or interest therein. The
22 funds borrowed by the land bank are payable as to principal,
23 interest, and any other amounts owed the lender solely from
24 the proceeds from the net revenues of the land bank and are
25 not a debt of or charge against any of the municipalities that
26 formed the land bank within the meaning of any constitutional
27 or statutory debt limitation provision. For purposes of this
28 subsection:
29 (1) “Gross revenues” means the income and receipts of the
30 land bank from any source whatsoever, including but not limited
31 to contributions from private parties or member municipalities,
32 sale or lease of rehabilitated properties, and collection of a
33 portion of the property taxes during the five-year period after
34 sale or lease of the rehabilitated property.
35 (2) “Net revenues” means the gross revenues of the land bank
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1 less the land bank’s operating expenses.
2 b. To purchase, receive, hold, manage, lease,
3 lease-purchase, or otherwise acquire and to sell, convey,
4 including a conveyance by installment purchase contract,
5 transfer, lease, sublease, or otherwise dispose of real and
6 personal property, together with any incidental or appurtenant