Senate File 590 - Introduced
SENATE FILE 590
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SF 100)
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 is vacant or a building on
3 a parcel has remained vacant for a period of at least six
4 consecutive months and is in need of rehabilitation.
5 2. “Blighted” means a vacant parcel or a parcel containing
6 a building is unsafe with objectively determinable signs of
7 deterioration sufficient to constitute a threat to human
8 health, safety, and welfare.
9 3. “Board” means the board of directors of a land bank.
10 4. “Dilapidated” means a parcel containing a building is in
11 a state of deterioration as a result of age or neglect.
12 5. “Geographical boundaries of the land bank” means the
13 jurisdiction of the municipality that created the land bank
14 or in the case of any combination of municipalities creating
15 a single land bank or joining an existing land bank, the
16 combined jurisdictions of the municipalities. In the case of a
17 land bank created by a county, such land bank’s jurisdiction
18 includes only the area of the county not included within an
19 incorporated city.
20 6. “Land bank” means an entity created under section 358A.4.
21 7. “Local employee” means a person employed by a
22 municipality of this state and does not include an independent
23 contractor.
24 8. “Local official” means an officeholder of a municipality
25 of this state.
26 9. “Municipality” means a city, county, or township.
27 10. “Rehabilitation” means the action of restoring to its
28 former condition something that has deteriorated or has been
29 damaged.
30 Sec. 4. NEW SECTION. 358A.4 Creation.
31 1. A land bank organized under this chapter shall be a
32 body corporate and politic, with the name under which it was
33 organized, and may sue and be sued in its own name, contract
34 and be contracted with, acquire and hold real and personal
35 property necessary for corporate purposes, adopt a corporate
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1 seal and alter the same at pleasure, and exercise all the
2 powers conferred in this chapter.
3 2. a. Any municipality may create a land bank. Creation
4 shall be by ordinance in the case of a city or by resolution in
5 the case of a county or township. The ordinance or resolution
6 shall make reference to the purposes listed under section
7 358A.2.
8 b. Any municipality may create a land bank in combination
9 with one or more other municipalities. Municipalities seeking
10 to create such a land bank shall comply with the procedures set
11 forth in chapter 28E. A land bank shall be considered a public
12 agency for the purposes of chapters 28E and 28H.
13 c. (1) Any city or township passing an ordinance or a
14 resolution or entering into a chapter 28E agreement creating
15 a land bank pursuant to this section shall promptly deliver
16 copies of the ordinance, resolution, or agreement to the
17 auditor, treasurer, and the county attorney of each county in
18 which the municipality is situated.
19 (2) Any board of supervisors adopting a resolution or
20 entering into a chapter 28E agreement creating a land bank
21 pursuant to this section shall deliver a copy of the resolution
22 or agreement to the county auditor, county treasurer, and
23 county attorney.
24 3. a. The enabling ordinance or resolution, or chapter
25 28E agreement, shall set forth any restrictions or required
26 procedures that exceed those set forth in this chapter.
27 b. A chapter 28E agreement relating to a land bank shall
28 include procedures for the distribution of assets between
29 participating municipalities upon the dissolution of the land
30 bank.
31 c. Unless otherwise limited in the ordinance, resolution,
32 or chapter 28E agreement, the powers and procedures of a newly
33 created land bank shall be the powers and procedures specified
34 in this chapter.
35 4. A council of governments established in section 28H.1
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1 shall not form a land bank. However, pursuant to a chapter
2 28E agreement, a council of governments may provide community
3 development services, planning services, and technical
4 assistance to a land bank.
5 Sec. 5. NEW SECTION. 358A.5 Board of directors.
6 1. a. A land bank shall have a board of directors in which
7 all powers of the land bank shall be vested.
8 b. Unless restricted by the enabling ordinance, resolution,
9 or agreement as specified in section 358A.4, the provisions of
10 this section shall apply to the governance of a land bank.
11 2. The membership of the board shall be established in the
12 bylaws of the land bank.
13 3. a. A local official may serve as a board member, and
14 service as a board member shall neither terminate nor impair
15 the local official’s office.
16 b. A local employee shall be eligible to serve as a board
17 member.
18 4. Board members shall serve without compensation.
19 However, the board may reimburse a member for expenses actually
20 incurred in the performance of duties on behalf of the land
21 bank as provided in bylaws adopted pursuant to subsection 5.
22 5. a. Upon creation by the enabling ordinance, resolution,
23 or agreement as specified in section 358A.4, the board shall
24 adopt bylaws addressing matters necessary to govern the conduct
25 of the land bank and shall meet as the bylaws prescribe.
26 b. When in actual conflict, the ordinances, resolutions, or
27 agreements described in section 358A.4 shall control over any
28 bylaws adopted by the board.
29 6. Except as set forth in the enabling ordinance,
30 resolution, or agreement, or as set forth by a land bank in
31 its bylaws, an action of the board must be approved by the
32 affirmative vote of a majority of the board present and voting.
33 7. Members of the board shall not be liable personally on
34 the obligations of the land bank, and rights of creditors of a
35 land bank shall be solely against the land bank.
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1 Sec. 6. NEW SECTION. 358A.6 Staff.
2 1. A land bank may employ or contract for the employment of
3 any persons the land bank may require to fulfill the objectives
4 of its bylaws and this chapter.
5 2. An employee of the land bank is not and shall not be
6 deemed to be an employee of the municipality for whose benefit
7 the land bank is organized solely because the employee is
8 employed by the land bank.
9 3. A land bank is an employer as defined in section 97B.1A,
10 subsection 9, paragraph “a”, and an employee of the land bank is
11 an employee as defined in section 97B.1A, subsection 8.
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 the power to perform all actions
15 necessary or convenient to carry out the purposes set forth in
16 this chapter, including but not limited to all of the following
17 powers:
18 a. To borrow money for any of the purposes of the land bank
19 by means of loans, lines of credit, or any other financial
20 instruments or securities other than through the issuance
21 of bonds, debentures, or notes. A land bank may secure its
22 indebtedness by mortgage, pledge, deed of trust, or other lien
23 on its property, franchises, rights, and privileges of every
24 kind and nature or any part thereof or interest therein. The
25 funds borrowed by the land bank are payable as to principal,
26 interest, and any other amounts owed the lender solely from
27 the proceeds from the net revenues of the land bank and are
28 not a debt of or charge against any of the municipalities that
29 formed the land bank within the meaning of any constitutional
30 or statutory debt limitation provision. For purposes of this
31 subsection:
32 (1) “Gross revenues” means the income and receipts of the
33 land bank from any source whatsoever, including but not limited
34 to contributions from private parties or member municipalities,
35 sale or lease of rehabilitated properties, and collection of a
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1 portion of the property taxes during the five-year period after
2 sale or lease of the rehabilitated property.
3 (2) “Net revenues” means the gross revenues of the land bank
4 less the land bank’s operating expenses.
5 b. To petition for abatement pursuant to chapter 657A.
6 A land bank is an “interested person” for purposes of that
7 chapter.
8 c. To contract with the federal government, the state,
9 a subdivision of the state, and any other party, whether
10 nonprofit or for-profit.
11 2. The powers enumerated in this chapter shall not be
12 construed to limit the general powers of a land bank or a
13 municipality. The powers granted under this chapter are in
14 addition to the powers granted by any other section of the
15 Code, but as to a land bank, shall be used only for the purposes
16 set forth in section 358A.2.
17 Sec. 8. NEW SECTION. 358A.8 Eminent domain.
18 A land bank shall not possess or exercise the power of
19 eminent domain, including under chapters 6A and 6B.
20 Sec. 9. NEW SECTION. 358A.9 Acquisition of property.
21 1. a. Except as provided in section 358A.8, a land bank may
22 acquire, hold, own, accept, and otherwise obtain real property
23 or interests in real property by gift, devise, transfer,
24 exchange, foreclosure, purchase, or otherwise, on terms and
25 conditions and in a manner the board considers is in the best
26 interest of the land bank and consistent with the purposes set
27 forth in section 358A.2 and the land bank’s bylaws.
28 b. A land bank may acquire tax sale certificates at a tax
29 sale conducted under chapter 446 and may subsequently acquire
30 title through tax lien foreclosure procedures. A land bank
31 shall not be considered a city or county for purposes of
32 bidding on and acquiring tax sale certificates under chapter
33 446, redeeming property under chapter 447, or obtaining a tax
34 sale deed under chapter 448.
35 c. The acquisition of property by the land bank shall not
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1 be governed or controlled by any regulations or laws relating
2 to procurement or acquisition of property of any municipality
3 that created the land bank, unless specifically provided in the
4 ordinance, resolution, or chapter 28E agreement establishing
5 the land bank.
6 d. Except as otherwise provided in paragraph “e”, a land
7 bank shall not own or hold real property located outside the
8 geographical boundaries of the land bank.
9 e. A land bank may be granted, pursuant to an
10 intergovernmental contract with a political subdivision of
11 this state, the authority to manage and maintain real property
12 located within the geographical boundaries of the political
13 subdivision, but outside the geographical boundaries of the
14 land bank. If a land bank receives a gift or devise of real
15 property located outside of the geographical boundaries of the
16 land bank, the land bank shall dispose of such property by sale
17 or exchange as soon as reasonably practicable.
18 2. A land bank shall maintain all of its real property in
19 accordance with the laws and ordinances of the jurisdiction in
20 which the real property is located.
21 3. A land bank shall maintain and make available for public
22 review and inspection an inventory of all real property held
23 by the land bank.
24 Sec. 10. NEW SECTION. 358A.10 Disposition of property.
25 1. A land bank may convey, exchange, sell, transfer, lease,
26 grant, mortgage, or otherwise dispose of interests in real
27 property of the land bank at such times, to such persons, upon
28 such terms and conditions, and subject to such restrictions and
29 covenants as the land bank deems necessary or appropriate to
30 assure the effective use of the land bank in accordance with
31 the purposes of section 358A.2 and consistent with the land
32 bank’s bylaws.
33 2. A land bank shall determine the amount and form of
34 consideration necessary to convey, exchange, sell, transfer,
35 lease, grant, mortgage, or otherwise dispose of interests in
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1 real property. Consideration may take the form of monetary
2 payments and secured financial obligations, covenants and
3 conditions related to the present and future use of the
4 property, contractual commitments by the transferee, and other
5 forms of consideration as determined by the board to be in the
6 best interest of the land bank and consistent with its bylaws.
7 3. A municipality may in the ordinance or resolution
8 creating a land bank, or in the chapter 28E agreement in the
9 case of any combination of municipalities creating a single
10 land bank, require that a particular form of disposition of
11 real property or a disposition of real property located within
12 a specified jurisdiction be subject to specified voting and
13 approval requirements of the board.
14 Sec. 11. NEW SECTION. 358A.11 Financing.
15 1. A land bank may receive funding through grants, loans,
16 and other moneys from the municipality that created the land
17 bank, from other municipalities, from the state, from the
18 federal government, and from any other public and private
19 sources, including but not limited to donations, gifts, or
20 bequests.
21 2. A land bank may receive and retain payments for services
22 rendered, for rents and leasehold payments received, for
23 consideration for disposition of real and personal property,
24 for proceeds of insurance coverage for losses incurred, for
25 income from investments, and for any other asset and activity
26 lawfully permitted to a land bank under this chapter.
27 3. Up to seventy-five percent of the real property taxes
28 remaining after the division of taxes pursuant to section
29 403.19, if applicable, and exclusive of any amount levied by a
30 school district, collected on real property that a land bank
31 has conveyed or leased to a third party shall be remitted
32 to the land bank. The allocation of property tax revenues
33 shall commence with property taxes p