ARC 8925C

ARC 8925C

Proposing rulemaking related to variance procedures for tax increment financing housing projects and providing an opportunity for public comment

The new chapter eliminates language that is duplicative of statutory language and eliminates other unnecessary and inconsistent language. Additionally, the new chapter would provide updated criteria for evaluation of variance requests.

A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 27, 2024. A public hearing was held on the following date(s):

●December 20, 2024

Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Authority and advise of specific needs.

ITEM 1.Rescind 261—Chapter 26 and adopt the following new chapter in lieu thereof:

CHAPTER 26

VARIANCE PROCEDURES FOR TAX INCREMENT FINANCING (TIF) HOUSING PROJECTS

261—26.1(403) Purpose. The authority is given the responsibility to rule on requests for variances in the percentage of low- and moderate-income benefit required in certain tax increment financing (TIF) districts for residential development as prescribed in the law. These rules establish procedures and criteria for variance requests.

261—26.2(403) Definitions.

“Authority” means the economic development authority created in Iowa Code section 15.105.

“Housing project” means a project in an urban renewal area established solely upon findings under Iowa Code section 403.2(3) that is primarily intended to support housing activities. These may include but are not limited to the following: public streets and utilities, site preparation, housing rehabilitation, real property acquisition, new housing construction, and conversion of existing structures into housing units.

“Low- or moderate-income families” or “LMI families” means the same as “low or moderate income families” as defined in Iowa Code section 403.17.

“Municipality” means the same as defined in Iowa Code section 403.17.

261—26.3(403) Variance request procedure.

26.3(1) A municipality may request a variance at any time.

26.3(2) Requests for a variance shall be submitted on forms prescribed by the authority. The authority may request additional information from the municipality as part of the application review. Application information will be available on the authority’s website.

26.3(3) The authority may modify the request to maximize the level of benefit to low- or moderate-income families, while preserving the financial feasibility of the TIF-supported housing project.

26.3(4) The authority will notify municipalities of its decision in writing. If the request is approved, the authority will indicate the level of the variance and the conditions for compliance with the variance. If the request is denied, the authority will state its reasons for the denial.

261—26.4(403) Criteria for review. The authority will review the application on the following criteria:

1.Financial feasibility of the housing project with and without a variance of the low- and moderate-income benefit percentage.

2.Percentage of low- or moderate-income families in the community at the time of application as determined by the latest United States Department of Housing and Urban Development, Section 8, income guidelines.

3.Plan to utilize funds for housing activities benefitting low- or moderate-income families.

4.Other factors that may impact the project’s need for a variance as determined by the authority.

These rules are intended to implement Iowa Code section 403.22.