ARC 9298C - Iowa Administrative Rules

Adopted and Filed

Variance procedures for tax increment financing (TIF) housing projects, ch 26

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ARC 9298C

ECONOMIC DEVELOPMENT AUTHORITY[261]

Adopted and Filed

Rulemaking related to variance procedures for tax increment financing housing projects

The Economic Development Authority hereby rescinds Chapter 26, “Variance Procedures for Tax Increment Financing (TIF) Housing Projects,” Iowa Administrative Code, and adopts a new chapter with the same title.

Legal Authority for Rulemaking

This rulemaking is adopted under the authority provided in Iowa Code sections 15.106A and 403.22.

State or Federal Law Implemented

This rulemaking implements, in whole or in part, Iowa Code section 403.22.

Purpose and Summary

Pursuant to Executive Order 10, the Authority is rescinding Chapter 26 and adopting a new chapter in lieu thereof. The chapter describes the procedures by which the Authority considers and approves variance requests for the low- and moderate-income set aside required for TIF-financed residential developments.

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.

Public Comment and Changes to Rulemaking

Notice of Intended Action for this rulemaking was published in the Iowa Administrative Bulletin on February 19, 2025, as ARC 8925C. A public hearing was held on the following date(s):

●March 11, 2025

●March 13, 2025

No one attended the public hearings. No public comments were received. No changes from the Notice have been made.

Adoption of Rulemaking

This rulemaking was adopted by the Authority Board on April 18, 2025.

Fiscal Impact

This rulemaking has no fiscal impact to the State of Iowa.

Jobs Impact

After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Authority for a waiver of the discretionary provisions, if any, pursuant to 261—Chapter 199.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

Effective Date

This rulemaking will become effective on July 2, 2025.

The following rulemaking action is adopted:

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.

[Filed 5/7/25, effective 7/2/25]

[Published 5/28/25]

EDITOR’S NOTE: For replacement pages for IAC, see IAC Supplement 5/28/25.