Feb

HF 2423 (formerly HF 2160) loan forgiveness under the residential landlord business support program‏

By Joe Kelly

House File 2423 - Introduced




                                 HOUSE FILE       
                                 BY  COMMITTEE ON REBUILD
                                     IOWA AND DISASTER
                                     RECOVERY

                                 (SUCCESSOR TO HF 2160)

                                      A BILL FOR

  1 An Act relating to loan forgiveness under the residential
  2    landlord business support program and including effective
  3    date and applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  RENTAL REHABILITATION.  Upon approval by the
  1  2 United States department of housing and urban development,
  1  3 forgivable loans made by the department of economic development
  1  4 from community development block grant supplemental disaster
  1  5 recovery funds pursuant to rental rehabilitation guidelines for
  1  6 small and large projects shall be forgivable over a five=year
  1  7 period.  One=fifth of the total principal amount loaned shall
  1  8 be forgiven following each full year the recipient owns the
  1  9 property for which the loan was made, beginning on the date of
  1 10 the final disbursement of the forgivable loan proceeds.  To
  1 11 each financial award recipient receiving assistance prior to
  1 12 the effective date of this Act, the department of economic
  1 13 development shall offer to renegotiate the terms of the
  1 14 financial assistance award contract in accordance with this
  1 15 Act.
  1 16    Sec. 2.  EFFECTIVE UPON ENACTMENT AND APPLICABILITY.  This
  1 17 Act, being deemed of immediate importance, takes effect upon
  1 18 enactment and applies, upon approval by the United States
  1 19 department of housing and urban development, to contracts
  1 20 entered into before, on, and after the effective date of this
  1 21 Act.
  1 22                           EXPLANATION
  1 23    This bill relates to loan forgiveness for loans using
  1 24 community development block grant supplemental disaster
  1 25 recovery moneys for certain rental rehabilitation projects.
  1 26    The bill provides that, upon approval by the United States
  1 27 department of housing and urban development, forgivable loans
  1 28 made by the department of economic development from community
  1 29 development block grant supplemental disaster recovery moneys
  1 30 pursuant to rental rehabilitation guidelines for small and
  1 31 large projects shall be forgivable over a five=year period.
  1 32 The bill provides that, to each financial award recipient
  1 33 receiving assistance prior to the effective date of the
  1 34 bill, the department of economic development shall offer
  1 35 to renegotiate the terms of the financial assistance award
  2  1 contract in accordance with the bill.
  2  2    The bill takes effect upon enactment and applies, upon
  2  3 approval by the United States department of housing and urban
  2  4 development, to contracts entered into before, on, and after
  2  5 the effective date of the bill.
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