Iowa 2023-2024 Regular Session

Iowa House Bill HSB557

Introduced
1/16/24  
Introduced
1/16/24  

Caption

A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.(See HF 2188, HF 2634.)

Impact

The passage of HSB557 may significantly enhance the state's ability to address housing needs. Increased funding for the HTF could lead to expanded programs aimed at alleviating the affordable housing crisis, providing more resources for low-income families, and potentially helping to reduce homelessness in Iowa. As housing costs continue to rise, a more robust funding mechanism could facilitate the creation and preservation of affordable units, thus benefiting many residents who struggle in the current market.

Summary

House Study Bill 557 proposes the removal of the annual cap on the amount of real estate transfer tax (RETT) receipts that can be allocated to the housing trust fund (HTF) in Iowa. Currently, the Iowa Department of Revenue is limited to transferring a maximum of $7 million into the HTF each year, which is a fund designed to support the development and preservation of affordable housing for low-income individuals and families. By eliminating this cap, the bill intends to provide a greater source of funding for the HTF, potentially increasing the resources available for housing initiatives across the state.

Contention

Opponents of the bill might argue that removing the cap could lead to budgetary constraints elsewhere in the state budget, as higher tax receipts could result in reduced funds available for other state priorities. Additionally, there may be concerns about how the additional funds will be allocated, ensuring they meet the needs of those truly requiring assistance. The discussion around this bill may bring to light the balance needed between addressing affordable housing and managing overall state financial responsibilities.

Companion Bills

IA HF2188

Replaced by A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.(Formerly HSB 557; See HF 2634.)

IA HF2634

Replaced by A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.(Formerly HF 2188, HSB 557.)

Previously Filed As

IA HF171

A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.

IA SF436

A bill for an act removing the maximum annual amount of real estate transfer tax receipts that may be transferred into the housing trust fund.

IA S0253

Establishes a new program where the per pupil funding, calculated annually by RIDE, would be transferred into a newly created educational funding account run by the children's scholarship fund to pay for educational expenses.

IA S2540

Establishes a new program where the per pupil funding, calculated annually by RIDE, would be transferred into a newly created educational funding account run by the children's scholarship fund to pay for educational expenses.

IA HB530

Increasing the amount of revenue transfered from the real estate transfer tax to the affordable housing fund.

IA HB2298

Transferring $1,000,000,000 from the budget stabilization fund to the liability reduction fund of KPERS, using a portion of the interest earnings of the liability reduction fund to provide a 2% COLA for retirants who have been retired for more than 5 years, transferring annually certain amounts from the state general fund to the budget stabilization fund and establishing requirements for the expenditure or transfer of moneys from the budget stabilization fund.

IA HF112

A bill for an act relating to the maximum annual gross income for an enterprise to qualify as a targeted small business.(See HF 872.)

IA HB261401

Concerning transfers of money from the unclaimed property trust fund, and, in connection therewith, transferring money from the unclaimed property trust fund to the housing development grant fund and the general fund in state fiscal year 202...

IA HF872

A bill for an act relating to the maximum annual gross income for an enterprise to qualify as a targeted small business. (Formerly HF 112.)

IA HF1159

Eligible uses of increment from tax increment financing districts expanded to include transfers to local housing trust funds, and requirements on use of transferred increment imposed.

Similar Bills

No similar bills found.