Iowa 2025-2026 Regular Session

Iowa House Bill HF171

Introduced
1/30/25  

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.

Impact

If enacted, HF171 could significantly enhance the resources directed towards the HTF, thereby aiding the development and preservation of affordable housing projects statewide. This change is anticipated to improve the financial framework supporting low-income families, offering them better access to housing opportunities. The modification of RETT allocations may lead to an increase in available funds for housing-related initiatives, which could help alleviate housing shortages and improve living conditions for those in need.

Summary

House File 171 proposes the removal of the existing $7 million annual cap on the amount of real estate transfer tax (RETT) receipts that can be transferred into the housing trust fund (HTF) in Iowa. Currently, the law stipulates that while a portion of the RETT is allocated to the HTF, any receipts exceeding the $7 million threshold are redirected to the state general fund. By eliminating this cap, the bill aims to increase funding available for affordable housing initiatives and support low-income individuals seeking mortgage assistance in the state.

Contention

However, the bill's removal of the financial cap may also raise concerns regarding the prioritization of funds. Some state legislators and stakeholders could argue that the automatic transfer of excess RETT receipts to the general fund is a safeguard that ensures balanced state revenue. Critics may worry that increased funding for the HTF could come at the expense of other essential state services or programs that rely on general fund allocations, potentially igniting debates about budget priorities among legislators. The discussions surrounding HF171 may also involve broader conversations about state financial management and the effectiveness of housing initiatives.

Companion Bills

IA SF436

Similar To 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.

Previously Filed As

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 HB530

Increasing the amount of revenue transfered from the real estate transfer tax to the affordable housing 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 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 SB510

Requiring interest earnings of the parks fee fund to be transferred to such fund each month.

IA SJR75

Proposing a constitutional amendment creating the workforce housing fund to facilitate the development of affordable workforce housing and transferring to that fund $2 billion from state general revenue.

IA A1229

Provides municipality with affordable housing credit toward its municipal fair share housing obligation for funds transferred to the New Jersey Affordable Housing Trust Fund pursuant to P.L.2008, c.46.

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.

IA HB951

Transferring funds to local road and bridge account

Similar Bills

No similar bills found.