Natural disaster relief bill heads to Iowa governor

DES MOINES — Nearly a year after Iowa saw historic flooding and fatal tornadoes, legislation proposed by Gov. Kim Reynolds that would help fund and streamline the assistance process for rebuilding after natural disasters is going to her desk for approval.

Last June, northwestern Iowa experienced record flooding that impacted dozens of communities and thousands of homes. The rest of Iowa was also hit by natural disasters with a total of 125 tornadoes touching down across the state, leading to six deaths.

The proposal introduced by Reynolds during her Condition of the State address in January would appropriate $13.6 million from the Economic Emergency Fund to the Disaster Recovery Housing Assistance Program to provide disaster aid to impacted Iowans.

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Republican Rep. Megan Jones, of Sioux Rapids, whose family and hometown were hit by the 2024 floods in northwestern Iowa, said the legislation will help provide relief for families who were impacted by floods and tornadoes, and those who will experience natural disasters in the future.

“I'm relieved from a lessons-learned perspective. I know that we're growing through all of this, but we're moving on from what we experienced,” Jones said.

Jones said those impacted by last year's natural disasters will receive financial assistance from the legislation once Reynolds signs the bill.

Senate lawmakers unanimously advanced Senate File 619 Wednesday and the House passed the legislation 91-1 Thursday.

"Last year, Iowa had three presidential disaster declarations in two months," Reynolds wrote on social media Thursday. "Our relief programs were vital for helping us rebuild. I look forward to signing the disaster relief bill when it gets to my desk."

The proposal would create the Natural Hazard Mitigation Financing program, a revolving loan program that makes loans available to eligible entities to finance all or part of the costs of projects to build resiliency for future disasters. The program would be led by the state Department of Homeland Security and Emergency Management and the Iowa Finance Authority.

It would also add $2 million to the Nuisance Property and Abandoned Building Fund to assist local communities in tearing down disaster-damaged buildings destroyed by the 2024 flooding and tornadoes that are beyond repair. The legislation would also appropriate $11.6 million to the Iowa Finance Authority, which could provide funding for claims made from the 2024 disasters.

Republican Rep. Ray Sorensen, whose town of Greenfield was struck by a tornado, said advancing the bill means “investing in our community's resilience.” The Greenfield tornado was rated as an EF-4 with top wind speeds between 175 and 185 mph. It killed five people and injured 35.

“Over 100 homes flattened to their foundations in less than a minute, people ripped from their basement,” Sorensen said. “We lost lives, and many more will never be made whole again. But we are rebuilding.”

What would the bill do?

Aside from putting money toward disaster aid for Iowans, Reynolds’ proposal also includes technical changes that would help streamline and speed up state disaster assistance.

One change would be making adjustments to insurance regulations aiming to protect consumers and homeowners from unfair practices during the assessment of damage to their property after a natural disaster. It would include requiring licensing for public adjusters, independent adjusters, appraisers and umpires. Licensure applicants must secure a surety bond of at least $50,000 and pass a written exam.

Anyone acting as an adjuster without a license would be guilty of a Class D felony, which is punishable by up to five years in prison and a fine of between $750 and $7,500.

During assessments of property damage, umpires serve as the middle party between a public insurance adjuster who works solely for the impacted policy holder and a private insurance adjuster who is a third party hired by an insurance company. Umpires currently don’t have to be licensed, but Reynolds’ proposal would require them to be in order to weed out those who treat homeowners unfairly in the process.

Some of the other changes in the legislation include: