Disaster aid bill heading to governor

DES MOINES -- Disaster-ravaged Iowa communities would be offered new incentives to spur redevelopment and enhanced bonding authority under legislation the Iowa Senate approved and sent to Gov. Chet Culver on Thursday.

Senate File 457 would allow cities and counties to establish revitalization zones where they could abate taxes for up to five years on improvements made to property in areas covered by presidential or gubernatorial disaster declarations. It also would give cities and counties enhanced bonding authority to deal with disaster damage.

It also would help homeowners and businesses by taxing their properties based on their 2007 assessments and abating up to 100 percent of the increased value of the property as a result of redevelopment investments. A separation provision would establish a new state housing tax credit to encourage larger-scale investments in affordable, multifamily units in disaster-affected communities.

Under the bill, cities or counties wishing to implement the incentive would have to adopt a plan for mitigating future disaster damages. They would have until 2011 to start that process and those in compliance could offer the tax incentive program through 2016.

The bill would allow disaster-affected communities to bond for improvements over 30 years instead of the current 20 years. It also would change Iowa law to allow cities and counties to participate in Midwest disaster recovery bonds.

Another provision includes legalizing language for disaster-hit communities that have exceeded their certified budgets through last June 30 to respond to emergencies that began with last May's tornadoes and carried over into June flooding disasters. Emergency response measures taken that may have run afoul of the budget certification process would be legalized and validated by Senate File 457.

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rod.boshart@gazcomm.com