Disaster recovery bills clear House

DES MOINES - Legislation to help communities and property owners recover from floods and tornadoes last year won House approval Monday.

Following the Senate's lead, the House approved Senate Files 415 to expedite the clean-up of disaster-affected properties and 457 to give provide incentives for rebuilding homes and businesses. Both bills were amended and will be sent back to the Senate for concurrence.

By passing SF 457 97-0 the Legislature is "really sending a message that we are encouraging revitalization of the areas hard hit by last

years' disasters," floor manager Rep. Tyler Olson, D-Cedar Rapids, said.

The bill 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 in dealing with disaster damage. For 10 years after the disaster, the city or county could sell bonds with a 30-year payback to deal with disaster-related projects.

Although Republicans objected to a 30-year payback, Rep. Tom Sands, R-Columbus Junction, encouraged his party members to vote for the bill. A provision added on the floor to provide for a reverse referendum give property taxpayers protection, he said.

Olson defended the 30-year payback. Although local government bonds typically are paid back over 20 years, Olson said SF 457 would "make sure cities and counties dealing with what's been in  some communities has been really a wipeout of a generation's worth of wealth get a generation's worth of time to rebuild."

SF 415 establishes a process for cities and counties to acquire title to abandoned disaster-affected abandoned property, according to Rep. Todd Taylor, D-Cedar Rapids. Using criteria such as delinquent property taxes, no utility service and being unfit for human habitation, local government can petition district court to establish property has been abandoned.

In Cedar Rapids, officials estimate there are 150 to 200 flood-damaged properties where owners have walked away from the problem.

The legislation refers only to those disasters between May 1 and Sept. 1, 2008, and the title acquisition must be completed by the end of 2010.

The bill was approved 59-38. Rep. Jeff Kauffman, R-Wilton, voted against it, saying that despite a worthy purpose, the bill weakened property rights.