This bill establishes and funds the Firsthome program and the Military Home Ownership Assistance Program administered by the Iowa Finance Authority. The Firsthome program provides grants up to $10,000 for down payments and closing costs to eligible first-time homebuyers who meet income, credit score, and debt-to-income requirements while completing homebuyer education. The Military Home Ownership Assistance Program receives a $2.2 million state appropriation for fiscal year 2025-2026 to continue offering financial assistance to current and former members of the U.S. armed forces purchasing homes. The bill also defines eligibility criteria, including specific service history requirements for military personnel and their surviving spouses, and requires the Finance Authority to adopt rules to implement the programs.
HF 2386 allows Iowa cities to require the first buyer of a single-family home in a new housing development to live in the home as their primary residence for one year after purchase. Cities may impose fines of up to 25% of the home’s fair market value for violations, but must include a good-faith sale exemption if the owner needs to sell during the occupancy period. The bill defines "new housing development" as homes sold for the first time, including newly built properties under city-developer agreements, and specifies "occupy" means physically living in the home as a residence. This bill directly affects first-time homebuyers in new developments and gives cities a regulatory tool to address potential investor speculation.
SF 2326 modifies Iowa's first-time homebuyer savings account program to allow employers to contribute to accounts for employees. It makes employer contributions deductible for employees when used for eligible home purchases, while employers cannot claim tax deductions for their contributions. The bill also imposes a 10% penalty on non-qualified withdrawals from these accounts, with exceptions for death, job changes, or legal orders. These changes apply retroactively to tax years beginning January 1, 2026. The bill directly affects employees receiving employer-sponsored contributions and employers establishing these accounts.
This bill establishes new limits on local government property tax collections and reserve funds. It requires cities, counties, and other local entities (excluding school districts) to cap unassigned general fund reserves at 10% of budgeted spending and sets a maximum property tax levy at 102% of the prior year's total plus new property valuation growth. These rules apply to budgets certified for fiscal years beginning July 1, 2027, and will be verified through annual audits. The bill also modifies related tax assessment, budgeting, and reporting requirements for local governments.
HF 659 creates a state-administered Iowa Housing Tax Credit Program to support affordable housing development. It allows developers of qualifying low-income housing projects to claim tax credits against certain state taxes, with a $15 million annual cap (plus carryover from previous years). The bill also establishes neighborhood renovation grants and increases tax incentives for first-time homebuyers. These provisions directly affect housing developers, low-income residents, and homebuyers by providing financial tools to build and purchase housing in Iowa.
HF 743 would allow Iowa cities to require new buyers of single-family homes to live in the property as their primary residence for at least two years before selling it. The bill defines "occupy" as physically residing in the home as a primary dwelling and permits cities to grant exceptions for "good faith" reasons like job loss or health issues. This requirement would directly affect homebuyers in cities that choose to implement this rule. Cities would have the option to adopt this policy but are not required to do so. The bill focuses on regulating short-term resale activity to promote community stability.
SF 505 codifies Iowa's existing Firsthome program under the Iowa Finance Authority, providing financial assistance to eligible first-time homebuyers. The program offers down payment/closing cost grants (capped at $10,000), second loans (repayable upon home sale or refinance), and free title certificates. To qualify, applicants must be first-time homebuyers (including military members with specific service requirements), meet income/price limits, maintain a 640+ credit score, have ≤45% debt-to-income ratio, and occupy the home as a primary residence within 60 days.
