Earlier this month, representatives of 15 of Iowa’s 27 local housing trust funds held a roundtable discussion at the end of the Iowa Finance Authority’s Housing Iowa conference.
Trust Fund representatives and other conference attendees received a public policy and advocacy update, a regulatory update from the Iowa Finance Authority, and discussed matters of shared concern.
One topic of discussion in the gathering was the legislative history of funding for the State Housing Trust Fund and efforts to increase resources available.
Local Housing Trust Funds receive a substantial portion of their funding from Iowa’s State Housing Trust Fund, which in turn receives its funds from two sources
• A $3 million “standing” appropriation from the Rebuild Iowa Infrastructure Fund, and
• Up to $7 million in annual transfers from the Real Estate Transfer Tax, or 30% of revenue from this tax, whichever is lower.
For many years, the cap on Real Estate Transfer Tax funds was lower, at $3 million. This was successfully raised effective in 2022 following action by the General Assembly.
In the 2024 session of General Assembly, advocates supported HF2634 to remove the $7 million cap on real estate transfer tax transfers altogether which would raise funds in the State Housing Trust Fund around $2 million further each year by allowing a full 30% of real estate transfer tax revenue to flow into the fund.
The bill passed the Iowa House 95-0 but did not advance through the Iowa Senate. Advocates intend to support the bill’s introduction again in 2025 realizing that raising further funds is likely to be a multi-year process. For more information read a fiscal note on HF2634.
Iowa’s Local Housing Trust Funds are a good investment because they provide flexible funding across Iowa guided by local community members through a fair formula that ensures all areas of the state benefit.
Learn more about Local Housing Trust Funds
For further reading, you may refer to the current Legislative Services Agency brief on the State Housing Trust Fund to learn more about the program’s history.
Regulatory and compliance information about the State Housing Trust Fund is also available from the Iowa Finance Authority.
Find your Local Housing Trust Fund in this map from the Iowa Finance Authority