HomeMy WebLinkAbout2006-10-02 Correspondence
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Proposed Change to Iowa Code S 562A.12
Section 562A. I 2(7) to be amended as follows:
7. The baa faith wrongful retention of a deposit by a landlord, or any portion of the rental
deposit in violation ofthis section shall subject the landlord to punitive damages neHe
el[eeea twe hlmarea aellars equal to the greater amount offive hundred dollars or double
the amount of the rental deposit in addition to actual damages. Failure to provide timely
notice as prescribed in section 562A.12(4) shall result in a presumption of bad faith.
Explanation: Predatory deposit practices by landlords have become commonplace,
especially in areas where Iowa's public universities are located and among elderly
renters. Deposits often exceed $1000.00 and sometimes are as high as $4000.00. The
present law provides little, if any, financial disincentive to deter landlords from
wrongfully withholding deposits. Many states have adopted laws that award tenants
double or treble the rental deposit amount if a landlord withholds a deposit, or any part
thereof, in bad faith. Section 562.12(4) requires a landlord tonotify a tenant of its intent
to not return a rental deposit, or any part thereof, within 30 days of termination of the
rental agreement and provision of a forwarding address by the tenant. If a landlord fails
comply with the above named section, then there shall be a presumption of bad faith,
which can be rebutted by a preponderance of the evidence.
TIF project property tax comparison of $4MillionAssessable valuetaxes paid in onAlternative - Propafter TIF rebatesProperty Taxes,LotProperty Taxes on
Return on TIF investment
Developer-paid property taxes over 30 years
$1,400,000
Hieronymus Square Project
(with TIF assistance)
$1,200,000
$1,000,000
Annual Tax Collection AFTER TIF
$800,000
TIF
Typical Successful
$600,000
Completion
3 floor apartment/condos
Project
1 floor commercial
$400,000
Completion
(without TIF assistance)
$200,000
Hieronymus empty lot
$-
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30 Year Timeline
Assumptions:
Assessed values increase 1% per year
Taxable values are calculated at today’s rates