Recovery Zone Economic Development Bonds and Recovery Zone Facility Bonds were created as a part of the American Recovery and Reinvestment Act of 2009. The Iowa Legislature recently passed HF2487 to ensure maximum use of this resource in Iowa, by having the Iowa Finance Authority (IFA) track the issuance of Recovery Zone Bonds, and by establishing a procedure for the waiver and reallocation of Recovery Zone Bond authority.

IFA will be contacting cities and counties that previously received allocations of Recovery Zone Bonds previously to track bonds that were actually issued. Any entity that does not plan to issue the Recovery Zone bonds can release their allocation. All allocations not reserved by July 1, 2010 will automatically be released to a statewide pool for reallocation.

Applications are now available for this program. Recovery Zone Economic Development Bonds are for use by governmental bodies, while Recovery Zone Facility Bonds are for use by private borrowers. A fee of two basis points of the requested allocation is required at the time of application.

Program contact: