Iowa Code » Chapter 403 — URBAN RENEWAL
Iowa Code

Iowa Code § 403.9 (2026)

Issuance of bonds

✓ current as of July 2026
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1. A municipality shall have power to periodically issue bonds in its discretion to pay the costs of carrying out the purposes and provisions of this chapter, including but not limited to\n\nTue Dec 09 22:13:06 2025 Iowa Code 2026, Chapter 403 (54, 1) §403.9, URBAN RENEWAL 10\n\nthe payment of principal and interest upon any advances for surveys and planning, and the payment of interest on bonds, authorized under this chapter, not to exceed three years from the date the bonds are issued. The municipality shall have power to issue refunding bonds for the payment or retirement of such bonds previously issued by the municipality. Said bonds shall be payable solely from the income and proceeds of the fund and portion of taxes referred to in section 403.19, subsection 2, and revenues and other funds of the municipality derived from or held in connection with the undertaking and carrying out of urban renewal projects under this chapter. The municipality may pledge to the payment of the bonds the fund and portion of taxes referred to in section 403.19, subsection 2, and may further secure the bonds by a pledge of any loan, grant, or contribution from the federal government or other source in aid of any urban renewal projects of the municipality under this chapter, or by a mortgage of any such urban renewal projects, or any part thereof, title which is vested in the municipality.

2. Bonds issued under this section shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and shall not be subject to the provisions of any other law or charter relating to the authorization, issuance or sale of bonds. Bonds issued under the provisions of this chapter are declared to be issued for an essential public and governmental purpose and, together with interest thereon and income therefrom, shall be exempted from all taxes.

3. a. Bonds issued under this section shall be authorized by resolution or ordinance of the local governing body and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates not exceeding that permitted by chapter 74A, be in such denomination or denominations, be in such form either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, be secured in such manner, and have such other characteristics, as may be provided by such resolution or trust indenture or mortgage issued pursuant thereto.

b. Before the local governing body may institute proceedings for the issuance of bonds under this section, a notice of the proposed action, including a statement of the amount and purposes of the bonds and the time and place of the meeting at which the local governing body proposes to take action for the issuance of the bonds, must be published as provided in section 362.3. At the meeting, the local governing body shall receive oral or written objections from any resident or property owner of the municipality. After all objections have been received and considered, the local governing body, at that meeting or any subsequent meeting, may take additional action for the issuance of the bonds or abandon the proposal to issue the bonds. Any resident or property owner of the municipality may appeal the decision of the local governing body to take additional action to the district court of the county in which any part of the municipality is located, within fifteen days after the additional action is taken. The additional action of the local governing body is final and conclusive unless the court finds that the municipality exceeded its authority.

4. Such bonds may be sold at not less than ninety-eight percent of par at public or private sale, or may be exchanged for other bonds at not less than ninety-eight percent of par.

5. In case any of the public officials of the municipality whose signatures appear on any bonds or coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. Any provision of any law to the contrary notwithstanding, any bonds issued pursuant to this chapter shall be fully negotiable.

6. In any suit, action, or proceeding involving the validity or enforceability of any bond issued under this chapter or the security therefor, any such bond reciting in substance that it has been issued by the municipality in connection with an urban renewal project, as defined in this chapter, shall be conclusively deemed to have been issued for such purpose and\n\nTue Dec 09 22:13:06 2025 Iowa Code 2026, Chapter 403 (54, 1) 11 URBAN RENEWAL, §403.12\n\nsuch project shall be conclusively deemed to have been planned, located, and carried out in accordance with the provisions of this chapter. [C58, 62, 66, 71, 73, 75, 77, 79, 81, §403.9] 96 Acts, ch 1204, §18, 19; 2010 Acts, ch 1061, §180; 2014 Acts, ch 1026, §83; 2015 Acts, ch 30, §113; 2017 Acts, ch 54, §53; 2020 Acts, ch 1063, §211 Referred to in §403.6, 403.12, 403.19, 422.7(2)(s) \n

Notes of Decisions
Cited in 9 cases, 1946–2016 · leading case: Richards v. City of Muscatine, 237 N.W.2d 48 (Iowa 1975).
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Richards v. City of Muscatine, 237 N.W.2d 48 (Iowa 1975). · cites it 45× “In this appeal we pass upon the validity of the tax increment plan for urban renewal which the legislature authorized in §§ 403.9 and 403.19 of the Iowa Code. Chapter 403 of the Code, the urban renewal law, empowers Iowa cities to take specified steps “to eliminate slums and…”
Knudson v. City of Decorah, 622 N.W.2d 42 (Iowa 2000). · cites it 8× “Iowa Code § 403.9 (1). Municipalities may use tax money obtained through levies on taxable property in the urban renewal area to (1) pay the principal of and interest on such bonds used to finance in whole or in part *45 an urban renewal project within the urban renewal area and…”
Webster Realty Co. v. City of Fort Dodge, 174 N.W.2d 413 (Iowa 1970). · cites it 11× “Plaintiff argues that when considered along with section 403.9 authorizing the issuance of revenue bonds it is impossible to ascertain the real legislative intent.”
Concerned Citizens of Se. Polk Sch. Dist. v. City of Pleasant Hill, Iowa, & the City Council of the City of Pleasant Hill, Iowa, 878 N.W.2d 252 (Iowa 2016). · cites it 2× “19(2)(a) (2013), which provides, That portion of the taxes each year , in excess of [the baseline] amount shall be allocated to and when collected be paid into a special fond of the municipality to pay the principal of and interest on loans, moneys advanced to, or indebtedness,…”
Sergeant Bluff-Luton Sch. Dist. v. City Council of Sioux City, 605 N.W.2d 294 (Iowa 2000). · cites it 2× “; see also Iowa Code §§ 403.9 , 403.19(1), (2); Richards v.”
McMurray v. City Council of West Des Moines, 642 N.W.2d 273 (Iowa 2002). · cites it 2× “19 (2); see also Iowa Code §§ 403.9 , 403.19(1); Richards v.”
Brady v. City of Dubuque, 495 N.W.2d 701 (Iowa 1993). “These are: that bonds issued under § 403.9 may not be used to supplement projects also funded under § 15A.”
Mill v. City of Denison, 25 N.W.2d 323 (Iowa 1946). · cites it 2× “4, Code of 1946 (section 7825, Code of 1939), but five of them were not freeholders of the city as provided -by section 403.9, Code of 1946 (section 6203, Code of 1939).”
Amended June 24, 2016 Concerned Citizens of Se. Polk Sch. Dist. v. City of Pleasant Hill, Iowa, & the City Council of the City of Pleasant Hill, Iowa (Iowa 2016). · cites it 2× “19(2)(a) (2013), which provides, That portion of the taxes each year in excess of [the baseline] amount shall be allocated to and when collected be paid into a special fund of the municipality to pay the principal of and interest on loans, moneys advanced to, or indebtedness,…”
— Iowa Code § 403.9(1) — 1 case
Richards v. City of Muscatine, 237 N.W.2d 48 (Iowa 1975). “In this appeal we pass upon the validity of the tax increment plan for urban renewal which the legislature authorized in §§ 403.9 and 403.19 of the Iowa Code. Chapter 403 of the Code, the urban renewal law, empowers Iowa cities to take specified steps “to eliminate slums and…”
— Iowa Code § 403.9(2) — 1 case
Richards v. City of Muscatine, 237 N.W.2d 48 (Iowa 1975). “In this appeal we pass upon the validity of the tax increment plan for urban renewal which the legislature authorized in §§ 403.9 and 403.19 of the Iowa Code. Chapter 403 of the Code, the urban renewal law, empowers Iowa cities to take specified steps “to eliminate slums and…”
— Iowa Code § 403.9(3) — 1 case
Knudson v. City of Decorah, 622 N.W.2d 42 (Iowa 2000). “Iowa Code § 403.9 (1). Municipalities may use tax money obtained through levies on taxable property in the urban renewal area to (1) pay the principal of and interest on such bonds used to finance in whole or in part *45 an urban renewal project within the urban renewal area and…”
— Iowa Code § 403.9(4) — 1 case
Richards v. City of Muscatine, 237 N.W.2d 48 (Iowa 1975). “In this appeal we pass upon the validity of the tax increment plan for urban renewal which the legislature authorized in §§ 403.9 and 403.19 of the Iowa Code. Chapter 403 of the Code, the urban renewal law, empowers Iowa cities to take specified steps “to eliminate slums and…”
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