Iowa 2023-2024 Regular Session

Iowa Senate Bill SF423 Latest Draft

Bill / Introduced Version Filed 02/27/2023

                            Senate File 423 - Introduced   SENATE FILE 423   BY JOCHUM , WAHLS , WEINER ,   BISIGNANO , PETERSEN , CELSI ,   TRONE GARRIOTT , GIDDENS ,   BOULTON , and KNOX   A BILL FOR   An Act relating to property law, including rental properties, 1   manufactured home communities, mobile home parks, and 2   actions relating to such properties, making penalties 3   applicable, and including effective date and applicability 4   provisions. 5   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6   TLSB 1163XS (5) 90   cm/ns  

  S.F. 423   DIVISION I 1   GROUNDS FOR TERMINATION OF TENANCY 2   Section 1. Section 562B.10, Code 2023, is amended by adding 3   the following new subsection: 4   NEW SUBSECTION . 4A. A landlord shall not terminate a 5   tenancy unless any of the following apply: 6   a. The tenant engaged in an act of material noncompliance 7   with the rental agreement. 8   b. The tenant committed a material violation of the 9   manufactured home community or mobile home park rules or 10   regulations. 11   c. The tenant committed any other violation of this chapter 12   for which termination is a remedy. 13   d. There exists a legitimate and material business reason 14   the impact of which is not specific to one tenant. 15   e. There is a change in the use of the land, and a change in 16   the use of the land is grounds for termination or nonrenewal 17   under the rental agreement. 18   Sec. 2. EFFECTIVE DATE. This division of this Act, being 19   deemed of immediate importance, takes effect upon enactment. 20   Sec. 3. APPLICABILITY. This division of this Act applies 21   to terminations of tenancies on or after the effective date of 22   this division of this Act. 23   DIVISION II 24   CONSUMER FRAUD 25   Sec. 4. Section 562B.4, Code 2023, is amended by adding the 26   following new subsection: 27   NEW SUBSECTION   . 3. A violation of this chapter by a 28   landlord or the landlords agent is an unlawful practice under 29   section 714.16. 30   Sec. 5. Section 714.16, subsection 2, Code 2023, is amended 31   by adding the following new paragraph: 32   NEW PARAGRAPH   . q. It is an unlawful practice for a landlord 33   or the landlords agent to violate any of the provisions of 34   chapter 562B. 35   -1-   LSB 1163XS (5) 90   cm/ns 1/ 20     

  S.F. 423   Sec. 6. EFFECTIVE DATE. This division of this Act, being 1   deemed of immediate importance, takes effect upon enactment. 2   Sec. 7. APPLICABILITY. This division of this Act applies to 3   violations of chapter 562B occurring on or after the effective 4   date of this division of this Act. 5   DIVISION III 6   RENT INCREASES 7   Sec. 8. Section 562B.7, subsection 10, Code 2023, is amended 8   to read as follows: 9   10. Rent means a payment to be made to the landlord under 10   the rental agreement , including base rent, utilities, late   11   fees, and other payments made by the tenant to the landlord 12   under the rental agreement . 13   Sec. 9. Section 562B.14, subsection 7, Code 2023, is amended 14   by striking the subsection and inserting in lieu thereof the 15   following: 16   7. a. A landlord shall not increase the amount of rent 17   due by any tenant in a manufactured home community or mobile 18   home park unless the tenant is notified in writing of the 19   rent increase at least one hundred eighty days before the 20   effective date of the rent increase. The effective date of 21   any rent increase shall not be less than one year after either 22   the effective date of the most recent rent increase or the 23   beginning of the tenancy, whichever is later. 24   b. (1) Subject to paragraph a , a landlord may increase 25   the amount of rent due by any tenant in an amount greater than 26   the average annual increase of the consumer price index for all 27   urban consumers in the midwest region for the most recently 28   available preceding thirty-six-month period, if the landlord 29   demonstrates all of the following: 30   (a) The landlord, during the preceding twelve-month period, 31   has not been found in violation of any provision of this 32   chapter that threatens the health or safety of the tenants of 33   or visitors to the manufactured home community or mobile home 34   park that persists for more than fifteen days, beginning on the 35   -2-   LSB 1163XS (5) 90   cm/ns 2/ 20     

  S.F. 423   day the landlord received notice of such violation. 1   (b) The proposed rent increase is directly related to 2   operating, maintaining, or improving the manufactured home 3   community or mobile home park, and is justified by one or more 4   of the following factors: 5   (i) The completion and cost of any capital improvements or 6   repair work in the manufactured home community or mobile home 7   park, as distinguished from ordinary repair, replacement, and 8   maintenance. 9   (ii) An increase in property taxes due on the manufactured 10   home community or mobile home park. 11   (iii) If the landlord is responsible for payment of one 12   or more utilities, an increase in utility expenses within the 13   manufactured home community or mobile home park. 14   (iv) An increase in insurance costs and financing 15   associated with the manufactured home community or mobile home 16   park. 17   (v) An increase in reasonable operating and maintenance 18   expenses relating to the manufactured home community or mobile 19   home park. 20   (vi) An increase in market rent. For purposes of this 21   subparagraph subdivision, market rent means that rent which 22   would result from market forces absent an unequal bargaining 23   position between the landlord and tenants. In determining 24   market rent, relevant considerations include rents charged 25   to recent new tenants of the manufactured home community or 26   mobile home park or rents charged by comparable manufactured 27   home communities or mobile home parks. To be comparable, 28   a manufactured home community or mobile home park must be 29   within the competitive area and must offer similar facilities, 30   services, amenities, and management. 31   (2) The department of revenue shall monitor the consumer 32   price index for all urban consumers in the midwest region and 33   report the relevant data to the consumer protection division of 34   the office of the attorney general for periodic publication. 35   -3-   LSB 1163XS (5) 90   cm/ns 3/ 20  

  S.F. 423   c. The written notice of a rent increase provided to the 1   tenant must include the specific reasons for the increase 2   including the justification under paragraph b , if applicable. 3   d. A decrease in the number or quality of amenities, 4   services, or utilities provided under the rental agreement 5   without a corresponding and proportionate reduction in rent 6   shall be considered a rent increase for the purposes of this 7   chapter. 8   Sec. 10. EFFECTIVE DATE. This division of this Act, being 9   deemed of immediate importance, takes effect upon enactment. 10   Sec. 11. APPLICABILITY. The following applies to rent 11   increases under chapter 562B occurring on or after the 12   effective date of this division of this Act: 13   The portion of the section of this division of this Act 14   enacting section 562B.14, subsection 7, paragraphs a and d. 15   Sec. 12. APPLICABILITY. The following applies to rent 16   increases under chapter 562B occurring on or after July 1, 17   2023: 18   The portion of the section of this division of this Act 19   enacting section 562B.14, subsection 7, paragraphs b and c. 20   DIVISION IV 21   LANDLORD REMEDIES AND PROCEDURES 22   Sec. 13. Section 562A.9, subsection 4, Code 2023, is amended 23   to read as follows: 24   4. For rental agreements in which the rent does not exceed 25   seven hundred dollars per month, a rental agreement shall not 26   provide for a late fee that exceeds twelve dollars per day or a 27   total amount of sixty dollars per month. For rental agreements 28   in which the rent is greater than seven hundred dollars per 29   month but less than one thousand four hundred dollars per   30   month , a rental agreement shall not provide for a late fee that 31   exceeds twenty dollars per day or a total amount of one hundred 32   dollars per month. For rental agreements in which the rent is   33   at least one thousand four hundred dollars per month, a rental   34   agreement shall not provide for a late fee that exceeds two 35   -4-   LSB 1163XS (5) 90   cm/ns 4/ 20       

  S.F. 423   percent of the rent per day or a total amount of ten percent of 1   the rent per month.   2   Sec. 14. Section 562B.10, subsection 4, Code 2023, is 3   amended to read as follows: 4   4. For rental agreements in which the rent does not exceed 5   seven hundred dollars per month, a rental agreement shall not 6   provide for a late fee that exceeds twelve dollars per day or a 7   total amount of sixty dollars per month. For rental agreements 8   in which the rent is greater than seven hundred dollars per 9   month but less than one thousand four hundred dollars per   10   month   , a rental agreement shall not provide for a late fee that 11   exceeds twenty dollars per day or a total amount of one hundred 12   dollars per month. For rental agreements in which the rent is 13   at least one thousand four hundred dollars per month, a rental   14   agreement shall not provide for a late fee that exceeds two 15   percent of the rent per day or a total amount of ten percent of 16   the rent per month. 17   Sec. 15. Section 562B.10, subsection 7, paragraph a, Code 18   2023, is amended by striking the paragraph and inserting in 19   lieu thereof the following: 20   a. If a tenant who was sole owner of a mobile home dies 21   during the term of a rental agreement, then that persons heirs 22   or legal representative or the landlord shall have the right 23   to cancel the tenants lease by giving sixty days written 24   notice to the persons heirs or legal representative or to the 25   landlord, whichever is appropriate, and the heirs or the legal 26   representative shall have the same rights, privileges, and 27   liabilities of the original tenant. 28   DIVISION V   29   MANUFACTURED HOUSING PROGRAM FUND   30   Sec. 16. Section 16.45, subsection 1, Code 2023, is amended   31   to read as follows: 32   1. A manufactured housing program fund is created within 33   the authority to further the goal of providing affordable 34   housing to Iowans. The moneys in the fund are to be used for 35   -5-   LSB 1163XS (5) 90   cm/ns 5/ 20           

  S.F. 423   the purpose of providing funding to financial institutions or 1   other lenders to finance the purchase by an individual of a 2   manufactured home that is in compliance with all laws, rules, 3   and standards that are applicable to manufactured homes and 4   manufactured housing. The manufactured housing program fund 5   is designed exclusively for manufactured homes sited on leased   6   land. 7   DIVISION VI 8   TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE 9   Sec. 17. Section 562B.25, Code 2023, is amended by adding 10   the following new subsection: 11   NEW SUBSECTION   . 5. a. In an action for possession based 12   upon nonpayment of the rent or in an action for rent where the 13   tenant is in possession, the tenant may counterclaim for an 14   amount which the tenant may recover under the rental agreement 15   or this chapter. In that event, the court from time to time 16   may order the tenant to pay into court all or part of the rent 17   accrued and thereafter accruing, and shall determine the amount 18   due to each party. The party to whom a net amount is owed 19   shall be paid first from the money paid into court, and the 20   balance by the other party. If rent does not remain due after 21   application of this section, judgment shall be entered for 22   the tenant in the action for possession. If the defense or 23   counterclaim by the tenant is without merit and is not raised 24   in good faith, the landlord may recover reasonable attorney 25   fees. 26   b. In an action for rent where the tenant is not in   27   possession, the tenant may counterclaim as provided in 28   paragraph a , but the tenant is not required to pay any rent 29   into court.   30   Sec. 18. EFFECTIVE DATE. This division of this Act, being 31   deemed of immediate importance, takes effect upon enactment. 32   Sec. 19. APPLICABILITY. This division of this Act applies 33   to actions for possession filed on or after the effective date 34   of this division of this Act.   35   -6-   LSB 1163XS (5) 90   cm/ns 6/ 20      

  S.F. 423   DIVISION VII 1   UTILITY CHARGES 2   Sec. 20. Section 562B.14, subsection 6, paragraphs a and b, 3   Code 2023, are amended to read as follows: 4   a. The landlord or any person authorized to enter into 5   a rental agreement on the landlords behalf shall provide 6   a written explanation of utility rates, fees,   charges, and 7   services , subject to section 562B.16, subsection 3, to the 8   prospective tenant before the rental agreement is signed unless 9   the utility charges are paid by the tenant directly to the 10   utility company. 11   b. Tenants shall be notified of any increase in utility 12   rates or charges in the manner set forth in subsection 7 for 13   rent increases, unless the landlord does not receive at least 14   ninety days prior notice of such increase from the utility 15   provider, in which case no prior notice of the increase from   16   the landlord to the tenant is required for the increase to 17   be effective   the landlord shall provide notice to the tenant 18   within five business days of receiving the notice from the   19   utility provider . 20   Sec. 21. Section 562B.16, Code 2023, is amended by adding 21   the following new subsection: 22   NEW SUBSECTION   . 3. A landlord that is responsible for 23   payment of utilities being provided to the tenant shall not 24   charge to the tenant an amount in excess of the actual cost of 25   the utility and as specified in writing under section 562B.14, 26   subsection 6. In addition to the actual cost of the utility, 27   a landlord that is responsible for the payment of one or more 28   utilities being provided to the tenant may impose a monthly 29   utility administration fee to each tenant not to exceed five 30   dollars per month. The amount of the utility administration 31   fee shall not exceed five dollars per month regardless of the 32   number of utilities being provided or the actual cost of the 33   utilities being provided. 34   Sec. 22. Section 562B.25, Code 2023, is amended by adding 35   -7-   LSB 1163XS (5) 90   cm/ns 7/ 20           

  S.F. 423   the following new subsection: 1   NEW SUBSECTION   . 2A. The failure of a tenant to pay utility 2   charges that exceed the actual cost of the utility provided 3   as required by section 562B.16, subsection 3, shall not be 4   considered noncompliance with the rental agreement. 5   Sec. 23. Section 714H.3, subsection 2, Code 2023, is amended 6   by adding the following new paragraph: 7   NEW PARAGRAPH . h. Section 562B.16, subsection 3. 8   DIVISION VIII 9   UNLAWFUL OUSTER 10   Sec. 24. Section 562B.24, Code 2023, is amended to read as 11   follows: 12   562B.24 Tenants remedies for landlords unlawful ouster, 13   exclusion or diminution of services. 14   If the landlord unlawfully removes or excludes the tenant 15   from the manufactured home community or mobile home park or 16   willfully diminishes services to the tenant by interrupting 17   or causing the interruption of electric, gas, water or other 18   essential service to the tenant, the tenant may recover 19   possession, require the restoration of essential services or 20   terminate the rental agreement and, in either case, recover an 21   amount not to exceed two months periodic rent ,   and twice the 22   actual damages sustained by the tenant , and reasonable attorney   23   fees . If the rental agreement is terminated, the landlord 24   shall return all prepaid rent and security. 25   Sec. 25. EFFECTIVE DATE. This division of this Act, being 26   deemed of immediate importance, takes effect upon enactment. 27   Sec. 26. APPLICABILITY. This division of this Act applies 28   to actions under section 562B.24, as amended in this division 29   of this Act, filed on or after the effective date of this   30   division of this Act.   31   DIVISION IX   32   TENANT CORRECTING DEFICIENCIES   33   Sec. 27. Section 562B.25, Code 2023, is amended by adding 34   the following new subsection: 35   -8-   LSB 1163XS (5) 90   cm/ns 8/ 20          

  S.F. 423   NEW SUBSECTION . 4A. In any action by a landlord for 1   possession based upon nonpayment of rent, proof by the tenant 2   of all of the following shall be a defense to any action or 3   claim for possession by the landlord, and the amounts expended 4   by the tenant in correcting the deficiencies shall be deducted 5   from the amount claimed by the landlord as unpaid rent: 6   a. That the landlord failed to comply either with the rental 7   agreement or with section 562B.16. 8   b. That the tenant notified the landlord at least seven 9   days prior to the due date of the tenants rent payment of the 10   tenants intention to correct the condition constituting the 11   breach referred to in paragraph a at the landlords expense. 12   c. That the reasonable cost of correcting the condition 13   constituting the breach is equal to or less than one months 14   periodic rent. 15   d. That the tenant in good faith caused the condition 16   constituting the breach to be corrected prior to receipt of 17   written notice of the landlords intention to terminate the 18   rental agreement for nonpayment of rent. 19   Sec. 28. EFFECTIVE DATE. This division of this Act, being 20   deemed of immediate importance, takes effect upon enactment. 21   Sec. 29. APPLICABILITY. This division of this Act applies 22   to actions by a landlord for possession filed on or after the 23   effective date of this division of this Act. 24   DIVISION X 25   DENIAL OF RENTAL OR REFUSAL OF SALE 26   Sec. 30. Section 562B.19, subsection 3, paragraphs a and c, 27   Code 2023, are amended to read as follows: 28   a. Deny rental unless the tenant or prospective tenant 29   cannot conform to manufactured home community or park rules 30   and regulations. A decision to deny rental shall conform   31   to recognized principles, rules, and standards generally   32   accepted by the professional manufactured home community or 33   park industry to ensure the commercially reasonable safety and   34   financial security of comparable manufactured home communities 35   -9-   LSB 1163XS (5) 90   cm/ns 9/ 20        

  S.F. 423   or mobile home parks. A landlord shall deliver the decision 1   in writing to the tenant or prospective tenant as soon as   2   commercially feasible and shall provide the basis for a denial 3   in writing to the tenant or prospective tenant at the time of 4   the decision.   5   c. Deny any resident of a manufactured home community or 6   mobile home park the right to sell that persons mobile home 7   at a price of the persons own choosing, but may reserve the 8   right to approve the purchaser of such mobile home as a tenant 9   but such permission may   shall only be withheld for a legitimate 10   business reason within the recognized principles, rules,   11   and standards described in paragraph a , and shall not be 12   unreasonably withheld, provided however, that the landlord may, 13   in the event of a sale to a third party, in order to upgrade 14   the quality of the manufactured home community or mobile home 15   park, require that any mobile home in a rundown condition or in 16   disrepair be removed from the manufactured home community or 17   park within sixty days. If the landlord does not approve the 18   purchaser as a tenant, the landlord shall provide the purchaser 19   with written notice of such denial and the general reason for 20   the denial, but the landlord shall not be required to provide 21   a specific reason for the denial. If the landlord refuses   22   to approve the purchaser of the mobile home as a tenant, the   23   landlord shall provide a legitimate business reason for the 24   refusal in writing to the resident who is selling the mobile 25   home. 26   DIVISION XI   27   RENTAL AGREEMENT TERMS   28   Sec. 31. Section 562B.11, subsection 1, paragraph e, Code 29   2023, is amended to read as follows: 30   e. Agrees to modify the physical characteristics or   31   equipment of   the mobile home, manufactured home, or modular 32   home in a way that would substantially impair the ability of 33   the tenant to move the home from the mobile home space, unless 34   such modification is required by federal law, including but not 35   -10-   LSB 1163XS (5) 90   cm/ns 10/ 20                    

  S.F. 423   limited to the model manufactured home installation standards, 1   24 C.F.R. pt. 3285, the manufactured home construction and 2   safety standards, 24 C.F.R. pt. 3280 , or the manufactured 3   home procedural and enforcement regulations, 24 C.F.R. 4   pt. 3282, or by state or local law, the manufacturers 5   installation instructions, any requirement arising from the 6   landlords financing of the home or of the mobile home park or 7   manufactured home community in which the home is located, or 8   unless such modification is otherwise necessary for the safe 9   and proper installation of the home. 10   Sec. 32. Section 562B.11, subsection 1, Code 2023, is 11   amended by adding the following new paragraphs: 12   NEW PARAGRAPH   . f. Authorizes imposition of fines, 13   penalties, or fees solely as a punishment or in amounts in 14   excess of actual damages or costs incurred. 15   NEW PARAGRAPH   . g. Authorizes a person to confess judgment 16   on a claim arising out of the rental agreement. 17   NEW PARAGRAPH   . h. Authorizes prohibitions, limitations, 18   additional deposits, or other restrictive policies that are 19   not based on ordinary wear and tear expected to occur during a 20   tenancy or that are not based on community safety standards. 21   Sec. 33. Section 562B.11, subsection 3, Code 2023, is 22   amended to read as follows: 23   3. A provision prohibited by this section included in a 24   rental agreement is unenforceable. If a landlord or tenant   25   knowingly and willfully uses a rental agreement containing 26   provisions known to be prohibited by this chapter , the other 27   party tenant may recover actual damages sustained by the tenant 28   and not more than three months periodic rent and reasonable 29   attorney fees   . 30   DIVISION XII   31   RENTAL DEPOSITS   32   Sec. 34. Section 562B.7, subsection 12, Code 2023, is   33   amended to read as follows: 34   12. Rental deposit means a deposit of money to secure 35   -11-   LSB 1163XS (5) 90   cm/ns 11/ 20             

  S.F. 423   performance of a mobile home space rental agreement under this 1   chapter other than a deposit which is exclusively in advance   2   payment of rent . 3   Sec. 35. Section 562B.13, subsection 2, Code 2023, is 4   amended to read as follows: 5   2. All rental deposits shall be held by the landlord for 6   the tenant, who is a party to the agreement, in a bank, credit 7   union, or savings and loan association which is insured by an 8   agency of the federal government. Rental deposits shall not be 9   commingled with the personal funds of the landlord. All rental 10   deposits may be held in a trust account, which may be a common 11   trust account and which may be an interest-bearing account. 12   Any interest earned on a rental deposit during the first five   13   years of a tenancy   shall be the property of the landlord. 14   Sec. 36. Section 562B.13, Code 2023, is amended by adding 15   the following new subsection: 16   NEW SUBSECTION . 9. The court may, in any action on a rental 17   agreement, award reasonable attorney fees to the prevailing 18   party. 19   DIVISION XIII 20   NONJUDICIAL FORECLOSURE 21   Sec. 37. Section 654.18, Code 2022, is amended by adding the 22   following new subsection: 23   NEW SUBSECTION   . 5. Actions under this section initiated 24   on or after July 1, 2023, shall not be allowed for property 25   consisting of a mobile home as defined in section 562B.7. 26   Sec. 38. Section 655A.9, Code 2023, is amended to read as   27   follows: 28   655A.9 Application of chapter. 29   1.   This chapter does not apply to real estate used for 30   an agricultural purpose as defined in section 535.13 , or to 31   a one or two family dwelling which is, at the time of the 32   initiation of the foreclosure, occupied by a legal or equitable 33   titleholder. 34   2.   Actions under this chapter initiated on or after July 1, 35   -12-   LSB 1163XS (5) 90   cm/ns 12/ 20             

  S.F. 423   2023, shall not be allowed for property consisting of a mobile 1   home as defined in section 562B.7.   2   DIVISION XIV 3   RETALIATION 4   Sec. 39. Section 562B.32, subsection 1, paragraph a, Code 5   2023, is amended to read as follows: 6   a. The tenant has complained to a governmental agency 7   charged with responsibility for enforcement of a building or 8   housing code of a violation applicable to the manufactured   9   home community or mobile home park materially affecting health 10   and safety   or other group relating to assisting tenants . For 11   this subsection paragraph to apply, a complaint filed with a 12   governmental body or group must be in good faith. 13   DIVISION XV 14   CAPITAL GAIN TAXES EXCLUSION 15   Sec. 40. Section 422.7, Code 2023, is amended by adding the 16   following new subsection: 17   NEW SUBSECTION   . 44. a. Subtract, to the extent included, 18   the net capital gain from the sale or exchange of a mobile home 19   park. 20   b. To qualify under this subsection, the sale must be made 21   to any of the following: 22   (1) A tenants association or a mobile home park residents 23   association. 24   (2) A nonprofit organization under section 501(c)(3) of 25   the Internal Revenue Code that purchases a mobile home park on 26   behalf of a tenants association or mobile home park residents 27   association.   28   (3) A county housing authority. 29   (4) A municipal housing authority. 30   c. If the eligible business is a partnership, S corporation, 31   limited liability company, or estate or trust electing to have 32   the income taxed directly to the individual, an individual 33   may claim the tax credit allowed. The amount claimed by 34   the individual shall be based upon the pro rata share of 35   -13-   LSB 1163XS (5) 90   cm/ns 13/ 20             

  S.F. 423   the individuals earnings of the partnership, S corporation, 1   limited liability company, or estate or trust. 2   d. For the purpose of this subsection, tenants 3   association or mobile home park residents association means a 4   group of six or more tenants who reside in a mobile home park, 5   have organized for the purpose of eventual purchase of the 6   mobile home park, have established bylaws of the association, 7   and have obtained the approval by vote of at least fifty-one 8   percent of the residents of the mobile home park to purchase 9   the mobile home park. 10   Sec. 41. Section 422.35, Code 2023, is amended by adding the 11   following new subsection: 12   NEW SUBSECTION   . 15. a. Subtract, to the extent included, 13   the net capital gain from the sale or exchange of a mobile home 14   park. 15   b. To qualify under this subsection, the sale must be made 16   to any of the following: 17   (1) A tenants association or a mobile home park residents 18   association. 19   (2) A nonprofit organization under section 501(c)(3) of 20   the Internal Revenue Code that purchases a mobile home park on 21   behalf of a tenants association or mobile home park residents 22   association. 23   (3) A county housing authority. 24   (4) A municipal housing authority. 25   c. For the purpose of this subsection, tenants 26   association or mobile home park residents association means a 27   group of six or more tenants who reside in a mobile home park, 28   have organized for the purpose of eventual purchase of the 29   mobile home park, have established bylaws of the association, 30   and have obtained the approval by vote of at least fifty-one 31   percent of the residents of the mobile home park to purchase 32   the mobile home park. 33   EXPLANATION 34   The inclusion of this explanation does not constitute agreement with 35   -14-   LSB 1163XS (5) 90   cm/ns 14/ 20   

  S.F. 423   the explanations substance by the members of the general assembly. 1   This bill relates to property law. 2   GROUNDS FOR TERMINATION OF TENANCY. The bill prohibits a 3   landlord from terminating a tenancy unless the tenant acts in 4   material noncompliance with the rental agreement, commits a 5   material violation of the manufactured home community or mobile 6   home park rules or regulations, or commits any other violation 7   of Code chapter 562B for which termination is a remedy; or 8   for a legitimate and material business reason, the impact of 9   which is not specific to one tenant; or due to a change in the 10   use of the land, and such change is grounds for termination or 11   nonrenewal under the rental agreement. 12   This division of the bill takes effect upon enactment and 13   applies to terminations of tenancies on or after that date. 14   CONSUMER FRAUD. The bill provides that a violation of 15   Code chapter 562B by a landlord or the landlords agent is 16   an unlawful practice under Code section 714.16, governing 17   consumer frauds. Several types of remedies are available 18   if a court finds that a person has committed an unlawful 19   practice, including injunctive relief, disgorgement of moneys 20   or property, and a civil penalty not to exceed $40,000 per 21   violation. 22   This division of the bill takes effect upon enactment and 23   applies to violations of Code chapter 562B occurring on or 24   after that date. 25   RENT INCREASES. The bill strikes changes to the definition 26   of rent made by the general assembly in 2022 and modifies 27   provisions governing an increase in the amount of rent paid 28   by a tenant. The bill prohibits a landlord from increasing 29   rent unless the tenant is notified in writing of the rent 30   increase at least 180 days before the effective date of the 31   rent increase. The bill further provides that the effective 32   date of any rent increase shall not be less than one year from 33   either the effective date of the most recent rent increase or   34   the beginning of the tenancy, whichever is later. 35   -15-   LSB 1163XS (5) 90   cm/ns 15/ 20  

  S.F. 423   A landlord may increase the amount of rent due by any tenant 1   in an amount greater than the average annual increase of the 2   consumer price index for all urban consumers in the midwest 3   region for the most recently available preceding 36-month 4   period, if the landlord demonstrates a number of conditions 5   set forth in the bill. The bill also requires the written 6   notice of a rent increase provided to the tenant to include 7   the specific reasons and justifications for the increase. A 8   decrease in the number or quality of amenities, services, 9   or utilities provided under the rental agreement without a 10   corresponding and proportionate reduction in rent shall be 11   considered a rent increase for the purposes of Code chapter 12   562B. 13   This division of the bill takes effect upon enactment and 14   includes applicability provisions for certain requirements 15   related to rent increases. 16   LANDLORD REMEDIES AND PROCEDURES. Current law caps late 17   fees on rental agreements in which rent is greater than $700 18   per month at $20 per day and $100 per month. The bill allows 19   a rental agreement to provide for late fees not to exceed 2 20   percent of the rent per day and 10 percent of the rent per 21   month when rent exceeds $1,400 per month. The bill undoes 22   changes made to Code section 562B.10(7)(a) made by the general 23   assembly in 2022 relating occupancy by heirs and personal 24   representatives of a decedents estate. 25   MANUFACTURED HOUSING PROGRAM FUND. Under current law, the 26   manufactured housing program fund is used for the purpose of 27   providing funding to financial institutions or other lenders 28   to finance the purchase by an individual of a compliant 29   manufactured home. The bill strikes language providing that 30   the fund is designed exclusively for manufactured homes sited 31   on leased land. 32   TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE. The bill   33   amends Code section 562B.25, relating to actions by a landlord 34   for noncompliance with a rental agreement by a tenant or 35   -16-   LSB 1163XS (5) 90   cm/ns 16/ 20  

  S.F. 423   failure to pay rent, by establishing authority and procedures 1   similar to those under Code section 562A.24 (landlords 2   noncompliance as defense to action for possession or rent  3   uniform residential landlord and tenant Act). In a landlords 4   action for possession based upon nonpayment of rent or in an 5   action for rent where the tenant is in possession, the tenant 6   may counterclaim for an amount which the tenant may recover 7   under the rental agreement or Code chapter 562B, and pay into 8   court all or part of the rent. If the defense or counterclaim 9   by the tenant is without merit and is not raised in good 10   faith, the landlord may recover reasonable attorney fees. 11   Additionally, in an action for rent where the tenant is not in 12   possession, the tenant may counterclaim but is not required to 13   pay any rent into court. 14   This division of the bill takes effect upon enactment and 15   applies to actions for possession filed on or after that date. 16   UTILITY CHARGES. The bill provides that a landlord that 17   is responsible for payment of utilities being provided to the 18   tenant shall not charge to the tenant an amount in excess of 19   the actual cost of the utility and the failure of a tenant to 20   pay utility charges that exceed the actual cost of the utility 21   provided shall not be considered noncompliance with the rental 22   agreement. In addition to the actual cost of the utility, 23   the bill authorizes a landlord that is responsible for the 24   payment of one or more utilities to impose a monthly utility 25   administration fee to each tenant not to exceed $5 per month, 26   regardless of the number of utilities being provided or the 27   actual cost of the utilities being provided. The bill also 28   provides that a violation of the limitation on utility charges 29   is a violation of Code section 714H.3 (private right of action 30   for consumer frauds). 31   UNLAWFUL OUSTER. The bill amends Code section 562B.24   32   relating to a tenants remedies for a landlords unlawful 33   ouster or exclusion or diminution of services. The bill adds   34   reasonable attorney fees to the list of recoverable damages 35   -17-   LSB 1163XS (5) 90   cm/ns 17/ 20  

  S.F. 423   and provides that if the rental agreement is terminated, the 1   landlord shall return all prepaid rent and security. 2   This division of the bill takes effect upon enactment and 3   applies to actions under Code section 562B.24 filed on or after 4   that date. 5   TENANT CORRECTING DEFICIENCIES. The bill provides that in 6   any action by a landlord for possession based upon nonpayment 7   of rent, proof by the tenant of certain actions set forth in 8   the bill are a defense to any action or claim for possession 9   by the landlord, and the amounts expended by the tenant in 10   correcting the deficiencies shall be deducted from the amount 11   claimed by the landlord as unpaid rent. 12   This division of the bill takes effect upon enactment and 13   applies to actions by a landlord for possession filed on or 14   after that date. 15   DENIAL OF RENTAL OR REFUSAL OF SALE. Code section 16   562B.19(3)(a) prohibits a landlord from denying rental unless 17   the tenant or prospective tenant cannot conform to manufactured 18   home community or park rules and regulations. The bill 19   requires any such decision to conform to recognized principles, 20   rules, and standards generally accepted by the professional 21   manufactured home community or park industry to ensure the 22   commercially reasonable safety and financial security of 23   comparable manufactured home communities or parks. The bill 24   also requires a landlord to deliver the decision in writing 25   to the tenant or prospective tenant as soon as commercially 26   feasible and to provide the basis for a denial in writing to 27   the tenant or prospective tenant at the time of the decision. 28   Code section 562B.19(3)(c) prohibits a landlord from denying 29   any resident of a manufactured home community or mobile home 30   park the right to sell that persons mobile home at a price 31   of the persons own choosing, but provides that the landlord 32   has the right to approve the purchaser as a tenant but such 33   permission may not be unreasonably withheld. The bill allows 34   such permission to be withheld only for a legitimate business 35   -18-   LSB 1163XS (5) 90   cm/ns 18/ 20  

  S.F. 423   reason within the recognized principles, rules, and standards 1   accepted by the industry. If the landlord refuses to approve 2   the purchaser as a tenant, the landlord must provide a 3   legitimate business reason for the refusal in writing to the 4   resident. 5   RENTAL AGREEMENT TERMS. The bill adds to the list of 6   prohibited rental agreement provisions in Code section 7   562B.11 a provision requiring agreement to modify the physical 8   characteristics or equipment of the mobile home, manufactured 9   home, or modular home if such modification impairs the ability 10   of the tenant to move the home, unless otherwise required by 11   law or local ordinance. 12   The bill prohibits rental agreements under Code chapter 562B 13   from providing that the tenant or landlord does any of the 14   following: (1) authorizes imposition of fines, penalties, or 15   fees solely as a punishment or in amounts in excess of actual 16   damages or costs incurred, (2) authorizes a person to confess 17   judgment on a claim arising out of the rental agreement, and 18   (3) authorizes prohibitions, limitations, additional deposits, 19   or other restrictive policies that are not based on ordinary 20   wear and tear or that are not based on community safety 21   standards. 22   The bill provides that a tenant may recover up to three 23   months rent and attorney fees for a landlords knowing 24   and willful use of a rental agreement containing prohibited 25   provisions. The bill also removes the ability of the landlord 26   to recover from the tenant for use of a rental agreement 27   containing prohibited provisions. 28   RENTAL DEPOSITS. The bill modifies the definition of 29   rental deposit for purposes of Code chapter 562B, provides 30   that the landlord is only entitled to the interest earned on 31   the rental deposit for the first five years of the tenancy, and 32   establishes authority for a court, in any action on a rental 33   agreement, to award reasonable attorney fees to the prevailing 34   party. 35   -19-   LSB 1163XS (5) 90   cm/ns 19/ 20  

  S.F. 423   NONJUDICIAL FORECLOSURE. The bill excludes mobile homes 1   from the applicability of nonjudicial foreclosure provisions. 2   RETALIATION. Code section 562B.32(1) generally provides 3   that a landlord shall not retaliate by increasing rent or 4   decreasing services or by bringing or threatening to bring an 5   action for possession or by failing to renew a rental agreement 6   after the exercise or assertion of several specified rights 7   and remedies, including complaining to a governmental agency 8   charged with responsibility for enforcement of a building or 9   housing code of a violation applicable to the manufactured 10   home community or mobile home park materially affecting health 11   and safety. The bill instead provides that a landlord cannot 12   retaliate against a tenant for filing a good-faith complaint 13   with a governmental agency or other group relating to assisting 14   tenants. 15   CAPITAL GAIN TAX EXCLUSION. The bill creates a capital gain 16   exclusion from sale of a mobile home park to certain entities 17   set forth in the bill. 18   -20-   LSB 1163XS (5) 90   cm/ns 20/ 20