Senate File 252 - Introduced SENATE FILE 252 BY BOLKCOM , DVORSKY , DOTZLER , SENG , DEARDEN , GRONSTAL , KIBBIE , JOCHUM , RAGAN , and HATCH A BILL FOR An Act relating to mobile homes and manufactured homes by 1 making changes to certain residential landlord and tenant 2 laws, requiring disclosures during the sale of manufactured 3 and mobile homes, amending provisions relating to forcible 4 entry and detainer actions, providing penalties, and 5 including applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1600XS (34) 84 md/sc

S.F. 252 Section 1. Section 103A.55, subsection 1, Code 2011, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . h. Failing to provide the purchaser with the 3 disclosure statement in compliance with section 558.72. 4 Sec. 2. Section 321.49, subsection 3, Code 2011, is amended 5 to read as follows: 6 3. A manufactured or mobile home retailer who acquires 7 a used mobile home or manufactured home, titled in Iowa, and 8 who does not apply for and obtain a certificate of title 9 from the county treasurer of the manufactured or mobile home 10 retailer’s county of residence within thirty days of the date 11 of acquisition, as required under section 321.45, subsection 12 4 , is subject to a penalty of ten five hundred dollars. A 13 certificate of title shall not be issued to the manufactured or 14 mobile home retailer until the penalty is paid. 15 Sec. 3. NEW SECTION . 558.72 Disclosure statement required 16 for manufactured and mobile home sales. 17 1. Prior to the sale of a manufactured or mobile home, 18 the seller shall deliver a written disclosure statement, on 19 a form prescribed by the attorney general, to the purchaser 20 that clearly sets forth certain information, including but not 21 limited to the following information: 22 a. If the manufactured or mobile home and any real 23 estate that is part of the sale has been separately assessed 24 for property tax purposes, the current assessed value, if 25 applicable, and the most recent property tax amount due and 26 payable for the manufactured or mobile home and the real 27 estate, if applicable. 28 b. A complete description of any property taxes due and 29 payable on the manufactured or mobile home or real estate 30 and a complete description of any special assessment on the 31 manufactured or mobile home and the real estate and the term of 32 the assessment, including information on whether any property 33 taxes or special assessments are delinquent and whether any 34 tax sale certificates have been issued for delinquent property 35 -1- LSB 1600XS (34) 84 md/sc 1/ 17

S.F. 252 taxes or special assessments on the real estate. 1 c. A complete description of any mortgages or other liens 2 encumbering or secured by the manufactured or mobile home or 3 the real estate, including the identity and address of the 4 current owner of record with respect to each such mortgage or 5 lien, as well as a description of the total outstanding balance 6 and due date under any such mortgage or lien. 7 d. A complete schedule for all payments to be made pursuant 8 to the sales contract, if applicable, which schedule shall 9 include information on the portion of each payment to be 10 applied to principal and the portion to be applied to interest. 11 e. If the applicable sales contract requires a balloon 12 payment, a complete description of the balloon payment, 13 including the date the payment is due, the amount of the 14 balloon payment, and other terms related to the balloon 15 payment. For purposes of this paragraph, a “balloon payment” is 16 any scheduled payment that is more than twice as large as the 17 average of earlier scheduled payments. 18 f. The annual percentage rate of interest to be charged 19 under the sales contract, if applicable. 20 g. A statement that the purchaser has a right to seek 21 independent legal counsel concerning the sale and any 22 applicable sales contract, and any matters pertaining to such 23 contract. 24 h. A statement that the purchaser has a right to receive a 25 true and complete copy of any applicable sales contract after 26 it has been executed by all parties to the contract. 27 i. The mailing address of each party to the sale or 28 applicable sales contract. 29 j. If the contract is an installment sales contract and is 30 subject to forfeiture, a statement that if the purchaser does 31 not comply with the terms of the contract, the purchaser may 32 lose all rights in the manufactured or mobile home, any real 33 estate that is part of the contract, and all sums paid under 34 the contract. 35 -2- LSB 1600XS (34) 84 md/sc 2/ 17

S.F. 252 2. a. If the sale of the manufactured or mobile home 1 involves an installment sales contract, the contract seller 2 shall, after the contract has been executed by all parties, 3 mail a true and correct copy of the contract by regular 4 first-class mail to the last known address of each contract 5 purchaser. However, this requirement is satisfied as to any 6 purchaser who acknowledges in writing that the purchaser 7 has received a true and correct copy of the fully executed 8 contract. 9 b. This subsection applies to installment sales contracts 10 involving a contract seller who entered into four or more 11 contracts for the sale of manufactured or mobile homes in the 12 three hundred sixty-five days previous to the contract seller 13 signing the contract disclosure statement. For purposes of 14 this subsection, two or more entities sharing a common owner or 15 manager are considered a single contract seller. 16 3. The seller and the purchaser shall sign and date the 17 disclosure statement required under this section and the seller 18 shall provide the purchaser a copy of the disclosure statement 19 immediately following receipt of the purchaser’s signature. 20 4. In addition to the rights provided under section 558.73, 21 a purchaser under this section shall have all applicable rights 22 provided under section 558.71 as if such purchaser was a 23 purchaser under section 558.70, and all references in section 24 558.71 to “real estate” shall be construed to include the 25 manufactured or mobile home that is subject to the installment 26 sales contract. 27 5. This section does not apply to a person or organization 28 listed in section 535B.2, subsections 1 through 6. 29 6. This section shall not limit or abridge any duty, 30 requirement, obligation, or liability for disclosure created 31 by any other provision of law, or under a contract between the 32 parties. 33 7. A violation of this section by a seller is an unlawful 34 practice pursuant to section 714.16. 35 -3- LSB 1600XS (34) 84 md/sc 3/ 17

S.F. 252 8. For purposes of this section and section 558.73, “sale” 1 includes conveyance, transfer, exchange, or barter, conditional 2 or otherwise, in any manner or by any means, and at any time, 3 for consideration. 4 Sec. 4. NEW SECTION . 558.73 Contract for sale of 5 manufactured or mobile home —— failure to deliver title —— 6 remedy. 7 1. If the seller of a manufactured or mobile home fails to 8 deliver a certificate of title duly assigned to the purchaser 9 of the manufactured or mobile home or if the seller, in 10 an installment sales contract, fails to deliver a copy of 11 the seller’s certificate of title to the purchaser of the 12 manufactured or mobile home within thirty days following 13 execution of the contract, the purchaser may within two years 14 of the execution of the contract bring an equitable action in 15 the district court of record where the real estate is located 16 to obtain relief as follows: 17 a. The court may rescind a contract that remains in 18 existence at the time the action is commenced and award 19 restitution to the purchaser determined in accordance with the 20 standards for damages specified in paragraph “b” . 21 b. If the contract has been terminated by any means prior to 22 commencement of the action, the purchaser may recover a money 23 judgment against the seller for a sum equal to all amounts the 24 purchaser paid to the seller, plus the reasonable value of any 25 improvements to the manufactured or mobile home made by the 26 purchaser, plus any other proximately caused or incidental 27 damages, less the fair rental value of the manufactured 28 or mobile home for the period of time the purchaser was 29 in possession of the manufactured or mobile home. For the 30 purposes of this paragraph, the fair rental value of the 31 manufactured or mobile home shall be based on the fair rental 32 value as of the date the contract was executed by all parties 33 to the contract. 34 2. An order of recision or a money judgment awarded shall 35 -4- LSB 1600XS (34) 84 md/sc 4/ 17

S.F. 252 not affect any rights or responsibilities arising from any 1 conveyance or encumbrance made by either the purchaser or the 2 seller prior to the filing of a lis pendens in the action in 3 which such relief is sought, unless it is established by clear 4 and convincing evidence that the recipient of such conveyance 5 or encumbrance had prior knowledge that the contract was 6 executed in violation of the requirements of section 558.72. 7 3. In an action in which a purchaser obtains relief under 8 this section, the court shall also award to such purchaser the 9 costs of the action and to the purchaser’s attorney reasonable 10 attorney fees incurred in bringing the action. 11 Sec. 5. Section 562B.4, Code 2011, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3. A violation by a landlord of any 14 applicable requirement of division I, II, or IV of this chapter 15 is an unlawful practice pursuant to section 714.16. 16 Sec. 6. Section 562B.10, subsection 4, Code 2011, is amended 17 to read as follows: 18 4. a. Rental agreements shall be for a term of at least 19 one year unless otherwise specified in the rental agreement . 20 Rental agreements shall be canceled by at least sixty days’ 21 written notice given by either party. A notice to cancel 22 under this subsection initiated by a landlord shall be for 23 good cause. A landlord shall not, however, cancel a rental 24 agreement for good cause unless the tenant is provided notice 25 of the specific reason of the termination and is allowed 26 fourteen days to remedy the violation or noncompliance. A 27 landlord shall not cancel a rental agreement solely for the 28 purpose of making the tenant’s mobile home space available for 29 another mobile home. 30 b. For purposes of this subsection, “good cause” means 31 violation of this chapter by the tenant, a legitimate business 32 reason the impact of which is not specific to one tenant, 33 a material violation of the manufactured home community or 34 mobile home park rules or regulations, a change in the use 35 -5- LSB 1600XS (34) 84 md/sc 5/ 17

S.F. 252 of the land if change in use of the land is included in the 1 rental agreement as a ground for termination, or material 2 noncompliance with the rental agreement by the tenant. 3 Sec. 7. Section 562B.13, subsection 8, Code 2011, is amended 4 to read as follows: 5 8. The bad faith bad-faith retention of a deposit by a 6 landlord, or any portion of the rental deposit, in violation of 7 this section shall subject the landlord to punitive damages of 8 not to exceed two less than five hundred dollars in addition 9 to actual damages to be awarded to the tenant and reasonable 10 attorney fees to be awarded to the tenant’s attorney . 11 Sec. 8. Section 562B.14, subsection 6, Code 2011, is amended 12 by striking the subsection and inserting in lieu thereof the 13 following: 14 6. The landlord or any person authorized to enter into 15 a rental agreement on the landlord’s behalf shall before the 16 rental agreement is executed provide a copy of the rules or 17 regulations of the manufactured home community or mobile home 18 park adopted under section 562B.19 and provide a written 19 disclosure statement to the prospective tenant that provides an 20 explanation of all of the following: 21 a. Utility rates, charges and services, unless the utility 22 charges are paid by the tenant directly to the utility company. 23 b. Any fee or amount required to be paid by the tenant to 24 the landlord or to a third party as a condition of the rental 25 agreement. 26 c. Rights of the tenant to enforce any right or obligation 27 declared by this chapter under section 562B.4, subsection 2. 28 d. Rental agreement provisions that are prohibited under 29 section 562B.11. 30 e. Reasons for which the landlord may withhold amounts from 31 the rental deposit under section 562B.13, subsection 3. 32 f. Duties of the landlord under section 562B.16. 33 g. Remedies available to the tenant under sections 562B.22, 34 562B.23, and 562B.24, and section 562B.31, subsection 2. 35 -6- LSB 1600XS (34) 84 md/sc 6/ 17

S.F. 252 Sec. 9. Section 562B.19, subsection 3, paragraph d, Code 1 2011, is amended to read as follows: 2 d. Exact a commission or fee with respect to the price 3 realized by the tenant selling the tenant’s mobile home , unless 4 the manufactured home community or park owner or operator has 5 acted as agent for the mobile home owner pursuant to a written 6 agreement . 7 Sec. 10. Section 562B.19, subsection 3, Code 2011, is 8 amended by adding the following new paragraph: 9 NEW PARAGRAPH . g. Act as an agent for the mobile home owner 10 who is a tenant during the sale of a mobile home. 11 Sec. 11. Section 562B.22, subsection 2, Code 2011, is 12 amended to read as follows: 13 2. Except as provided in this chapter , the tenant may 14 recover damages, and obtain injunctive relief for any 15 noncompliance by the landlord with the rental agreement or with 16 section 562B.16 . The tenant may also be awarded court costs 17 and the tenant’s attorney may be awarded attorney fees. 18 Sec. 12. Section 562B.22, Code 2011, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 4. In addition to other remedies under this 21 chapter, if there is a noncompliance with the rental agreement 22 or noncompliance with section 562B.16 materially affecting 23 health and safety, the tenant may deliver written notice to 24 the landlord specifying the acts or omissions constituting the 25 breach and if the breach is not remedied in fourteen days, 26 procure items or services to remedy the noncompliance during 27 the period of the landlord’s breach and deduct their actual and 28 reasonable cost from the rent. 29 Sec. 13. Section 562B.23, subsection 1, paragraph b, Code 30 2011, is amended to read as follows: 31 b. Demand performance of the rental agreement by the 32 landlord and, if the tenant elects, maintain an action for 33 possession of the mobile home space against the landlord and 34 recover the damages sustained by the tenant plus reasonable 35 -7- LSB 1600XS (34) 84 md/sc 7/ 17

S.F. 252 attorney fees to be paid to the tenant’s attorney and court 1 costs to be paid to the tenant . 2 Sec. 14. Section 562B.24, Code 2011, is amended to read as 3 follows: 4 562B.24 Tenant’s remedies for landlord’s unlawful ouster, 5 exclusion , or diminution of services. 6 If the landlord unlawfully removes or excludes the tenant 7 from the manufactured home community or mobile home park or 8 willfully diminishes services to the tenant by interrupting 9 or causing the interruption of electric, gas, water , or 10 other essential service to the tenant, the tenant may recover 11 possession, require the restoration of essential services , or 12 terminate the rental agreement and, in either any such case, 13 recover an amount not to exceed two months’ periodic rent 14 and twice the actual damages sustained by the tenant , plus 15 reasonable attorney fees to be awarded to the tenant’s attorney 16 and court costs to be awarded to the tenant . 17 Sec. 15. Section 562B.25, subsection 2, Code 2011, is 18 amended to read as follows: 19 2. If rent is unpaid when due and the tenant fails to pay 20 rent within three thirty days after written notice by the 21 landlord of nonpayment and of the landlord’s intention to 22 terminate the rental agreement if the rent is not paid within 23 that period of time, the landlord may terminate the rental 24 agreement. 25 Sec. 16. Section 562B.27, subsection 1, Code 2011, is 26 amended to read as follows: 27 1. A tenant is considered to have abandoned a mobile home 28 when the tenant has been absent from the mobile home without 29 reasonable explanation for thirty days or more during which 30 time there is either a default of rent three thirty days after 31 rent is due, or the rental agreement is terminated pursuant to 32 section 562B.25 . A tenant’s return to the mobile home does 33 not change its status as abandoned unless the tenant pays to 34 the landlord all costs incurred for the mobile home space, 35 -8- LSB 1600XS (34) 84 md/sc 8/ 17

S.F. 252 including costs of removal, storage, notice, attorney fees, and 1 all rent and utilities due and owing. 2 Sec. 17. Section 562B.27, subsection 2, paragraph a, Code 3 2011, is amended to read as follows: 4 a. If a tenant abandons a mobile home on a mobile home 5 space, the landlord shall notify the mobile home owner or other 6 claimant of the mobile home and communicate to that person that 7 the person is liable for any costs incurred for the mobile home 8 space, including rent and utilities due and owing. A claimant 9 includes a holder of a lien as defined in section 555B.2 . 10 However, the person is only liable for costs incurred ninety 11 days before the landlord’s communication. After the landlord’s 12 communication, costs for which liability is incurred shall then 13 become the responsibility of the mobile home owner or other 14 claimant of the mobile home. The mobile home shall not may be 15 removed from the mobile home space without a signed written 16 agreement from the landlord showing clearance for removal, 17 and that all debts are paid in full, or an agreement reached 18 with the by the mobile home owner or other claimant and the 19 landlord prior to disposal or removal of the mobile home under 20 chapter 555B, unless otherwise prohibited under chapter 648. 21 Removal of the mobile home shall not, however, affect any claim 22 for amounts due or owing to the landlord, tenant, or other 23 claimant . 24 Sec. 18. Section 562B.31, subsection 2, Code 2011, is 25 amended to read as follows: 26 2. If the landlord makes an unlawful entry or a lawful entry 27 to the mobile home space in an unreasonable manner or makes 28 repeated demands for entry otherwise lawful but which have 29 the effect of unreasonably harassing the tenant, the tenant 30 may obtain injunctive relief to prevent the recurrence of the 31 conduct or terminate the rental agreement. In either case, the 32 tenant may recover actual damages not less than an amount equal 33 to one month’s rent to be awarded to the tenant plus attorney 34 fees to be awarded to the tenant’s attorney . 35 -9- LSB 1600XS (34) 84 md/sc 9/ 17

S.F. 252 Sec. 19. Section 562B.32, subsection 2, Code 2011, is 1 amended to read as follows: 2 2. If the landlord acts in violation of subsection 1 3 of this section , the tenant is entitled to the remedies 4 provided in section 562B.24 and has a defense in an action for 5 possession. In an action by or against the tenant, evidence 6 of a complaint within six twelve months prior to the alleged 7 act of retaliation creates a presumption that the landlord’s 8 conduct was in retaliation. The presumption does not arise 9 if the tenant made the complaint after notice of termination 10 of the rental agreement. For the purpose of this subsection , 11 “presumption” means that the trier of fact must find the 12 existence of the fact presumed unless and until evidence is 13 introduced which would support a finding of its nonexistence. 14 Sec. 20. Section 562B.32, subsection 3, paragraph b, Code 15 2011, is amended to read as follows: 16 b. The tenant is in default of rent three thirty days after 17 rent is due. The maintenance of the action does not release 18 the landlord from liability under section 562B.22, subsection 19 2 . 20 Sec. 21. Section 648.3, subsection 1, Code 2011, is amended 21 to read as follows: 22 1. Before action can be brought under any ground specified 23 in section 648.1 , except subsection 1 , three days’ notice to 24 quit must be given to the defendant in writing. However, a 25 landlord who has given a tenant three days’ notice to pay rent 26 and has terminated the tenancy as provided in section 562A.27, 27 subsection 2 , or who has given a tenant thirty days’ notice 28 to pay rent and has terminated the tenancy as provided in 29 section 562B.25, subsection 2 , if the tenant is renting the 30 manufactured or mobile home or the land from the landlord, may 31 commence the action without giving a three-day notice to quit. 32 Sec. 22. Section 648.22, Code 2011, is amended to read as 33 follows: 34 648.22 Judgment —— execution —— costs. 35 -10- LSB 1600XS (34) 84 md/sc 10/ 17

S.F. 252 1. If the defendant is found guilty, judgment shall be 1 entered that the defendant be removed from the premises, and 2 that the plaintiff be put in possession of the premises, and 3 an execution for the defendant’s removal within three days 4 from the judgment shall issue accordingly, to which shall be 5 added a clause commanding the officer to collect the costs as 6 in ordinary cases. 7 2. In cases covered by chapter 562B, the order entering 8 judgment shall include information describing the powers and 9 duties of the plaintiff and defendant under section 648.22A in 10 a form and in the manner prescribed by the attorney general. 11 Sec. 23. Section 648.22A, subsection 1, paragraph a, Code 12 2011, is amended to read as follows: 13 a. The plaintiff consents and the plaintiff has complied 14 with the provisions of section 648.6 . 15 Sec. 24. Section 648.22A, subsection 7, Code 2011, is 16 amended to read as follows: 17 7. Nothing in this This section shall not prevent the 18 defendant from removing the mobile home or manufactured home 19 prior to the expiration of three days after entry of judgment, 20 after which time a mobile home or manufactured home shall not 21 be removed without the prior payment to the plaintiff of all 22 sums owing at the time of entry of judgment, interest accrued 23 on such sums as provided by law, and amounts ordered by the 24 court resulting from a claim for rent or recovery filed in 25 connection with the action under section 648.19, subsection 26 1, and meeting the requirements of section 648.19, subsection 27 3, the per diem rent for that portion of the sixty-day period 28 which has expired prior to removal, and payment of any taxes 29 due on the home which are not abated pursuant to subsection 5 . 30 Sec. 25. Section 714.8, subsection 20, Code 2011, is amended 31 to read as follows: 32 20. A contract seller who intentionally provides inaccurate 33 information with regard to any matter required to be disclosed 34 under section 558.70, subsection 1 , section 558.72, subsection 35 -11- LSB 1600XS (34) 84 md/sc 11/ 17

S.F. 252 1, or section 558A.4 . 1 Sec. 26. APPLICABILITY. This Act applies to rental 2 agreements and contracts entered into, extended, or renewed on 3 or after July 1, 2011. 4 EXPLANATION 5 This bill relates to manufactured and mobile home landlord 6 and tenant laws, required disclosures during the sale of 7 manufactured and mobile homes, and actions for forcible entry 8 and detainer. 9 The bill increases from $10 to $500 the penalty imposed on a 10 manufactured or mobile home retailer who acquires a used mobile 11 home or manufactured home, titled in Iowa, and who does not 12 apply for and obtain a certificate of title from the county 13 treasurer of the manufactured or mobile home retailer’s county 14 of residence within 30 days of the date of acquisition. 15 The bill enacts new Code section 558.72, which establishes 16 a required disclosure statement for use in the sale of 17 manufactured homes and mobile homes. The bill provides that 18 prior to the sale of a manufactured or mobile home, the 19 seller shall deliver a written disclosure statement, on a 20 form prescribed by the attorney general, to the purchaser 21 which sets forth information relating to the property tax 22 status and special assessments for the manufactured or 23 mobile home and any real estate that is part of the sale, 24 a description of any mortgages or other liens encumbering 25 or secured by the manufactured or mobile home or the real 26 estate, a schedule for all payments to be made under the sales 27 contract, if applicable, information relating to any balloon 28 payments to be made under the contract, if applicable, and 29 the annual percentage rate of interest to be charged under 30 the sales contract, if applicable. The disclosure statement 31 must also include a statement that the purchaser has a right 32 to seek independent legal counsel concerning the sale and 33 any applicable sales contract, include a statement that the 34 purchaser has a right to receive a true and complete copy of 35 -12- LSB 1600XS (34) 84 md/sc 12/ 17

S.F. 252 any applicable sales contract after it has been executed by 1 all parties to the contract, include the mailing address of 2 each party to the sale or applicable sales contract, and, if 3 the contract is an installment sales contract and is subject 4 to forfeiture, include a statement that if the purchaser does 5 not comply with the terms of the contract, the purchaser may 6 lose all rights in the manufactured or mobile home, any real 7 estate that is part of the contract, and all sums paid under 8 the contract. The bill requires the seller and purchaser to 9 sign and date the disclosure statement and requires the seller 10 to provide a copy of the disclosure statement immediately 11 following receipt of the purchaser’s signature. The bill also 12 provides for specific mailing instructions for certain contract 13 sellers if the sale of the manufactured or mobile home involves 14 an installment sales contract. The bill provides that an 15 installment sales contract purchaser under new Code section 16 558.72 has all applicable rights provided under Code section 17 558.71, relating to installment sales contracts for residential 18 real estate. The bill provides that certain financial 19 institutions, lenders, insurance companies, and licensed 20 real estate brokers are exempt from the disclosure statement 21 requirements. The new disclosure statement requirements do 22 not limit or abridge any duty, requirement, obligation, or 23 liability for disclosure created by any other provision of law, 24 or under a contract between the parties. The bill provides 25 that a violation of new Code section 558.72 is an unlawful 26 practice pursuant to Code section 714.16 (consumer frauds). 27 The bill provides that if the seller of a manufactured 28 or mobile home fails to deliver a certificate of title duly 29 assigned to the purchaser of the manufactured or mobile home 30 or if the seller in an installment sales contract fails to 31 deliver a copy of the seller’s certificate of title to the 32 purchaser within 30 days following execution of the contract, 33 the purchaser may within two years of the execution of the 34 contract bring an equitable action to obtain recision of the 35 -13- LSB 1600XS (34) 84 md/sc 13/ 17

S.F. 252 contract and recover certain amounts paid to the purchaser. 1 If a purchaser obtains relief, the court is required to award 2 costs of the action to the purchaser and reasonable attorney 3 fees to the purchaser’s attorney. 4 The bill amends Code section 103A.55 to include the failure 5 of a manufactured or mobile home retailer, manufactured or 6 mobile home manufacturer, or manufactured or mobile home 7 distributor to provide the purchaser with the disclosure 8 statement in compliance with new Code section 558.72, as 9 grounds to revoke, suspend, or refuse the license of such 10 retailer, manufacturer, or distributor. 11 The bill provides that a contract seller who intentionally 12 provides inaccurate information with regard to any matter 13 required to be disclosed under new Code section 558.72, is 14 guilty of a fraudulent practice. The penalties for the crime 15 of fraudulent practice range from a simple misdemeanor to a 16 class “C” felony. 17 The bill provides that a violation by a landlord of any 18 applicable requirement of division I, II, or IV of Code chapter 19 562B is an unlawful practice pursuant to Code section 714.16 20 (consumer frauds). 21 The bill requires mobile home space rental agreements to be 22 for a term of at least one year. 23 The bill provides that a landlord must have good cause 24 before terminating a mobile home space rental agreement under 25 Code section 562B.10(4) and must provide the tenant 14 days to 26 remedy the violation or noncompliance before terminating the 27 agreement for good cause. The bill defines “good cause” as 28 a violation of Code chapter 562B by the tenant, a legitimate 29 business reason the impact of which is not specific to one 30 tenant, a material violation of the manufactured home community 31 or mobile home park rules or regulations, a change in the use 32 of the land if change in use of the land is included in the 33 rental agreement as a ground for termination, or a material 34 noncompliance with the rental agreement by the tenant. 35 -14- LSB 1600XS (34) 84 md/sc 14/ 17

S.F. 252 The bill amends a provision relating to the bad-faith 1 retention of a deposit, or a portion of the rental deposit, by 2 a landlord to provide that the landlord is subject to punitive 3 damages of at least $500, rather than not more than $200, and 4 to the payment of the tenant’s reasonable attorney fees, in 5 addition to actual damages. 6 The bill requires a landlord to, before the rental agreement 7 is executed, provide a copy of the rules or regulations of the 8 manufactured home community or mobile home park and provide a 9 written disclosure statement to the prospective tenant. The 10 written disclosure statement must include an explanation of 11 certain utility rates, charges, and services, an explanation 12 of any fee or amount required to be paid by the tenant to the 13 landlord or to a third party as a condition of the rental 14 agreement, an explanation of certain rights of the tenant under 15 Code chapter 562B, an explanation of statutorily prohibited 16 rental agreement provisions, an explanation of the reasons 17 for which the landlord may withhold amounts from the rental 18 deposit, and explanation of certain duties of the landlord, 19 and an explanation of certain statutorily authorized remedies 20 available to the tenant. 21 The bill prohibits a landlord from acting as an agent for a 22 mobile home owner who is a tenant during the sale of a mobile 23 home. 24 The bill provides that if there is noncompliance with the 25 rental agreement by the landlord or noncompliance with the 26 landlord’s duty to maintain the premises materially affecting 27 health and safety, the tenant may deliver written notice to 28 the landlord specifying the acts or omissions constituting the 29 breach and if the breach is not remedied in 14 days, procure 30 items or services to remedy the noncompliance during the period 31 of the landlord’s breach and deduct their actual and reasonable 32 cost from the rent. 33 The bill allows a tenant to recover reasonable attorney fees 34 for a landlord’s unlawful ouster, exclusion, or diminution 35 -15- LSB 1600XS (34) 84 md/sc 15/ 17

S.F. 252 of services, and by operation of law, a tenant may recover 1 reasonable attorney fees in an action for retaliation under 2 Code section 562B.32. 3 The bill makes changes to several provisions of Code chapter 4 562B to specify that a tenant’s attorney fees, if awarded by a 5 court, are awarded to the tenant’s attorney and authorizes the 6 award of court costs and attorney fees in certain actions under 7 Code section 562B.22. 8 Current Code section 562B.25(2) provides that if rent is 9 unpaid when due and the tenant fails to pay rent within three 10 days after written notice by the landlord of nonpayment and 11 of the landlord’s intention to terminate the rental agreement 12 if the rent is not paid within that period of time, the 13 landlord may terminate the rental agreement. The bill changes 14 the three-day limitation for payment of rent after written 15 notice by the landlord to 30 days. The bill makes conforming 16 amendments to Code chapter 648 (forcible entry and detainer). 17 The bill makes conforming amendments to Code sections 18 562B.27(1) and 562B.32(3), relating to abandonment of a mobile 19 home and a landlord’s action for possession, respectively. 20 Under current law, a mobile home that is determined to be 21 abandoned may not be removed from the mobile home space without 22 a signed written agreement from the landlord showing clearance 23 for removal, and that all debts are paid in full, or an 24 agreement reached with the mobile home owner or other claimant 25 and the landlord. The bill allows removal of an abandoned 26 mobile home by the owner or other claimant without limitation 27 prior to disposal or removal of the mobile home by the landlord 28 under Code chapter 558B (disposal of abandoned mobile homes), 29 unless prohibited under Code chapter 648 (forcible entry and 30 detainer). The bill provides that removal of the mobile home 31 does not affect any claim for amounts due or owing to the 32 landlord, tenant, or other claimant. 33 Current law provides that evidence of a complaint within 34 six months prior to the alleged act of retaliation creates a 35 -16- LSB 1600XS (34) 84 md/sc 16/ 17

S.F. 252 presumption that the landlord’s conduct was in retaliation. 1 The bill changes that period of presumption from six months to 2 12 months. 3 The bill requires the order of judgment in a forcible entry 4 and detainer action covered by Code chapter 562B to include 5 information describing the powers and duties of the plaintiff 6 and defendant specified in Code section 648.22A in a form and 7 in the manner prescribed by the attorney general. Code section 8 648.22A is amended to specify that only those amounts ordered 9 by the court resulting from a claim for rent or recovery filed 10 in connection with the forcible entry and detainer action and 11 considered separately by the court, in addition to certain 12 rents for the period prior to removal and certain taxes, must 13 be paid by the defendant prior to removal of the mobile home 14 after the expiration of three days after the entry of judgment. 15 The bill applies to rental agreements and contracts entered 16 into, extended, or renewed on or after July 1, 2011. 17 -17- LSB 1600XS (34) 84 md/sc 17/ 17