Senate
File
178
-
Introduced
SENATE
FILE
178
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
the
operations
and
governance
of
certain
1
common
interest
communities.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1174XS
(1)
87
md/sc
S.F.
178
DIVISION
I
1
IOWA
COMMON
INTEREST
OWNERSHIP
ACT
2
Section
1.
NEW
SECTION
.
499C.101
Title.
3
This
chapter
shall
be
known
and
cited
as
the
“Iowa
Common
4
Interest
Ownership
Act”
.
5
Sec.
2.
NEW
SECTION
.
499C.102
Public
policy.
6
The
general
assembly
declares
that
it
is
the
public
policy
of
7
the
state
that
the
management
and
affairs
of
common
interest
8
communities
be
conducted
openly,
and
this
chapter
shall
be
9
construed
to
provide
open
access
to
the
management
of
the
10
common
interest
community
for
the
unit
owners.
11
Sec.
3.
NEW
SECTION
.
499C.103
Definitions.
12
As
used
in
this
chapter,
unless
the
context
otherwise
13
requires:
14
1.
“Assessment”
means
a
sum
attributable
to
each
unit
and
15
due
to
the
unit
owners
association
as
may
be
provided
in
a
16
declaration
or
in
the
bylaws.
17
2.
“Bylaws”
means
the
instruments,
however
denominated,
18
that
contain
the
procedures
for
conducting
the
affairs
of
the
19
unit
owners
association
or
the
executive
board
regardless
of
20
the
form
in
which
the
association
is
organized,
including
any
21
amendments
to
such
instruments.
22
3.
“Common
element”
means:
23
a.
For
a
cooperative
under
chapter
499A
or
a
horizontal
24
property
regime
under
chapter
499B,
all
portions
of
the
common
25
interest
community
other
than
the
units.
26
b.
For
a
planned
community,
any
real
estate
within
the
27
planned
community
which
is
owned
or
leased
by
the
unit
owners
28
association,
other
than
a
unit.
29
c.
For
all
common
interest
communities,
any
other
interests
30
in
real
estate
identified
in
the
declaration
for
the
benefit
31
of
unit
owners.
32
4.
“Common
expenses”
means
expenditures
made
by,
or
33
financial
liabilities
of,
the
unit
owners
association
or
the
34
executive
board,
together
with
any
allocations
to
reserves.
35
-1-
LSB
1174XS
(1)
87
md/sc
1/
20
S.F.
178
5.
a.
“Common
interest
community”
means
real
estate
1
described
in
a
declaration
with
respect
to
which
a
person,
2
by
virtue
of
the
person’s
ownership
of
a
unit,
is
obligated
3
to
pay
for
a
share
of
real
estate
taxes,
insurance
premiums,
4
maintenance,
or
improvement
of,
or
services
or
other
expenses
5
related
to,
common
elements,
other
units,
or
other
real
estate
6
described
in
the
declaration.
“Common
interest
community”
7
includes
a
cooperative
under
chapter
499A
and
a
horizontal
8
property
regime
under
chapter
499B.
9
b.
“Common
interest
community”
does
not
include:
10
(1)
A
covenant
that
requires
the
owners
of
separate
parcels
11
of
real
estate
to
share
costs
or
other
obligations
related
to
a
12
wall,
driveway,
well,
or
other
similar
structure,
unless
all
13
such
owners
consent
in
writing
to
the
creation
of
a
common
14
interest
community.
15
(2)
Real
estate
described
in
paragraph
“a”
if
all
units
are
16
owned
by
a
single
owner.
17
6.
“Declarant”
means
a
person
or
group
of
persons
who,
18
as
the
record
title
owner
of
real
estate,
by
a
declaration,
19
creates
a
common
interest
community.
20
7.
“Declaration”
means
the
instrument,
however
denominated,
21
that
creates
a
common
interest
community,
including
any
22
amendments
to
the
instrument.
23
8.
“Executive
board”
means
the
body,
regardless
of
name,
24
designated
in
the
declaration
or
bylaws
to
act
on
behalf
of
the
25
unit
owners
association.
26
9.
“Planned
community”
means
a
common
interest
community
27
that
is
not
solely
a
cooperative
under
chapter
499A
or
28
solely
a
horizontal
property
regime
under
chapter
499B,
and
29
includes
property
owner
or
homeowner
associations.
However,
a
30
cooperative
under
chapter
499A
or
a
horizontal
property
regime
31
under
chapter
499B
may
be
part
of
a
planned
community.
32
10.
“Rule”
means
a
policy,
guideline,
restriction,
33
procedure,
or
regulation,
however
denominated,
which
is
not
set
34
forth
in
the
declaration
or
bylaws.
35
-2-
LSB
1174XS
(1)
87
md/sc
2/
20
S.F.
178
11.
“Unit”
means
a
physical
portion
of
the
common
interest
1
community
designated
for
separate
ownership
or
occupancy
or
2
as
otherwise
defined
in
the
statute
under
which
the
common
3
interest
community
is
organized.
4
12.
“Unit
owner”
means
a
declarant
or
other
person
that
owns
5
a
unit,
but
does
not
include
a
person
having
an
interest
in
a
6
unit
solely
as
security
for
an
obligation.
In
a
horizontal
7
property
regime
under
chapter
499B
or
a
planned
community,
8
the
declarant
is
the
owner
of
a
unit.
In
a
cooperative
under
9
chapter
499A,
the
declarant
is
the
owner
of
any
unit
to
10
which
an
interest
has
been
allocated
until
that
unit
has
been
11
conveyed
to
another
person.
12
13.
“Unit
owners
association”
means
an
association,
13
regardless
of
name,
organized
as
a
for-profit
or
nonprofit
14
corporation,
trust,
limited
liability
company,
partnership,
15
unincorporated
association,
or
any
other
form
of
organization
16
authorized
by
the
laws
of
this
state,
the
membership
of
17
which
consists
solely
of
unit
owners
except
following
18
termination
of
the
common
interest
community,
at
which
time
the
19
association
shall
consist
of
all
former
unit
owners
entitled
20
to
distributions
of
proceeds
or
their
heirs,
successors,
or
21
assigns.
22
Sec.
4.
NEW
SECTION
.
499C.104
Variation
by
agreement.
23
Except
as
expressly
provided
in
this
chapter,
the
provisions
24
of
this
chapter
may
not
be
varied
by
agreement,
and
rights
25
conferred
by
it
may
not
be
waived.
26
Sec.
5.
NEW
SECTION
.
499C.105
Applicability.
27
Unless
otherwise
provided
by
law:
28
1.
This
chapter
applies
to
common
interest
communities
29
within
this
state
having
eight
or
more
units.
30
2.
Any
portion
of
a
declaration,
bylaws,
covenant,
or
31
other
contractual
provision
existing
prior
to
July
1,
2017,
32
that
violates
or
is
inconsistent
with
this
chapter
is
not
33
enforceable.
However,
nothing
in
this
chapter
shall
be
34
construed
to
invalidate
other
provisions
of
the
declaration,
35
-3-
LSB
1174XS
(1)
87
md/sc
3/
20
S.F.
178
bylaws,
covenant,
or
contractual
provision
of
those
common
1
interest
communities
established
before
July
1,
2017.
2
3.
The
provisions
of
this
chapter
shall
prevail
over
any
3
conflicting
provision
of
law
under
which
a
common
interest
4
community
or
unit
owners
association
is
organized.
5
Sec.
6.
NEW
SECTION
.
499C.201
Unit
owners
association
——
6
powers
and
duties.
7
1.
Except
as
otherwise
provided
in
this
chapter,
a
unit
8
owners
association
shall
do
all
of
the
following:
9
a.
Adopt
bylaws
and
amend
such
bylaws.
10
b.
Adopt
budgets,
collect
assessments
for
common
expenses
11
from
unit
owners,
and
invest
funds
of
the
association,
if
12
applicable.
13
2.
Unless
otherwise
limited
by
a
declaration
or
bylaws,
a
14
unit
owners
association
shall
have
authority
to
do
any
of
the
15
following:
16
a.
Adopt
and
amend
rules
for
operation
of
the
unit
owners
17
association.
18
b.
Hire,
employ,
and
discharge
employees,
agents,
and
19
independent
contractors.
20
c.
Institute,
defend,
or
intervene
in
litigation,
21
arbitration,
mediation,
or
governmental
administrative
22
proceedings
on
behalf
of
the
unit
owners
association
or
for
two
23
or
more
unit
owners
on
matters
affecting
the
common
interest
24
community.
25
d.
Make
contracts
and
incur
liabilities.
26
e.
Regulate
the
use,
maintenance,
repair,
replacement,
and
27
modification
of
common
elements.
28
f.
Cause
additional
improvements
to
be
made
to
the
common
29
elements
of
the
common
interest
community.
30
g.
Acquire,
hold,
encumber,
and
convey
any
right,
title,
or
31
interest
to
real
estate
or
personal
property.
32
h.
Grant
easements,
leases,
licenses,
and
concessions
33
through
or
over
the
common
elements
of
the
common
interest
34
community.
35
-4-
LSB
1174XS
(1)
87
md/sc
4/
20
S.F.
178
i.
Impose
and
receive
any
payments,
fees,
or
charges
for
the
1
use,
rental,
or
operation
of
the
common
elements,
other
than
2
limited
common
elements
as
defined
in
section
499B.2,
and
for
3
services
provided
to
unit
owners.
4
j.
Impose
charges
for
late
payment
of
assessments
and,
5
after
notice
and
an
opportunity
to
be
heard,
impose
reasonable
6
monetary
penalties
for
violations
of
the
declaration,
bylaws,
7
and
rules
of
the
association.
8
k.
Impose
reasonable
charges
for
the
preparation
and
9
recording
of
statements
of
unpaid
assessments.
10
l.
Provide
for
the
indemnification
of
its
officers
and
11
executive
board,
including
maintenance
of
liability
insurance
12
for
directors
and
officers
of
the
unit
owners
association.
13
m.
Assign
its
right
to
future
income,
including
the
right
14
to
receive
assessments.
15
n.
Exercise
powers
conferred
by
the
declaration
or
bylaws.
16
o.
Exercise
all
other
powers
that
may
be
exercised
in
this
17
state
by
organizations
of
the
same
type
as
the
unit
owners
18
association.
19
p.
Suspend
any
right
or
privilege
of
a
unit
owner
who
fails
20
to
pay
an
assessment.
The
unit
owners
association
shall
not,
21
however,
deny
a
unit
owner
or
other
occupant
access
to
the
22
owner’s
unit,
suspend
a
unit
owner’s
right
to
vote,
prevent
a
23
unit
owner
from
seeking
election
as
a
director
or
officer
of
24
the
association,
or
withhold
services
provided
to
a
unit
or
a
25
unit
owner
by
the
association
if
the
effect
of
withholding
the
26
service
would
be
to
endanger
the
health,
safety,
or
property
27
of
any
person.
28
q.
Exercise
any
other
powers
necessary
and
proper
for
the
29
governance
and
operation
of
the
association.
30
3.
If
a
tenant
of
a
unit
owner
violates
the
declaration,
31
bylaws,
or
rules
of
the
association,
in
addition
to
exercising
32
any
of
its
powers
against
the
unit
owner,
the
association
may
33
do
any
of
the
following:
34
a.
After
giving
notice
to
the
tenant
and
the
unit
owner
and
35
-5-
LSB
1174XS
(1)
87
md/sc
5/
20
S.F.
178
providing
each
an
opportunity
to
be
heard,
exercise
the
powers
1
described
in
subsection
2,
paragraph
“j”
,
against
the
offending
2
tenant.
3
b.
Take
other
action
against
the
tenant
for
the
violation
in
4
the
same
manner
as
the
unit
owner,
acting
as
landlord,
could
5
have
exercised
under
the
lease
or
in
the
manner
that
the
unit
6
owners
association
could
lawfully
have
taken
action
directly
7
against
the
unit
owner,
or
both.
Action
under
this
paragraph
8
may
only
be
taken
if
the
tenant
or
unit
owner
fails
to
remedy
9
the
violation
within
ten
days
after
notification
by
the
unit
10
owners
association
of
the
violation.
11
4.
Unless
a
lease
of
a
unit
otherwise
provides,
this
section
12
does
not
do
any
of
the
following:
13
a.
Affect
rights
that
the
unit
owner
possesses
to
enforce
14
the
lease
or
that
the
unit
owners
association
has
under
other
15
provisions
of
law.
16
b.
In
the
absence
of
a
violation
of
the
declaration,
bylaws,
17
or
rules,
authorize
the
unit
owners
association
to
enforce
a
18
lease
to
which
the
unit
owners
association
is
not
a
party.
19
5.
An
executive
board
may
determine
whether
to
exercise
20
the
association’s
power
to
impose
sanctions
or
commence
an
21
action
for
a
violation
of
the
declaration,
bylaws,
or
rules,
22
including
whether
to
settle
any
claim
for
unpaid
assessments
or
23
other
claim
made
by
or
against
the
unit
owners
association.
An
24
executive
board
does
not
have
a
duty
to
take
enforcement
action
25
if
the
executive
board
determines,
following
consideration
of
26
the
facts
and
circumstances
presented,
any
of
the
following:
27
a.
The
association’s
legal
position
does
not
justify
taking
28
any
or
further
enforcement
action.
29
b.
The
covenant,
restriction,
or
rule
being
enforced
is,
or
30
is
likely
to
be
construed
as,
inconsistent
with
law.
31
c.
Despite
the
existence
of
a
violation,
the
violation
is
32
nonmaterial
and
does
not
justify
expenditure
of
the
unit
owners
33
association’s
resources.
34
d.
It
is
not
in
the
unit
owners
association’s
best
interests
35
-6-
LSB
1174XS
(1)
87
md/sc
6/
20
S.F.
178
to
pursue
an
enforcement
action.
1
6.
The
failure
of
an
executive
board
to
take
action
pursuant
2
to
subsection
5
shall
not
prevent
the
executive
board
from
3
taking
enforcement
action
under
a
similar
set
of
circumstances
4
or
facts.
The
authority
of
an
executive
board
to
take
action
5
under
this
chapter
shall
not,
however,
be
exercised
in
an
6
arbitrary
or
capricious
manner.
7
Sec.
7.
NEW
SECTION
.
499C.202
Executive
board.
8
1.
A
unit
owners
association
shall
have
an
executive
9
board
and,
except
as
otherwise
provided
in
the
declaration,
10
the
bylaws,
subsection
2,
or
provisions
of
the
statute
under
11
which
the
common
interest
community
is
organized,
an
executive
12
board
acts
on
behalf
of
the
unit
owners
association.
In
13
the
performance
of
their
duties,
officers
and
members
of
the
14
executive
board
appointed
by
the
declarant
shall
exercise
the
15
degree
of
care
and
loyalty
to
the
unit
owners
association
16
required
of
a
trustee.
Officers
and
members
of
an
executive
17
board
not
appointed
by
the
declarant
shall
exercise
the
degree
18
of
care
and
loyalty
to
the
unit
owners
association
required
19
of
an
officer
or
director
of
a
corporation
organized
under
20
chapter
504,
and
such
officers
and
members
are
subject
to
the
21
conflict
of
interest
rules
governing
directors
and
officers
22
under
chapter
504.
23
2.
An
executive
board
shall
not
act
on
behalf
of
the
unit
24
owners
association
to
amend
the
declaration,
to
terminate
the
25
common
interest
community,
to
elect
members
of
the
executive
26
board,
or
to
determine
the
qualifications,
powers
and
duties,
27
or
terms
of
office
of
executive
board
members.
An
executive
28
board
may
fill
vacancies
in
its
membership
for
the
unexpired
29
portion
of
any
term.
30
3.
a.
Subject
to
subsection
4,
the
declaration
may
31
provide
for
a
period
of
declarant
control
of
the
unit
owners
32
association
during
which
a
declarant,
or
persons
designated
by
33
the
declarant,
may
appoint
and
remove
the
officers
and
members
34
of
the
executive
board.
In
no
case,
however,
shall
a
period
of
35
-7-
LSB
1174XS
(1)
87
md/sc
7/
20
S.F.
178
declarant
control
continue
upon
the
occurrence
of
any
of
the
1
following:
2
(1)
Sixty
days
after
the
conveyance
of
seventy-five
percent
3
of
all
units
in
the
common
interest
community
to
unit
owners
4
other
than
a
declarant.
5
(2)
Two
years
after
all
declarants
have
ceased
to
offer
6
units
for
sale
in
the
ordinary
course
of
business.
7
(3)
Two
years
after
the
addition
of
any
number
of
new
units
8
to
the
common
interest
community.
9
(4)
The
date
the
declarant,
after
giving
written
notice
10
to
all
unit
owners,
records
an
instrument
voluntarily
11
surrendering
all
rights
to
control
activities
of
the
unit
12
owners
association.
13
b.
A
declarant
may
voluntarily
surrender
the
right
to
14
appoint
and
remove
officers
and
members
of
the
executive
board
15
before
termination
of
the
period
under
paragraph
“a”
.
However,
16
the
declarant
may
retain,
for
the
duration
of
the
period
of
17
declarant
control,
approval
authority
for
specified
actions
of
18
the
unit
owners
association
or
executive
board,
as
described
in
19
a
recorded
instrument
executed
by
the
declarant.
20
4.
a.
Not
later
than
sixty
days
after
conveyance
of
21
twenty-five
percent
of
the
units
to
unit
owners
other
than
a
22
declarant,
at
least
one
member,
and
not
less
than
twenty-five
23
percent
of
the
members
of
the
executive
board,
must
be
elected
24
by
unit
owners
other
than
the
declarant.
25
b.
Not
later
than
sixty
days
after
conveyance
of
fifty
26
percent
of
the
units
to
unit
owners
other
than
a
declarant,
not
27
less
than
one-third
of
the
members
of
the
executive
board
must
28
be
elected
by
unit
owners
other
than
the
declarant.
29
5.
Following
the
termination
of
any
period
of
declarant
30
control
under
this
section,
the
unit
owners
shall
elect
an
31
executive
board
of
at
least
three
members,
at
least
a
majority
32
of
whom
must
be
unit
owners.
The
executive
board
members
shall
33
elect
officers
of
the
executive
board.
The
executive
board
34
members
and
officers
shall
take
office
upon
election.
This
35
-8-
LSB
1174XS
(1)
87
md/sc
8/
20
S.F.
178
subsection
shall
not
apply
to
a
common
interest
community
if
1
all
the
units
of
the
community
are
owned
by
one
owner.
2
6.
Notwithstanding
any
provision
of
the
declaration
or
3
bylaws
to
the
contrary,
the
unit
owners,
by
a
two-thirds
vote
4
of
all
persons
present
and
entitled
to
vote
at
any
meeting
of
5
the
unit
owners
at
which
a
quorum
is
present,
may
remove
any
6
member
of
the
executive
board
with
or
without
cause,
other
than
7
a
member
appointed
by
the
declarant.
8
Sec.
8.
NEW
SECTION
.
499C.401
Meetings.
9
1.
Meetings
of
a
unit
owners
association
shall
comply
with
10
all
of
the
following:
11
a.
A
unit
owners
association
shall
hold
a
meeting
of
12
unit
owners
annually
at
a
time,
date,
and
place
stated
in
or
13
determined
in
accordance
with
the
declaration
or
bylaws.
14
b.
A
unit
owners
association
shall
hold
a
special
meeting
15
of
unit
owners
to
address
any
matter
affecting
the
unit
owners
16
association
if
the
association’s
president,
a
majority
of
the
17
executive
board,
or
a
number
of
unit
owners
comprising
at
18
least
forty
percent
of
all
votes
in
the
association,
unless
a
19
different
percentage
is
specified
in
the
bylaws,
requests
that
20
the
secretary
call
the
meeting.
If
the
unit
owners
association
21
does
not
notify
unit
owners
of
a
special
meeting
within
thirty
22
days
after
the
required
number
of
unit
owners
has
requested
the
23
secretary
to
call
a
special
meeting,
the
requesting
members
may
24
directly
notify
all
unit
owners
of
the
meeting.
Only
matters
25
described
in
the
meeting
notice
may
be
considered
at
a
special
26
meeting.
27
c.
A
unit
owners
association
shall
notify
each
unit
owner
28
of
the
time,
date,
and
place
of
each
annual
and
special
unit
29
owners
meeting
not
less
than
ten
days
and
not
more
than
sixty
30
days
before
the
meeting
date.
Each
meeting
notice
shall
state
31
the
time,
date,
and
place
of
the
meeting
and
the
items
on
the
32
agenda
in
a
manner
reasonably
calculated
to
apprise
the
unit
33
owners
of
that
information,
including
but
not
limited
to:
34
(1)
A
statement
of
the
general
nature
of
any
proposed
35
-9-
LSB
1174XS
(1)
87
md/sc
9/
20
S.F.
178
amendment
to
the
declaration
or
bylaws.
1
(2)
A
statement
describing
any
budget
changes.
2
(3)
Any
proposal
to
remove
an
officer
or
member
of
the
3
executive
board.
4
d.
The
requirements
relating
to
the
timing
of
meeting
5
notices
under
paragraph
“c”
may
be
reduced
or
waived
for
a
6
meeting
called
to
address
an
emergency.
A
meeting
called
to
7
address
an
emergency
shall
be
limited
to
matters
arising
out
8
of
the
emergency.
9
e.
Each
unit
owner
shall
be
given
a
reasonable
opportunity
10
at
any
meeting
to
comment
on
any
matter
affecting
the
common
11
interest
community
or
the
unit
owners
association
or
only
on
12
the
emergency
being
addressed,
if
applicable.
13
f.
The
declaration
or
bylaws
may
allow
for
meetings
of
14
unit
owners
to
be
conducted
by
telephonic,
video,
or
other
15
conferencing
methods,
if
such
methods
are
consistent
with
16
subsection
2,
paragraph
“g”
.
17
2.
Meetings
of
the
executive
board
and
meetings
of
18
committees
of
the
unit
owners
association,
authorized
to
act
19
for
the
unit
owners
association,
shall
comply
with
all
of
the
20
following:
21
a.
Meetings
shall
be
open
to
the
unit
owners
except
during
22
executive
sessions.
The
executive
board
and
committees
of
the
23
unit
owners
association
authorized
to
act
for
the
association
24
may
hold
an
executive
session
only
during
a
regular
or
special
25
meeting
of
the
board
or
the
committee.
No
final
vote
or
final
26
action
may
be
taken
during
an
executive
session.
An
executive
27
session
may
only
be
held
for
the
following
reasons:
28
(1)
To
consult
with
the
unit
owners
association’s
attorney
29
concerning
legal
matters
governed
by
attorney-client
privilege.
30
(2)
To
discuss
existing
or
potential
litigation
or
31
mediation,
arbitration,
or
governmental
administrative
32
proceedings.
33
(3)
To
discuss
matters
relating
to
the
job
performance,
34
compensation,
or
health
records
of
an
individual
employee
or
35
-10-
LSB
1174XS
(1)
87
md/sc
10/
20
S.F.
178
specific
complaints
against
an
individual
employee
of
the
1
unit
owners
association
or
against
an
independent
contractor
2
retained
by
the
unit
owners
association.
3
(4)
To
discuss
contracts,
leases,
and
other
commercial
4
transactions
for
goods
or
services
that
are
under
negotiation,
5
including
the
review
of
bids
or
proposals,
if
public
disclosure
6
of
such
matters
would
place
the
unit
owners
association
at
a
7
disadvantage.
8
(5)
To
discuss
personal,
health,
or
financial
information
9
relating
to
a
unit
owner,
a
specific
employee
of
the
unit
10
owners
association,
or
a
specific
employee
of
an
independent
11
contractor
retained
by
the
unit
owners
association,
including
12
any
records
of
the
unit
owners
association
relating
to
such
13
information.
14
b.
Executive
board
members
shall
not
use
incidental
or
15
social
gatherings
of
board
members
or
any
other
method
to
16
evade
the
meeting
and
notice
requirements
of
this
section.
17
For
purposes
of
this
section,
a
gathering
of
board
members
at
18
which
the
board
members
do
not
conduct
unit
owners
association
19
business
is
not
a
meeting
of
the
executive
board.
20
c.
During
a
period
of
declarant
control,
the
executive
board
21
shall
meet
at
least
one
time
each
year.
At
least
one
of
the
22
meetings
shall
be
held
at
the
common
interest
community
or
at
23
a
place
convenient
to
the
unit
owners
of
the
common
interest
24
community.
After
termination
of
the
period
of
declarant
25
control,
all
executive
board
meetings
shall
be
held
at
the
26
common
interest
community
or
at
a
place
convenient
to
the
unit
27
owners
of
the
common
interest
community
unless
the
unit
owners
28
amend
the
bylaws
to
vary
the
location
of
such
meetings.
29
d.
Unless
the
meeting
is
called
to
address
an
emergency,
30
at
each
executive
board
meeting,
the
executive
board
shall
31
provide
a
reasonable
opportunity
for
unit
owners
to
comment
on
32
any
matter
affecting
the
common
interest
community
and
the
unit
33
owners
association.
34
e.
Unless
the
meeting
is
included
in
a
schedule
given
to
the
35
-11-
LSB
1174XS
(1)
87
md/sc
11/
20
S.F.
178
unit
owners
or
the
meeting
is
called
to
address
an
emergency,
1
the
secretary
or
other
officer
specified
in
the
bylaws
shall
2
give
notice
of
each
executive
board
meeting
to
each
executive
3
board
member
and
to
each
unit
owner.
Such
notice
shall
be
4
given
at
least
ten
days
before
the
meeting
and
shall
state
the
5
time,
date,
place,
and
agenda
of
the
meeting.
6
f.
If
any
materials
are
distributed
to
the
executive
board
7
before
a
meeting,
the
executive
board,
upon
receipt
of
the
8
materials,
shall
make
copies
reasonably
available
to
unit
9
owners,
except
that
the
executive
board
is
not
required
to
make
10
available
copies
of
unapproved
minutes
or
materials
that
are
to
11
be
considered
during
an
executive
session.
12
g.
Unless
otherwise
provided
in
the
declaration
or
bylaws,
13
the
executive
board
may
conduct
a
meeting
by
telephonic,
14
video,
or
other
conferencing
methods
if
all
of
the
following
15
conditions
are
met:
16
(1)
The
meeting
notice
states
the
conferencing
method
to
17
be
used
and
provides
information
explaining
how
unit
owners
18
may
participate
in
the
conference
directly
or
by
meeting
at
a
19
central
location
or
conference
connection.
20
(2)
The
process
provides
all
unit
owners
the
opportunity
21
to
hear
or
perceive
the
discussion
and
to
comment
on
matters
22
before
the
executive
board.
23
h.
Following
termination
of
the
period
of
declarant
control,
24
unit
owners
may
amend
the
bylaws
to
vary
the
procedures
for
25
meetings
described
in
paragraph
“g”
.
26
i.
In
lieu
of
a
meeting,
the
executive
board
may
act
by
27
unanimous
consent
if
such
action
is
documented
in
a
record
28
authenticated
by
all
executive
board
members.
The
secretary
29
shall
give
prompt
notice
to
all
unit
owners
of
any
action
30
taken
by
unanimous
consent.
After
termination
of
the
period
31
of
declarant
control,
an
executive
board
may
act
by
unanimous
32
consent
only
to
undertake
ministerial
actions
or
to
implement
33
actions
previously
taken
at
a
meeting
of
the
executive
board.
34
j.
Unless
otherwise
restricted
by
this
chapter
or
the
common
35
-12-
LSB
1174XS
(1)
87
md/sc
12/
20
S.F.
178
interest
community’s
bylaws,
an
executive
board
may
determine
1
rules
of
procedure
for
the
executive
board.
2
k.
An
executive
board
may
remove
any
person
from
a
meeting
3
of
the
executive
board
upon
a
finding
by
a
majority
of
the
4
board
members
that
the
person
is
being
disruptive
to
the
5
meeting.
An
executive
board
may
bar
any
person
from
meetings
6
of
the
executive
board
or
other
meetings
of
the
common
interest
7
community
for
a
period
of
up
to
one
year
if
the
person
has
8
been
twice
removed
from
a
meeting
within
the
preceding
twelve
9
months.
10
l.
An
action
by
an
executive
board
that
is
not
in
compliance
11
with
this
section
is
valid
unless
invalidated
by
a
court.
A
12
challenge
to
the
validity
of
an
action
of
the
executive
board
13
for
failure
to
comply
with
this
section
shall
not
be
brought
14
more
than
sixty
days
after
the
minutes
of
the
executive
board
15
meeting
at
which
the
action
was
taken
are
approved
or
the
16
record
of
that
action
is
distributed
to
unit
owners,
whichever
17
is
later.
18
Sec.
9.
NEW
SECTION
.
499C.402
Association
records.
19
1.
A
unit
owners
association
shall
retain
all
of
the
20
following:
21
a.
Detailed
records
of
receipts
and
expenditures
relating
to
22
the
operation
and
administration
of
the
unit
owners
association
23
and
other
appropriate
accounting
records.
24
b.
Minutes
of
all
unit
owners
meetings
and
executive
board
25
meetings,
a
record
of
all
actions
taken
by
the
unit
owners
or
26
the
executive
board
without
a
meeting,
and
a
record
of
all
27
actions
taken
by
a
committee
in
place
of
the
executive
board
on
28
behalf
of
the
unit
owners
association.
The
minutes
retained
29
by
the
unit
owners
association
shall
indicate
the
date,
time,
30
and
place
of
the
meeting,
the
names
of
all
persons
present
31
at
the
meeting,
and
each
action
taken
at
the
meeting.
The
32
minutes
shall
also
include
the
results
of
each
vote
taken
at
33
the
meeting,
including
information
indicating
the
vote
of
each
34
executive
board
member
present
at
the
meeting.
The
vote
of
35
-13-
LSB
1174XS
(1)
87
md/sc
13/
20
S.F.
178
each
executive
board
member
present
shall
be
made
public
at
the
1
open
session.
2
c.
The
names
of
all
unit
owners
in
a
form
that
permits
3
preparation
of
a
list
of
the
names
of
all
owners
and
the
4
regular
mail
and
electronic
mail
addresses
at
which
the
unit
5
owners
association
communicates
with
them,
and
the
number
of
6
votes
each
unit
owner
is
entitled
to
cast.
7
d.
The
unit
owners
association’s
original
and
amended
8
organizational
documents,
bylaws
including
all
amendments
to
9
the
bylaws,
and
all
rules
of
the
common
interest
community
10
currently
in
effect.
11
e.
All
financial
statements
and
tax
returns
of
the
unit
12
owners
association
for
the
past
three
years.
13
f.
A
list
of
the
names
and
addresses
of
the
current
14
executive
board
members
and
officers.
15
g.
The
unit
owners
association’s
most
recent
annual
report
16
delivered
to
the
secretary
of
state,
if
applicable.
17
h.
Copies
of
each
contract
to
which
the
unit
owners
18
association
is
currently
a
party.
19
i.
Records
of
executive
board
or
committee
actions
relating
20
to
requests
for
design
or
architectural
approval
from
unit
21
owners.
22
j.
Ballots,
proxies,
and
other
records
related
to
voting
by
23
unit
owners
for
one
year
after
the
election,
action,
or
vote.
24
2.
Except
as
provided
under
subsections
3
and
4,
all
records
25
retained
by
a
unit
owners
association
must
be
available
for
26
examination
and
copying
by
a
unit
owner
or
the
unit
owner’s
27
authorized
agent
during
reasonable
business
hours
or
at
a
28
mutually
convenient
time
and
location
upon
providing
a
five
29
days’
notice
that
reasonably
identifies
the
specific
records
30
that
are
being
requested.
31
3.
Records
retained
by
a
unit
owners
association
may
be
32
withheld
from
inspection
and
copying
to
the
extent
that
they
33
concern:
34
a.
Personally
identifiable
information,
salary,
and
medical
35
-14-
LSB
1174XS
(1)
87
md/sc
14/
20
S.F.
178
records
relating
to
specific
individuals.
1
b.
Information
relating
to
contracts,
leases,
and
other
2
commercial
transactions
that
are
currently
under
negotiation
to
3
purchase
or
provide
goods
or
services.
4
c.
Information
relating
to
existing
or
potential
litigation,
5
mediation,
arbitration,
or
governmental
administrative
6
proceedings.
7
d.
Information
relating
to
existing
or
potential
matters
8
involving
governmental
administrative
proceedings
or
other
9
proceedings
before
a
government
tribunal
for
enforcement
of
the
10
declaration,
bylaws,
or
rules.
11
e.
Communications
with
the
unit
owners
association
attorney
12
which
are
otherwise
protected
by
the
attorney-client
privilege
13
or
the
attorney
work-product
doctrine.
14
f.
Information
that
if
disclosed
would
violate
another
15
provision
of
law.
16
g.
Records
of
an
executive
session
of
the
executive
board.
17
However,
upon
the
completion
of
a
matter
that
is
the
subject
of
18
an
executive
session
held
under
section
499C.401,
subsection
19
2,
paragraph
“a”
,
subparagraphs
(1)
through
(4),
such
records
20
of
the
executive
session
shall
be
available
for
inspection
as
21
provided
in
this
section.
22
h.
Records
directly
related
to
the
personal,
health,
or
23
financial
information
of
a
unit
owner
if
the
person
requesting
24
the
records
is
not
the
unit
owner
that
is
the
subject
of
the
25
records.
26
4.
A
unit
owners
association
may
charge
a
reasonable
fee
27
for
providing
copies
of
any
records
under
this
section
and
for
28
supervising
the
inspection
of
such
records.
29
5.
The
right
to
inspect
records
under
this
section
includes
30
the
right
to
copy
records
by
photocopying
or
other
means
and
31
includes
the
right
to
receive
copies
through
an
electronic
32
transmission,
if
available,
upon
request
of
the
requester.
33
6.
A
unit
owners
association
is
not
obligated
to
compile
or
34
synthesize
information
or
records
under
this
section.
35
-15-
LSB
1174XS
(1)
87
md/sc
15/
20
S.F.
178
7.
Information
or
records
obtained
under
this
section
shall
1
not
be
used
for
commercial
purposes.
2
Sec.
10.
NEW
SECTION
.
499C.403
Notice
to
unit
owners.
3
1.
A
unit
owners
association
or
an
executive
board,
as
4
applicable,
shall
deliver
each
notice
required
to
be
given
by
5
the
association
or
board
under
this
chapter
to
the
regular
mail
6
address
or
electronic
mail
address
provided
by
each
unit
owner.
7
If
a
regular
mail
address
or
electronic
mail
address
is
not
8
provided
by
the
unit
owner,
the
notice
may
be
delivered
using
9
any
of
the
following
methods:
10
a.
Hand
delivery
to
the
unit
owner.
11
b.
Mailing
by
certified
mail,
as
defined
in
section
618.15,
12
or
by
regular
mail
to
the
address
of
the
unit.
13
c.
Any
other
method
reasonably
calculated
to
provide
notice
14
to
the
unit
owner.
15
2.
The
ineffectiveness
of
a
good-faith
effort
to
deliver
16
notice
under
subsection
1
does
not
invalidate
an
action
taken
17
at
a
meeting
or
an
action
taken
by
other
means.
18
Sec.
11.
NEW
SECTION
.
499C.501
Cause
of
action
——
attorney
19
fees.
20
A
declarant,
unit
owners
association,
unit
owner,
or
any
21
other
person
subject
to
this
chapter
may
bring
an
action
to
22
enforce
a
right
granted
or
obligation
imposed
by
this
chapter,
23
the
declaration,
or
the
bylaws.
In
any
action
under
this
24
chapter,
the
court
may
award
reasonable
attorney
fees
to
the
25
prevailing
party.
26
DIVISION
II
27
CORRESPONDING
CHANGES
28
Sec.
12.
NEW
SECTION
.
499A.201
Applicability.
29
This
chapter
shall
apply
to
cooperatives
established
under
30
this
chapter
unless
otherwise
provided
in
chapter
499C.
31
Sec.
13.
NEW
SECTION
.
499B.1A
Applicability.
32
This
chapter
applies
to
horizontal
property
regimes
33
established
under
this
chapter
unless
otherwise
provided
in
34
chapter
499C.
35
-16-
LSB
1174XS
(1)
87
md/sc
16/
20
S.F.
178
Sec.
14.
Section
499B.15,
subsection
2,
Code
2017,
is
1
amended
by
striking
the
subsection.
2
Sec.
15.
NEW
SECTION
.
499B.22
Board
of
administration
——
3
meetings
and
records.
4
1.
For
horizontal
property
regimes
with
eight
or
more
5
apartments,
if
the
form
of
administration
is
a
board
of
6
administration,
the
board
of
administration
shall
comply
with
7
the
requirements
of
chapter
499C.
8
2.
For
horizontal
property
regimes
with
seven
or
fewer
9
apartments,
if
the
form
of
administration
is
a
board
of
10
administration,
the
board
of
administration
shall
comply
11
with
the
requirements
of
section
499C.401,
subsection
2,
and
12
sections
499C.402
and
499C.403.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
Division
I
of
this
bill
creates
an
Iowa
common
interest
17
ownership
Act,
new
Code
chapter
499C.
The
bill
provides
that
18
it
is
the
public
policy
of
the
state
that
the
management
and
19
affairs
of
common
interest
communities
be
conducted
openly
and
20
that
the
new
Code
chapter
is
to
be
construed
to
provide
open
21
access
to
the
management
of
the
common
interest
community
for
22
the
unit
owners.
23
New
Code
chapter
499C
defines
“common
interest
community”
24
to
mean
real
estate
described
in
a
declaration
with
respect
25
to
which
a
person,
by
virtue
of
the
person’s
ownership
of
a
26
unit,
is
obligated
to
pay
for
a
share
of
real
estate
taxes,
27
insurance
premiums,
maintenance,
or
improvement
of,
or
services
28
or
other
expenses
related
to,
common
elements,
other
units,
or
29
other
real
estate
described
in
the
declaration.
Cooperatives
30
under
Code
chapter
499A
and
horizontal
property
regimes
under
31
Code
chapter
499B
are
also
defined
to
be
common
interest
32
communities.
The
bill
specifies
that
a
common
interest
33
community
does
not
include
a
covenant
that
requires
the
owners
34
of
separate
parcels
of
real
estate
to
share
certain
costs
or
35
-17-
LSB
1174XS
(1)
87
md/sc
17/
20
S.F.
178
other
obligations,
unless
all
such
owners
consent
in
writing
1
to
the
creation
of
a
common
interest
community,
and
does
not
2
include
a
community
where
all
units
are
owned
by
a
single
3
owner.
4
The
bill
does
not
allow
for
the
provisions
of
new
Code
5
chapter
499C
to
be
varied
by
agreement,
and
rights
conferred
by
6
new
Code
chapter
499C
may
not
be
waived.
7
The
bill
specifies
that
unless
otherwise
provided
by
law
new
8
Code
chapter
499C
applies
to
all
common
interest
communities
9
established
within
this
state
having
eight
or
more
units.
10
However,
the
bill
provides
that
for
horizontal
property
regimes
11
with
seven
or
fewer
apartments,
if
the
form
of
administration
12
is
a
board
of
administration,
the
board
of
administration
must
13
comply
with
specified
requirements
of
new
Code
chapter
499C
14
regarding
meetings,
records,
and
notice.
15
The
bill
establishes
requirements
and
procedures
for
common
16
interest
communities,
unit
owners
associations,
and
executive
17
boards.
18
The
bill
provides
that
the
membership
of
a
unit
owners
19
association
shall
at
all
times
consist
exclusively
of
all
unit
20
owners
except
following
termination
of
the
common
interest
21
community,
at
which
time
the
unit
owners
association
shall
22
consist
of
all
former
unit
owners
entitled
to
distributions
23
of
proceeds
or
their
heirs,
successors,
or
assigns.
The
bill
24
requires
each
unit
owners
association
to
have
an
executive
25
board.
A
unit
owners
association
must
be
organized
as
a
26
for-profit
or
nonprofit
corporation,
trust,
limited
liability
27
company,
partnership,
unincorporated
association,
or
any
28
other
form
of
organization
authorized
by
the
laws
of
this
29
state.
The
bill
provides
that
the
requirements
of
new
Code
30
chapter
499C
relating
to
a
unit
owners
association
preempt
31
any
conflicting
provision
of
the
statute
under
which
the
unit
32
owners
association
is
organized.
33
The
bill
specifies
the
duties
and
powers
of
a
unit
owners
34
association,
including
powers
of
the
unit
owners
association
35
-18-
LSB
1174XS
(1)
87
md/sc
18/
20
S.F.
178
for
enforcement
of
the
provisions
of
declaration,
bylaws,
or
1
rules.
2
The
bill
specifies
the
duties
and
powers
of
an
executive
3
board.
An
executive
board,
except
as
otherwise
provided
in
the
4
declaration,
the
bylaws,
or
other
provision
of
law,
acts
on
5
behalf
of
the
unit
owners
association.
The
bill
specifies
the
6
duty
of
care
required
for
members
and
officers
of
the
executive
7
board.
8
The
bill
establishes
requirements
relating
to
meetings
of
9
unit
owners
associations,
executive
boards,
and
committees
10
of
such
entities
including
requirements
for
the
contents
11
of
meeting
notices,
allowable
actions
during
meetings,
12
requirements
relating
to
unit
owner
comments,
and
the
manner
13
in
which
meetings
may
be
conducted.
The
bill
also
specifies
14
the
manner
and
the
reasons
for
which
certain
meetings
may
be
15
called.
16
The
bill
enacts
requirements
relating
to
the
retention
of
17
records
by
unit
owners
associations
and
specifies
the
records
18
retained
by
a
unit
owners
association
which
may
be
withheld
19
from
inspection
and
copying.
20
The
bill
requires
a
unit
owners
association
or
executive
21
board,
as
applicable,
to
deliver
each
notice
required
to
be
22
given
by
the
association
under
new
Code
chapter
499C
to
the
23
regular
mail
address
or
electronic
mail
address
provided
by
24
each
unit
owner.
If
a
regular
mail
or
electronic
mail
address
25
is
not
provided
by
the
unit
owner,
the
unit
owners
association
26
may
deliver
the
notice
by
a
different
method
specified
in
27
the
bill.
The
bill
provides
that
the
ineffectiveness
of
a
28
good-faith
effort
to
deliver
notice
does
not
invalidate
an
29
action
taken
at
a
meeting
or
an
action
taken
by
other
means.
30
The
bill
provides
that
a
declarant,
unit
owners
association,
31
unit
owner,
or
any
other
person
subject
to
new
Code
chapter
32
499C
may
bring
an
action
to
enforce
a
right
granted
or
33
obligation
imposed
by
the
Code
chapter,
the
declaration,
or
the
34
bylaws.
In
any
such
action,
the
court
may
award
reasonable
35
-19-
LSB
1174XS
(1)
87
md/sc
19/
20
S.F.
178
attorney
fees
to
the
prevailing
party.
1
Division
II
of
the
bill
makes
corresponding
changes
relating
2
to
the
enactment
of
new
Code
chapter
499C.
3
-20-
LSB
1174XS
(1)
87
md/sc
20/
20