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Senate File 423 - IntroducedA Bill ForAn Act 1relating to property law, including rental properties,
2manufactured home communities, mobile home parks, and
3actions relating to such properties, making penalties
4applicable, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2GROUNDS FOR TERMINATION OF TENANCY
3 Section 1. Section 562B.10, Code 2023, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. A landlord shall not terminate a
6tenancy unless any of the following apply:
7a. The tenant engaged in an act of material noncompliance
8with the rental agreement.
9b. The tenant committed a material violation of the
10manufactured home community or mobile home park rules or
11regulations.
12c. The tenant committed any other violation of this chapter
13for which termination is a remedy.
14d. There exists a legitimate and material business reason
15the impact of which is not specific to one tenant.
16e. There is a change in the use of the land, and a change in
17the use of the land is grounds for termination or nonrenewal
18under the rental agreement.
19 Sec. 2. EFFECTIVE DATE. This division of this Act, being
20deemed of immediate importance, takes effect upon enactment.
21 Sec. 3. APPLICABILITY. This division of this Act applies
22to terminations of tenancies on or after the effective date of
23this division of this Act.
24DIVISION II
25CONSUMER FRAUD
26 Sec. 4. Section 562B.4, Code 2023, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 3. A violation of this chapter by a
29landlord or the landlord’s agent is an unlawful practice under
30section 714.16.
31 Sec. 5. Section 714.16, subsection 2, Code 2023, is amended
32by adding the following new paragraph:
33 NEW PARAGRAPH. q. It is an unlawful practice for a landlord
34or the landlord’s agent to violate any of the provisions of
35chapter 562B.
-1-1 Sec. 6. EFFECTIVE DATE. This division of this Act, being
2deemed of immediate importance, takes effect upon enactment.
3 Sec. 7. APPLICABILITY. This division of this Act applies to
4violations of chapter 562B occurring on or after the effective
5date of this division of this Act.
6DIVISION III
7RENT INCREASES
8 Sec. 8. Section 562B.7, subsection 10, Code 2023, is amended
9to read as follows:
1010. “Rent” means a payment to be made to the landlord under
11the rental agreement, including base rent, utilities, late
12fees, and other payments made by the tenant to the landlord
13under the rental agreement.
14 Sec. 9. Section 562B.14, subsection 7, Code 2023, is amended
15by striking the subsection and inserting in lieu thereof the
16following:
177. a. A landlord shall not increase the amount of rent
18due by any tenant in a manufactured home community or mobile
19home park unless the tenant is notified in writing of the
20rent increase at least one hundred eighty days before the
21effective date of the rent increase. The effective date of
22any rent increase shall not be less than one year after either
23the effective date of the most recent rent increase or the
24beginning of the tenancy, whichever is later.
25b. (1) Subject to paragraph “a”, a landlord may increase
26the amount of rent due by any tenant in an amount greater than
27the average annual increase of the consumer price index for all
28urban consumers in the midwest region for the most recently
29available preceding thirty-six-month period, if the landlord
30demonstrates all of the following:
31(a) The landlord, during the preceding twelve-month period,
32has not been found in violation of any provision of this
33chapter that threatens the health or safety of the tenants of
34or visitors to the manufactured home community or mobile home
35park that persists for more than fifteen days, beginning on the
-2-1day the landlord received notice of such violation.
2(b) The proposed rent increase is directly related to
3operating, maintaining, or improving the manufactured home
4community or mobile home park, and is justified by one or more
5of the following factors:
6(i) The completion and cost of any capital improvements or
7repair work in the manufactured home community or mobile home
8park, as distinguished from ordinary repair, replacement, and
9maintenance.
10(ii) An increase in property taxes due on the manufactured
11home community or mobile home park.
12(iii) If the landlord is responsible for payment of one
13or more utilities, an increase in utility expenses within the
14manufactured home community or mobile home park.
15(iv) An increase in insurance costs and financing
16associated with the manufactured home community or mobile home
17park.
18(v) An increase in reasonable operating and maintenance
19expenses relating to the manufactured home community or mobile
20home park.
21(vi) An increase in market rent. For purposes of this
22subparagraph subdivision, “market rent” means that rent which
23would result from market forces absent an unequal bargaining
24position between the landlord and tenants. In determining
25market rent, relevant considerations include rents charged
26to recent new tenants of the manufactured home community or
27mobile home park or rents charged by comparable manufactured
28home communities or mobile home parks. To be comparable,
29a manufactured home community or mobile home park must be
30within the competitive area and must offer similar facilities,
31services, amenities, and management.
32(2) The department of revenue shall monitor the consumer
33price index for all urban consumers in the midwest region and
34report the relevant data to the consumer protection division of
35the office of the attorney general for periodic publication.
-3- 1c. The written notice of a rent increase provided to the
2tenant must include the specific reasons for the increase
3including the justification under paragraph “b”, if applicable.
4d. A decrease in the number or quality of amenities,
5services, or utilities provided under the rental agreement
6without a corresponding and proportionate reduction in rent
7shall be considered a rent increase for the purposes of this
8chapter.
9 Sec. 10. EFFECTIVE DATE. This division of this Act, being
10deemed of immediate importance, takes effect upon enactment.
11 Sec. 11. APPLICABILITY. The following applies to rent
12increases under chapter 562B occurring on or after the
13effective date of this division of this Act:
14The portion of the section of this division of this Act
15enacting section 562B.14, subsection 7, paragraphs “a” and “d”.
16 Sec. 12. APPLICABILITY. The following applies to rent
17increases under chapter 562B occurring on or after July 1,
182023:
19The portion of the section of this division of this Act
20enacting section 562B.14, subsection 7, paragraphs “b” and “c”.
21DIVISION IV
22LANDLORD REMEDIES AND PROCEDURES
23 Sec. 13. Section 562A.9, subsection 4, Code 2023, is amended
24to read as follows:
254. For rental agreements in which the rent does not exceed
26seven hundred dollars per month, a rental agreement shall not
27provide for a late fee that exceeds twelve dollars per day or a
28total amount of sixty dollars per month. For rental agreements
29in which the rent is greater than seven hundred dollars per
30month but less than one thousand four hundred dollars per
31month, a rental agreement shall not provide for a late fee that
32exceeds twenty dollars per day or a total amount of one hundred
33dollars per month. For rental agreements in which the rent is
34at least one thousand four hundred dollars per month, a rental
35agreement shall not provide for a late fee that exceeds two
-4-1percent of the rent per day or a total amount of ten percent of
2the rent per month.
3 Sec. 14. Section 562B.10, subsection 4, Code 2023, is
4amended to read as follows:
54. For rental agreements in which the rent does not exceed
6seven hundred dollars per month, a rental agreement shall not
7provide for a late fee that exceeds twelve dollars per day or a
8total amount of sixty dollars per month. For rental agreements
9in which the rent is greater than seven hundred dollars per
10month but less than one thousand four hundred dollars per
11month, a rental agreement shall not provide for a late fee that
12exceeds twenty dollars per day or a total amount of one hundred
13dollars per month. For rental agreements in which the rent is
14at least one thousand four hundred dollars per month, a rental
15agreement shall not provide for a late fee that exceeds two
16percent of the rent per day or a total amount of ten percent of
17the rent per month.
18 Sec. 15. Section 562B.10, subsection 7, paragraph a, Code
192023, is amended by striking the paragraph and inserting in
20lieu thereof the following:
21a. If a tenant who was sole owner of a mobile home dies
22during the term of a rental agreement, then that person’s heirs
23or legal representative or the landlord shall have the right
24to cancel the tenant’s lease by giving sixty days’ written
25notice to the person’s heirs or legal representative or to the
26landlord, whichever is appropriate, and the heirs or the legal
27representative shall have the same rights, privileges, and
28liabilities of the original tenant.
29DIVISION V
30MANUFACTURED HOUSING PROGRAM FUND
31 Sec. 16. Section 16.45, subsection 1, Code 2023, is amended
32to read as follows:
331. A manufactured housing program fund is created within
34the authority to further the goal of providing affordable
35housing to Iowans. The moneys in the fund are to be used for
-5-1the purpose of providing funding to financial institutions or
2other lenders to finance the purchase by an individual of a
3manufactured home that is in compliance with all laws, rules,
4and standards that are applicable to manufactured homes and
5manufactured housing. The manufactured housing program fund
6is designed exclusively for manufactured homes sited on leased
7land.
8DIVISION VI
9TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE
10 Sec. 17. Section 562B.25, Code 2023, is amended by adding
11the following new subsection:
12 NEW SUBSECTION. 5. a. In an action for possession based
13upon nonpayment of the rent or in an action for rent where the
14tenant is in possession, the tenant may counterclaim for an
15amount which the tenant may recover under the rental agreement
16or this chapter. In that event, the court from time to time
17may order the tenant to pay into court all or part of the rent
18accrued and thereafter accruing, and shall determine the amount
19due to each party. The party to whom a net amount is owed
20shall be paid first from the money paid into court, and the
21balance by the other party. If rent does not remain due after
22application of this section, judgment shall be entered for
23the tenant in the action for possession. If the defense or
24counterclaim by the tenant is without merit and is not raised
25in good faith, the landlord may recover reasonable attorney
26fees.
27b. In an action for rent where the tenant is not in
28possession, the tenant may counterclaim as provided in
29paragraph “a”, but the tenant is not required to pay any rent
30into court.
31 Sec. 18. EFFECTIVE DATE. This division of this Act, being
32deemed of immediate importance, takes effect upon enactment.
33 Sec. 19. APPLICABILITY. This division of this Act applies
34to actions for possession filed on or after the effective date
35of this division of this Act.
-6-1DIVISION VII
2Utility Charges
3 Sec. 20. Section 562B.14, subsection 6, paragraphs a and b,
4Code 2023, are amended to read as follows:
5a. The landlord or any person authorized to enter into
6a rental agreement on the landlord’s behalf shall provide
7a written explanation of utility rates, fees, charges, and
8services, subject to section 562B.16, subsection 3, to the
9prospective tenant before the rental agreement is signed unless
10the utility charges are paid by the tenant directly to the
11utility company.
12b. Tenants shall be notified of any increase in utility
13rates or charges in the manner set forth in subsection 7 for
14rent increases, unless the landlord does not receive at least
15ninety days’ prior notice of such increase from the utility
16provider, in which case no prior notice of the increase from
17the landlord to the tenant is required for the increase to
18be effective the landlord shall provide notice to the tenant
19within five business days of receiving the notice from the
20utility provider.
21 Sec. 21. Section 562B.16, Code 2023, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 3. A landlord that is responsible for
24payment of utilities being provided to the tenant shall not
25charge to the tenant an amount in excess of the actual cost of
26the utility and as specified in writing under section 562B.14,
27subsection 6. In addition to the actual cost of the utility,
28a landlord that is responsible for the payment of one or more
29utilities being provided to the tenant may impose a monthly
30utility administration fee to each tenant not to exceed five
31dollars per month. The amount of the utility administration
32fee shall not exceed five dollars per month regardless of the
33number of utilities being provided or the actual cost of the
34utilities being provided.
35 Sec. 22. Section 562B.25, Code 2023, is amended by adding
-7-1the following new subsection:
2 NEW SUBSECTION. 2A. The failure of a tenant to pay utility
3charges that exceed the actual cost of the utility provided
4as required by section 562B.16, subsection 3, shall not be
5considered noncompliance with the rental agreement.
6 Sec. 23. Section 714H.3, subsection 2, Code 2023, is amended
7by adding the following new paragraph:
8 NEW PARAGRAPH. h. Section 562B.16, subsection 3.
9DIVISION VIII
10UNLAWFUL OUSTER
11 Sec. 24. Section 562B.24, Code 2023, is amended to read as
12follows:
13562B.24 Tenant’s remedies for landlord’s unlawful ouster,
14exclusion or diminution of services.
15If the landlord unlawfully removes or excludes the tenant
16from the manufactured home community or mobile home park or
17willfully diminishes services to the tenant by interrupting
18or causing the interruption of electric, gas, water or other
19essential service to the tenant, the tenant may recover
20possession, require the restoration of essential services or
21terminate the rental agreement and, in either case, recover an
22amount not to exceed two months’ periodic rent, and twice the
23actual damages sustained by the tenant, and reasonable attorney
24fees. If the rental agreement is terminated, the landlord
25shall return all prepaid rent and security.
26 Sec. 25. EFFECTIVE DATE. This division of this Act, being
27deemed of immediate importance, takes effect upon enactment.
28 Sec. 26. APPLICABILITY. This division of this Act applies
29to actions under section 562B.24, as amended in this division
30of this Act, filed on or after the effective date of this
31division of this Act.
32DIVISION IX
33TENANT CORRECTING DEFICIENCIES
34 Sec. 27. Section 562B.25, Code 2023, is amended by adding
35the following new subsection:
-8-1 NEW SUBSECTION. 4A. In any action by a landlord for
2possession based upon nonpayment of rent, proof by the tenant
3of all of the following shall be a defense to any action or
4claim for possession by the landlord, and the amounts expended
5by the tenant in correcting the deficiencies shall be deducted
6from the amount claimed by the landlord as unpaid rent:
7a. That the landlord failed to comply either with the rental
8agreement or with section 562B.16.
9b. That the tenant notified the landlord at least seven
10days prior to the due date of the tenant’s rent payment of the
11tenant’s intention to correct the condition constituting the
12breach referred to in paragraph “a” at the landlord’s expense.
13c. That the reasonable cost of correcting the condition
14constituting the breach is equal to or less than one month’s
15periodic rent.
16d. That the tenant in good faith caused the condition
17constituting the breach to be corrected prior to receipt of
18written notice of the landlord’s intention to terminate the
19rental agreement for nonpayment of rent.
20 Sec. 28. EFFECTIVE DATE. This division of this Act, being
21deemed of immediate importance, takes effect upon enactment.
22 Sec. 29. APPLICABILITY. This division of this Act applies
23to actions by a landlord for possession filed on or after the
24effective date of this division of this Act.
25DIVISION X
26DENIAL OF RENTAL OR REFUSAL OF SALE
27 Sec. 30. Section 562B.19, subsection 3, paragraphs a and c,
28Code 2023, are amended to read as follows:
29a. Deny rental unless the tenant or prospective tenant
30cannot conform to manufactured home community or park rules
31and regulations. A decision to deny rental shall conform
32to recognized principles, rules, and standards generally
33accepted by the professional manufactured home community or
34park industry to ensure the commercially reasonable safety and
35financial security of comparable manufactured home communities
-9-1or mobile home parks. A landlord shall deliver the decision
2in writing to the tenant or prospective tenant as soon as
3commercially feasible and shall provide the basis for a denial
4in writing to the tenant or prospective tenant at the time of
5the decision.
6c. Deny any resident of a manufactured home community or
7mobile home park the right to sell that person’s mobile home
8at a price of the person’s own choosing, but may reserve the
9right to approve the purchaser of such mobile home as a tenant
10but such permission may shall only be withheld for a legitimate
11business reason within the recognized principles, rules,
12and standards described in paragraph “a”, and shall not be
13unreasonably withheld, provided however, that the landlord may,
14in the event of a sale to a third party, in order to upgrade
15the quality of the manufactured home community or mobile home
16park, require that any mobile home in a rundown condition or in
17disrepair be removed from the manufactured home community or
18park within sixty days. If the landlord does not approve the
19purchaser as a tenant, the landlord shall provide the purchaser
20with written notice of such denial and the general reason for
21the denial, but the landlord shall not be required to provide
22a specific reason for the denial. If the landlord refuses
23to approve the purchaser of the mobile home as a tenant, the
24landlord shall provide a legitimate business reason for the
25refusal in writing to the resident who is selling the mobile
26home.
27DIVISION XI
28RENTAL AGREEMENT TERMS
29 Sec. 31. Section 562B.11, subsection 1, paragraph e, Code
302023, is amended to read as follows:
31e. Agrees to modify the physical characteristics or
32equipment of the mobile home, manufactured home, or modular
33home in a way that would substantially impair the ability of
34the tenant to move the home from the mobile home space, unless
35such modification is required by federal law, including but not
-10-1limited to the model manufactured home installation standards,
224 C.F.R. pt.3285, the manufactured home construction and
3safety standards, 24 C.F.R. pt.3280, or the manufactured
4home procedural and enforcement regulations, 24 C.F.R.
5pt.3282, or by state or local law, the manufacturer’s
6installation instructions, any requirement arising from the
7landlord’s financing of the home or of the mobile home park or
8manufactured home community in which the home is located, or
9unless such modification is otherwise necessary for the safe
10and proper installation of the home.
11 Sec. 32. Section 562B.11, subsection 1, Code 2023, is
12amended by adding the following new paragraphs:
13 NEW PARAGRAPH. f. Authorizes imposition of fines,
14penalties, or fees solely as a punishment or in amounts in
15excess of actual damages or costs incurred.
16 NEW PARAGRAPH. g. Authorizes a person to confess judgment
17on a claim arising out of the rental agreement.
18 NEW PARAGRAPH. h. Authorizes prohibitions, limitations,
19additional deposits, or other restrictive policies that are
20not based on ordinary wear and tear expected to occur during a
21tenancy or that are not based on community safety standards.
22 Sec. 33. Section 562B.11, subsection 3, Code 2023, is
23amended to read as follows:
243. A provision prohibited by this section included in a
25rental agreement is unenforceable. If a landlord or tenant
26 knowingly and willfully uses a rental agreement containing
27provisions known to be prohibited by this chapter, the other
28party tenant may recover actual damages sustained by the tenant
29and not more than three months’ periodic rent and reasonable
30attorney fees.
31DIVISION XII
32RENTAL DEPOSITS
33 Sec. 34. Section 562B.7, subsection 12, Code 2023, is
34amended to read as follows:
3512. “Rental deposit” means a deposit of money to secure
-11-1performance of a mobile home space rental agreement under this
2chapter other than a deposit which is exclusively in advance
3payment of rent.
4 Sec. 35. Section 562B.13, subsection 2, Code 2023, is
5amended to read as follows:
62. All rental deposits shall be held by the landlord for
7the tenant, who is a party to the agreement, in a bank, credit
8union, or savings and loan association which is insured by an
9agency of the federal government. Rental deposits shall not be
10commingled with the personal funds of the landlord. All rental
11deposits may be held in a trust account, which may be a common
12trust account and which may be an interest-bearing account.
13Any interest earned on a rental deposit during the first five
14years of a tenancy shall be the property of the landlord.
15 Sec. 36. Section 562B.13, Code 2023, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 9. The court may, in any action on a rental
18agreement, award reasonable attorney fees to the prevailing
19party.
20DIVISION XIII
21NONJUDICIAL FORECLOSURE
22 Sec. 37. Section 654.18, Code 2022, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 5. Actions under this section initiated
25on or after July 1, 2023, shall not be allowed for property
26consisting of a mobile home as defined in section 562B.7.
27 Sec. 38. Section 655A.9, Code 2023, is amended to read as
28follows:
29655A.9 Application of chapter.
301. This chapter does not apply to real estate used for
31an agricultural purpose as defined in section 535.13, or to
32a one or two family dwelling which is, at the time of the
33initiation of the foreclosure, occupied by a legal or equitable
34titleholder.
352. Actions under this chapter initiated on or after July 1,
-12-12023, shall not be allowed for property consisting of a mobile
2home as defined in section 562B.7.
3DIVISION XIV
4RETALIATION
5 Sec. 39. Section 562B.32, subsection 1, paragraph a, Code
62023, is amended to read as follows:
7a. The tenant has complained to a governmental agency
8charged with responsibility for enforcement of a building or
9housing code of a violation applicable to the manufactured
10home community or mobile home park materially affecting health
11and safety or other group relating to assisting tenants. For
12this subsection paragraph to apply, a complaint filed with a
13governmental body or group must be in good faith.
14DIVISION XV
15CAPITAL GAIN TAXES EXCLUSION
16 Sec. 40. Section 422.7, Code 2023, is amended by adding the
17following new subsection:
18 NEW SUBSECTION. 44. a. Subtract, to the extent included,
19the net capital gain from the sale or exchange of a mobile home
20park.
21b. To qualify under this subsection, the sale must be made
22to any of the following:
23(1) A tenants’ association or a mobile home park residents’
24association.
25(2) A nonprofit organization under section 501(c)(3) of
26the Internal Revenue Code that purchases a mobile home park on
27behalf of a tenants’ association or mobile home park residents’
28association.
29(3) A county housing authority.
30(4) A municipal housing authority.
31c. If the eligible business is a partnership, S corporation,
32limited liability company, or estate or trust electing to have
33the income taxed directly to the individual, an individual
34may claim the tax credit allowed. The amount claimed by
35the individual shall be based upon the pro rata share of
-13-1the individual’s earnings of the partnership, S corporation,
2limited liability company, or estate or trust.
3d. For the purpose of this subsection, “tenants’
4association” or “mobile home park residents’ association” means a
5group of six or more tenants who reside in a mobile home park,
6have organized for the purpose of eventual purchase of the
7mobile home park, have established bylaws of the association,
8and have obtained the approval by vote of at least fifty-one
9percent of the residents of the mobile home park to purchase
10the mobile home park.
11 Sec. 41. Section 422.35, Code 2023, is amended by adding the
12following new subsection:
13 NEW SUBSECTION. 15. a. Subtract, to the extent included,
14the net capital gain from the sale or exchange of a mobile home
15park.
16b. To qualify under this subsection, the sale must be made
17to any of the following:
18(1) A tenants’ association or a mobile home park residents’
19association.
20(2) A nonprofit organization under section 501(c)(3) of
21the Internal Revenue Code that purchases a mobile home park on
22behalf of a tenants’ association or mobile home park residents’
23association.
24(3) A county housing authority.
25(4) A municipal housing authority.
26c. For the purpose of this subsection, “tenants’
27association” or “mobile home park residents’ association” means a
28group of six or more tenants who reside in a mobile home park,
29have organized for the purpose of eventual purchase of the
30mobile home park, have established bylaws of the association,
31and have obtained the approval by vote of at least fifty-one
32percent of the residents of the mobile home park to purchase
33the mobile home park.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-14-1the explanation’s substance by the members of the general assembly.
2This bill relates to property law.
3GROUNDS FOR TERMINATION OF TENANCY. The bill prohibits a
4landlord from terminating a tenancy unless the tenant acts in
5material noncompliance with the rental agreement, commits a
6material violation of the manufactured home community or mobile
7home park rules or regulations, or commits any other violation
8of Code chapter 562B for which termination is a remedy; or
9for a legitimate and material business reason, the impact of
10which is not specific to one tenant; or due to a change in the
11use of the land, and such change is grounds for termination or
12nonrenewal under the rental agreement.
13This division of the bill takes effect upon enactment and
14applies to terminations of tenancies on or after that date.
15CONSUMER FRAUD. The bill provides that a violation of
16Code chapter 562B by a landlord or the landlord’s agent is
17an unlawful practice under Code section 714.16, governing
18consumer frauds. Several types of remedies are available
19if a court finds that a person has committed an unlawful
20practice, including injunctive relief, disgorgement of moneys
21or property, and a civil penalty not to exceed $40,000 per
22violation.
23This division of the bill takes effect upon enactment and
24applies to violations of Code chapter 562B occurring on or
25after that date.
26RENT INCREASES. The bill strikes changes to the definition
27of “rent” made by the general assembly in 2022 and modifies
28provisions governing an increase in the amount of rent paid
29by a tenant. The bill prohibits a landlord from increasing
30rent unless the tenant is notified in writing of the rent
31increase at least 180 days before the effective date of the
32rent increase. The bill further provides that the effective
33date of any rent increase shall not be less than one year from
34either the effective date of the most recent rent increase or
35the beginning of the tenancy, whichever is later.
-15- 1A landlord may increase the amount of rent due by any tenant
2in an amount greater than the average annual increase of the
3consumer price index for all urban consumers in the midwest
4region for the most recently available preceding 36-month
5period, if the landlord demonstrates a number of conditions
6set forth in the bill. The bill also requires the written
7notice of a rent increase provided to the tenant to include
8the specific reasons and justifications for the increase. A
9decrease in the number or quality of amenities, services,
10or utilities provided under the rental agreement without a
11corresponding and proportionate reduction in rent shall be
12considered a rent increase for the purposes of Code chapter
13562B.
14This division of the bill takes effect upon enactment and
15includes applicability provisions for certain requirements
16related to rent increases.
17LANDLORD REMEDIES AND PROCEDURES. Current law caps late
18fees on rental agreements in which rent is greater than $700
19per month at $20 per day and $100 per month. The bill allows
20a rental agreement to provide for late fees not to exceed 2
21percent of the rent per day and 10 percent of the rent per
22month when rent exceeds $1,400 per month. The bill undoes
23changes made to Code section 562B.10(7)(a) made by the general
24assembly in 2022 relating occupancy by heirs and personal
25representatives of a decedent’s estate.
26MANUFACTURED HOUSING PROGRAM FUND. Under current law, the
27manufactured housing program fund is used for the purpose of
28providing funding to financial institutions or other lenders
29to finance the purchase by an individual of a compliant
30manufactured home. The bill strikes language providing that
31the fund is designed exclusively for manufactured homes sited
32on leased land.
33TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE. The bill
34amends Code section 562B.25, relating to actions by a landlord
35for noncompliance with a rental agreement by a tenant or
-16-1failure to pay rent, by establishing authority and procedures
2similar to those under Code section 562A.24 (landlord’s
3noncompliance as defense to action for possession or rent —
4uniform residential landlord and tenant Act). In a landlord’s
5action for possession based upon nonpayment of rent or in an
6action for rent where the tenant is in possession, the tenant
7may counterclaim for an amount which the tenant may recover
8under the rental agreement or Code chapter 562B, and pay into
9court all or part of the rent. If the defense or counterclaim
10by the tenant is without merit and is not raised in good
11faith, the landlord may recover reasonable attorney fees.
12Additionally, in an action for rent where the tenant is not in
13possession, the tenant may counterclaim but is not required to
14pay any rent into court.
15This division of the bill takes effect upon enactment and
16applies to actions for possession filed on or after that date.
17UTILITY CHARGES. The bill provides that a landlord that
18is responsible for payment of utilities being provided to the
19tenant shall not charge to the tenant an amount in excess of
20the actual cost of the utility and the failure of a tenant to
21pay utility charges that exceed the actual cost of the utility
22provided shall not be considered noncompliance with the rental
23agreement. In addition to the actual cost of the utility,
24the bill authorizes a landlord that is responsible for the
25payment of one or more utilities to impose a monthly utility
26administration fee to each tenant not to exceed $5 per month,
27regardless of the number of utilities being provided or the
28actual cost of the utilities being provided. The bill also
29provides that a violation of the limitation on utility charges
30is a violation of Code section 714H.3 (private right of action
31for consumer frauds).
32UNLAWFUL OUSTER. The bill amends Code section 562B.24
33relating to a tenant’s remedies for a landlord’s unlawful
34ouster or exclusion or diminution of services. The bill adds
35reasonable attorney fees to the list of recoverable damages
-17-1and provides that if the rental agreement is terminated, the
2landlord shall return all prepaid rent and security.
3This division of the bill takes effect upon enactment and
4applies to actions under Code section 562B.24 filed on or after
5that date.
6TENANT CORRECTING DEFICIENCIES. The bill provides that in
7any action by a landlord for possession based upon nonpayment
8of rent, proof by the tenant of certain actions set forth in
9the bill are a defense to any action or claim for possession
10by the landlord, and the amounts expended by the tenant in
11correcting the deficiencies shall be deducted from the amount
12claimed by the landlord as unpaid rent.
13This division of the bill takes effect upon enactment and
14applies to actions by a landlord for possession filed on or
15after that date.
16DENIAL OF RENTAL OR REFUSAL OF SALE. Code section
17562B.19(3)(a) prohibits a landlord from denying rental unless
18the tenant or prospective tenant cannot conform to manufactured
19home community or park rules and regulations. The bill
20requires any such decision to conform to recognized principles,
21rules, and standards generally accepted by the professional
22manufactured home community or park industry to ensure the
23commercially reasonable safety and financial security of
24comparable manufactured home communities or parks. The bill
25also requires a landlord to deliver the decision in writing
26to the tenant or prospective tenant as soon as commercially
27feasible and to provide the basis for a denial in writing to
28the tenant or prospective tenant at the time of the decision.
29Code section 562B.19(3)(c) prohibits a landlord from denying
30any resident of a manufactured home community or mobile home
31park the right to sell that person’s mobile home at a price
32of the person’s own choosing, but provides that the landlord
33has the right to approve the purchaser as a tenant but such
34permission may not be unreasonably withheld. The bill allows
35such permission to be withheld only for a legitimate business
-18-1reason within the recognized principles, rules, and standards
2accepted by the industry. If the landlord refuses to approve
3the purchaser as a tenant, the landlord must provide a
4legitimate business reason for the refusal in writing to the
5resident.
6RENTAL AGREEMENT TERMS. The bill adds to the list of
7prohibited rental agreement provisions in Code section
8562B.11 a provision requiring agreement to modify the physical
9characteristics or equipment of the mobile home, manufactured
10home, or modular home if such modification impairs the ability
11of the tenant to move the home, unless otherwise required by
12law or local ordinance.
13The bill prohibits rental agreements under Code chapter 562B
14from providing that the tenant or landlord does any of the
15following: (1) authorizes imposition of fines, penalties, or
16fees solely as a punishment or in amounts in excess of actual
17damages or costs incurred, (2) authorizes a person to confess
18judgment on a claim arising out of the rental agreement, and
19(3) authorizes prohibitions, limitations, additional deposits,
20or other restrictive policies that are not based on ordinary
21wear and tear or that are not based on community safety
22standards.
23The bill provides that a tenant may recover up to three
24months’ rent and attorney fees for a landlord’s knowing
25and willful use of a rental agreement containing prohibited
26provisions. The bill also removes the ability of the landlord
27to recover from the tenant for use of a rental agreement
28containing prohibited provisions.
29RENTAL DEPOSITS. The bill modifies the definition of
30“rental deposit” for purposes of Code chapter 562B, provides
31that the landlord is only entitled to the interest earned on
32the rental deposit for the first five years of the tenancy, and
33establishes authority for a court, in any action on a rental
34agreement, to award reasonable attorney fees to the prevailing
35party.
-19- 1NONJUDICIAL FORECLOSURE. The bill excludes mobile homes
2from the applicability of nonjudicial foreclosure provisions.
3RETALIATION. Code section 562B.32(1) generally provides
4that a landlord shall not retaliate by increasing rent or
5decreasing services or by bringing or threatening to bring an
6action for possession or by failing to renew a rental agreement
7after the exercise or assertion of several specified rights
8and remedies, including complaining to a governmental agency
9charged with responsibility for enforcement of a building or
10housing code of a violation applicable to the manufactured
11home community or mobile home park materially affecting health
12and safety. The bill instead provides that a landlord cannot
13retaliate against a tenant for filing a good-faith complaint
14with a governmental agency or other group relating to assisting
15tenants.
16CAPITAL GAIN TAX EXCLUSION. The bill creates a capital gain
17exclusion from sale of a mobile home park to certain entities
18set forth in the bill.
-20-cm/ns
2manufactured home communities, mobile home parks, and
3actions relating to such properties, making penalties
4applicable, and including effective date and applicability
5provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2GROUNDS FOR TERMINATION OF TENANCY
3 Section 1. Section 562B.10, Code 2023, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. A landlord shall not terminate a
6tenancy unless any of the following apply:
7a. The tenant engaged in an act of material noncompliance
8with the rental agreement.
9b. The tenant committed a material violation of the
10manufactured home community or mobile home park rules or
11regulations.
12c. The tenant committed any other violation of this chapter
13for which termination is a remedy.
14d. There exists a legitimate and material business reason
15the impact of which is not specific to one tenant.
16e. There is a change in the use of the land, and a change in
17the use of the land is grounds for termination or nonrenewal
18under the rental agreement.
19 Sec. 2. EFFECTIVE DATE. This division of this Act, being
20deemed of immediate importance, takes effect upon enactment.
21 Sec. 3. APPLICABILITY. This division of this Act applies
22to terminations of tenancies on or after the effective date of
23this division of this Act.
24DIVISION II
25CONSUMER FRAUD
26 Sec. 4. Section 562B.4, Code 2023, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 3. A violation of this chapter by a
29landlord or the landlord’s agent is an unlawful practice under
30section 714.16.
31 Sec. 5. Section 714.16, subsection 2, Code 2023, is amended
32by adding the following new paragraph:
33 NEW PARAGRAPH. q. It is an unlawful practice for a landlord
34or the landlord’s agent to violate any of the provisions of
35chapter 562B.
-1-1 Sec. 6. EFFECTIVE DATE. This division of this Act, being
2deemed of immediate importance, takes effect upon enactment.
3 Sec. 7. APPLICABILITY. This division of this Act applies to
4violations of chapter 562B occurring on or after the effective
5date of this division of this Act.
6DIVISION III
7RENT INCREASES
8 Sec. 8. Section 562B.7, subsection 10, Code 2023, is amended
9to read as follows:
1010. “Rent” means a payment to be made to the landlord under
11the rental agreement, including base rent, utilities, late
12fees, and other payments made by the tenant to the landlord
13under the rental agreement.
14 Sec. 9. Section 562B.14, subsection 7, Code 2023, is amended
15by striking the subsection and inserting in lieu thereof the
16following:
177. a. A landlord shall not increase the amount of rent
18due by any tenant in a manufactured home community or mobile
19home park unless the tenant is notified in writing of the
20rent increase at least one hundred eighty days before the
21effective date of the rent increase. The effective date of
22any rent increase shall not be less than one year after either
23the effective date of the most recent rent increase or the
24beginning of the tenancy, whichever is later.
25b. (1) Subject to paragraph “a”, a landlord may increase
26the amount of rent due by any tenant in an amount greater than
27the average annual increase of the consumer price index for all
28urban consumers in the midwest region for the most recently
29available preceding thirty-six-month period, if the landlord
30demonstrates all of the following:
31(a) The landlord, during the preceding twelve-month period,
32has not been found in violation of any provision of this
33chapter that threatens the health or safety of the tenants of
34or visitors to the manufactured home community or mobile home
35park that persists for more than fifteen days, beginning on the
-2-1day the landlord received notice of such violation.
2(b) The proposed rent increase is directly related to
3operating, maintaining, or improving the manufactured home
4community or mobile home park, and is justified by one or more
5of the following factors:
6(i) The completion and cost of any capital improvements or
7repair work in the manufactured home community or mobile home
8park, as distinguished from ordinary repair, replacement, and
9maintenance.
10(ii) An increase in property taxes due on the manufactured
11home community or mobile home park.
12(iii) If the landlord is responsible for payment of one
13or more utilities, an increase in utility expenses within the
14manufactured home community or mobile home park.
15(iv) An increase in insurance costs and financing
16associated with the manufactured home community or mobile home
17park.
18(v) An increase in reasonable operating and maintenance
19expenses relating to the manufactured home community or mobile
20home park.
21(vi) An increase in market rent. For purposes of this
22subparagraph subdivision, “market rent” means that rent which
23would result from market forces absent an unequal bargaining
24position between the landlord and tenants. In determining
25market rent, relevant considerations include rents charged
26to recent new tenants of the manufactured home community or
27mobile home park or rents charged by comparable manufactured
28home communities or mobile home parks. To be comparable,
29a manufactured home community or mobile home park must be
30within the competitive area and must offer similar facilities,
31services, amenities, and management.
32(2) The department of revenue shall monitor the consumer
33price index for all urban consumers in the midwest region and
34report the relevant data to the consumer protection division of
35the office of the attorney general for periodic publication.
-3- 1c. The written notice of a rent increase provided to the
2tenant must include the specific reasons for the increase
3including the justification under paragraph “b”, if applicable.
4d. A decrease in the number or quality of amenities,
5services, or utilities provided under the rental agreement
6without a corresponding and proportionate reduction in rent
7shall be considered a rent increase for the purposes of this
8chapter.
9 Sec. 10. EFFECTIVE DATE. This division of this Act, being
10deemed of immediate importance, takes effect upon enactment.
11 Sec. 11. APPLICABILITY. The following applies to rent
12increases under chapter 562B occurring on or after the
13effective date of this division of this Act:
14The portion of the section of this division of this Act
15enacting section 562B.14, subsection 7, paragraphs “a” and “d”.
16 Sec. 12. APPLICABILITY. The following applies to rent
17increases under chapter 562B occurring on or after July 1,
182023:
19The portion of the section of this division of this Act
20enacting section 562B.14, subsection 7, paragraphs “b” and “c”.
21DIVISION IV
22LANDLORD REMEDIES AND PROCEDURES
23 Sec. 13. Section 562A.9, subsection 4, Code 2023, is amended
24to read as follows:
254. For rental agreements in which the rent does not exceed
26seven hundred dollars per month, a rental agreement shall not
27provide for a late fee that exceeds twelve dollars per day or a
28total amount of sixty dollars per month. For rental agreements
29in which the rent is greater than seven hundred dollars per
30month but less than one thousand four hundred dollars per
31month, a rental agreement shall not provide for a late fee that
32exceeds twenty dollars per day or a total amount of one hundred
33dollars per month. For rental agreements in which the rent is
34at least one thousand four hundred dollars per month, a rental
35agreement shall not provide for a late fee that exceeds two
-4-1percent of the rent per day or a total amount of ten percent of
2the rent per month.
3 Sec. 14. Section 562B.10, subsection 4, Code 2023, is
4amended to read as follows:
54. For rental agreements in which the rent does not exceed
6seven hundred dollars per month, a rental agreement shall not
7provide for a late fee that exceeds twelve dollars per day or a
8total amount of sixty dollars per month. For rental agreements
9in which the rent is greater than seven hundred dollars per
10month but less than one thousand four hundred dollars per
11month, a rental agreement shall not provide for a late fee that
12exceeds twenty dollars per day or a total amount of one hundred
13dollars per month. For rental agreements in which the rent is
14at least one thousand four hundred dollars per month, a rental
15agreement shall not provide for a late fee that exceeds two
16percent of the rent per day or a total amount of ten percent of
17the rent per month.
18 Sec. 15. Section 562B.10, subsection 7, paragraph a, Code
192023, is amended by striking the paragraph and inserting in
20lieu thereof the following:
21a. If a tenant who was sole owner of a mobile home dies
22during the term of a rental agreement, then that person’s heirs
23or legal representative or the landlord shall have the right
24to cancel the tenant’s lease by giving sixty days’ written
25notice to the person’s heirs or legal representative or to the
26landlord, whichever is appropriate, and the heirs or the legal
27representative shall have the same rights, privileges, and
28liabilities of the original tenant.
29DIVISION V
30MANUFACTURED HOUSING PROGRAM FUND
31 Sec. 16. Section 16.45, subsection 1, Code 2023, is amended
32to read as follows:
331. A manufactured housing program fund is created within
34the authority to further the goal of providing affordable
35housing to Iowans. The moneys in the fund are to be used for
-5-1the purpose of providing funding to financial institutions or
2other lenders to finance the purchase by an individual of a
3manufactured home that is in compliance with all laws, rules,
4and standards that are applicable to manufactured homes and
5manufactured housing. The manufactured housing program fund
6is designed exclusively for manufactured homes sited on leased
7land.
8DIVISION VI
9TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE
10 Sec. 17. Section 562B.25, Code 2023, is amended by adding
11the following new subsection:
12 NEW SUBSECTION. 5. a. In an action for possession based
13upon nonpayment of the rent or in an action for rent where the
14tenant is in possession, the tenant may counterclaim for an
15amount which the tenant may recover under the rental agreement
16or this chapter. In that event, the court from time to time
17may order the tenant to pay into court all or part of the rent
18accrued and thereafter accruing, and shall determine the amount
19due to each party. The party to whom a net amount is owed
20shall be paid first from the money paid into court, and the
21balance by the other party. If rent does not remain due after
22application of this section, judgment shall be entered for
23the tenant in the action for possession. If the defense or
24counterclaim by the tenant is without merit and is not raised
25in good faith, the landlord may recover reasonable attorney
26fees.
27b. In an action for rent where the tenant is not in
28possession, the tenant may counterclaim as provided in
29paragraph “a”, but the tenant is not required to pay any rent
30into court.
31 Sec. 18. EFFECTIVE DATE. This division of this Act, being
32deemed of immediate importance, takes effect upon enactment.
33 Sec. 19. APPLICABILITY. This division of this Act applies
34to actions for possession filed on or after the effective date
35of this division of this Act.
-6-1DIVISION VII
2Utility Charges
3 Sec. 20. Section 562B.14, subsection 6, paragraphs a and b,
4Code 2023, are amended to read as follows:
5a. The landlord or any person authorized to enter into
6a rental agreement on the landlord’s behalf shall provide
7a written explanation of utility rates, fees, charges, and
8services, subject to section 562B.16, subsection 3, to the
9prospective tenant before the rental agreement is signed unless
10the utility charges are paid by the tenant directly to the
11utility company.
12b. Tenants shall be notified of any increase in utility
13rates or charges in the manner set forth in subsection 7 for
14rent increases, unless the landlord does not receive at least
15ninety days’ prior notice of such increase from the utility
16provider, in which case no prior notice of the increase from
17the landlord to the tenant is required for the increase to
18be effective the landlord shall provide notice to the tenant
19within five business days of receiving the notice from the
20utility provider.
21 Sec. 21. Section 562B.16, Code 2023, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 3. A landlord that is responsible for
24payment of utilities being provided to the tenant shall not
25charge to the tenant an amount in excess of the actual cost of
26the utility and as specified in writing under section 562B.14,
27subsection 6. In addition to the actual cost of the utility,
28a landlord that is responsible for the payment of one or more
29utilities being provided to the tenant may impose a monthly
30utility administration fee to each tenant not to exceed five
31dollars per month. The amount of the utility administration
32fee shall not exceed five dollars per month regardless of the
33number of utilities being provided or the actual cost of the
34utilities being provided.
35 Sec. 22. Section 562B.25, Code 2023, is amended by adding
-7-1the following new subsection:
2 NEW SUBSECTION. 2A. The failure of a tenant to pay utility
3charges that exceed the actual cost of the utility provided
4as required by section 562B.16, subsection 3, shall not be
5considered noncompliance with the rental agreement.
6 Sec. 23. Section 714H.3, subsection 2, Code 2023, is amended
7by adding the following new paragraph:
8 NEW PARAGRAPH. h. Section 562B.16, subsection 3.
9DIVISION VIII
10UNLAWFUL OUSTER
11 Sec. 24. Section 562B.24, Code 2023, is amended to read as
12follows:
13562B.24 Tenant’s remedies for landlord’s unlawful ouster,
14exclusion or diminution of services.
15If the landlord unlawfully removes or excludes the tenant
16from the manufactured home community or mobile home park or
17willfully diminishes services to the tenant by interrupting
18or causing the interruption of electric, gas, water or other
19essential service to the tenant, the tenant may recover
20possession, require the restoration of essential services or
21terminate the rental agreement and, in either case, recover an
22amount not to exceed two months’ periodic rent, and twice the
23actual damages sustained by the tenant, and reasonable attorney
24fees. If the rental agreement is terminated, the landlord
25shall return all prepaid rent and security.
26 Sec. 25. EFFECTIVE DATE. This division of this Act, being
27deemed of immediate importance, takes effect upon enactment.
28 Sec. 26. APPLICABILITY. This division of this Act applies
29to actions under section 562B.24, as amended in this division
30of this Act, filed on or after the effective date of this
31division of this Act.
32DIVISION IX
33TENANT CORRECTING DEFICIENCIES
34 Sec. 27. Section 562B.25, Code 2023, is amended by adding
35the following new subsection:
-8-1 NEW SUBSECTION. 4A. In any action by a landlord for
2possession based upon nonpayment of rent, proof by the tenant
3of all of the following shall be a defense to any action or
4claim for possession by the landlord, and the amounts expended
5by the tenant in correcting the deficiencies shall be deducted
6from the amount claimed by the landlord as unpaid rent:
7a. That the landlord failed to comply either with the rental
8agreement or with section 562B.16.
9b. That the tenant notified the landlord at least seven
10days prior to the due date of the tenant’s rent payment of the
11tenant’s intention to correct the condition constituting the
12breach referred to in paragraph “a” at the landlord’s expense.
13c. That the reasonable cost of correcting the condition
14constituting the breach is equal to or less than one month’s
15periodic rent.
16d. That the tenant in good faith caused the condition
17constituting the breach to be corrected prior to receipt of
18written notice of the landlord’s intention to terminate the
19rental agreement for nonpayment of rent.
20 Sec. 28. EFFECTIVE DATE. This division of this Act, being
21deemed of immediate importance, takes effect upon enactment.
22 Sec. 29. APPLICABILITY. This division of this Act applies
23to actions by a landlord for possession filed on or after the
24effective date of this division of this Act.
25DIVISION X
26DENIAL OF RENTAL OR REFUSAL OF SALE
27 Sec. 30. Section 562B.19, subsection 3, paragraphs a and c,
28Code 2023, are amended to read as follows:
29a. Deny rental unless the tenant or prospective tenant
30cannot conform to manufactured home community or park rules
31and regulations. A decision to deny rental shall conform
32to recognized principles, rules, and standards generally
33accepted by the professional manufactured home community or
34park industry to ensure the commercially reasonable safety and
35financial security of comparable manufactured home communities
-9-1or mobile home parks. A landlord shall deliver the decision
2in writing to the tenant or prospective tenant as soon as
3commercially feasible and shall provide the basis for a denial
4in writing to the tenant or prospective tenant at the time of
5the decision.
6c. Deny any resident of a manufactured home community or
7mobile home park the right to sell that person’s mobile home
8at a price of the person’s own choosing, but may reserve the
9right to approve the purchaser of such mobile home as a tenant
10but such permission may shall only be withheld for a legitimate
11business reason within the recognized principles, rules,
12and standards described in paragraph “a”, and shall not be
13unreasonably withheld, provided however, that the landlord may,
14in the event of a sale to a third party, in order to upgrade
15the quality of the manufactured home community or mobile home
16park, require that any mobile home in a rundown condition or in
17disrepair be removed from the manufactured home community or
18park within sixty days. If the landlord does not approve the
19purchaser as a tenant, the landlord shall provide the purchaser
20with written notice of such denial and the general reason for
21the denial, but the landlord shall not be required to provide
22a specific reason for the denial. If the landlord refuses
23to approve the purchaser of the mobile home as a tenant, the
24landlord shall provide a legitimate business reason for the
25refusal in writing to the resident who is selling the mobile
26home.
27DIVISION XI
28RENTAL AGREEMENT TERMS
29 Sec. 31. Section 562B.11, subsection 1, paragraph e, Code
302023, is amended to read as follows:
31e. Agrees to modify the physical characteristics or
32equipment of the mobile home, manufactured home, or modular
33home in a way that would substantially impair the ability of
34the tenant to move the home from the mobile home space, unless
35such modification is required by federal law, including but not
-10-1limited to the model manufactured home installation standards,
224 C.F.R. pt.3285, the manufactured home construction and
3safety standards, 24 C.F.R. pt.3280, or the manufactured
4home procedural and enforcement regulations, 24 C.F.R.
5pt.3282, or by state or local law, the manufacturer’s
6installation instructions, any requirement arising from the
7landlord’s financing of the home or of the mobile home park or
8manufactured home community in which the home is located, or
9unless such modification is otherwise necessary for the safe
10and proper installation of the home.
11 Sec. 32. Section 562B.11, subsection 1, Code 2023, is
12amended by adding the following new paragraphs:
13 NEW PARAGRAPH. f. Authorizes imposition of fines,
14penalties, or fees solely as a punishment or in amounts in
15excess of actual damages or costs incurred.
16 NEW PARAGRAPH. g. Authorizes a person to confess judgment
17on a claim arising out of the rental agreement.
18 NEW PARAGRAPH. h. Authorizes prohibitions, limitations,
19additional deposits, or other restrictive policies that are
20not based on ordinary wear and tear expected to occur during a
21tenancy or that are not based on community safety standards.
22 Sec. 33. Section 562B.11, subsection 3, Code 2023, is
23amended to read as follows:
243. A provision prohibited by this section included in a
25rental agreement is unenforceable. If a landlord or tenant
26 knowingly and willfully uses a rental agreement containing
27provisions known to be prohibited by this chapter, the other
28party tenant may recover actual damages sustained by the tenant
29and not more than three months’ periodic rent and reasonable
30attorney fees.
31DIVISION XII
32RENTAL DEPOSITS
33 Sec. 34. Section 562B.7, subsection 12, Code 2023, is
34amended to read as follows:
3512. “Rental deposit” means a deposit of money to secure
-11-1performance of a mobile home space rental agreement under this
2chapter other than a deposit which is exclusively in advance
3payment of rent.
4 Sec. 35. Section 562B.13, subsection 2, Code 2023, is
5amended to read as follows:
62. All rental deposits shall be held by the landlord for
7the tenant, who is a party to the agreement, in a bank, credit
8union, or savings and loan association which is insured by an
9agency of the federal government. Rental deposits shall not be
10commingled with the personal funds of the landlord. All rental
11deposits may be held in a trust account, which may be a common
12trust account and which may be an interest-bearing account.
13Any interest earned on a rental deposit during the first five
14years of a tenancy shall be the property of the landlord.
15 Sec. 36. Section 562B.13, Code 2023, is amended by adding
16the following new subsection:
17 NEW SUBSECTION. 9. The court may, in any action on a rental
18agreement, award reasonable attorney fees to the prevailing
19party.
20DIVISION XIII
21NONJUDICIAL FORECLOSURE
22 Sec. 37. Section 654.18, Code 2022, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 5. Actions under this section initiated
25on or after July 1, 2023, shall not be allowed for property
26consisting of a mobile home as defined in section 562B.7.
27 Sec. 38. Section 655A.9, Code 2023, is amended to read as
28follows:
29655A.9 Application of chapter.
301. This chapter does not apply to real estate used for
31an agricultural purpose as defined in section 535.13, or to
32a one or two family dwelling which is, at the time of the
33initiation of the foreclosure, occupied by a legal or equitable
34titleholder.
352. Actions under this chapter initiated on or after July 1,
-12-12023, shall not be allowed for property consisting of a mobile
2home as defined in section 562B.7.
3DIVISION XIV
4RETALIATION
5 Sec. 39. Section 562B.32, subsection 1, paragraph a, Code
62023, is amended to read as follows:
7a. The tenant has complained to a governmental agency
8charged with responsibility for enforcement of a building or
9housing code of a violation applicable to the manufactured
10home community or mobile home park materially affecting health
11and safety or other group relating to assisting tenants. For
12this subsection paragraph to apply, a complaint filed with a
13governmental body or group must be in good faith.
14DIVISION XV
15CAPITAL GAIN TAXES EXCLUSION
16 Sec. 40. Section 422.7, Code 2023, is amended by adding the
17following new subsection:
18 NEW SUBSECTION. 44. a. Subtract, to the extent included,
19the net capital gain from the sale or exchange of a mobile home
20park.
21b. To qualify under this subsection, the sale must be made
22to any of the following:
23(1) A tenants’ association or a mobile home park residents’
24association.
25(2) A nonprofit organization under section 501(c)(3) of
26the Internal Revenue Code that purchases a mobile home park on
27behalf of a tenants’ association or mobile home park residents’
28association.
29(3) A county housing authority.
30(4) A municipal housing authority.
31c. If the eligible business is a partnership, S corporation,
32limited liability company, or estate or trust electing to have
33the income taxed directly to the individual, an individual
34may claim the tax credit allowed. The amount claimed by
35the individual shall be based upon the pro rata share of
-13-1the individual’s earnings of the partnership, S corporation,
2limited liability company, or estate or trust.
3d. For the purpose of this subsection, “tenants’
4association” or “mobile home park residents’ association” means a
5group of six or more tenants who reside in a mobile home park,
6have organized for the purpose of eventual purchase of the
7mobile home park, have established bylaws of the association,
8and have obtained the approval by vote of at least fifty-one
9percent of the residents of the mobile home park to purchase
10the mobile home park.
11 Sec. 41. Section 422.35, Code 2023, is amended by adding the
12following new subsection:
13 NEW SUBSECTION. 15. a. Subtract, to the extent included,
14the net capital gain from the sale or exchange of a mobile home
15park.
16b. To qualify under this subsection, the sale must be made
17to any of the following:
18(1) A tenants’ association or a mobile home park residents’
19association.
20(2) A nonprofit organization under section 501(c)(3) of
21the Internal Revenue Code that purchases a mobile home park on
22behalf of a tenants’ association or mobile home park residents’
23association.
24(3) A county housing authority.
25(4) A municipal housing authority.
26c. For the purpose of this subsection, “tenants’
27association” or “mobile home park residents’ association” means a
28group of six or more tenants who reside in a mobile home park,
29have organized for the purpose of eventual purchase of the
30mobile home park, have established bylaws of the association,
31and have obtained the approval by vote of at least fifty-one
32percent of the residents of the mobile home park to purchase
33the mobile home park.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-14-1the explanation’s substance by the members of the general assembly.
2This bill relates to property law.
3GROUNDS FOR TERMINATION OF TENANCY. The bill prohibits a
4landlord from terminating a tenancy unless the tenant acts in
5material noncompliance with the rental agreement, commits a
6material violation of the manufactured home community or mobile
7home park rules or regulations, or commits any other violation
8of Code chapter 562B for which termination is a remedy; or
9for a legitimate and material business reason, the impact of
10which is not specific to one tenant; or due to a change in the
11use of the land, and such change is grounds for termination or
12nonrenewal under the rental agreement.
13This division of the bill takes effect upon enactment and
14applies to terminations of tenancies on or after that date.
15CONSUMER FRAUD. The bill provides that a violation of
16Code chapter 562B by a landlord or the landlord’s agent is
17an unlawful practice under Code section 714.16, governing
18consumer frauds. Several types of remedies are available
19if a court finds that a person has committed an unlawful
20practice, including injunctive relief, disgorgement of moneys
21or property, and a civil penalty not to exceed $40,000 per
22violation.
23This division of the bill takes effect upon enactment and
24applies to violations of Code chapter 562B occurring on or
25after that date.
26RENT INCREASES. The bill strikes changes to the definition
27of “rent” made by the general assembly in 2022 and modifies
28provisions governing an increase in the amount of rent paid
29by a tenant. The bill prohibits a landlord from increasing
30rent unless the tenant is notified in writing of the rent
31increase at least 180 days before the effective date of the
32rent increase. The bill further provides that the effective
33date of any rent increase shall not be less than one year from
34either the effective date of the most recent rent increase or
35the beginning of the tenancy, whichever is later.
-15- 1A landlord may increase the amount of rent due by any tenant
2in an amount greater than the average annual increase of the
3consumer price index for all urban consumers in the midwest
4region for the most recently available preceding 36-month
5period, if the landlord demonstrates a number of conditions
6set forth in the bill. The bill also requires the written
7notice of a rent increase provided to the tenant to include
8the specific reasons and justifications for the increase. A
9decrease in the number or quality of amenities, services,
10or utilities provided under the rental agreement without a
11corresponding and proportionate reduction in rent shall be
12considered a rent increase for the purposes of Code chapter
13562B.
14This division of the bill takes effect upon enactment and
15includes applicability provisions for certain requirements
16related to rent increases.
17LANDLORD REMEDIES AND PROCEDURES. Current law caps late
18fees on rental agreements in which rent is greater than $700
19per month at $20 per day and $100 per month. The bill allows
20a rental agreement to provide for late fees not to exceed 2
21percent of the rent per day and 10 percent of the rent per
22month when rent exceeds $1,400 per month. The bill undoes
23changes made to Code section 562B.10(7)(a) made by the general
24assembly in 2022 relating occupancy by heirs and personal
25representatives of a decedent’s estate.
26MANUFACTURED HOUSING PROGRAM FUND. Under current law, the
27manufactured housing program fund is used for the purpose of
28providing funding to financial institutions or other lenders
29to finance the purchase by an individual of a compliant
30manufactured home. The bill strikes language providing that
31the fund is designed exclusively for manufactured homes sited
32on leased land.
33TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE. The bill
34amends Code section 562B.25, relating to actions by a landlord
35for noncompliance with a rental agreement by a tenant or
-16-1failure to pay rent, by establishing authority and procedures
2similar to those under Code section 562A.24 (landlord’s
3noncompliance as defense to action for possession or rent —
4uniform residential landlord and tenant Act). In a landlord’s
5action for possession based upon nonpayment of rent or in an
6action for rent where the tenant is in possession, the tenant
7may counterclaim for an amount which the tenant may recover
8under the rental agreement or Code chapter 562B, and pay into
9court all or part of the rent. If the defense or counterclaim
10by the tenant is without merit and is not raised in good
11faith, the landlord may recover reasonable attorney fees.
12Additionally, in an action for rent where the tenant is not in
13possession, the tenant may counterclaim but is not required to
14pay any rent into court.
15This division of the bill takes effect upon enactment and
16applies to actions for possession filed on or after that date.
17UTILITY CHARGES. The bill provides that a landlord that
18is responsible for payment of utilities being provided to the
19tenant shall not charge to the tenant an amount in excess of
20the actual cost of the utility and the failure of a tenant to
21pay utility charges that exceed the actual cost of the utility
22provided shall not be considered noncompliance with the rental
23agreement. In addition to the actual cost of the utility,
24the bill authorizes a landlord that is responsible for the
25payment of one or more utilities to impose a monthly utility
26administration fee to each tenant not to exceed $5 per month,
27regardless of the number of utilities being provided or the
28actual cost of the utilities being provided. The bill also
29provides that a violation of the limitation on utility charges
30is a violation of Code section 714H.3 (private right of action
31for consumer frauds).
32UNLAWFUL OUSTER. The bill amends Code section 562B.24
33relating to a tenant’s remedies for a landlord’s unlawful
34ouster or exclusion or diminution of services. The bill adds
35reasonable attorney fees to the list of recoverable damages
-17-1and provides that if the rental agreement is terminated, the
2landlord shall return all prepaid rent and security.
3This division of the bill takes effect upon enactment and
4applies to actions under Code section 562B.24 filed on or after
5that date.
6TENANT CORRECTING DEFICIENCIES. The bill provides that in
7any action by a landlord for possession based upon nonpayment
8of rent, proof by the tenant of certain actions set forth in
9the bill are a defense to any action or claim for possession
10by the landlord, and the amounts expended by the tenant in
11correcting the deficiencies shall be deducted from the amount
12claimed by the landlord as unpaid rent.
13This division of the bill takes effect upon enactment and
14applies to actions by a landlord for possession filed on or
15after that date.
16DENIAL OF RENTAL OR REFUSAL OF SALE. Code section
17562B.19(3)(a) prohibits a landlord from denying rental unless
18the tenant or prospective tenant cannot conform to manufactured
19home community or park rules and regulations. The bill
20requires any such decision to conform to recognized principles,
21rules, and standards generally accepted by the professional
22manufactured home community or park industry to ensure the
23commercially reasonable safety and financial security of
24comparable manufactured home communities or parks. The bill
25also requires a landlord to deliver the decision in writing
26to the tenant or prospective tenant as soon as commercially
27feasible and to provide the basis for a denial in writing to
28the tenant or prospective tenant at the time of the decision.
29Code section 562B.19(3)(c) prohibits a landlord from denying
30any resident of a manufactured home community or mobile home
31park the right to sell that person’s mobile home at a price
32of the person’s own choosing, but provides that the landlord
33has the right to approve the purchaser as a tenant but such
34permission may not be unreasonably withheld. The bill allows
35such permission to be withheld only for a legitimate business
-18-1reason within the recognized principles, rules, and standards
2accepted by the industry. If the landlord refuses to approve
3the purchaser as a tenant, the landlord must provide a
4legitimate business reason for the refusal in writing to the
5resident.
6RENTAL AGREEMENT TERMS. The bill adds to the list of
7prohibited rental agreement provisions in Code section
8562B.11 a provision requiring agreement to modify the physical
9characteristics or equipment of the mobile home, manufactured
10home, or modular home if such modification impairs the ability
11of the tenant to move the home, unless otherwise required by
12law or local ordinance.
13The bill prohibits rental agreements under Code chapter 562B
14from providing that the tenant or landlord does any of the
15following: (1) authorizes imposition of fines, penalties, or
16fees solely as a punishment or in amounts in excess of actual
17damages or costs incurred, (2) authorizes a person to confess
18judgment on a claim arising out of the rental agreement, and
19(3) authorizes prohibitions, limitations, additional deposits,
20or other restrictive policies that are not based on ordinary
21wear and tear or that are not based on community safety
22standards.
23The bill provides that a tenant may recover up to three
24months’ rent and attorney fees for a landlord’s knowing
25and willful use of a rental agreement containing prohibited
26provisions. The bill also removes the ability of the landlord
27to recover from the tenant for use of a rental agreement
28containing prohibited provisions.
29RENTAL DEPOSITS. The bill modifies the definition of
30“rental deposit” for purposes of Code chapter 562B, provides
31that the landlord is only entitled to the interest earned on
32the rental deposit for the first five years of the tenancy, and
33establishes authority for a court, in any action on a rental
34agreement, to award reasonable attorney fees to the prevailing
35party.
-19- 1NONJUDICIAL FORECLOSURE. The bill excludes mobile homes
2from the applicability of nonjudicial foreclosure provisions.
3RETALIATION. Code section 562B.32(1) generally provides
4that a landlord shall not retaliate by increasing rent or
5decreasing services or by bringing or threatening to bring an
6action for possession or by failing to renew a rental agreement
7after the exercise or assertion of several specified rights
8and remedies, including complaining to a governmental agency
9charged with responsibility for enforcement of a building or
10housing code of a violation applicable to the manufactured
11home community or mobile home park materially affecting health
12and safety. The bill instead provides that a landlord cannot
13retaliate against a tenant for filing a good-faith complaint
14with a governmental agency or other group relating to assisting
15tenants.
16CAPITAL GAIN TAX EXCLUSION. The bill creates a capital gain
17exclusion from sale of a mobile home park to certain entities
18set forth in the bill.
-20-cm/ns