Senate File 493 H-8273 Amend Senate File 493, as amended, passed, and 1 reprinted by the Senate, as follows: 2 1. By striking everything after the enacting clause 3 and inserting: 4 < Section 1. NEW SECTION . 499A.1A Applicability. 5 This chapter shall apply to cooperatives established 6 under this chapter unless otherwise provided in chapter 7 499C. 8 Sec. 2. NEW SECTION . 499B.1A Applicability. 9 This chapter shall apply to horizontal property 10 regimes established under this chapter unless otherwise 11 provided in chapter 499C. 12 Sec. 3. Section 499B.15, subsection 2, Code 2011, 13 is amended by striking the subsection. 14 Sec. 4. NEW SECTION . 499B.21 Board of 15 administration —— meetings and records. 16 1. For horizontal property regimes with eight or 17 more apartments, if the form of administration is a 18 board of administration, the board of administration 19 shall comply with the requirements of chapter 499C. 20 2. For horizontal property regimes with seven or 21 less apartments, if the form of administration is a 22 board of administration, the board of administration 23 shall comply with the requirements of section 499C.401, 24 subsection 2, and sections 499C.402 and 499C.403. 25 Sec. 5. NEW SECTION . 499C.101 Title. 26 This chapter shall be known and cited as the “Iowa 27 Common Interest Ownership Act” . 28 Sec. 6. NEW SECTION . 499C.102 Public policy. 29 The general assembly declares that it is the public 30 policy of the state that the management and affairs of 31 common interest communities be conducted openly, and 32 this chapter shall be construed to provide open access 33 to the management of the common interest community to 34 the unit owners. 35 Sec. 7. NEW SECTION . 499C.103 Definitions. 36 As used in this chapter, unless the context 37 otherwise requires: 38 1. “Bylaws” means the instruments, however 39 denominated, that contain the procedures for conducting 40 the affairs of the unit owners association or the 41 executive board regardless of the form in which the 42 association is organized, including any amendments to 43 such instruments. 44 2. “Common element” means: 45 a. For a cooperative under chapter 499A or a 46 horizontal property regime under chapter 499B, all 47 portions of the common interest community other than 48 the units. 49 b. For a planned community, any real estate within 50 -1- SF493.5056 (3) 84 md/sc 1/ 10 #1.

the planned community which is owned or leased by the 1 unit owners association, other than a unit. 2 c. For all common interest communities, any other 3 interests in real estate for the benefit of unit owners 4 which are subject to the declaration. 5 3. a. “Common interest community” means real estate 6 described in a declaration with respect to which a 7 person, by virtue of the person’s ownership of a unit, 8 is obligated to pay for a share of real estate taxes, 9 insurance premiums, maintenance, or improvement of, or 10 services or other expenses related to, common elements, 11 other units, or other real estate described in the 12 declaration. “Common interest community” includes 13 a cooperative under chapter 499A and a horizontal 14 property regime under chapter 499B. 15 b. Common interest community does not include: 16 (1) A covenant that requires the owners of separate 17 parcels of real estate to share costs or other 18 obligations related to a wall, driveway, well, or other 19 similar structure, unless all such owners consent in 20 writing to the creation of a common interest community. 21 (2) Real estate described in paragraph “a” if all 22 units are owned by a single unit owner. 23 4. “Declarant” means any person or group of persons 24 who, as the record title owner of real estate, by 25 a declaration, initially creates a common interest 26 community. 27 5. “Declaration” means the instrument, however 28 denominated, that creates a common interest community, 29 including any amendments to the instrument. 30 6. “Executive board” means the body, regardless of 31 name, designated in the declaration or bylaws to act on 32 behalf of the unit owners association. 33 7. “Planned community” means a common interest 34 community that is not a cooperative under chapter 499A 35 or a horizontal property regime under chapter 499B, 36 and includes property owner or homeowner associations. 37 However, a cooperative under chapter 499A or a 38 horizontal property regime under chapter 499B may be 39 part of a planned community. 40 8. “Rule” means a policy, guideline, restriction, 41 procedure, or regulation, however denominated, which is 42 not set forth in the declaration or bylaws. 43 9. “Unit” means a physical portion of the common 44 interest community designated for separate ownership or 45 occupancy or as otherwise defined in the statute under 46 which the common interest community is organized. 47 10. “Unit owner” means a declarant or other person 48 that owns a unit, but does not include a person 49 having an interest in a unit solely as security for 50 -2- SF493.5056 (3) 84 md/sc 2/ 10

an obligation. In a horizontal property regime under 1 chapter 499B or a planned community, the declarant is 2 the owner of any unit created by the declaration. In 3 a cooperative under chapter 499A, the declarant is 4 the owner of any unit to which an interest has been 5 allocated until that unit has been conveyed to another 6 person. 7 11. “Unit owners association” means an association, 8 regardless of name, organized as a for-profit or 9 nonprofit corporation, trust, limited liability 10 company, partnership, unincorporated association, 11 or any other form of organization authorized by the 12 laws of this state, the membership of which consists 13 solely of unit owners except following termination 14 of the common interest community, at which time the 15 association shall consist of all former unit owners 16 entitled to distributions of proceeds or their heirs, 17 successors, or assigns. 18 Sec. 8. NEW SECTION . 499C.104 Variation by 19 agreement. 20 Except as expressly provided in this chapter, 21 the provisions of this chapter may not be varied 22 by agreement, and rights conferred by it may not be 23 waived. 24 Sec. 9. NEW SECTION . 499C.105 Applicability. 25 Unless otherwise provided by law: 26 1. This chapter applies to common interest 27 communities within this state having eight or more 28 units. 29 2. Any portion of a declaration, bylaws, covenant, 30 or other contractual provision existing prior to 31 July 1, 2012, that violates or is inconsistent with 32 this chapter is not enforceable. However, nothing in 33 this chapter shall be construed to invalidate other 34 provisions of the declaration, bylaws, plats, or plans 35 of those common interest communities established before 36 July 1, 2012. 37 3. The provisions of this chapter shall prevail 38 over any conflicting provision of law under which a 39 common interest community or unit owners association 40 is organized. 41 Sec. 10. NEW SECTION . 499C.201 Unit owners 42 association —— executive board. 43 1. A unit owners association shall have an 44 executive board. 45 2. Except as otherwise provided in the declaration, 46 the bylaws, subsection 3 of this section, or provisions 47 of the statute under which the common interest 48 community is organized, an executive board acts on 49 behalf of the unit owners association. 50 -3- SF493.5056 (3) 84 md/sc 3/ 10

3. An executive board shall not act on behalf of 1 the unit owners association to amend the declaration, 2 to terminate the common interest community, to elect 3 members of the executive board, or determine the 4 qualifications, powers and duties, or terms of office 5 of executive board members. An executive board may 6 fill vacancies in its membership for the unexpired 7 portion of any term. 8 4. A declaration may provide for a period of 9 declarant control of the unit owners association, 10 during which a declarant, or persons designated by the 11 declarant, may appoint and remove the officers and 12 members of the executive board. For declarations filed 13 on or after July 1, 2012, a period of declarant control 14 shall be clearly defined in the declaration. 15 Sec. 11. NEW SECTION . 499C.401 Meetings. 16 1. Meetings of a unit owners association, whether 17 such association is incorporated or unincorporated, 18 shall comply with all of the following: 19 a. A unit owners association shall hold a meeting 20 of unit owners annually at a time, date, and place 21 stated in or determined in accordance with the 22 declaration or bylaws. 23 b. A unit owners association shall hold a special 24 meeting of unit owners to address any matter affecting 25 the unit owners association if the association’s 26 president, a majority of the executive board, or an 27 amount of unit owners comprising at least forty percent 28 of all votes in the association, unless a different 29 percentage is specified in the bylaws, request that 30 the secretary call the meeting. If the unit owners 31 association does not notify unit owners of a special 32 meeting within thirty days after the required number 33 of unit owners has requested the secretary to call a 34 special meeting, the requesting members may directly 35 notify all unit owners of the meeting. Only matters 36 described in the meeting notice may be considered at a 37 special meeting. 38 c. A unit owners association shall notify each 39 unit owner of the time, date, and place of each annual 40 and special unit owners meeting not less than ten 41 days and not more than sixty days before the meeting 42 date. Notice may be by any means described in section 43 499C.403. Each meeting notice shall state the time, 44 date, and place of the meeting and the items on the 45 agenda in a manner reasonably calculated to apprise 46 the unit owners of that information, including but not 47 limited to: 48 (1) A statement of the general nature of any 49 proposed amendment to the declaration or bylaws. 50 -4- SF493.5056 (3) 84 md/sc 4/ 10

(2) A statement describing any budget changes. 1 (3) Any proposal to remove an officer or member of 2 the executive board. 3 d. The requirements relating to the timing of 4 meeting notices under paragraph “c” may be reduced or 5 waived for a meeting called to address an emergency. A 6 meeting called to address an emergency shall be limited 7 to matters arising out of the emergency. 8 e. Each unit owner shall be given a reasonable 9 opportunity at any meeting to comment on any matter 10 affecting the common interest community or the unit 11 owners association. 12 f. The declaration or bylaws may allow for meetings 13 of unit owners to be conducted by telephonic, video, or 14 other conferencing method, if such method is consistent 15 with subsection 2, paragraph “g” . 16 2. Meetings of the executive board and committees 17 of the unit owners association, authorized to act for 18 the unit owners association, shall comply with all of 19 the following: 20 a. Meetings shall be open to the unit owners except 21 during executive sessions. The executive board and 22 committees of the unit owners association may hold an 23 executive session only during a regular or special 24 meeting of the board or the committee. No final 25 vote or final action may be taken during an executive 26 session. An executive session may only be held for the 27 following reasons: 28 (1) To consult with the unit owners association’s 29 attorney concerning legal matters governed by 30 attorney-client privilege. 31 (2) To discuss existing or potential litigation or 32 mediation, arbitration, or governmental administrative 33 proceedings. 34 (3) To discuss matters relating to the job 35 performance, compensation, or health records of an 36 individual employee or specific complaints against an 37 individual employee of the unit owners association or 38 against an independent contractor employed by the unit 39 owners association. 40 (4) To discuss contracts, leases, and other 41 commercial transactions for goods or services that are 42 under negotiation, including the review of bids or 43 proposals, if public disclosure of such matters would 44 place the unit owners association at a disadvantage. 45 (5) To discuss personal, health, or financial 46 information relating to a unit owner, a specific 47 employee of the unit owners association, or a specific 48 employee of an independent contractor retained by the 49 unit owners association, including any records of the 50 -5- SF493.5056 (3) 84 md/sc 5/ 10

unit owners association relating to such information. 1 b. For purposes of this section, a gathering of 2 board members at which the board members do not conduct 3 unit owners association business is not a meeting of 4 the executive board. Executive board members shall not 5 use incidental or social gatherings of board members 6 or any other method to evade the meeting and notice 7 requirements of this section. 8 c. During a period of declarant control, the 9 executive board shall meet at least one time each 10 year. At least one of the meetings shall be held at 11 the common interest community or at a place convenient 12 to the unit owners of the common interest community. 13 After termination of the period of declarant control, 14 all executive board meetings shall be at the common 15 interest community or at a place convenient to the unit 16 owners of the common interest community unless the unit 17 owners amend the bylaws to vary the location of such 18 meetings. 19 d. At each executive board meeting, the executive 20 board shall provide a reasonable opportunity for unit 21 owners to comment on any matter affecting the common 22 interest community and the unit owners association. 23 e. Unless the meeting is included in a schedule 24 given to the unit owners or the meeting is called to 25 address an emergency, the secretary or other officer 26 specified in the bylaws shall give notice of each 27 executive board meeting to each executive board member 28 and to each unit owner. Such notice shall be given at 29 least ten days before the meeting and shall state the 30 time, date, place, and agenda of the meeting. 31 f. If any materials are distributed to the 32 executive board before a meeting, the executive board, 33 upon receipt of the materials, shall make copies 34 reasonably available to unit owners, except that the 35 executive board is not required to make available 36 copies of unapproved minutes or materials that are to 37 be considered during an executive session. 38 g. Unless otherwise provided in the declaration or 39 bylaws, the executive board may conduct a meeting by 40 telephonic, video, or other conferencing method if all 41 of the following conditions are met: 42 (1) The meeting notice states the conferencing 43 method to be used and provides information explaining 44 how unit owners may participate in the conference 45 directly or by meeting at a central location or 46 conference connection. 47 (2) The process provides all unit owners the 48 opportunity to hear or perceive the discussion and to 49 comment on matters before the executive board. 50 -6- SF493.5056 (3) 84 md/sc 6/ 10

h. Following termination of the period of declarant 1 control, unit owners may amend the bylaws to vary the 2 procedures for meetings described in paragraph “g” . 3 i. In lieu of a meeting, the executive board may 4 act by unanimous consent if such action is documented 5 in a record authenticated by all executive board 6 members. The secretary shall give prompt notice to all 7 unit owners of any action taken by unanimous consent. 8 After termination of the period of declarant control, 9 an executive board may act by unanimous consent only to 10 undertake ministerial actions or to implement actions 11 previously taken at a meeting of the executive board. 12 j. Unless otherwise restricted by this chapter or 13 the common interest community’s bylaws, an executive 14 board may determine rules of procedure for the 15 executive board. 16 k. An executive board may remove any person from 17 a meeting of the executive board upon a finding by a 18 majority of the board members that the person is being 19 disruptive to the meeting. An executive board may bar 20 any person from meetings of the executive board or 21 other meetings of the common interest community for a 22 period of up to one year if the person has been twice 23 removed from a meeting within the preceding twelve 24 months. 25 l. An action by an executive board that is not 26 in compliance with this section is valid unless 27 invalidated by a court. A challenge to the validity of 28 an action of the executive board for failure to comply 29 with this section shall not be brought more than sixty 30 days after the minutes of the executive board of the 31 meeting at which the action was taken are approved 32 or the record of that action is distributed to unit 33 owners, whichever is later. 34 Sec. 12. NEW SECTION . 499C.402 Association 35 records. 36 1. A unit owners association shall retain all of 37 the following: 38 a. Detailed records of receipts and expenditures 39 relating to the operation and administration of 40 the unit owners association and other appropriate 41 accounting records. 42 b. Minutes of all unit owners meetings and 43 executive board meetings, a record of all actions taken 44 by the unit owners or the executive board without 45 a meeting, and a record of all actions taken by a 46 committee in place of the executive board on behalf 47 of the unit owners association. The minutes retained 48 by the unit owners association shall indicate the 49 date, time, and place of the meeting, the names of all 50 -7- SF493.5056 (3) 84 md/sc 7/ 10

persons present at the meeting, and each action taken 1 at the meeting. The minutes shall also include the 2 results of each vote taken at the meeting, including 3 information indicating the vote of each executive 4 board member present at the meeting. The vote of each 5 executive board member present shall be made public at 6 the open session. 7 c. The names of all unit owners in a form that 8 permits preparation of a list of the names of all 9 owners and the regular mail or electronic mail address 10 at which the unit owners association communicates 11 with them, and the number of votes each unit owner is 12 entitled to cast. 13 d. The unit owners association’s original and 14 amended organizational documents, bylaws, including all 15 amendments to the bylaws, and all rules of the common 16 interest community currently in effect. 17 e. All financial statements and tax returns of the 18 unit owners association for the past three years. 19 f. A list of the names and addresses of the current 20 executive board members and officers. 21 g. The unit association’s most recent annual report 22 delivered to the secretary of state, if applicable. 23 h. Copies of each contract to which the unit owners 24 association is currently a party. 25 i. Records of executive board or committee actions 26 relating to requests for design or architectural 27 approval from unit owners. 28 j. Ballots, proxies, and other records related to 29 voting by unit owners for one year after the election, 30 action, or vote. 31 2. Except as provided under subsections 3 and 32 4, all records retained by a unit owners association 33 must be available for examination and copying by a 34 unit owner or the unit owner’s authorized agent during 35 reasonable business hours or at a mutually convenient 36 time and location upon providing a five days’ notice 37 that reasonably identifies the specific records that 38 are being requested. 39 3. Records retained by a unit owners association 40 may be withheld from inspection and copying to the 41 extent that they concern: 42 a. Personally identifiable information, salary, and 43 medical records relating to specific individuals. 44 b. Information relating to contracts, leases, and 45 other commercial transactions to purchase or provide 46 goods or services, currently under negotiation. 47 c. Information relating to existing or potential 48 litigation, mediation, arbitration, or governmental 49 administrative proceedings. 50 -8- SF493.5056 (3) 84 md/sc 8/ 10

d. Information relating to existing or potential 1 matters involving governmental administrative 2 proceedings or other proceedings before a government 3 tribunal for enforcement of the declaration, bylaws, 4 or rules. 5 e. Communications with the unit owners association 6 attorney which are otherwise protected by the 7 attorney-client privilege or the attorney work-product 8 doctrine. 9 f. Information that if disclosed would violate 10 another provision of law. 11 g. Records of an executive session of the executive 12 board. However, upon the completion of a matter 13 that is the subject of an executive session held 14 under section 499C.401, subsection 2, paragraph “a” , 15 subparagraphs (1) through (4), such records of the 16 executive session shall be available for inspection as 17 provided in this section. 18 h. Records directly related to the personal, 19 health, or financial information of a unit owner, if 20 the person requesting the records is not the unit owner 21 that is the subject of the records. 22 4. A unit owners association may charge a 23 reasonable fee for providing copies of any records 24 under this section and for supervising the inspection 25 of such records. 26 5. The right to inspect records under this section 27 includes the right to copy records by photocopying or 28 other means including copies through an electronic 29 transmission, if available, upon request of the 30 requester. 31 6. A unit owners association is not obligated to 32 compile or synthesize information or records under this 33 section. 34 7. Information or records obtained under this 35 section shall not be used for commercial purposes. 36 Sec. 13. NEW SECTION . 499C.403 Notice to unit 37 owners. 38 1. A unit owners association or an executive board, 39 as applicable, shall deliver each notice required to be 40 given by the association or board under this chapter 41 to the regular mail address or electronic mail address 42 provided by each unit owner. If a regular mail address 43 or electronic mail address is not provided by the unit 44 owner, the notice may be delivered using any of the 45 following methods: 46 a. Hand delivery to the unit owner. 47 b. Mailing by regular mail or certified mail, as 48 defined in section 618.15, to the address of the unit. 49 c. Any other method reasonably calculated to 50 -9- SF493.5056 (3) 84 md/sc 9/ 10

provide notice to the unit owner. 1 2. The ineffectiveness of a good-faith effort to 2 deliver notice under subsection 1 does not invalidate 3 an action taken at a meeting or an action taken by 4 other means. 5 Sec. 14. NEW SECTION . 499C.501 Cause of action —— 6 attorney fees. 7 A declarant, unit owners association, unit owner, or 8 any other person subject to this chapter may bring an 9 action to enforce a right granted or obligation imposed 10 by this chapter, the declaration, or the bylaws. In 11 any action brought under this chapter, the court 12 may award reasonable attorney fees to the prevailing 13 party. > 14 ______________________________ COMMITTEE ON JUDICIARY ANDERSON of Page, Chairperson -10- SF493.5056 (3) 84 md/sc 10/ 10