House File 833 H-1325 Amend House File 833 as follows: 1 1. By striking everything after the enacting clause and 2 inserting: 3 < DIVISION I 4 RENTAL AGREEMENTS 5 Section 1. Section 562B.7, subsection 10, Code 2021, is 6 amended to read as follows: 7 10. “Rent” means a payment to be made to the landlord under 8 the rental agreement , including utility costs . 9 Sec. 2. Section 562B.10, subsection 5, Code 2021, is amended 10 to read as follows: 11 5. Rental agreements shall be for a term of one year unless 12 otherwise specified in the rental agreement. Rental agreements 13 shall be canceled by at least sixty ninety days’ written notice 14 given by either party. A landlord shall not cancel a rental 15 agreement solely for the purpose of making the tenant’s mobile 16 home space available for another mobile home. 17 DIVISION II 18 RETALIATION 19 Sec. 3. Section 562B.32, subsection 1, paragraph d, Code 20 2021, is amended to read as follows: 21 d. For exercising any of the rights and remedies pursuant 22 to this chapter or chapter 216 . 23 Sec. 4. Section 562B.32, subsection 2, Code 2021, is amended 24 to read as follows: 25 2. If the landlord acts in violation of subsection 1 26 of this section , the tenant is entitled to the remedies 27 provided in section 562B.24 and has a defense in an action for 28 possession. In an action by or against the tenant, evidence 29 of a complaint within six months one year prior to the alleged 30 act of retaliation creates a presumption that the landlord’s 31 conduct was in retaliation. The presumption does not arise 32 if the tenant made the complaint after notice of termination 33 of the rental agreement. For the purpose of this subsection , 34 “presumption” means that the trier of fact must find the 35 -1- HF833.1320 (2) 89 cm/jh 1/ 10 #1.

existence of the fact presumed unless and until evidence is 1 introduced which would support a finding of its nonexistence. 2 Sec. 5. EFFECTIVE DATE. This division of this Act, being 3 deemed of immediate importance, takes effect upon enactment. 4 DIVISION III 5 CONSUMER FRAUD 6 Sec. 6. Section 562B.4, Code 2021, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 3. A violation of this chapter by a 9 landlord, or an agent of the landlord, is an unlawful practice 10 under section 714.16. 11 DIVISION IV 12 RENT INCREASES 13 Sec. 7. Section 562B.14, subsection 7, Code 2021, is amended 14 by striking the subsection and inserting in lieu thereof the 15 following: 16 7. a. A landlord shall not increase the amount of rent 17 due by any tenant in a manufactured home community or mobile 18 home park unless the tenant is notified, in writing, of the 19 rent increase at least ninety days before the effective date 20 of the rent increase. The effective date of any increase in 21 the amount of rent shall not be less than one year after either 22 the effective date of the most recent rent increase or the 23 beginning of the tenancy, whichever is later. 24 b. A landlord that ceases to provide an amenity, service, 25 or utility which was provided for under the rental agreement 26 without a corresponding and proportionate reduction in rent 27 shall be considered to have increased rent for the purposes of 28 this chapter and the notice requirements provided in paragraph 29 “a” shall apply. 30 DIVISION V 31 TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE 32 Sec. 8. Section 562B.25, Code 2021, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 5. a. In an action for possession based 35 -2- HF833.1320 (2) 89 cm/jh 2/ 10

upon nonpayment of the rent or in an action for rent where the 1 tenant is in possession, the tenant may counterclaim for an 2 amount which the tenant may recover under the rental agreement 3 or this chapter. In that event, the court from time to time 4 may order the tenant to pay into court all or part of the rent 5 accrued and thereafter accruing, and shall determine the amount 6 due to each party. The party to whom a net amount is owed 7 shall be paid first from the money paid into court, and the 8 balance by the other party. If rent does not remain due after 9 application of this section, judgment shall be entered for 10 the tenant in the action for possession. If the defense or 11 counterclaim by the tenant is without merit and is not raised 12 in good faith, the landlord may recover reasonable attorney 13 fees. 14 b. In an action for rent where the tenant is not in 15 possession, the tenant may counterclaim as provided in 16 paragraph “a” , but the tenant is not required to pay any rent 17 into court. 18 DIVISION VI 19 DISCLOSURE OF UTILITY CHARGES 20 Sec. 9. Section 562B.14, subsection 6, Code 2021, is amended 21 to read as follows: 22 6. a. The landlord or any person authorized to enter into 23 a rental agreement on the landlord’s behalf shall provide a 24 written explanation of utility rates, charges and services to 25 the prospective tenant before the rental agreement is signed 26 unless the utility charges are paid by the tenant directly to 27 the utility company. 28 b. If a landlord obtains a utility service from a utility 29 provider and furnishes the utility to the tenant and the 30 landlord’s charge to the tenant is based upon the utility 31 provider’s charge or rate for the use of such utility to 32 consumers and the utility provider increases the charge or 33 rate, the landlord shall notify tenants of such increase within 34 five days of the landlord receiving the utility provider’s 35 -3- HF833.1320 (2) 89 cm/jh 3/ 10

notice of the increase. An increase in the landlord’s charge 1 to a tenant for the utility that corresponds to the same 2 increase in the utility provider’s charge or rate to the 3 landlord shall be effective thirty days after the landlord 4 provides the written notice of such increase to the tenant, 5 unless the landlord does not receive at least sixty days’ prior 6 notice of such increase from the utility provider in which case 7 no prior notice of the increase from the landlord to the tenant 8 is required for the increase to be effective. 9 DIVISION VII 10 FURNISHING OF WATER AND UTILITY CHARGES 11 Sec. 10. Section 423.3, subsection 103, Code 2021, is 12 amended to read as follows: 13 103. a. (1) The sales price from the sale or furnishing by 14 a water utility of a water service in the state to consumers or 15 users. 16 (2) Water service furnished by a mobile home park that does 17 not engage in the sale of water service. For purposes of this 18 subsection, a mobile home park does not engage in the sale of 19 water service if all of the following apply: 20 (a) The water service is not furnished to tenants for a 21 separately itemized price. 22 (b) The water service is not otherwise identifiable from 23 an invoice, bill, catalogue, price list, rate card, receipt, 24 agreement, or other similar document, including where the total 25 sales price increases when water service is included in the 26 sale to tenants. 27 (c) The water service is incidental to the rental of real 28 property. 29 b. For purposes of this subsection : 30 (1) “Mobile home park” means the same as defined in section 31 562B.7. 32 (1) (2) “Water service” means the delivery of water by 33 piped distribution system. 34 (2) (3) “Water utility” means a public utility as defined 35 -4- HF833.1320 (2) 89 cm/jh 4/ 10

in section 476.1 that furnishes water by piped distribution 1 system to the public for compensation. 2 Sec. 11. Section 423G.4, Code 2021, is amended by striking 3 the section and inserting in lieu thereof the following: 4 423G.4 Exemptions. 5 There is exempted from the tax imposed by this chapter the 6 following: 7 1. The sales price from transactions exempt from state 8 sales tax under section 423.3. However, the sales price from 9 transactions exempt from state sales tax under section 423.3, 10 subsection 103, shall not be exempt unless as provided in 11 subsection 2 or 3. 12 2. a. The sales price from the sale or furnishing of water 13 by a mobile home park through a piped distribution system 14 maintained by the mobile home park, to a consumer or user of 15 water who is a tenant, if all of the following apply: 16 (1) The water was obtained from a water utility. 17 (2) A tax was imposed by this chapter on the sales price 18 from the sale or furnishing of water by a water utility to the 19 mobile home park based upon readings of the master meter of the 20 mobile home park. 21 (3) The tenant is not charged for water by the mobile home 22 park in an amount that is more than the rate the tenant would be 23 charged for consuming or using water from the water utility, 24 plus an administrative fee under section 562B.16, subsection 25 3, not to exceed five dollars per month or ten percent of 26 the total amount of the utility bill per month, whichever is 27 greater. 28 b. As used in this section: 29 (1) “Master meter” means a single meter used in determining 30 the amount of water provided to a mobile home park. 31 (2) “Mobile home park” means the same as defined in section 32 562B.7 and also includes a “manufactured home community” , as 33 defined in section 562B.7. 34 (3) “Piped distribution system” includes a submetered 35 -5- HF833.1320 (2) 89 cm/jh 5/ 10

distribution system. 1 (4) “Tenant” means the same as defined in section 562B.7. 2 (5) “Water utility” means a public utility as defined in 3 section 476.1 that furnishes water by a piped distribution 4 system to the public for compensation. 5 3. Water service furnished by a mobile home park that does 6 not engage in the sale of water service. For purposes of this 7 subsection, a mobile home park does not engage in the sale of 8 water service if all of the following apply: 9 a. The water service is not furnished to tenants for a 10 separately itemized price. 11 b. The water service is not otherwise identifiable from 12 an invoice, bill, catalogue, price list, rate card, receipt, 13 agreement, or other similar document, including where the total 14 sales price increases when water service is included in the 15 sale to tenants. 16 c. The water service is incidental to the rental of real 17 property. 18 Sec. 12. Section 455B.171, subsection 26, Code 2021, is 19 amended to read as follows: 20 26. “Public water supply system” means , except as provided 21 in section 455B.200, a system for the provision to the public 22 of piped water for human consumption, if the system has at 23 least fifteen service connections or regularly serves at least 24 twenty-five individuals. The term includes any source of 25 water and any collection, treatment, storage, and distribution 26 facilities under control of the operator of the system and used 27 primarily in connection with the system, and any collection or 28 pretreatment storage facilities not under such control which 29 are used primarily in connection with the system. 30 Sec. 13. NEW SECTION . 455B.200 Mobile home parks. 31 1. As used in this section: 32 a. “Mobile home park” means the same as defined in section 33 423G.4. 34 b. “Tenant” means the same as defined in section 562B.7. 35 -6- HF833.1320 (2) 89 cm/jh 6/ 10

c. “Water utility” means a public utility as defined in 1 section 476.1 that furnishes water by a piped distribution 2 system to the public for compensation. 3 2. For purposes of this part 1, a mobile home park shall 4 not be considered a public water supply system if the mobile 5 home park sells or furnishes water to a tenant and all of the 6 following apply: 7 a. The water was obtained from a water utility prior to 8 selling or furnishing the water to a tenant. 9 b. The tenant is not charged more than the rate the tenant 10 would be charged for consuming or using water from the water 11 utility, plus an administrative fee under section 562B.16, 12 subsection 3, not to exceed five dollars per month or ten 13 percent of the total amount of the utility bill per month, 14 whichever is greater. 15 Sec. 14. Section 562B.14, subsection 6, Code 2021, is 16 amended to read as follows: 17 6. The landlord or any person authorized to enter into 18 a rental agreement on the landlord’s behalf shall provide 19 a written explanation of utility rates, fees, charges , and 20 services , subject to section 562B.16, subsection 3, to the 21 prospective tenant before the rental agreement is signed unless 22 the utility charges are paid by the tenant directly to the 23 utility company. 24 Sec. 15. Section 562B.16, Code 2021, is amended by adding 25 the following new subsection: 26 NEW SUBSECTION . 3. A landlord that is responsible for 27 payment of utilities being provided to the tenant shall not 28 charge to the tenant an amount in excess of the actual cost of 29 the utility and as specified in writing under section 562B.14, 30 subsection 6. However, in addition to the actual cost of the 31 utility, a landlord that is responsible for the payment of one 32 or more utilities being provided to the tenant may impose a 33 monthly utility administration fee to each tenant not to exceed 34 five dollars per month. 35 -7- HF833.1320 (2) 89 cm/jh 7/ 10

Sec. 16. Section 562B.25, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 2A. The failure of a tenant to pay utility 3 charges that exceed the actual cost of the utility provided 4 as required by section 562B.16, subsection 3, shall not be 5 considered noncompliance with the rental agreement. 6 DIVISION VIII 7 UNLAWFUL OUSTER 8 Sec. 17. Section 562B.24, Code 2021, is amended to read as 9 follows: 10 562B.24 Tenant’s remedies for landlord’s unlawful ouster, 11 exclusion or diminution of services. 12 If the landlord unlawfully removes or excludes the tenant 13 from the manufactured home community or mobile home park or 14 willfully diminishes services to the tenant by interrupting 15 or causing the interruption of electric, gas, water , or 16 other essential service to the tenant, the tenant may recover 17 possession, require the restoration of essential services or 18 terminate the rental agreement and, in either case, recover an 19 amount not to exceed two months’ periodic rent , and twice the 20 actual damages sustained by the tenant , and reasonable attorney 21 fees . If the rental agreement is terminated, the landlord 22 shall return all prepaid rent and security. 23 DIVISION IX 24 WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES 25 Sec. 18. NEW SECTION . 562B.23A Wrongful failure to supply 26 running water or essential services. 27 1. If contrary to the rental agreement or section 562B.16 28 the landlord deliberately or negligently fails to supply 29 running water or other essential services, the tenant may give 30 written notice to the landlord specifying the breach and may 31 do one of the following: 32 a. Procure reasonable amounts of water or other essential 33 services during the period of the landlord’s noncompliance and 34 deduct the actual and reasonable cost from the rent. 35 -8- HF833.1320 (2) 89 cm/jh 8/ 10

b. Recover damages based upon the diminution in the fair 1 market value of the mobile home space. 2 c. Recover any rent already paid for the period of the 3 landlord’s noncompliance which shall be reimbursed on a pro 4 rata basis. 5 2. If the tenant proceeds under this section, the tenant may 6 not proceed under section 562B.22 as to that breach. 7 3. The rights under this section do not arise until the 8 tenant has given notice to the landlord or if the condition was 9 caused by the deliberate or negligent act or omission of the 10 tenant, a member of the tenant’s family, or other person on the 11 premises with the consent of the tenant. 12 DIVISION X 13 PROHIBITED RENTAL AGREEMENT PROVISION —— HOME EQUIPMENT 14 Sec. 19. Section 562B.11, subsection 1, Code 2021, is 15 amended by adding the following new paragraph: 16 NEW PARAGRAPH . e. Agrees to modify the mobile home, 17 manufactured home, or modular home in a way that would 18 substantially impair the ability of the tenant to move the 19 home from the mobile home space, unless such modification is 20 required by federal law, including but not limited to the 21 model manufactured home installation standards, 24 C.F.R. pt. 22 3285, the manufactured home construction and safety standards, 23 24 C.F.R. pt. 3280, or the manufactured home procedural and 24 enforcement regulations, 24 C.F.R. pt. 3282, or by state or 25 local law, the manufacturer’s installation instructions, any 26 requirement arising from the landlord’s financing of the home 27 or of the mobile home park or manufactured home community in 28 which the home is located, or unless such modification is 29 otherwise necessary for the safe and proper installation of the 30 home. 31 DIVISION XI 32 LANDLORD SALES 33 Sec. 20. NEW SECTION . 562B.17A Sale of mobile home by 34 landlord. 35 -9- HF833.1320 (2) 89 cm/jh 9/ 10

1. Any sale of a mobile home located in a manufactured 1 home community or mobile home park by a landlord or landlord’s 2 agent shall be by written agreement and the landlord shall 3 produce and assign the current certificate of title obtained 4 from the department of transportation. The agreement shall 5 state the basic terms of sale, including the total cost of 6 the mobile home, finance charges, annual percentage rate, and 7 the frequency and amount of each installment payment. Such 8 agreement shall comply with the finance charge rate limitation 9 in section 103A.58, subsection 1. 10 2. Any such sale that does not comply with this section 11 may be voided by the buyer and the buyer may recover damages 12 incurred, amounts paid as a rental deposit in excess of two 13 months’ rent for the mobile home, and reasonable attorney fees. 14 3. A claim under subsection 2 may be combined with an action 15 under chapter 648. 16 Sec. 21. Section 648.19, subsection 1, Code 2021, is amended 17 to read as follows: 18 1. An action under this chapter shall not be filed in 19 connection with any other action, with the exception of a claim 20 for rent or recovery as provided in section 555B.3 , 562A.24 , 21 562A.32 , 562B.17A, 562B.22 , 562B.25 , or 562B.27 , nor shall it 22 be made the subject of counterclaim. > 23 2. Title page, by striking lines 1 and 2 and inserting < An 24 Act relating to property law by modifying provisions relating 25 to rental properties, manufactured home communities, mobile 26 home parks, and manufactured mobile home communities, modifying 27 provisions governing actions relating to such properties, and 28 including effective date provisions. > 29 ______________________________ LOHSE of Polk -10- HF833.1320 (2) 89 cm/jh 10/ 10 #2.