House File 2562 S-5137 Amend House File 2562, as amended, passed, and reprinted by 1 the House, as follows: 2 1. By striking everything after the enacting clause and 3 inserting: 4 < DIVISION I 5 GROUNDS FOR TERMINATION OF TENANCY 6 Section 1. Section 562B.10, Code 2022, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 4A. A landlord may only terminate a tenancy 9 if the tenant engages in any of the following or for any of the 10 following reasons: 11 a. A material noncompliance with the rental agreement. 12 b. A material violation of the manufactured home community 13 or mobile home park rules or regulations. 14 c. Any other violation of this chapter for which termination 15 is a remedy. 16 d. A legitimate and material business reason the impact of 17 which is not specific to one tenant. 18 e. A change in the use of the land if change in the use of 19 the land is included in the rental agreement as grounds for 20 termination or nonrenewal. 21 Sec. 2. EFFECTIVE DATE. This division of this Act, being 22 deemed of immediate importance, takes effect upon enactment. 23 Sec. 3. APPLICABILITY. This division of this Act applies 24 to terminations of tenancies on or after the effective date of 25 this division of this Act. 26 DIVISION II 27 RETALIATION 28 Sec. 4. Section 562B.32, subsection 1, paragraph d, Code 29 2022, is amended to read as follows: 30 d. For exercising any of the rights and remedies pursuant 31 to this chapter or chapter 216 . 32 Sec. 5. Section 562B.32, subsection 2, Code 2022, is amended 33 to read as follows: 34 2. If the landlord acts in violation of subsection 1 35 -1- HF 2562.4156 (4) 89 cm/jh 1/ 19 #1.

of this section , the tenant is entitled to the remedies 1 provided in section 562B.24 and has a defense in an action for 2 possession. In an action by or against the tenant, evidence 3 of a complaint within six months one year prior to the alleged 4 act of retaliation creates a presumption that the landlord’s 5 conduct was in retaliation. The presumption does not arise 6 if the tenant made the complaint after notice of termination 7 of the rental agreement. For the purpose of this subsection , 8 “presumption” means that the trier of fact must find the 9 existence of the fact presumed unless and until evidence is 10 introduced which would support a finding of its nonexistence. 11 Sec. 6. EFFECTIVE DATE. This division of this Act, being 12 deemed of immediate importance, takes effect upon enactment. 13 DIVISION III 14 CONSUMER FRAUD 15 Sec. 7. Section 562B.4, Code 2022, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 3. A violation of this chapter by a 18 landlord, or an agent of the landlord, is an unlawful practice 19 under section 714.16. 20 Sec. 8. Section 714.16, subsection 2, Code 2022, is amended 21 by adding the following new paragraph: 22 NEW PARAGRAPH . q. It is an unlawful practice for a landlord 23 or the landlord’s agent to violate any of the provisions of 24 chapter 562B. 25 Sec. 9. EFFECTIVE DATE. This division of this Act, being 26 deemed of immediate importance, takes effect upon enactment. 27 Sec. 10. APPLICABILITY. This division of this Act applies 28 to violations of chapter 562B occurring on or after the 29 effective date of this division of this Act. 30 DIVISION IV 31 RENT INCREASES 32 Sec. 11. Section 562B.14, subsection 7, Code 2022, is 33 amended by striking the subsection and inserting in lieu 34 thereof the following: 35 -2- HF 2562.4156 (4) 89 cm/jh 2/ 19

7. a. A landlord shall not increase the amount of rent due 1 by any tenant in a manufactured home community or mobile home 2 park unless the tenant is notified, in writing, of the rent 3 increase at least one hundred eighty days before the effective 4 date of the rent increase. The effective date of any increase 5 in the amount of rent shall not be less than one year after 6 either the effective date of the most recent rent increase or 7 the beginning of the tenancy, whichever is later. 8 b. (1) Subject to paragraph “a” , a landlord may increase 9 the amount of rent due by any tenant in an amount greater than 10 the average annual increase of the consumer price index for all 11 urban consumers in the midwest region for the most recently 12 available preceding thirty-six-month period, if the landlord 13 demonstrates the increase is justified for all of the following 14 conditions: 15 (a) The landlord, during the preceding twelve-month period, 16 has not been found in violation of any provision of this 17 chapter that threatens the health or safety of the tenants of 18 or visitors to the manufactured home community or mobile home 19 park that persists for more than fifteen days, beginning on the 20 day the landlord received notice of such violation. 21 (b) The proposed rent increase is directly related to 22 operating, maintaining, or improving the manufactured home 23 community or mobile home park, and is justified by one or more 24 of the following factors: 25 (i) The completion and cost of any capital improvements or 26 repair work in the manufactured home community or mobile home 27 park, as distinguished from ordinary repair, replacement, and 28 maintenance. 29 (ii) An increase in property taxes due on the manufactured 30 home community or mobile home park. 31 (iii) If the landlord is responsible for payment of one 32 or more utilities, an increase in utility expenses within the 33 manufactured home community or mobile home park. 34 (iv) An increase in insurance costs and financing 35 -3- HF 2562.4156 (4) 89 cm/jh 3/ 19

associated with the manufactured home community or mobile home 1 park. 2 (v) An increase in reasonable operating and maintenance 3 expenses relating to the manufactured home community or mobile 4 home park. 5 (vi) An increase in market rent. For purposes of this 6 section, “market rent” means that rent which would result from 7 market forces absent an unequal bargaining position between the 8 landlord and tenants. In determining market rent, relevant 9 considerations include rents charged to recent new tenants of 10 the manufactured home community or mobile home park or rents 11 charged by comparable manufactured home communities or mobile 12 home parks. To be comparable, a manufactured home community or 13 mobile home park must be within the competitive area and must 14 offer similar facilities, services, amenities, and management. 15 (c) The department of revenue shall monitor the consumer 16 price index for all urban consumers in the midwest region and 17 report the relevant data to the consumer protection division of 18 the office of the attorney general for periodic publication. 19 c. The written notice of a rent increase provided to the 20 tenant shall include the specific reasons for the increase 21 including the justification under paragraph “b” , if applicable. 22 d. A decrease in the number or quality of amenities, 23 services, or utilities provided under the rental agreement 24 without a corresponding and proportionate reduction in rent 25 shall be considered a rent increase for the purposes of this 26 chapter. 27 Sec. 12. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. 29 Sec. 13. APPLICABILITY. The following applies to rent 30 increases under chapter 562B occurring on or after the 31 effective date of this division of this Act: 32 Section 562B.14, subsection 7, paragraphs “a” and “d”, as 33 enacted in this division of this Act. 34 Sec. 14. APPLICABILITY. The following applies to rent 35 -4- HF 2562.4156 (4) 89 cm/jh 4/ 19

increases under chapter 562B occurring on or after July 1, 1 2022: 2 Section 562B.14, subsection 7, paragraphs “b” and “c”, as 3 enacted in this division of this Act. 4 DIVISION V 5 LANDLORD REMEDIES AND PROCEDURES 6 Sec. 15. Section 555B.3, Code 2022, is amended to read as 7 follows: 8 555B.3 Action for abandonment —— jurisdiction. 9 A real property owner not requesting notification by the 10 sheriff as provided in section 555B.2 may bring an action 11 alleging abandonment in the court within the county where the 12 real property is located provided that there is no lien on 13 the mobile home or personal property other than a tax lien 14 pursuant to chapter 435 . The action shall be tried as an 15 equitable action. Unless commenced as a small claim, the 16 petition shall be presented to a district judge. Upon receipt 17 of the petition, either the court or the clerk of the district 18 court shall set a date for a hearing not later than fourteen 19 days from the date of the receipt of the petition , except when 20 there is a lien on the mobile home or personal property, other 21 than a tax lien, the court or the clerk of the district court 22 shall set a date for a hearing no sooner than twenty-five days 23 from the date of the receipt of the petition so as to allow for 24 service on the lienholder . 25 Sec. 16. Section 555B.4, Code 2022, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 4. If a lien, other than a tax lien, exists 28 on the mobile home or personal property at the time an action 29 for abandonment is initiated, personal service pursuant to rule 30 of civil procedure 1.305 shall be made upon the lienholder 31 no less than twenty days before the hearing. The notice to 32 the lienholder shall describe the mobile home and shall state 33 the docket, case number, date, time at which the hearing is 34 scheduled, and the lienholder’s right to assert a claim to 35 -5- HF 2562.4156 (4) 89 cm/jh 5/ 19

the mobile home at the hearing. The notice shall also state 1 that failure to assert a claim to the mobile home within the 2 judicial proceedings is deemed a waiver of all right, title, 3 claim, and interest in the mobile home and is deemed consent to 4 the sale or disposal of the mobile home. If personal service 5 upon the lienholder cannot be completed in time to give the 6 lienholder the minimum notice required by this section, the 7 court may set a new hearing date. 8 Sec. 17. Section 555B.8, subsections 2 and 3, Code 2022, are 9 amended to read as follows: 10 2. If Except as otherwise ordered by the court, if the 11 mobile home owner or other claimant asserts a claim to the 12 property, the judgment shall be satisfied before the mobile 13 home owner or other claimant may take possession of the mobile 14 home or personal property. 15 3. If no claim is asserted to the mobile home or personal 16 property or if the judgment is not satisfied at the time of 17 entry, an order shall be entered allowing the real property 18 owner to sell or otherwise dispose of the mobile home and 19 personal property pursuant to section 555B.9 . If Except as 20 otherwise ordered by the court, if a claimant satisfies the 21 judgment at the time of entry, the court shall enter an order 22 permitting and directing the claimant to remove the mobile home 23 or personal property from its location within a reasonable time 24 to be fixed by the court. The court shall also determine the 25 amount of further rent or storage charges to be paid by the 26 claimant to the real property owner at the time of removal. 27 Sec. 18. Section 555B.9, subsections 1, 2, 3, and 4, Code 28 2022, are amended to read as follows: 29 1. Pursuant to an order for disposal under section 555B.8, 30 subsection 3 , the real property owner shall dispose of the 31 mobile home and personal property by public or private sale in 32 a commercially reasonable manner. If the personal property , 33 lienholder, owner , or other claimant has asserted a claim 34 to the mobile home or personal property within the judicial 35 -6- HF 2562.4156 (4) 89 cm/jh 6/ 19

proceedings , that person shall be notified of the sale by 1 restricted certified mail not less than five days before the 2 sale. The notice is deemed given upon the mailing. The real 3 property owner may buy at any public sale, and if the mobile 4 home or personal property is of a type customarily sold in 5 a recognized market or is the subject of widely distributed 6 standard price quotations, the real property owner may buy at a 7 private sale. 8 2. A sale pursuant to subsection 1 transfers to the 9 purchaser for value, all of the mobile home owner’s rights 10 in the mobile home and personal property, and discharges the 11 real property owner’s interest in the mobile home and personal 12 property , and any tax lien , and any other lien . The purchaser 13 takes free of all rights and interests even though the real 14 property owner fails to comply with the requirements of this 15 chapter or of any judicial proceedings, if the purchaser acts 16 in good faith. 17 3. The proceeds of the sale of mobile home and personal 18 property shall be distributed as follows: 19 a. First, to satisfy the real property owner’s judgment 20 obtained under section 555B.8 . 21 b. Second, to satisfy any tax lien for which a claim was 22 asserted pursuant to section 555B.4, subsection 3 . 23 0c. Third, to satisfy any other lien for which a claim was 24 asserted pursuant to section 555B.4, subsection 4. 25 c. Any surplus remaining after the proceeds are distributed 26 shall be held by the real property owner for six months. If 27 the mobile home owner fails to claim the surplus in that time, 28 the surplus may be retained by the real property owner. If 29 a deficiency remains after distribution of the proceeds, the 30 mobile home owner is liable for the amount of the deficiency. 31 4. Notwithstanding subsections 1 through 3 , the real 32 property owner may propose to retain the mobile home and 33 personal property in satisfaction of the judgment obtained 34 pursuant to section 555B.8 . Written notice of the proposal 35 -7- HF 2562.4156 (4) 89 cm/jh 7/ 19

shall be sent to the mobile home owner , lienholder, or other 1 claimant, if that person has asserted a claim to the mobile 2 home or personal property in the judicial proceedings. If 3 the real property owner receives objection in writing from 4 the mobile home owner , lienholder, or other claimant within 5 twenty-one days after the notice was sent, the real property 6 owner shall dispose of the mobile home and personal property 7 pursuant to subsection 1 . If no written objection is received 8 by the real property owner within twenty-one days after the 9 notice was sent, the mobile home and personal property may be 10 retained. Retention of the mobile home and personal property 11 discharges the judgment of the real property owner , and any tax 12 lien , and any other lien . 13 Sec. 19. Section 562A.9, subsection 4, Code 2022, is amended 14 to read as follows: 15 4. For rental agreements in which the rent does not exceed 16 seven hundred dollars per month, a rental agreement shall not 17 provide for a late fee that exceeds twelve dollars per day or a 18 total amount of sixty dollars per month. For rental agreements 19 in which the rent is greater than seven hundred dollars per 20 month but less than one thousand four hundred dollars per 21 month , a rental agreement shall not provide for a late fee that 22 exceeds twenty dollars per day or a total amount of one hundred 23 dollars per month. For rental agreements in which the rent is 24 at least one thousand four hundred dollars per month, a rental 25 agreement shall not provide for a late fee that exceeds two 26 percent of the rent per day or a total amount of ten percent of 27 the rent per month. 28 Sec. 20. Section 562B.10, subsections 4 and 7, Code 2022, 29 are amended to read as follows: 30 4. For rental agreements in which the rent does not exceed 31 seven hundred dollars per month, a rental agreement shall not 32 provide for a late fee that exceeds twelve dollars per day or a 33 total amount of sixty dollars per month. For rental agreements 34 in which the rent is greater than seven hundred dollars per 35 -8- HF 2562.4156 (4) 89 cm/jh 8/ 19

month but less than one thousand four hundred dollars per 1 month , a rental agreement shall not provide for a late fee that 2 exceeds twenty dollars per day or a total amount of one hundred 3 dollars per month. For rental agreements in which the rent is 4 at least one thousand four hundred dollars per month, a rental 5 agreement shall not provide for a late fee that exceeds two 6 percent of the rent per day or a total amount of ten percent of 7 the rent per month. 8 7. a. If a tenant who was sole owner of a mobile home dies 9 during the term of a rental agreement then that person’s heirs 10 or legal representative or the landlord shall have the right 11 to cancel the tenant’s lease by giving sixty days’ written 12 notice to the person’s heirs or legal representative or to 13 the landlord, whichever is appropriate, and the heirs or the 14 legal representative shall have the same rights, privileges and 15 liabilities of the original tenant. 16 b. (1) If a tenant who was sole owner of a mobile home dies 17 during the term of a rental agreement resulting in the mobile 18 home being abandoned as provided in section 562B.27, subsection 19 1, and the landlord cannot, despite due diligence, locate such 20 tenant’s heirs or legal representatives, then the landlord may 21 bring an action for abandonment as provided in section 555B.3, 22 naming as defendants the estate of the tenant and any and all 23 unknown heirs of the tenant and, upon the landlord’s filing 24 of an affidavit that personal service cannot be had on any 25 heir, legal representative, or estate of the tenant, the court 26 shall permit original notice of such action to be served by 27 publication pursuant to subparagraph (2) of this paragraph. 28 (2) Publication of the original notice shall be made 29 once each week for three consecutive weeks in a newspaper of 30 general circulation published in the county where the petition 31 is filed, as provided in rules of civil procedure 1.313 and 32 1.314. Service is complete after the third consecutive weekly 33 publication. 34 (3) In the event any tax lien or other lien exists on 35 -9- HF 2562.4156 (4) 89 cm/jh 9/ 19

the mobile home, the landlord may proceed with an action for 1 abandonment as provided in section 555B.3, except that: 2 (a) Notice shall be provided to the county treasurer as 3 provided in section 555B.4, subsection 3, if a tax lien exists. 4 (b) Personal service pursuant to rule of civil procedure 5 1.305 shall be made upon any lienholder no less than twenty 6 days before the hearing. 7 (4) Any notice to a lienholder shall state that failure 8 to assert a claim to the mobile home is deemed a waiver of 9 all right, title, claim, and interest in the mobile home and 10 is deemed consent to the sale or disposal of the mobile home. 11 If personal service upon the lienholder cannot be completed 12 in time to give the lienholder the minimum notice required by 13 subparagraph (3), the court may set a new hearing date. 14 Sec. 21. Section 648.5, subsection 1, Code 2022, is amended 15 to read as follows: 16 1. An action for forcible entry and detainer shall be 17 brought in a county where all or part of the premises is 18 located. Such an action shall be tried as an equitable action. 19 Upon receipt of the petition, the court shall set a date, 20 time, and place for hearing. The court shall set the date 21 of hearing no later than eight days from the filing date, 22 except that the court shall set a later hearing date no later 23 than fifteen days from the date of filing if the plaintiff 24 requests or consents to the later date of hearing. The 25 requirement regarding the setting of the initial hearing is not 26 a jurisdictional requirement and does not affect the court’s 27 subject matter jurisdiction to hear the action for forcible 28 entry and detainer. 29 DIVISION VI 30 MANUFACTURED HOUSING PROGRAM FUND 31 Sec. 22. Section 16.45, subsection 1, Code 2022, is amended 32 to read as follows: 33 1. A manufactured housing program fund is created within 34 the authority to further the goal of providing affordable 35 -10- HF 2562.4156 (4) 89 cm/jh 10/ 19

housing to Iowans. The moneys in the fund are to be used for 1 the purpose of providing funding to financial institutions or 2 other lenders to finance the purchase by an individual of a 3 manufactured home that is in compliance with all laws, rules, 4 and standards that are applicable to manufactured homes and 5 manufactured housing. The manufactured housing program fund 6 is designed exclusively for manufactured homes sited on leased 7 land. 8 DIVISION VII 9 TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE 10 Sec. 23. Section 562B.25, Code 2022, is amended by adding 11 the following new subsection: 12 NEW SUBSECTION . 5. a. In an action for possession based 13 upon nonpayment of the rent or in an action for rent where the 14 tenant is in possession, the tenant may counterclaim for an 15 amount which the tenant may recover under the rental agreement 16 or this chapter. In that event, the court from time to time 17 may order the tenant to pay into court all or part of the rent 18 accrued and thereafter accruing, and shall determine the amount 19 due to each party. The party to whom a net amount is owed 20 shall be paid first from the money paid into court, and the 21 balance by the other party. If rent does not remain due after 22 application of this section, judgment shall be entered for 23 the tenant in the action for possession. If the defense or 24 counterclaim by the tenant is without merit and is not raised 25 in good faith, the landlord may recover reasonable attorney 26 fees. 27 b. In an action for rent where the tenant is not in 28 possession, the tenant may counterclaim as provided in 29 paragraph “a” , but the tenant is not required to pay any rent 30 into court. 31 Sec. 24. EFFECTIVE DATE. This division of this Act, being 32 deemed of immediate importance, takes effect upon enactment. 33 Sec. 25. APPLICABILITY. This division of this Act applies 34 to actions for possession filed on or after the effective date 35 -11- HF 2562.4156 (4) 89 cm/jh 11/ 19

of this division of this Act. 1 DIVISION VIII 2 UTILITY CHARGES 3 Sec. 26. Section 562B.14, subsection 6, Code 2022, is 4 amended to read as follows: 5 6. The landlord or any person authorized to enter into 6 a rental agreement on the landlord’s behalf shall provide 7 a written explanation of utility rates, fees, charges , and 8 services , subject to section 562B.16, subsection 3, to the 9 prospective tenant before the rental agreement is signed unless 10 the utility charges are paid by the tenant directly to the 11 utility company. 12 Sec. 27. Section 562B.16, Code 2022, is amended by adding 13 the following new subsection: 14 NEW SUBSECTION . 3. A landlord that is responsible for 15 payment of utilities being provided to the tenant shall not 16 charge to the tenant an amount in excess of the actual cost of 17 the utility and as specified in writing under section 562B.14, 18 subsection 6. In addition to the actual cost of the utility, 19 a landlord that is responsible for the payment of one or more 20 utilities being provided to the tenant may impose a monthly 21 utility administration fee to each tenant not to exceed five 22 dollars per month. The amount of the utility administration 23 fee shall not exceed five dollars per month regardless of the 24 number of utilities being provided or the actual cost of the 25 utilities being provided. 26 Sec. 28. Section 562B.25, Code 2022, is amended by adding 27 the following new subsection: 28 NEW SUBSECTION . 2A. The failure of a tenant to pay utility 29 charges that exceed the actual cost of the utility provided 30 as required by section 562B.16, subsection 3, shall not be 31 considered noncompliance with the rental agreement. 32 Sec. 29. Section 714H.3, subsection 2, Code 2022, is amended 33 by adding the following new paragraph: 34 NEW PARAGRAPH . h. Section 562B.16, subsection 3. 35 -12- HF 2562.4156 (4) 89 cm/jh 12/ 19

DIVISION IX 1 UNLAWFUL OUSTER 2 Sec. 30. Section 562B.24, Code 2022, is amended to read as 3 follows: 4 562B.24 Tenant’s remedies for landlord’s unlawful ouster, 5 exclusion or diminution of services. 6 If the landlord unlawfully removes or excludes the tenant 7 from the manufactured home community or mobile home park or 8 willfully diminishes services to the tenant by interrupting 9 or causing the interruption of electric, gas , water or other 10 essential service to the tenant, the tenant may recover 11 possession, require the restoration of essential services or 12 terminate the rental agreement and, in either case, recover an 13 amount not to exceed two months’ periodic rent , and twice the 14 actual damages sustained by the tenant , and reasonable attorney 15 fees . If the rental agreement is terminated, the landlord 16 shall return all prepaid rent and security. 17 Sec. 31. EFFECTIVE DATE. This division of this Act, being 18 deemed of immediate importance, takes effect upon enactment. 19 Sec. 32. APPLICABILITY. This division of this Act applies 20 to actions under section 562B.24 filed on or after the 21 effective date of this division of this Act. 22 DIVISION X 23 WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES 24 Sec. 33. NEW SECTION . 562B.23A Wrongful failure to supply 25 running water or essential services. 26 1. If contrary to the rental agreement or section 562B.16 27 the landlord deliberately or negligently fails to supply 28 running water or other essential services, the tenant may give 29 written notice to the landlord specifying the breach and may 30 do one of the following: 31 a. Procure reasonable amounts of water or other essential 32 services during the period of the landlord’s noncompliance and 33 deduct the actual and reasonable cost from the rent. 34 b. Recover damages based upon the diminution in the fair 35 -13- HF 2562.4156 (4) 89 cm/jh 13/ 19

market value of the mobile home or mobile home space. 1 c. Recover any rent already paid for the period of the 2 landlord’s noncompliance which shall be reimbursed on a pro 3 rata basis. 4 2. If the tenant proceeds under this section, the tenant may 5 not proceed under section 562B.22 as to that breach. 6 3. The rights under this section do not arise until the 7 tenant has given notice to the landlord or if the condition was 8 caused by the deliberate or negligent act or omission of the 9 tenant, a member of the tenant’s family, or other person on the 10 premises with the consent of the tenant. 11 Sec. 34. EFFECTIVE DATE. This division of this Act, being 12 deemed of immediate importance, takes effect upon enactment. 13 Sec. 35. APPLICABILITY. This division of this Act applies 14 to actions under section 562B.23A filed on or after the 15 effective date of this division of this Act. 16 DIVISION XI 17 TENANT CORRECTING DEFICIENCIES 18 Sec. 36. Section 562B.25, Code 2022, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 4A. In any action by a landlord for 21 possession based upon nonpayment of rent, proof by the tenant 22 of all of the following shall be a defense to any action or 23 claim for possession by the landlord, and the amounts expended 24 by the tenant in correcting the deficiencies shall be deducted 25 from the amount claimed by the landlord as unpaid rent: 26 a. That the landlord failed to comply either with the rental 27 agreement or with section 562B.16. 28 b. That the tenant notified the landlord at least seven 29 days prior to the due date of the tenant’s rent payment of the 30 tenant’s intention to correct the condition constituting the 31 breach referred to in paragraph “a” at the landlord’s expense. 32 c. That the reasonable cost of correcting the condition 33 constituting the breach is equal to or less than one month’s 34 periodic rent. 35 -14- HF 2562.4156 (4) 89 cm/jh 14/ 19

d. That the tenant in good faith caused the condition 1 constituting the breach to be corrected prior to receipt of 2 written notice of the landlord’s intention to terminate the 3 rental agreement for nonpayment of rent. 4 Sec. 37. EFFECTIVE DATE. This division of this Act, being 5 deemed of immediate importance, takes effect upon enactment. 6 Sec. 38. APPLICABILITY. This division of this Act applies 7 to actions by a landlord for possession filed on or after the 8 effective date of this division of this Act. 9 DIVISION XII 10 DENIAL OF RENTAL OR REFUSAL OF SALE 11 Sec. 39. Section 562B.19, subsection 3, paragraphs a and c, 12 Code 2022, are amended to read as follows: 13 a. Deny rental unless the tenant or prospective tenant 14 cannot conform to manufactured home community or park rules 15 and regulations. A decision to deny rental shall conform 16 to recognized principles, rules, and standards generally 17 accepted by the professional manufactured home community or 18 park industry to ensure the commercially reasonable safety and 19 financial security of comparable manufactured home communities 20 or mobile home parks. A landlord shall deliver the decision 21 in writing to the tenant or prospective tenant as soon as 22 commercially feasible and shall provide the basis for a denial 23 in writing to the tenant or prospective tenant at the time of 24 the decision. 25 c. Deny any resident of a manufactured home community 26 or mobile home park the right to sell that person’s mobile 27 home at a price of the person’s own choosing, but may reserve 28 the right to approve the purchaser of such mobile home as 29 a tenant but such permission shall only be withheld for a 30 legitimate business reason within the recognized principles, 31 rules, and standards described in paragraph “a” , and may not be 32 unreasonably withheld, provided however, that the landlord may, 33 in the event of a sale to a third party, in order to upgrade 34 the quality of the manufactured home community or mobile home 35 -15- HF 2562.4156 (4) 89 cm/jh 15/ 19

park, require that any mobile home in a rundown condition or in 1 disrepair be removed from the manufactured home community or 2 park within sixty days. If the landlord refuses to approve the 3 purchaser of the mobile home as a tenant, a legitimate business 4 reason for the refusal shall be provided in writing to the 5 resident who is selling the mobile home. 6 DIVISION XIII 7 PROHIBITED RENTAL AGREEMENT PROVISION —— HOME EQUIPMENT 8 Sec. 40. Section 562B.11, subsection 1, Code 2022, is 9 amended by adding the following new paragraph: 10 NEW PARAGRAPH . e. Agrees to modify the physical 11 characteristics or equipment of the mobile home, manufactured 12 home, or modular home if the modification impairs the ability 13 of the tenant to move the home from the mobile home space, 14 unless otherwise required by federal or state law or by local 15 ordinance. 16 DIVISION XIV 17 RENTAL AGREEMENT TERMS 18 Sec. 41. Section 562B.11, subsection 1, Code 2022, is 19 amended by adding the following new paragraphs: 20 NEW PARAGRAPH . f. Authorizes imposition of fines, 21 penalties, or fees solely as a punishment or in amounts in 22 excess of actual damages or costs incurred. 23 NEW PARAGRAPH . g. Authorizes a person to confess judgment 24 on a claim arising out of the rental agreement. 25 NEW PARAGRAPH . h. Authorizes prohibitions, limitations, 26 additional deposits, or other restrictive policies that are 27 not based on ordinary wear and tear expected to occur during a 28 tenancy or that are not based on community safety standards. 29 Sec. 42. Section 562B.11, subsection 3, Code 2022, is 30 amended to read as follows: 31 3. A provision prohibited by this section included in a 32 rental agreement is unenforceable. If a landlord or tenant 33 knowingly and willfully uses a rental agreement containing 34 provisions known to be prohibited by this chapter , the other 35 -16- HF 2562.4156 (4) 89 cm/jh 16/ 19

party tenant may recover actual damages sustained by the tenant 1 and not more than three months’ periodic rent and reasonable 2 attorney fees . 3 DIVISION XV 4 RENTAL DEPOSITS 5 Sec. 43. Section 562B.7, subsection 12, Code 2022, is 6 amended to read as follows: 7 12. “Rental deposit” means a deposit of money to secure 8 performance of a mobile home space rental agreement under this 9 chapter other than a deposit which is exclusively in advance 10 payment of rent . 11 Sec. 44. Section 562B.13, subsection 2, Code 2022, is 12 amended to read as follows: 13 2. All rental deposits shall be held by the landlord for 14 the tenant, who is a party to the agreement, in a bank, credit 15 union, or savings and loan association which is insured by an 16 agency of the federal government. Rental deposits shall not be 17 commingled with the personal funds of the landlord. All rental 18 deposits may be held in a trust account, which may be a common 19 trust account and which may be an interest-bearing account. 20 Any interest earned on a rental deposit during the first five 21 years of a tenancy shall be the property of the landlord. 22 Sec. 45. Section 562B.13, Code 2022, is amended by adding 23 the following new subsection: 24 NEW SUBSECTION . 9. The court may, in any action on a rental 25 agreement, award reasonable attorney fees to the prevailing 26 party. 27 DIVISION XVI 28 LANDLORD SALES 29 Sec. 46. NEW SECTION . 562B.17A Sale of mobile home by 30 landlord. 31 1. Any sale of a mobile home located in a manufactured 32 home community or mobile home park by a landlord or landlord’s 33 agent shall be by written agreement and the landlord shall 34 produce and assign the current certificate of title obtained 35 -17- HF 2562.4156 (4) 89 cm/jh 17/ 19

from the department of transportation. The agreement shall 1 state the basic terms of sale, including the total cost of 2 the mobile home, finance charges, annual percentage rate, and 3 the frequency and amount of each installment payment. Such 4 agreement shall comply with the finance charge rate limitation 5 in section 103A.58, subsection 1. 6 2. Any such sale that does not comply with this section 7 may be voided by the buyer and the buyer may recover damages 8 incurred, amounts paid as a rental deposit in excess of two 9 months’ rent for the mobile home, and reasonable attorney fees. 10 3. A claim under subsection 2 may be combined with an action 11 under chapter 648. 12 Sec. 47. Section 648.19, subsection 1, Code 2022, is amended 13 to read as follows: 14 1. An action under this chapter shall not be filed in 15 connection with any other action, with the exception of a claim 16 for rent or recovery as provided in section 555B.3 , 562A.24 , 17 562A.32 , 562B.17A, 562B.22 , 562B.25 , or 562B.27 , nor shall it 18 be made the subject of counterclaim. 19 DIVISION XVII 20 NONJUDICIAL FORECLOSURE 21 Sec. 48. Section 654.18, Code 2022, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 5. Actions under this section initiated 24 on or after July 1, 2022, shall not be allowed for property 25 consisting of a mobile home as defined in section 562B.7. 26 Sec. 49. Section 655A.9, Code 2022, is amended to read as 27 follows: 28 655A.9 Application of chapter. 29 1. This chapter does not apply to real estate used for 30 an agricultural purpose as defined in section 535.13 , or to 31 a one or two family dwelling which is, at the time of the 32 initiation of the foreclosure, occupied by a legal or equitable 33 titleholder. 34 2. Actions under this chapter initiated on or after July 1, 35 -18- HF 2562.4156 (4) 89 cm/jh 18/ 19