House Study Bill 654 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON SWAIM) A BILL FOR An Act amending provisions of the uniform residential landlord 1 and tenant Act relating to certain definitions, attorney 2 fees, remedies, and late fees, and including applicability 3 provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5427YC (21) 83 md/sc

H.F. _____ Section 1. Section 535.2, subsection 7, Code 2009, is 1 amended to read as follows: 2 7. This section does not apply to a charge imposed for late 3 payment of rent. However, in the case of a residential lease, 4 a late payment fee shall not exceed ten dollars a day or forty 5 dollars per month. 6 Sec. 2. Section 562A.4, Code 2009, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 3. In any action on a rental agreement, 9 the court may award reasonable attorney fees to the prevailing 10 party consistent with any provisions of the rental agreement 11 that are not otherwise prohibited by law. 12 Sec. 3. Section 562A.6, Code 2009, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 7A. “Presumption” means that the trier of 15 fact must find the existence of the fact presumed unless and 16 until evidence is introduced which would support a finding of 17 its nonexistence. 18 Sec. 4. Section 562A.6, subsection 9, Code 2009, is amended 19 to read as follows: 20 9. “Rent” means a payment to be made to the landlord under 21 the rental agreement , late fees due to the landlord under the 22 rental agreement, and amounts due to the landlord under section 23 562A.28 . 24 Sec. 5. Section 562A.9, Code 2009, is amended by adding the 25 following new subsection: 26 NEW SUBSECTION . 5. A fee for late payment of rent shall not 27 exceed twenty dollars per day or eighty dollars per month. In 28 the absence of a written rental agreement, or in the case of 29 an oral rental agreement, the late fee shall be eighty dollars 30 after the fourth day of the month and shall not exceed that 31 amount for the month. 32 Sec. 6. Section 562A.11, subsection 1, paragraph c, Code 33 2009, is amended to read as follows: 34 c. Agrees to pay the other party’s attorney fees , except 35 -1- LSB 5427YC (21) 83 md/sc 1/ 4

H.F. _____ that a rental agreement may provide that attorney fees may be 1 awarded to the prevailing party in any action on the rental 2 agreement ; or 3 Sec. 7. Section 562A.12, subsection 8, Code 2009, is amended 4 by striking the subsection. 5 Sec. 8. Section 562A.30, Code 2009, is amended to read as 6 follows: 7 562A.30 Waiver of landlord’s Landlord’s right to terminate 8 or assert rights . 9 1. Acceptance of performance by the tenant that varies from 10 the terms of the rental agreement or rules subsequently adopted 11 by the landlord constitutes shall not constitute a waiver of 12 the landlord’s right to terminate the rental agreement for that 13 breach , unless otherwise agreed after the breach has occurred . 14 2. Failure by the landlord to promptly assert rights under 15 this chapter shall not constitute a waiver of such rights or 16 a waiver of such rights for any existing or subsequent breach 17 of the rental agreement or violation of this chapter by the 18 tenant. 19 Sec. 9. Section 562A.32, Code 2009, is amended to read as 20 follows: 21 562A.32 Remedy after termination. 22 If the rental agreement is terminated by the landlord or 23 the tenant , the landlord may have a claim for possession and 24 for rent and a separate claim for actual damages for breach of 25 the rental agreement and reasonable attorney’s attorney fees 26 as provided in section 562A.27 . 27 Sec. 10. Section 562A.36, subsection 2, Code 2009, is 28 amended to read as follows: 29 2. If the landlord acts in violation of subsection 1 30 of this section, the tenant may recover from the landlord 31 the actual damages sustained by the tenant and reasonable 32 attorney’s attorney fees, and has a defense in action against 33 the landlord for possession. In an action by or against 34 the tenant, evidence of a good faith complaint within one 35 -2- LSB 5427YC (21) 83 md/sc 2/ 4

H.F. _____ year prior to the alleged act of retaliation creates a 1 presumption that the landlord’s conduct was in retaliation. 2 The presumption does not arise if the tenant made the complaint 3 after notice of a proposed rent increase or diminution of 4 services. Evidence by the landlord that legitimate costs and 5 charges of owning, maintaining , or operating a dwelling unit 6 have increased shall be a defense against the presumption of 7 retaliation when a rent increase is commensurate with the 8 increase in costs and charges. “Presumption” means that the 9 trier of fact must find the existence of the fact presumed 10 unless and until evidence is introduced which would support a 11 finding of its nonexistence. 12 Sec. 11. APPLICABILITY. Notwithstanding section 562A.37, 13 this Act applies to rental agreements entered into, extended, 14 or renewed on or after the effective date of the Act. 15 EXPLANATION 16 This bill makes several changes relating to the uniform 17 residential landlord and tenant Act. 18 The bill strikes a provision relating to late payments under 19 residential leases from Code section 535.2, and moves it to 20 Code section 562A.9. The bill also increases the limitations 21 on such late fees from $10 per day or $40 per month to $20 22 per day or $80 per month. The bill also provides that in the 23 absence of a written rental agreement, or in the case of an 24 oral rental agreement, the late fee is $80 after the fourth day 25 of the month and shall not exceed that amount for the month. 26 The bill moves the definition of “presumption” from Code 27 section 562A.26 to the definitions section in the uniform 28 residential landlord and tenant Act, Code section 562A.6. The 29 bill also amends the definition of “rent” applicable to Code 30 chapter 562A to include late fees due to the landlord under the 31 rental agreement and amounts due to the landlord under Code 32 section 562A.28 for failing to maintain the dwelling. 33 The bill amends Code section 562A.11 to allow rental 34 agreements to provide for the payment of the prevailing party’s 35 -3- LSB 5427YC (21) 83 md/sc 3/ 4

H.F. _____ attorney fees in any action on the rental agreement. 1 Current Code section 562A.12, relating to rental deposits, 2 specifies that a court may award reasonable attorney fees to 3 the prevailing party in any action on a rental agreement. 4 The bill strikes this provision and moves it to Code section 5 562A.4, relating generally to the administration and 6 enforcement of rights under the uniform residential landlord 7 and tenant Act. 8 The bill amends Code section 562A.30 by providing that 9 the acceptance of performance by a tenant that varies from 10 the terms of the rental agreement or rules adopted by the 11 landlord does not constitute a waiver of the landlord’s right 12 to terminate the rental agreement for that breach. The bill 13 also provides that failure by the landlord to promptly assert 14 rights under Code chapter 562A does not constitute a waiver 15 of such rights or a waiver of such rights for any existing or 16 subsequent breach of the rental agreement or violation by the 17 tenant. 18 The bill specifies that following termination of a rental 19 agreement by the landlord or the tenant, the landlord may have 20 a claim for possession and a separate claim for actual damages 21 for breach of the rental agreement and reasonable attorney 22 fees. 23 The bill applies to rental agreements entered into, 24 extended, or renewed on or after the effective date of the 25 bill. 26 -4- LSB 5427YC (21) 83 md/sc 4/ 4