House File 440 - Introduced HOUSE FILE 440 BY ISENHART (COMPANION TO 1073SS BY JOCHUM) A BILL FOR An Act relating to the actions of certain nonprofit 1 corporations and horizontal property regimes and including 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1073HH (4) 84 md/nh

H.F. 440 Section 1. Section 499B.15, subsection 2, Code 2011, is 1 amended to read as follows: 2 2. If the form of administration is a board of 3 administration, board meetings must be open to all apartment 4 owners except for meetings between the board and its attorney 5 with respect to proposed or pending litigation where the 6 contents of the discussion would otherwise be governed by the 7 attorney-client privilege. Notice of each board meeting must 8 be mailed or delivered to each apartment owner at least seven 9 days before the meeting. Each notice shall contain the date, 10 time, place, and purpose of the meeting. Minutes of meetings 11 of the board of administration must be maintained in written 12 form or in another form that can be converted into written form 13 within a reasonable time. The official records of the board 14 of administration must be open to inspection and available for 15 photocopying at reasonable times and places , unless the record 16 or a portion of a record contains the personal information of 17 a co-owner and is deemed confidential upon unanimous vote of 18 the board of administration . Such confidential records shall, 19 however, be open to inspection and available for photocopying 20 if ordered by a court. Any action taken by a board of 21 administration at a meeting that is in violation of any of the 22 provisions of this subsection is not valid or enforceable. In 23 any judicial action, the board of administration shall have the 24 burden of proving that the requirements of this subsection have 25 been met. 26 Sec. 2. Section 504.823, Code 2011, is amended to read as 27 follows: 28 504.823 Call and notice of meetings. 29 1. Unless the articles or bylaws of a corporation, or 30 subsection 3 or 5 , provide provides otherwise, regular meetings 31 of the board may be held without notice. 32 2. Unless the articles, bylaws, or subsection 3 or 5 provide 33 provides otherwise, special meetings of the board must be 34 preceded by at least two days’ notice to each director of the 35 -1- LSB 1073HH (4) 84 md/nh 1/ 4

H.F. 440 date, time, and place, but not the purpose, of the meeting. 1 3. In corporations without members, any board action to 2 remove a director or to approve a matter which would require 3 approval by the members if the corporation had members shall 4 not be valid unless each director is given at least seven 5 days’ written notice that the matter will be voted upon at 6 a directors’ meeting or unless notice is waived pursuant to 7 section 504.824 . 8 4. Unless the articles or bylaws provide otherwise, the 9 presiding officer of the board, the president, or twenty 10 percent of the directors then in office may call and give 11 notice of a meeting of the board. 12 5. Notwithstanding any provision of this chapter to the 13 contrary, homeowners’ association board meetings shall be open 14 to all members except for meetings between the board and its 15 attorney with respect to proposed or pending litigation where 16 the contents of the discussion would otherwise be governed 17 by the attorney-client privilege. Notice of each board 18 meeting shall be mailed or delivered to each member and to 19 each director at least seven days before the meeting. Each 20 notice shall contain the date, time, place, and purpose of the 21 meeting. Any action taken by a board at a meeting that is 22 in violation of this subsection is not valid or enforceable. 23 In any judicial action, the homeowners’ association board 24 shall have the burden of proving that the requirements of this 25 subsection have been met. For purposes of this subsection, 26 “homeowners’ association” means a corporation responsible for 27 the operation of an area of real property comprised of land and 28 buildings used primarily for human habitation, that consists of 29 parcel owners or their agents, and in which membership in the 30 corporation is a mandatory condition of parcel ownership. 31 Sec. 3. Section 504.1602, Code 2011, is amended by adding 32 the following new subsection: 33 NEW SUBSECTION . 7. Notwithstanding any provision of this 34 chapter to the contrary, a homeowners’ association board, under 35 -2- LSB 1073HH (4) 84 md/nh 2/ 4

H.F. 440 section 504.823, subsection 5, may refuse inspection or copying 1 of a record or a portion of a record relating to the personal 2 information of a member upon unanimous vote of the board, 3 unless otherwise ordered by a court. 4 Sec. 4. APPLICABILITY. This Act applies to homeowners’ 5 association board meetings and horizontal property regime board 6 of administration meetings occurring on or after July 8, 2011. 7 EXPLANATION 8 This bill applies to horizontal property regimes 9 (condominiums) under Code chapter 499B and to homeowners’ 10 associations organized under the revised Iowa nonprofit 11 corporation Act, Code chapter 504. The bill requires 12 homeowners’ association board meetings to be open to all 13 members except for meetings between the board and its attorney 14 with respect to proposed or pending litigation where the 15 contents of the discussion would otherwise be governed by the 16 attorney-client privilege. The bill also requires notice of 17 each board meeting to be mailed or delivered to each member and 18 to each director at least seven days before the meeting. Each 19 notice must contain the date, time, place, and purpose of the 20 meeting. Any action taken by a board at a meeting that is in 21 violation of the bill is not valid or enforceable. The bill 22 defines “homeowners’ association” as a corporation responsible 23 for the operation of an area of real property comprised 24 of land and buildings used primarily for human habitation, 25 that consists of parcel owners or their agents, and in which 26 membership in the corporation is a mandatory condition of 27 parcel ownership. 28 The bill provides that in a judicial action, the homeowners’ 29 association board has the burden of proving that the 30 requirements relating to meetings and meeting notices have been 31 met. 32 The bill provides that a homeowners’ association board may 33 refuse inspection or copying of a record or a portion of a 34 record relating to the personal information of a member upon 35 -3- LSB 1073HH (4) 84 md/nh 3/ 4

H.F. 440 unanimous vote of the board, unless ordered by a court. 1 The bill also includes similar provisions for the contents 2 of meeting notices, burden of proof requirements, and record 3 inspection limitations for horizontal property regimes under 4 Code chapter 499B. 5 The bill applies to homeowners’ association board meetings 6 and horizontal property regime board of administration meetings 7 occurring on or after July 8, 2011. 8 -4- LSB 1073HH (4) 84 md/nh 4/ 4