H.F. _____ Section 1. Section 535.2, subsection 7, Code 2013, 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 2013, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 3. The court may, in any action on a rental 9 agreement, award reasonable attorney fees to the prevailing 10 party. 11 Sec. 3. Section 562A.6, Code 2013, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 7A. “Presumption” means that the trier of 14 fact must find the existence of the fact presumed unless and 15 until evidence is introduced which would support a finding of 16 its nonexistence. 17 NEW SUBSECTION . 11A. “Resident” means an occupant of a 18 dwelling unit who is at least eighteen years of age. 19 Sec. 4. Section 562A.6, subsection 9, Code 2013, is amended 20 to read as follows: 21 9. “Rent” means a payment to be made to the landlord under 22 the rental agreement , including late fees pursuant to section 23 562A.9, subsection 3A, and amounts due to the landlord under 24 other provisions of this chapter . 25 Sec. 5. Section 562A.8, Code 2013, is amended to read as 26 follows: 27 562A.8 Notice Method of notice and service of process . 28 1. A written notice of termination as required by section 29 562A.27, subsection 1, 2, or 5, a written notice of termination 30 as required by section 562A.34, subsection 1, 2, or 3, a 31 written notice of termination and notice to quit as required by 32 section 562A.27A, or a notice to quit as required by section 33 648.3 shall be served as provided in this subsection. 34 a. A landlord shall serve notice on a tenant by one or more 35 -1- LSB 1328YC (2) 85 ad/sc 1/ 14

H.F. _____ of the following methods: 1 (1) Personal service pursuant to rule of civil procedure 2 1.305, Iowa court rules, for the personal service of original 3 notice. 4 (2) Delivery evidenced by an acknowledgment of service 5 that is signed and dated by a resident of the dwelling unit. 6 Delivery under this subparagraph of a single notice shall be 7 deemed to provide notice to all tenants and occupants of the 8 dwelling unit. 9 (3) Posting the notice on or near a primary entrance door 10 of the subject premises and mailing by regular mail and by 11 certified mail, as defined in section 618.15, to the address of 12 the dwelling unit or to an address provided by the tenant for 13 mailing. 14 (4) A method of providing notice that results in the notice 15 actually being received by the tenant. 16 b. A tenant shall serve notice on a landlord by one or more 17 of the following methods: 18 (1) Personal service pursuant to rule of civil procedure 19 1.305, Iowa court rules, for the personal service of original 20 notice. 21 (2) Delivery evidenced by an acknowledgment of delivery 22 that is signed and dated by the landlord or the landlord’s 23 agent designated under section 562A.13. 24 (3) Mailing by both regular mail and by certified mail, as 25 defined in section 618.15, to the address of the landlord’s 26 business office or to an address designated by the landlord for 27 mailing. 28 (4) A method of providing notice that results in the notice 29 actually being received by the landlord. 30 1. 2. Notices All other notices required under this 31 chapter , except those notices identified in section 562A.29A , 32 shall be served as follows: provided in this subsection. 33 a. A landlord shall serve notice on a tenant by one or more 34 of the following methods: 35 -2- LSB 1328YC (2) 85 ad/sc 2/ 14

H.F. _____ (1) Hand delivery to the tenant as evidenced by a written 1 confirmation of delivery signed and dated by the landlord . 2 (2) Delivery evidenced by an acknowledgment of delivery 3 service that is signed and dated by a resident of the dwelling 4 unit who is at least eighteen years of age. Delivery under 5 this subparagraph of a single notice shall be deemed to provide 6 notice to all tenants and occupants of the dwelling unit. 7 (3) Personal service pursuant to rule of civil procedure 8 1.305, Iowa court rules, for the personal service of original 9 notice. 10 (4) Mailing by both regular mail and certified mail, as 11 defined in section 618.15 , to the address of the dwelling unit 12 or to an address provided by the tenant for mailing. 13 (5) Posting on the primary entrance door of the dwelling 14 unit. A notice posted according to this subparagraph shall be 15 posted within the applicable time period for serving notice and 16 shall include the date the notice was posted. 17 (6) A method of providing notice that results in the notice 18 actually being received by the tenant. 19 b. A tenant shall serve notice on a landlord by one or more 20 of the following methods: 21 (1) Hand delivery to the landlord or the landlord’s agent 22 designated under section 562A.13 at the landlord’s business 23 office, as evidenced by a written confirmation of delivery 24 signed and dated by the tenant . 25 (2) Delivery evidenced by an acknowledgment of delivery 26 that is signed and dated by the landlord or the landlord’s 27 agent designated under section 562A.13 . 28 (3) Personal service pursuant to rule of civil procedure 29 1.305, Iowa court rules, for the personal service of original 30 notice. 31 (4) Delivery to an employee or agent of the landlord at the 32 landlord’s business office. 33 (5) (4) Mailing by both regular mail and certified mail, 34 as defined in section 618.15 , to the address of the landlord’s 35 -3- LSB 1328YC (2) 85 ad/sc 3/ 14

H.F. _____ business office or to an address designated by the landlord for 1 mailing. 2 (6) (5) A method of providing notice that results in the 3 notice actually being received by the landlord. 4 3. If service of notice includes posting, the notice shall 5 be posted within the same time period that is applicable 6 to other methods of giving notice under the circumstances. 7 The posted notice shall set forth, on its face, the date 8 of posting. An affidavit signed by the person posting and 9 notarized or certified under penalty of perjury pursuant 10 to section 622.1 shall be evidence of service of notice by 11 posting. Service of notice by posting is deemed completed one 12 day after the notice is posted. 13 2. 4. Notice served by mail under this section is deemed 14 completed four three days after the notice is deposited in the 15 mail and postmarked for delivery, whether or not the recipient 16 signs a receipt for the notice date of the postmark . 17 5. In the case of service of notice by multiple methods, the 18 latest date of completed service shall be the day used for the 19 calculation of any time periods pertaining to the notice. 20 Sec. 6. Section 562A.9, Code 2013, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 3A. A rental agreement shall not provide 23 for a late fee that exceeds twenty dollars per day or a total 24 amount equal to ten percent of the monthly rent. 25 Sec. 7. Section 562A.11, subsection 1, paragraph c, Code 26 2013, is amended to read as follows: 27 c. Agrees to pay the other party’s attorney fees , except 28 that a written agreement may provide notification that attorney 29 fees may be awarded to the prevailing party in the event of 30 court action ; or 31 Sec. 8. Section 562A.12, subsection 8, Code 2013, is amended 32 by striking the subsection. 33 Sec. 9. Section 562A.17, subsection 6, Code 2013, is amended 34 to read as follows: 35 -4- LSB 1328YC (2) 85 ad/sc 4/ 14

H.F. _____ 6. Not deliberately or negligently destroy, deface, damage, 1 impair or remove a part of the premises or knowingly permit a 2 person to do so. Violation of this subsection may result in 3 criminal charges under chapter 716. 4 Sec. 10. Section 562A.27, subsection 3, Code 2013, is 5 amended to read as follows: 6 3. Except as provided in this chapter , the landlord may 7 recover damages and obtain injunctive relief for noncompliance 8 by the tenant with the rental agreement or section 562A.17 9 unless the tenant demonstrates affirmatively that the 10 tenant has exercised due diligence and effort to remedy any 11 noncompliance, and that the tenant’s failure to remedy any 12 noncompliance was due to circumstances beyond the tenant’s 13 control. If the tenant’s noncompliance is willful, the 14 landlord may recover reasonable attorney fees. 15 Sec. 11. Section 562A.30, Code 2013, is amended by striking 16 the section and inserting in lieu thereof the following: 17 562A.30 Waiver of landlord’s right to terminate. 18 Acceptance by the landlord of performance by the tenant that 19 varies from the terms of the rental agreement or the rules 20 subsequently adopted by the landlord shall not be a waiver of 21 the landlord’s right to terminate the rental agreement for that 22 breach of the agreement. Failure by the landlord to promptly 23 assert rights under this section shall not be a waiver of 24 such rights or a waiver of any existing or subsequent breach. 25 Waiver of any breach shall not constitute a waiver of any 26 subsequent and similar breach. 27 Sec. 12. Section 562A.32, Code 2013, is amended to read as 28 follows: 29 562A.32 Remedy after termination. 30 If the rental agreement is terminated by either party , the 31 landlord may have a claim for possession and for rent and a 32 separate claim for rent, actual damages for breach of the 33 rental agreement , and reasonable attorney fees as provided in 34 section 562A.27 . 35 -5- LSB 1328YC (2) 85 ad/sc 5/ 14

H.F. _____ Sec. 13. Section 562A.36, subsection 2, Code 2013, is 1 amended to read as follows: 2 2. If the landlord acts in violation of subsection 1 of 3 this section , the tenant may recover from the landlord the 4 actual damages sustained by the tenant and reasonable attorney 5 fees, and has a defense in action against the landlord for 6 possession. In an action by or against the tenant, evidence 7 of a good faith good-faith complaint within one year prior to 8 the alleged act of retaliation creates a presumption that the 9 landlord’s conduct was in retaliation. The presumption does 10 not arise if the tenant made the complaint after notice of a 11 proposed rent increase or diminution of services. Evidence 12 by the landlord that legitimate costs and charges of owning, 13 maintaining or operating a dwelling unit have increased shall 14 be a defense against the presumption of retaliation when a 15 rent increase is commensurate with the increase in costs and 16 charges. “Presumption” means that the trier of fact must find 17 the existence of the fact presumed unless and until evidence is 18 introduced which would support a finding of its nonexistence. 19 Sec. 14. Section 562B.9, Code 2013, is amended to read as 20 follows: 21 562B.9 Notice Method of notice and service of process . 22 1. A written notice of termination as required by section 23 562B.25, subsection 1 or 2, a written notice of termination and 24 notice to quit as required by section 562B.25A, or a notice 25 to quit as required by section 648.3 shall be served upon the 26 tenant by one of the following methods: 27 a. Personal service pursuant to rule of civil procedure 28 1.305, Iowa court rules, for the personal service of original 29 notice. 30 b. Delivery evidenced by an acknowledgment of service 31 that is signed and dated by a resident of the dwelling unit. 32 Delivery under this paragraph of a single notice shall be 33 deemed to provide notice to all tenants and occupants of the 34 dwelling unit. 35 -6- LSB 1328YC (2) 85 ad/sc 6/ 14

H.F. _____ c. Posting the notice on or near a primary entrance door 1 of the subject premises and mailing by regular mail and by 2 certified mail, as defined in section 618.15, to the address of 3 the dwelling unit or to an address provided by the tenant for 4 mailing. 5 d. A method of providing notice that results in the notice 6 actually being received by the tenant. 7 1. 2. Notices All other notices required under this 8 chapter , except those notices identified in section 562B.27A , 9 shall be served as follows: provided in this subsection. 10 a. A landlord shall serve notice on a tenant by one or more 11 of the following methods: 12 (1) Hand delivery to the tenant as evidenced by a written 13 confirmation of delivery signed and dated by the landlord . 14 (2) Delivery evidenced by an acknowledgment of delivery 15 service that is signed and dated by a resident of the dwelling 16 unit who is at least eighteen years of age. Delivery under 17 this subparagraph of a single notice shall be deemed to provide 18 notice to all tenants and occupants of the dwelling unit. 19 (3) Personal service pursuant to rule of civil procedure 20 1.305, Iowa court rules, for the personal service of original 21 notice. 22 (4) Mailing by both regular mail and certified mail, as 23 defined in section 618.15 , to the address of the dwelling unit 24 or to an address provided by the tenant for mailing. 25 (5) Posting on the primary entrance door of the dwelling 26 unit. A notice posted according to this subparagraph shall be 27 posted within the applicable time period for serving notice and 28 shall include the date the notice was posted. 29 (6) A method of providing notice that results in the notice 30 actually being received by the tenant. 31 b. A tenant shall serve notice on a landlord by one or more 32 of the following methods: 33 (1) Hand delivery to the landlord or the landlord’s agent 34 designated under section 562B.14 at the landlord’s business 35 -7- LSB 1328YC (2) 85 ad/sc 7/ 14

H.F. _____ office, as evidenced by a written confirmation of delivery 1 signed and dated by the tenant . 2 (2) Delivery evidenced by an acknowledgment of delivery 3 that is signed and dated by the landlord or the landlord’s 4 agent designated under section 562B.14 . 5 (3) Personal service pursuant to rule of civil procedure 6 1.305, Iowa court rules, for the personal service of original 7 notice. 8 (4) Delivery to an employee or agent of the landlord at the 9 landlord’s business office. 10 (5) (4) Mailing by both regular mail and certified mail, 11 as defined in section 618.15 , to the address of the landlord’s 12 business office or to an address designated by the landlord for 13 mailing. 14 (6) (5) A method of providing notice that results in the 15 notice actually being received by the landlord. 16 3. If service of notice includes posting, the notice shall 17 be posted within the same time period that is applicable 18 to other methods of giving notice under the circumstances. 19 The posted notice shall set forth, on its face, the date 20 of posting. An affidavit signed by the person posting and 21 notarized or certified under penalty of perjury pursuant 22 to section 622.1 shall be evidence of service of notice by 23 posting. Service of notice by posting is deemed completed one 24 day after the notice is posted. 25 2. 4. Notice served by mail under this section is deemed 26 completed four three days after the notice is deposited in the 27 mail and postmarked for delivery, whether or not the recipient 28 signs a receipt for the notice date of the postmark . 29 5. In the case of service of notice by multiple methods, the 30 latest date of completed service shall be the day used for the 31 calculation of any time periods pertaining to the notice. 32 Sec. 15. Section 648.3, Code 2013, is amended to read as 33 follows: 34 648.3 Notice to quit. 35 -8- LSB 1328YC (2) 85 ad/sc 8/ 14

H.F. _____ 1. Before action can be brought under any ground specified 1 in section 648.1 , except subsection 1 , three days’ notice to 2 quit must be given to the defendant in writing. However, a 3 landlord who has given a tenant three days’ notice to pay rent 4 and has terminated the tenancy as provided in section 562A.27, 5 subsection 2 , or section 562B.25, subsection 2 , if the tenant 6 is renting the manufactured or mobile home or the land from the 7 landlord, may commence the action without giving a three-day 8 notice to quit. 9 2. A notice to quit required under subsection 1 shall 10 be served on the defendant according to one or more of the 11 following methods: 12 a. Delivery evidenced by an acknowledgment of delivery 13 service that is signed and dated by a resident of the premises 14 who is at least eighteen years of age. Delivery under this 15 paragraph of a single notice shall be deemed to provide notice 16 to the defendant all tenants and occupants of the dwelling 17 unit . 18 b. Personal service pursuant to rule of civil procedure 19 1.305, Iowa court rules, for the personal service of original 20 notice. 21 c. Posting the notice on the or near a primary entrance door 22 of the subject premises and mailing by both regular mail and 23 certified mail, as defined in section 618.15 , to the address 24 of the premises or to the defendant’s last known address, 25 if different from the address of the premises. A notice 26 posted according to this paragraph shall be posted within the 27 applicable time period for serving notice and shall include 28 the date the notice was posted dwelling unit or to an address 29 provided by the tenant for mailing . 30 d. A method of providing notice that results in the notice 31 actually being received by the tenant. 32 2A. If service of notice includes posting, the notice 33 shall be posted within the same time period that is applicable 34 to other methods of giving notice under the circumstances. 35 -9- LSB 1328YC (2) 85 ad/sc 9/ 14

H.F. _____ The posted notice shall set forth, on its face, the date of 1 the posting. An affidavit signed by the person posting and 2 notarized or certified under penalty of perjury pursuant 3 to section 622.1 shall be evidence of service of notice by 4 posting. Service of notice by posting is deemed completed one 5 day after the notice is posted. 6 3. A notice to quit Notice served by mail under this 7 section is deemed completed four three days after the notice 8 is deposited in the mail and postmarked for delivery, whether 9 or not the recipient signs a receipt for the notice date of the 10 postmark . 11 4. In the case of service of notice by multiple methods, the 12 latest date of completed service shall be the day used for the 13 calculation of any time periods pertaining to the notice. 14 Sec. 16. Section 648.5, subsection 2, paragraphs a and c, 15 Code 2013, are amended to read as follows: 16 a. Delivery evidenced by an acknowledgment of service that 17 is signed and dated by a resident of the premises who is at 18 least eighteen years of age. Delivery under this paragraph 19 of a single notice shall be deemed to provide notice to all 20 tenants or residents and occupants of the premises. Service 21 of original notice under this paragraph is invalid if the 22 acknowledgment of service is signed and dated less than three 23 days prior to the hearing. 24 c. If service cannot be made following two attempts using 25 a method specified under paragraph “a” or “b” , by posting 26 on or near the primary entrance door of the premises and 27 mailing by both regular mail and certified mail, as defined 28 in section 618.15 , to the address of the premises or to the 29 defendant’s last known address, if different from the address 30 of the premises. An original notice posted according to this 31 paragraph shall be posted not less than three days prior to 32 the hearing and shall include the date the original notice was 33 posted. Service of original notice by mailing shall occur not 34 less than three days prior to the hearing. 35 -10- LSB 1328YC (2) 85 ad/sc 10/ 14

H.F. _____ Sec. 17. Section 648.5, subsection 3, Code 2013, is amended 1 to read as follows: 2 3. Service of original notice by mail is deemed completed 3 four three days after the notice is deposited in the mail and 4 postmarked for delivery, whether or not the recipient signs a 5 receipt for the original notice. 6 Sec. 18. Section 714H.4, subsection 1, Code 2013, is amended 7 by adding the following new paragraph: 8 NEW PARAGRAPH . l. A rental agreement or other 9 landlord-tenant relationship as set forth in chapter 562A. 10 Sec. 19. REPEAL. Sections 562A.29A and 562B.27A, Code 2013, 11 are repealed. 12 EXPLANATION 13 This bill makes changes to the residential landlord and 14 tenant laws in Code chapters 562A and 562B, and related 15 provisions in Code chapter 648 (forcible entry and detainer). 16 The bill strikes language regarding maximum fees for late 17 payment of rent in Code section 535.2, and the substance of 18 the provision is transferred to Code section 562A.9, except 19 that the bill increases the maximum payment that may be imposed 20 for late payment of rent from $10 a day or $40 per month to an 21 amount not to exceed $20 per day or a total amount equal to 10 22 percent of the monthly rent. 23 The bill amends Code section 562A.6 regarding general 24 definitions for Code chapter 562A. The bill strikes language in 25 Code section 562A.36, concerning the meaning of “presumption”, 26 and transfers the substance of the provision to Code section 27 562A.6. The bill defines “resident” as an occupant of a 28 dwelling unit who is at least 18 years of age. The bill amends 29 the definition of “rent” to state that rent also means a 30 payment to be made to the landlord pursuant to Code chapter 31 562A, including late fees as provided in Code section 562A.9. 32 The bill amends Code sections 562A.8 and 562B.9, regarding 33 method of notice and service of process, to transfer and 34 modify the provisions contained in Code sections 562A.29A and 35 -11- LSB 1328YC (2) 85 ad/sc 11/ 14

H.F. _____ 562B.27A, which are repealed by the bill. The bill also makes 1 changes to provisions regarding service of notice when serving 2 a written notice of termination pursuant to Code sections 3 562A.27, 562A.34, and 562B.25, a notice of termination and 4 notice to quit pursuant to Code sections 562A.27A and 562B.25A, 5 or a notice to quit as required by Code section 648.3. The bill 6 provides that the delivery of a single notice when the delivery 7 is evidenced by an acknowledgment of service that is signed and 8 dated by a resident of the dwelling unit is deemed to provide 9 notice to all tenants and occupants of the dwelling unit. The 10 bill amends the service of notice provided by posting to allow 11 posting on or near the primary entrance door rather than only 12 on the primary entrance door. The bill adds that a method of 13 providing notice that results in the notice actually being 14 received by the tenant is a valid method of notice. 15 The bill also amends the method of notice provided in Code 16 sections 562A.8 and 562B.9 for all other types of notice 17 required under the Code chapter. The bill requires hand 18 delivery of a notice to the tenant to be evidenced by a written 19 confirmation of delivery signed and dated by the landlord. The 20 bill provides that delivery of a single notice evidenced by 21 an acknowledgment of service, rather than an acknowledgment 22 of delivery, that is signed and dated by a resident of the 23 dwelling unit is deemed to provide notice to all tenants 24 and occupants of the dwelling unit. The bill requires hand 25 delivery of a notice to the landlord or the landlord’s agent to 26 be delivered to the landlord’s business office, as evidenced 27 by a written confirmation of delivery signed and dated by the 28 tenant. The bill strikes the provision in current law that 29 allows delivery to an employee or agent of the landlord at the 30 landlord’s business office as a valid method of service. 31 The bill provides that service of notice by posting is 32 complete one day after a notice is posted. The bill decreases 33 the number of days from four to three before a notice served 34 by mail is deemed complete. The bill provides that when 35 -12- LSB 1328YC (2) 85 ad/sc 12/ 14

H.F. _____ using multiple methods of service, the latest date of service 1 shall be the day used for the calculation of any time periods 2 pertaining to the notice. 3 The bill amends Code section 562A.11 concerning prohibited 4 provisions in rental agreements by adding that the parties may 5 enter into a written agreement to provide notification that 6 attorney fees may be awarded to the prevailing party in the 7 event of court action. 8 The bill amends Code section 562A.12, relating to security 9 deposits, by striking a provision regarding an award of 10 reasonable attorney fees, but the substance of the provision is 11 transferred to Code section 562A.4, relating to administration 12 of remedies and their enforcement under Code chapter 562A, 13 generally. The bill makes corresponding amendments to 14 Code section 562A.27, regarding noncompliance with a rental 15 agreement, and Code section 562A.32, regarding remedies after 16 termination. 17 The bill adds that a tenant who destroys or damages a 18 premises may face criminal charges pursuant to Code chapter 19 716, regarding damage to property. 20 The bill strikes and rewrites Code section 562A.30, 21 relating to waiver of a landlord’s right to terminate a 22 rental agreement, to provide that a landlord’s acceptance of 23 a tenant’s performance that varies from the rental agreement 24 or rules does not constitute a waiver of the landlord’s right 25 to terminate the rental agreement for that breach. The bill 26 further states that the landlord’s failure to promptly assert 27 rights is not a waiver of the landlord’s rights or of any 28 existing or subsequent breach. The bill provides that a waiver 29 of any breach does not constitute a waiver of any subsequent 30 breach. 31 The bill amends provisions in Code section 648.3, regarding 32 service of a notice to quit, to mirror the method of notice 33 provisions in Code sections 562A.8 and 562B.9, as amended by 34 the bill. The bill provides that an affidavit signed by the 35 -13- LSB 1328YC (2) 85 ad/sc 13/ 14

H.F. _____ person posting and notarized or certified under penalty of 1 perjury constitutes evidence of the service of notice. Service 2 of notice by posting is complete one day after notice is 3 posted. Notice served by certified mail is deemed completed 4 three days after date of postmark rather than four days after 5 notice is deposited and postmarked. The bill also provides 6 in Code section 648.3 that when notice is served by multiple 7 methods, the latest date of service is the day used for the 8 calculation of any time periods stated in the notice. 9 The bill amends Code section 648.5 to provide that service by 10 mail of original notice of a forcible entry and detainer action 11 is deemed completed three days after the notice is postmarked 12 for delivery, rather than four days after the mail is deposited 13 and postmarked for delivery. 14 The bill amends Code section 714H.4 to provide that the 15 consumer fraud chapter regarding private actions does not apply 16 to a rental agreement or other landlord-tenant relationship 17 under Code chapter 562A. 18 -14- LSB 1328YC (2) 85 ad/sc 14/ 14