Senate File 2312 - Introduced SENATE FILE 2312 BY COMMITTEE ON JUDICIARY (SUCCESSOR TO SSB 3134) A BILL FOR An Act relating to the continued effect of terms, conditions, 1 covenants, and provisions contained in documents and 2 instruments creating or regulating multiple housing 3 cooperatives and horizontal property regimes and including 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5474SV (2) 85 rh/sc

S.F. 2312 Section 1. NEW SECTION . 499A.23 Effect of documents and 1 instruments. 2 1. Unless amended or terminated by this chapter or by the 3 following documents or instruments, all terms, conditions, 4 covenants, and provisions contained in the following documents 5 or instruments shall remain in full force and effect as long as 6 the cooperative remains in existence: 7 a. The articles of incorporation of the cooperative and any 8 amendments thereto. 9 b. The bylaws of the cooperative and any amendments thereto. 10 c. Any proprietary leases, contracts, or other agreements 11 between the cooperative and a member of the cooperative or 12 between members of the cooperative. 13 d. Any property interests created by any documents or 14 instruments specified in paragraph “a” , “b” , or “c” . 15 2. A document or instrument specified in subsection 1, and 16 any property interests created by such document or instrument, 17 shall not be extinguished, limited, or impaired by application 18 of section 558.68 or 614.24. 19 Sec. 2. NEW SECTION . 499B.21 Effect of documents and 20 instruments. 21 1. Unless amended or terminated by the following documents 22 or instruments, all terms, conditions, covenants, and 23 provisions contained in the following documents or instruments 24 shall remain in full force and effect as long as the horizontal 25 property regime remains in existence: 26 a. The declaration of the horizontal property regime and any 27 amendments thereto. 28 b. The articles of incorporation of the horizontal property 29 regime and any amendments thereto. 30 c. The bylaws of the horizontal property regime and any 31 amendments thereto. 32 d. Any rules and regulations adopted pursuant to the 33 declaration of the horizontal property regime and the bylaws of 34 the horizontal property regime. 35 -1- LSB 5474SV (2) 85 rh/sc 1/ 3

S.F. 2312 e. Any property interests created by any documents or 1 instruments specified in paragraphs “a” , “b” , “c” , or “d” . 2 2. A document or instrument specified in subsection 1, and 3 any property interests created by such document or instrument, 4 shall not be extinguished, limited, or impaired by application 5 of section 558.68 or 614.24. 6 Sec. 3. Section 558.68, Code 2014, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 6. This section shall not extinguish, 9 limit, or impair the validity of a document or instrument 10 specified in section 499A.23 or 499B.21, or any property 11 interests created by such document or instrument. 12 Sec. 4. Section 614.24, Code 2014, is amended by adding the 13 following new subsection: 14 NEW SUBSECTION . 4. This section shall not extinguish, 15 limit, or impair the validity of a document or instrument 16 specified in section 499A.23 or 499B.21, or any property 17 interests created by such document or instrument. 18 Sec. 5. APPLICABILITY. This Act applies to all multiple 19 housing cooperatives and horizontal property regimes created 20 prior to, and still in existence on, July 1, 2014, and created 21 on or after July 1, 2014. 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the effect of terms, conditions, 26 covenants, and provisions contained in documents and 27 instruments creating or regulating multiple housing 28 cooperatives and horizontal property regimes. 29 The bill provides that unless amended or terminated by 30 Code chapter 499A (multiple housing cooperatives) or by the 31 following documents or instruments, all terms, conditions, 32 covenants, and provisions contained in the following documents 33 or instruments, and any property interests created by any such 34 documents or instruments, shall remain in full force and effect 35 -2- LSB 5474SV (2) 85 rh/sc 2/ 3

S.F. 2312 as long as the cooperative remains in existence: the articles 1 of incorporation and the bylaws of the cooperative and any 2 amendments thereto and any proprietary leases, contracts, or 3 other agreements between the cooperative and a member of the 4 cooperative or between members of the cooperative. 5 The bill also provides that unless amended or terminated 6 by Code chapter 499B (horizontal property regimes) or by the 7 following documents or instruments, all terms, conditions, 8 covenants, and provisions contained in the following documents 9 or instruments, and any property interests created by any 10 such documents or instruments, shall remain in full force 11 and effect as long as the cooperative remains in existence: 12 the declaration of the horizontal property regime and any 13 amendments thereto and the articles of incorporation and the 14 bylaws of the horizontal property regime and any amendments 15 thereto and any rules and regulations adopted pursuant to the 16 declaration or bylaws. 17 The bill provides that the rule against perpetuities and 18 certain provisions relating to reversion or use restrictions on 19 land shall not impair the validity of a document or instrument 20 property interest specified in the bill. 21 The bill applies to all multiple housing cooperatives and 22 horizontal property regimes created prior to, and still in 23 existence on, July 1, 2014, and created on or after July 1, 24 2014. 25 -3- LSB 5474SV (2) 85 rh/sc 3/ 3