SF 2312 (LSB 5474SV (2) 85)

SENATE FILE 2312

BY  COMMITTEE ON JUDICIARY

(SUCCESSOR TO SSB 3134)

A BILL FOR

An Act relating to the continued effect of terms, conditions, covenants, and provisions contained in documents and instruments creating or regulating multiple housing cooperatives and horizontal property regimes and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  499A.23  Effect of documents and instruments.
   1.  Unless amended or terminated by this chapter or by the following documents or instruments, all terms, conditions, covenants, and provisions contained in the following documents or instruments shall remain in full force and effect as long as the cooperative remains in existence:
   a.  The articles of incorporation of the cooperative and any amendments thereto.
   b.  The bylaws of the cooperative and any amendments thereto.
   c.  Any proprietary leases, contracts, or other agreements between the cooperative and a member of the cooperative or between members of the cooperative.
   d.  Any property interests created by any documents or instruments specified in paragraph “a”, “b”, or “c”.
   2.  A document or instrument specified in subsection 1, and any property interests created by such document or instrument, shall not be extinguished, limited, or impaired by application of section 558.68 or 614.24.
    Sec. 2.  NEW SECTION.  499B.21  Effect of documents and instruments.
   1.  Unless amended or terminated by the following documents or instruments, all terms, conditions, covenants, and provisions contained in the following documents or instruments shall remain in full force and effect as long as the horizontal property regime remains in existence:
   a.  The declaration of the horizontal property regime and any amendments thereto.
   b.  The articles of incorporation of the horizontal property regime and any amendments thereto.
   c.  The bylaws of the horizontal property regime and any amendments thereto.
   d.  Any rules and regulations adopted pursuant to the declaration of the horizontal property regime and the bylaws of the horizontal property regime.
   e.  Any property interests created by any documents or instruments specified in paragraphs “a”, “b”, “c”, or “d”.
   2.  A document or instrument specified in subsection 1, and any property interests created by such document or instrument, shall not be extinguished, limited, or impaired by application of section 558.68 or 614.24.
    Sec. 3.  Section 558.68, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  6.  This section shall not extinguish, limit, or impair the validity of a document or instrument specified in section 499A.23 or 499B.21, or any property interests created by such document or instrument.
    Sec. 4.  Section 614.24, Code 2014, is amended by adding the following new subsection:
   NEW SUBSECTION.  4.  This section shall not extinguish, limit, or impair the validity of a document or instrument specified in section 499A.23 or 499B.21, or any property interests created by such document or instrument.
    Sec. 5.  APPLICABILITY.  This Act applies to all multiple housing cooperatives and horizontal property regimes created prior to, and still in existence on, July 1, 2014, and created on or after July 1, 2014.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the effect of terms, conditions, covenants, and provisions contained in documents and instruments creating or regulating multiple housing cooperatives and horizontal property regimes.
   The bill provides that unless amended or terminated by Code chapter 499A (multiple housing cooperatives) or by the following documents or instruments, all terms, conditions, covenants, and provisions contained in the following documents or instruments, and any property interests created by any such documents or instruments, shall remain in full force and effect as long as the cooperative remains in existence: the articles of incorporation and the bylaws of the cooperative and any amendments thereto and any proprietary leases, contracts, or other agreements between the cooperative and a member of the cooperative or between members of the cooperative.
   The bill also provides that unless amended or terminated by Code chapter 499B (horizontal property regimes) or by the following documents or instruments, all terms, conditions, covenants, and provisions contained in the following documents or instruments, and any property interests created by any such documents or instruments, shall remain in full force and effect as long as the cooperative remains in existence: the declaration of the horizontal property regime and any amendments thereto and the articles of incorporation and the bylaws of the horizontal property regime and any amendments thereto and any rules and regulations adopted pursuant to the declaration or bylaws.
   The bill provides that the rule against perpetuities and certain provisions relating to reversion or use restrictions on land shall not impair the validity of a document or instrument property interest specified in the bill.
   The bill applies to all multiple housing cooperatives and horizontal property regimes created prior to, and still in existence on, July 1, 2014, and created on or after July 1, 2014.