H.F. 2113 DIVISION I 1 IOWA COMMON INTEREST OWNERSHIP ACT 2 Section 1. NEW SECTION . 499C.101 Title. 3 This chapter shall be known and cited as the “Iowa Common 4 Interest Ownership Act” . 5 Sec. 2. NEW SECTION . 499C.102 Public policy. 6 The general assembly declares that it is the public policy of 7 the state that the management and affairs of common interest 8 communities be conducted openly, and this chapter shall be 9 construed to provide open access to the management of the 10 common interest community for the unit owners. 11 Sec. 3. NEW SECTION . 499C.103 Definitions. 12 As used in this chapter, unless the context otherwise 13 requires: 14 1. “Assessment” means a sum attributable to each unit and 15 due to the unit owners association as may be provided in a 16 declaration or in the bylaws. 17 2. “Bylaws” means the instruments, however denominated, 18 that contain the procedures for conducting the affairs of the 19 unit owners association or the executive board regardless of 20 the form in which the association is organized, including any 21 amendments to such instruments. 22 3. “Common element” means: 23 a. For a cooperative under chapter 499A or a horizontal 24 property regime under chapter 499B, all portions of the common 25 interest community other than the units. 26 b. For a planned community, any real estate within the 27 planned community which is owned or leased by the unit owners 28 association, other than a unit. 29 c. For all common interest communities, any other interests 30 in real estate identified in the declaration for the benefit 31 of unit owners. 32 4. “Common expenses” means expenditures made by, or 33 financial liabilities of, the unit owners association or the 34 executive board, together with any allocations to reserves. 35 -1- LSB 5138YH (3) 86 md/sc 1/ 20

H.F. 2113 5. a. “Common interest community” means real estate 1 described in a declaration with respect to which a person, 2 by virtue of the person’s ownership of a unit, is obligated 3 to pay for a share of real estate taxes, insurance premiums, 4 maintenance, or improvement of, or services or other expenses 5 related to, common elements, other units, or other real estate 6 described in the declaration. “Common interest community” 7 includes a cooperative under chapter 499A and a horizontal 8 property regime under chapter 499B. 9 b. Common interest community does not include: 10 (1) A covenant that requires the owners of separate parcels 11 of real estate to share costs or other obligations related to a 12 wall, driveway, well, or other similar structure, unless all 13 such owners consent in writing to the creation of a common 14 interest community. 15 (2) Real estate described in paragraph “a” if all units are 16 owned by a single owner. 17 6. “Declarant” means a person or group of persons who, 18 as the record title owner of real estate, by a declaration, 19 creates a common interest community. 20 7. “Declaration” means the instrument, however denominated, 21 that creates a common interest community, including any 22 amendments to the instrument. 23 8. “Executive board” means the body, regardless of name, 24 designated in the declaration or bylaws to act on behalf of the 25 unit owners association. 26 9. “Planned community” means a common interest community 27 that is not solely a cooperative under chapter 499A or 28 solely a horizontal property regime under chapter 499B, and 29 includes property owner or homeowner associations. However, a 30 cooperative under chapter 499A or a horizontal property regime 31 under chapter 499B may be part of a planned community. 32 10. “Rule” means a policy, guideline, restriction, 33 procedure, or regulation, however denominated, which is not set 34 forth in the declaration or bylaws. 35 -2- LSB 5138YH (3) 86 md/sc 2/ 20

H.F. 2113 11. “Unit” means a physical portion of the common interest 1 community designated for separate ownership or occupancy or 2 as otherwise defined in the statute under which the common 3 interest community is organized. 4 12. “Unit owner” means a declarant or other person that owns 5 a unit, but does not include a person having an interest in a 6 unit solely as security for an obligation. In a horizontal 7 property regime under chapter 499B or a planned community, 8 the declarant is the owner of a unit. In a cooperative under 9 chapter 499A, the declarant is the owner of any unit to 10 which an interest has been allocated until that unit has been 11 conveyed to another person. 12 13. “Unit owners association” means an association, 13 regardless of name, organized as a for-profit or nonprofit 14 corporation, trust, limited liability company, partnership, 15 unincorporated association, or any other form of organization 16 authorized by the laws of this state, the membership of 17 which consists solely of unit owners except following 18 termination of the common interest community, at which time the 19 association shall consist of all former unit owners entitled 20 to distributions of proceeds or their heirs, successors, or 21 assigns. 22 Sec. 4. NEW SECTION . 499C.104 Variation by agreement. 23 Except as expressly provided in this chapter, the provisions 24 of this chapter may not be varied by agreement, and rights 25 conferred by it may not be waived. 26 Sec. 5. NEW SECTION . 499C.105 Applicability. 27 Unless otherwise provided by law: 28 1. This chapter applies to common interest communities 29 within this state having eight or more units. 30 2. Any portion of a declaration, bylaws, covenant, or 31 other contractual provision existing prior to July 1, 2016, 32 that violates or is inconsistent with this chapter is not 33 enforceable. However, nothing in this chapter shall be 34 construed to invalidate other provisions of the declaration, 35 -3- LSB 5138YH (3) 86 md/sc 3/ 20

H.F. 2113 bylaws, covenant, or contractual provision of those common 1 interest communities established before July 1, 2016. 2 3. The provisions of this chapter shall prevail over any 3 conflicting provision of law under which a common interest 4 community or unit owners association is organized. 5 Sec. 6. NEW SECTION . 499C.201 Unit owners association —— 6 powers and duties. 7 1. Except as otherwise provided in this chapter, a unit 8 owners association shall do all of the following: 9 a. Adopt bylaws and amend such bylaws. 10 b. Adopt budgets, collect assessments for common expenses 11 from unit owners, and invest funds of the association, if 12 applicable. 13 2. Unless otherwise limited by a declaration or bylaws, a 14 unit owners association shall have authority to do any of the 15 following: 16 a. Adopt and amend rules for operation of the unit owners 17 association. 18 b. Hire, employ, and discharge employees, agents, and 19 independent contractors. 20 c. Institute, defend, or intervene in litigation, 21 arbitration, mediation, or governmental administrative 22 proceedings on behalf of the unit owners association or for two 23 or more unit owners on matters affecting the common interest 24 community. 25 d. Make contracts and incur liabilities. 26 e. Regulate the use, maintenance, repair, replacement, and 27 modification of common elements. 28 f. Cause additional improvements to be made to the common 29 elements of the common interest community. 30 g. Acquire, hold, encumber, and convey any right, title, or 31 interest to real estate or personal property. 32 h. Grant easements, leases, licenses, and concessions 33 through or over the common elements of the common interest 34 community. 35 -4- LSB 5138YH (3) 86 md/sc 4/ 20

H.F. 2113 i. Impose and receive any payments, fees, or charges for the 1 use, rental, or operation of the common elements, other than 2 limited common elements as defined in section 499B.2, and for 3 services provided to unit owners. 4 j. Impose charges for late payment of assessments and, 5 after notice and an opportunity to be heard, impose reasonable 6 monetary penalties for violations of the declaration, bylaws, 7 and rules of the association. 8 k. Impose reasonable charges for the preparation and 9 recording of statements of unpaid assessments. 10 l. Provide for the indemnification of its officers and 11 executive board, including maintenance of liability insurance 12 for directors and officers of the unit owners association. 13 m. Assign its right to future income, including the right 14 to receive assessments. 15 n. Exercise powers conferred by the declaration or bylaws. 16 o. Exercise all other powers that may be exercised in this 17 state by organizations of the same type as the unit owners 18 association. 19 p. Suspend any right or privilege of a unit owner who fails 20 to pay an assessment. The unit owners association shall not, 21 however, deny a unit owner or other occupant access to the 22 owner’s unit, suspend a unit owner’s right to vote, prevent a 23 unit owner from seeking election as a director or officer of 24 the association, or withhold services provided to a unit or a 25 unit owner by the association if the effect of withholding the 26 service would be to endanger the health, safety, or property 27 of any person. 28 q. Exercise any other powers necessary and proper for the 29 governance and operation of the association. 30 3. If a tenant of a unit owner violates the declaration, 31 bylaws, or rules of the association, in addition to exercising 32 any of its powers against the unit owner, the association may 33 do any of the following: 34 a. Exercise the powers described in subsection 2, paragraph 35 -5- LSB 5138YH (3) 86 md/sc 5/ 20

H.F. 2113 “j” , against the offending tenant. 1 b. After giving notice to the tenant and the unit owner 2 and providing each an opportunity to be heard, levy reasonable 3 monetary penalties against the tenant for the violation. 4 c. Take other action against the tenant for the violation in 5 the same manner as the unit owner, acting as landlord, could 6 have exercised under the lease or in the manner that the unit 7 owners association could lawfully have taken action directly 8 against the unit owner, or both. Action under this paragraph 9 may only be taken if the tenant or unit owner fails to remedy 10 the violation within ten days after notification by the unit 11 owners association of the violation. 12 4. Unless a lease of a unit otherwise provides, this section 13 does not do any of the following: 14 a. Affect rights that the unit owner possesses to enforce 15 the lease or that the unit owners association has under other 16 provisions of law. 17 b. In the absence of a violation of the declaration, bylaws, 18 or rules, authorize the unit owners association to enforce a 19 lease to which the unit owners association is not a party. 20 5. An executive board may determine whether to exercise 21 the association’s power to impose sanctions or commence an 22 action for a violation of the declaration, bylaws, or rules, 23 including whether to settle any claim for unpaid assessments or 24 other claim made by or against the unit owners association. An 25 executive board does not have a duty to take enforcement action 26 if the executive board determines, following consideration of 27 the facts and circumstances presented, any of the following: 28 a. The association’s legal position does not justify taking 29 any or further enforcement action. 30 b. The covenant, restriction, or rule being enforced is, or 31 is likely to be construed as, inconsistent with law. 32 c. Despite the existence of a violation, the violation is 33 nonmaterial and does not justify expenditure of the unit owners 34 association’s resources. 35 -6- LSB 5138YH (3) 86 md/sc 6/ 20

H.F. 2113 d. It is not in the unit owners association’s best interests 1 to pursue an enforcement action. 2 6. The failure of an executive board to take action pursuant 3 to subsection 5 shall not prevent the executive board from 4 taking enforcement action under a similar set of circumstances 5 or facts. The authority of an executive board to take action 6 under this chapter shall not, however, be exercised in an 7 arbitrary or capricious manner. 8 Sec. 7. NEW SECTION . 499C.202 Executive board. 9 1. A unit owners association shall have an executive 10 board and, except as otherwise provided in the declaration, 11 the bylaws, subsection 2, or provisions of the statute under 12 which the common interest community is organized, an executive 13 board acts on behalf of the unit owners association. In 14 the performance of their duties, officers and members of the 15 executive board appointed by the declarant shall exercise the 16 degree of care and loyalty to the unit owners association 17 required of a trustee. Officers and members of an executive 18 board not appointed by the declarant shall exercise the degree 19 of care and loyalty to the unit owners association required 20 of an officer or director of a corporation organized under 21 chapter 504, and such officers and members are subject to the 22 conflict of interest rules governing directors and officers 23 under chapter 504. 24 2. An executive board shall not act on behalf of the unit 25 owners association to amend the declaration, to terminate the 26 common interest community, to elect members of the executive 27 board, or determine the qualifications, powers and duties, or 28 terms of office of executive board members. An executive board 29 may fill vacancies in its membership for the unexpired portion 30 of any term. 31 3. a. Subject to subsection 4, the declaration may 32 provide for a period of declarant control of the unit owners 33 association during which a declarant, or persons designated by 34 the declarant, may appoint and remove the officers and members 35 -7- LSB 5138YH (3) 86 md/sc 7/ 20

H.F. 2113 of the executive board. In no case, however, shall a period of 1 declarant control continue upon the occurrence of any of the 2 following: 3 (1) Sixty days after the conveyance of seventy-five percent 4 of all units in the common interest community to unit owners 5 other than a declarant. 6 (2) Two years after all declarants have ceased to offer 7 units for sale in the ordinary course of business. 8 (3) Two years after the addition of any number of new units 9 to the common interest community. 10 (4) The date the declarant, after giving written notice 11 to all unit owners, records an instrument voluntarily 12 surrendering all rights to control activities of the unit 13 owners association. 14 b. A declarant may voluntarily surrender the right to 15 appoint and remove officers and members of the executive board 16 before termination of the period under paragraph “a” . However, 17 the declarant may retain, for the duration of the period of 18 declarant control, approval authority for specified actions of 19 the unit owners association or executive board, as described in 20 a recorded instrument executed by the declarant. 21 4. a. Not later than sixty days after conveyance of 22 twenty-five percent of the units to unit owners other than a 23 declarant, at least one member, and not less than twenty-five 24 percent of the members of the executive board, must be elected 25 by unit owners other than the declarant. 26 b. Not later than sixty days after conveyance of fifty 27 percent of the units to unit owners other than a declarant, not 28 less than one-third of the members of the executive board must 29 be elected by unit owners other than the declarant. 30 5. Following the termination of any period of declarant 31 control under this section, the unit owners shall elect an 32 executive board of at least three members, at least a majority 33 of whom must be unit owners. The executive board members shall 34 elect officers of the executive board. The executive board 35 -8- LSB 5138YH (3) 86 md/sc 8/ 20

H.F. 2113 members and officers shall take office upon election. This 1 subsection shall not apply to a common interest community if 2 all the units of the community are owned by one owner. 3 6. Notwithstanding any provision of the declaration or 4 bylaws to the contrary, the unit owners, by a two-thirds vote 5 of all persons present and entitled to vote at any meeting of 6 the unit owners at which a quorum is present, may remove any 7 member of the executive board with or without cause, other than 8 a member appointed by the declarant. 9 Sec. 8. NEW SECTION . 499C.401 Meetings. 10 1. Meetings of a unit owners association shall comply with 11 all of the following: 12 a. A unit owners association shall hold a meeting of 13 unit owners annually at a time, date, and place stated in or 14 determined in accordance with the declaration or bylaws. 15 b. A unit owners association shall hold a special meeting 16 of unit owners to address any matter affecting the unit owners 17 association if the association’s president, a majority of the 18 executive board, or a number of unit owners comprising at 19 least forty percent of all votes in the association, unless a 20 different percentage is specified in the bylaws, request that 21 the secretary call the meeting. If the unit owners association 22 does not notify unit owners of a special meeting within thirty 23 days after the required number of unit owners has requested the 24 secretary to call a special meeting, the requesting members may 25 directly notify all unit owners of the meeting. Only matters 26 described in the meeting notice may be considered at a special 27 meeting. 28 c. A unit owners association shall notify each unit owner 29 of the time, date, and place of each annual and special unit 30 owners meeting not less than ten days and not more than sixty 31 days before the meeting date. Each meeting notice shall state 32 the time, date, and place of the meeting and the items on the 33 agenda in a manner reasonably calculated to apprise the unit 34 owners of that information, including but not limited to: 35 -9- LSB 5138YH (3) 86 md/sc 9/ 20

H.F. 2113 (1) A statement of the general nature of any proposed 1 amendment to the declaration or bylaws. 2 (2) A statement describing any budget changes. 3 (3) Any proposal to remove an officer or member of the 4 executive board. 5 d. The requirements relating to the timing of meeting 6 notices under paragraph “c” may be reduced or waived for a 7 meeting called to address an emergency. A meeting called to 8 address an emergency shall be limited to matters arising out 9 of the emergency. 10 e. Each unit owner shall be given a reasonable opportunity 11 at any meeting to comment on any matter affecting the common 12 interest community or the unit owners association or only on 13 the emergency being addressed, if applicable. 14 f. The declaration or bylaws may allow for meetings of 15 unit owners to be conducted by telephonic, video, or other 16 conferencing methods, if such methods are consistent with 17 subsection 2, paragraph “g” . 18 2. Meetings of the executive board and meetings of 19 committees of the unit owners association, authorized to act 20 for the unit owners association, shall comply with all of the 21 following: 22 a. Meetings shall be open to the unit owners except during 23 executive sessions. The executive board and committees of the 24 unit owners association authorized to act for the association 25 may hold an executive session only during a regular or special 26 meeting of the board or the committee. No final vote or final 27 action may be taken during an executive session. An executive 28 session may only be held for the following reasons: 29 (1) To consult with the unit owners association’s attorney 30 concerning legal matters governed by attorney-client privilege. 31 (2) To discuss existing or potential litigation or 32 mediation, arbitration, or governmental administrative 33 proceedings. 34 (3) To discuss matters relating to the job performance, 35 -10- LSB 5138YH (3) 86 md/sc 10/ 20

H.F. 2113 compensation, or health records of an individual employee or 1 specific complaints against an individual employee of the 2 unit owners association or against an independent contractor 3 retained by the unit owners association. 4 (4) To discuss contracts, leases, and other commercial 5 transactions for goods or services that are under negotiation, 6 including the review of bids or proposals, if public disclosure 7 of such matters would place the unit owners association at a 8 disadvantage. 9 (5) To discuss personal, health, or financial information 10 relating to a unit owner, a specific employee of the unit 11 owners association, or a specific employee of an independent 12 contractor retained by the unit owners association, including 13 any records of the unit owners association relating to such 14 information. 15 b. Executive board members shall not use incidental or 16 social gatherings of board members or any other method to 17 evade the meeting and notice requirements of this section. 18 For purposes of this section, a gathering of board members at 19 which the board members do not conduct unit owners association 20 business is not a meeting of the executive board. 21 c. During a period of declarant control, the executive board 22 shall meet at least one time each year. At least one of the 23 meetings shall be held at the common interest community or at 24 a place convenient to the unit owners of the common interest 25 community. After termination of the period of declarant 26 control, all executive board meetings shall be held at the 27 common interest community or at a place convenient to the unit 28 owners of the common interest community unless the unit owners 29 amend the bylaws to vary the location of such meetings. 30 d. Unless the meeting is called to address an emergency, 31 at each executive board meeting, the executive board shall 32 provide a reasonable opportunity for unit owners to comment on 33 any matter affecting the common interest community and the unit 34 owners association. 35 -11- LSB 5138YH (3) 86 md/sc 11/ 20

H.F. 2113 e. Unless the meeting is included in a schedule given to the 1 unit owners or the meeting is called to address an emergency, 2 the secretary or other officer specified in the bylaws shall 3 give notice of each executive board meeting to each executive 4 board member and to each unit owner. Such notice shall be 5 given at least ten days before the meeting and shall state the 6 time, date, place, and agenda of the meeting. 7 f. If any materials are distributed to the executive board 8 before a meeting, the executive board, upon receipt of the 9 materials, shall make copies reasonably available to unit 10 owners, except that the executive board is not required to make 11 available copies of unapproved minutes or materials that are to 12 be considered during an executive session. 13 g. Unless otherwise provided in the declaration or bylaws, 14 the executive board may conduct a meeting by telephonic, 15 video, or other conferencing methods if all of the following 16 conditions are met: 17 (1) The meeting notice states the conferencing method to 18 be used and provides information explaining how unit owners 19 may participate in the conference directly or by meeting at a 20 central location or conference connection. 21 (2) The process provides all unit owners the opportunity 22 to hear or perceive the discussion and to comment on matters 23 before the executive board. 24 h. Following termination of the period of declarant control, 25 unit owners may amend the bylaws to vary the procedures for 26 meetings described in paragraph “g” . 27 i. In lieu of a meeting, the executive board may act by 28 unanimous consent if such action is documented in a record 29 authenticated by all executive board members. The secretary 30 shall give prompt notice to all unit owners of any action 31 taken by unanimous consent. After termination of the period 32 of declarant control, an executive board may act by unanimous 33 consent only to undertake ministerial actions or to implement 34 actions previously taken at a meeting of the executive board. 35 -12- LSB 5138YH (3) 86 md/sc 12/ 20

H.F. 2113 j. Unless otherwise restricted by this chapter or the common 1 interest community’s bylaws, an executive board may determine 2 rules of procedure for the executive board. 3 k. An executive board may remove any person from a meeting 4 of the executive board upon a finding by a majority of the 5 board members that the person is being disruptive to the 6 meeting. An executive board may bar any person from meetings 7 of the executive board or other meetings of the common interest 8 community for a period of up to one year if the person has 9 been twice removed from a meeting within the preceding twelve 10 months. 11 l. An action by an executive board that is not in compliance 12 with this section is valid unless invalidated by a court. A 13 challenge to the validity of an action of the executive board 14 for failure to comply with this section shall not be brought 15 more than sixty days after the minutes of the executive board 16 meeting at which the action was taken are approved or the 17 record of that action is distributed to unit owners, whichever 18 is later. 19 Sec. 9. NEW SECTION . 499C.402 Association records. 20 1. A unit owners association shall retain all of the 21 following: 22 a. Detailed records of receipts and expenditures relating to 23 the operation and administration of the unit owners association 24 and other appropriate accounting records. 25 b. Minutes of all unit owners meetings and executive board 26 meetings, a record of all actions taken by the unit owners or 27 the executive board without a meeting, and a record of all 28 actions taken by a committee in place of the executive board on 29 behalf of the unit owners association. The minutes retained 30 by the unit owners association shall indicate the date, time, 31 and place of the meeting, the names of all persons present 32 at the meeting, and each action taken at the meeting. The 33 minutes shall also include the results of each vote taken at 34 the meeting, including information indicating the vote of each 35 -13- LSB 5138YH (3) 86 md/sc 13/ 20

H.F. 2113 executive board member present at the meeting. The vote of 1 each executive board member present shall be made public at the 2 open session. 3 c. The names of all unit owners in a form that permits 4 preparation of a list of the names of all owners and the 5 regular mail and electronic mail addresses at which the unit 6 owners association communicates with them, and the number of 7 votes each unit owner is entitled to cast. 8 d. The unit owners association’s original and amended 9 organizational documents, bylaws including all amendments to 10 the bylaws, and all rules of the common interest community 11 currently in effect. 12 e. All financial statements and tax returns of the unit 13 owners association for the past three years. 14 f. A list of the names and addresses of the current 15 executive board members and officers. 16 g. The unit owners association’s most recent annual report 17 delivered to the secretary of state, if applicable. 18 h. Copies of each contract to which the unit owners 19 association is currently a party. 20 i. Records of executive board or committee actions relating 21 to requests for design or architectural approval from unit 22 owners. 23 j. Ballots, proxies, and other records related to voting by 24 unit owners for one year after the election, action, or vote. 25 2. Except as provided under subsections 3 and 4, all records 26 retained by a unit owners association must be available for 27 examination and copying by a unit owner or the unit owner’s 28 authorized agent during reasonable business hours or at a 29 mutually convenient time and location upon providing a five 30 days’ notice that reasonably identifies the specific records 31 that are being requested. 32 3. Records retained by a unit owners association may be 33 withheld from inspection and copying to the extent that they 34 concern: 35 -14- LSB 5138YH (3) 86 md/sc 14/ 20

H.F. 2113 a. Personally identifiable information, salary, and medical 1 records relating to specific individuals. 2 b. Information relating to contracts, leases, and other 3 commercial transactions to purchase or provide goods or 4 services, that are currently under negotiation. 5 c. Information relating to existing or potential litigation, 6 mediation, arbitration, or governmental administrative 7 proceedings. 8 d. Information relating to existing or potential matters 9 involving governmental administrative proceedings or other 10 proceedings before a government tribunal for enforcement of the 11 declaration, bylaws, or rules. 12 e. Communications with the unit owners association attorney 13 which are otherwise protected by the attorney-client privilege 14 or the attorney work-product doctrine. 15 f. Information that if disclosed would violate another 16 provision of law. 17 g. Records of an executive session of the executive board. 18 However, upon the completion of a matter that is the subject of 19 an executive session held under section 499C.401, subsection 20 2, paragraph “a” , subparagraphs (1) through (4), such records 21 of the executive session shall be available for inspection as 22 provided in this section. 23 h. Records directly related to the personal, health, or 24 financial information of a unit owner, if the person requesting 25 the records is not the unit owner that is the subject of the 26 records. 27 4. A unit owners association may charge a reasonable fee 28 for providing copies of any records under this section and for 29 supervising the inspection of such records. 30 5. The right to inspect records under this section includes 31 the right to copy records by photocopying or other means and 32 includes the right to receive copies through an electronic 33 transmission, if available, upon request of the requester. 34 6. A unit owners association is not obligated to compile or 35 -15- LSB 5138YH (3) 86 md/sc 15/ 20

H.F. 2113 synthesize information or records under this section. 1 7. Information or records obtained under this section shall 2 not be used for commercial purposes. 3 Sec. 10. NEW SECTION . 499C.403 Notice to unit owners. 4 1. A unit owners association or an executive board, as 5 applicable, shall deliver each notice required to be given by 6 the association or board under this chapter to the regular mail 7 address or electronic mail address provided by each unit owner. 8 If a regular mail address or electronic mail address is not 9 provided by the unit owner, the notice may be delivered using 10 any of the following methods: 11 a. Hand delivery to the unit owner. 12 b. Mailing by certified mail, as defined in section 618.15, 13 or by regular mail to the address of the unit. 14 c. Any other method reasonably calculated to provide notice 15 to the unit owner. 16 2. The ineffectiveness of a good-faith effort to deliver 17 notice under subsection 1 does not invalidate an action taken 18 at a meeting or an action taken by other means. 19 Sec. 11. NEW SECTION . 499C.501 Cause of action —— attorney 20 fees. 21 A declarant, unit owners association, unit owner, or any 22 other person subject to this chapter may bring an action to 23 enforce a right granted or obligation imposed by this chapter, 24 the declaration, or the bylaws. In any action under this 25 chapter, the court may award reasonable attorney fees to the 26 prevailing party. 27 DIVISION II 28 CORRESPONDING CHANGES 29 Sec. 12. NEW SECTION . 499A.201 Applicability. 30 This chapter shall apply to cooperatives established under 31 this chapter unless otherwise provided in chapter 499C. 32 Sec. 13. NEW SECTION . 499B.1A Applicability. 33 This chapter applies to horizontal property regimes 34 established under this chapter unless otherwise provided in 35 -16- LSB 5138YH (3) 86 md/sc 16/ 20

H.F. 2113 chapter 499C. 1 Sec. 14. Section 499B.15, subsection 2, Code 2016, is 2 amended by striking the subsection. 3 Sec. 15. NEW SECTION . 499B.22 Board of administration —— 4 meetings and records. 5 1. For horizontal property regimes with eight or more 6 apartments, if the form of administration is a board of 7 administration, the board of administration shall comply with 8 the requirements of chapter 499C. 9 2. For horizontal property regimes with seven or less 10 apartments, if the form of administration is a board of 11 administration, the board of administration shall comply 12 with the requirements of section 499C.401, subsection 2, and 13 sections 499C.402 and 499C.403. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 Division I of this bill creates an Iowa common interest 18 ownership Act, new Code chapter 499C. The bill provides that 19 it is the public policy of the state that the management and 20 affairs of common interest communities be conducted openly and 21 that the new Code chapter is to be construed to provide open 22 access to the management of the common interest community for 23 the unit owners. 24 New Code chapter 499C defines “common interest community” 25 to mean real estate described in a declaration with respect 26 to which a person, by virtue of the person’s ownership of a 27 unit, is obligated to pay for a share of real estate taxes, 28 insurance premiums, maintenance, or improvement of, or services 29 or other expenses related to, common elements, other units, or 30 other real estate described in the declaration. Cooperatives 31 under Code chapter 499A and horizontal property regimes under 32 Code chapter 499B are also defined to be common interest 33 communities. The bill specifies that a common interest 34 community does not include a covenant that requires the owners 35 -17- LSB 5138YH (3) 86 md/sc 17/ 20

H.F. 2113 of separate parcels of real estate to share certain costs or 1 other obligations, unless all such owners consent in writing 2 to the creation of a common interest community, and does not 3 include a community where all units are owned by a single 4 owner. 5 The bill does not allow for the provisions of new Code 6 chapter 499C to be varied by agreement, and rights conferred by 7 new Code chapter 499C may not be waived. 8 The bill specifies that unless otherwise provided by law new 9 Code chapter 499C applies to all common interest communities 10 established within this state having eight or more units. 11 However, the bill provides that for horizontal property regimes 12 with seven or fewer apartments, if the form of administration 13 is a board of administration, the board of administration must 14 comply with specified requirements of new Code chapter 499C 15 regarding meetings, records, and notice. 16 The bill establishes requirements and procedures for common 17 interest communities, unit owners associations, and executive 18 boards. 19 The bill provides that the membership of a unit owners 20 association shall at all times consist exclusively of all unit 21 owners except following termination of the common interest 22 community, at which time the unit owners association shall 23 consist of all former unit owners entitled to distributions 24 of proceeds or their heirs, successors, or assigns. The bill 25 requires each unit owners association to have an executive 26 board. A unit owners association must be organized as a 27 for-profit or nonprofit corporation, trust, limited liability 28 company, partnership, unincorporated association, or any 29 other form of organization authorized by the laws of this 30 state. The bill provides that the requirements of new Code 31 chapter 499C relating to a unit owners association preempt 32 any conflicting provision of the statute under which the unit 33 owners association is organized. 34 The bill specifies the duties and powers of a unit owners 35 -18- LSB 5138YH (3) 86 md/sc 18/ 20

H.F. 2113 association, including powers of the unit owners association 1 for enforcement of the provisions of declaration, bylaws, or 2 rules. 3 The bill specifies the duties and powers of an executive 4 board. An executive board, except as otherwise provided in the 5 declaration, the bylaws, or other provision of law, acts on 6 behalf of the unit owners association. The bill specifies the 7 duty of care required for members and officers of the executive 8 board. 9 The bill establishes requirements relating to meetings of 10 unit owners associations, executive boards, and committees 11 of such entities including requirements for the contents 12 of meeting notices, allowable actions during meetings, 13 requirements relating to unit owner comments, and the manner 14 in which meetings may be conducted. The bill also specifies 15 the manner and the reasons for which certain meetings may be 16 called. 17 The bill enacts requirements relating to the retention of 18 records by unit owners associations and specifies the records 19 retained by a unit owners association which may be withheld 20 from inspection and copying. 21 The bill requires a unit owners association or executive 22 board, as applicable, to deliver each notice required to be 23 given by the association under new Code chapter 499C to the 24 regular mail address or electronic mail address provided by 25 each unit owner. If a regular mail or electronic mail address 26 is not provided by the unit owner, the unit owners association 27 may deliver the notice by a different method specified in 28 the bill. The bill provides that the ineffectiveness of a 29 good-faith effort to deliver notice does not invalidate an 30 action taken at a meeting or an action taken by other means. 31 The bill provides that a declarant, unit owners association, 32 unit owner, or any other person subject to new Code chapter 33 499C may bring an action to enforce a right granted or 34 obligation imposed by the Code chapter, the declaration, or the 35 -19- LSB 5138YH (3) 86 md/sc 19/ 20