Senate
File
2012
-
Introduced
SENATE
FILE
2012
BY
HART
A
BILL
FOR
An
Act
relating
to
the
revival
of
lapsed
use
restrictions
by
a
1
common
interest
community.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
564B.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Bylaws”
means
the
instruments,
however
denominated,
4
that
contain
the
procedures
for
conducting
the
affairs
of
the
5
homeowners’
association
or
the
executive
board
regardless
of
6
the
form
in
which
the
homeowners’
association
is
organized,
7
including
any
amendments
to
such
instruments.
8
2.
a.
“Common
interest
community”
means
real
estate
9
described
in
a
declaration
with
respect
to
which
a
person,
by
10
virtue
of
the
person’s
ownership
of
a
parcel,
is
obligated
11
to
pay
for
a
share
of
real
estate
taxes,
insurance
premiums,
12
maintenance,
or
improvement
of,
or
services
or
other
expenses
13
related
to,
common
elements,
other
parcels,
or
other
real
14
estate
described
in
the
declaration.
“Common
interest
15
community”
includes
a
cooperative
under
chapter
499A
and
a
16
horizontal
property
regime
under
chapter
499B.
17
b.
“Common
interest
community”
does
not
include
a
covenant
18
that
requires
the
owners
of
separate
parcels
of
real
estate
to
19
share
costs
or
other
obligations
related
to
a
wall,
driveway,
20
well,
or
other
similar
structure,
unless
all
such
owners
21
consent
in
writing
to
the
creation
of
a
common
interest
22
community.
23
3.
“Declaration”
means
a
recorded
written
instrument
in
the
24
nature
of
covenants
running
with
the
land
that
subject
the
land
25
comprising
the
common
interest
community
to
the
jurisdiction
26
and
control
of
a
homeowners’
association
in
which
the
owners
of
27
the
parcels
are
required
to
be
members.
28
4.
“Executive
board”
means
the
body,
regardless
of
name,
29
designated
in
the
declaration,
formation
document,
or
bylaws
to
30
act
on
behalf
of
the
homeowners’
association.
31
5.
“Formation
document”
means
the
document
filed
with
the
32
secretary
of
state
that
creates
a
business
entity,
including
33
but
not
limited
to
articles
of
incorporation,
articles
of
34
organization,
and
a
certificate
of
organization.
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6.
“Homeowners’
association”
means
an
entity
responsible
1
for
the
operation
of
a
common
interest
community
in
which
the
2
voting
membership
is
made
up
of
parcel
owners
and
in
which
3
membership
is
a
mandatory
condition
of
parcel
ownership,
and
4
which
is
authorized
to
impose
assessments
that,
if
unpaid,
may
5
become
a
lien
on
the
parcel.
6
7.
“Parcel”
means
a
physical
portion
of
the
common
interest
7
community
designated
for
separate
ownership
or
occupancy
or
8
as
otherwise
defined
in
the
statute
under
which
the
common
9
interest
community
is
organized.
10
8.
“Parcel
owner”
means
the
record
owner
of
legal
title
to
11
a
parcel
or,
if
the
parcel
is
subject
to
a
contract
for
deed,
12
the
vendee
of
the
real
estate
contract.
“Parcel
owner”
does
13
not
include
a
person
having
an
interest
in
a
parcel
solely
as
14
security
for
an
obligation.
15
9.
“Use
restrictions”
means
the
same
as
defined
in
section
16
614.24,
subsection
5.
17
Sec.
2.
NEW
SECTION
.
564B.2
Revival
of
use
restrictions.
18
Parcel
owners
in
a
common
interest
community
may
revive
use
19
restrictions
in
a
declaration
that
have
become
unenforceable
20
by
operation
of
section
614.24
if
all
of
the
following
21
requirements
are
met:
22
1.
All
parcels
which
will
be
subject
to
the
revived
use
23
restrictions
were
previously
subject
to
the
use
restrictions.
24
2.
The
affected
parcel
owners
approve
the
revived
use
25
restrictions
in
the
manner
provided
in
this
chapter.
26
Sec.
3.
NEW
SECTION
.
564B.3
Procedure
to
revive
use
27
restrictions.
28
1.
The
proposal
to
revive
use
restrictions
may
contain
29
less
than
all
of
the
use
restrictions
which
have
become
30
unenforceable
by
operation
of
section
614.24,
but
shall
not
31
modify
any
use
restriction
sought
to
be
revived.
32
2.
The
proposal
to
revive
use
restrictions
in
a
declaration
33
under
the
terms
of
this
chapter
may
be
initiated
by
either
of
34
the
following:
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a.
The
executive
board.
1
b.
The
parcel
owners,
if
a
petition
is
signed
by
parcel
2
owners
who
own
at
least
ten
percent
of
the
parcels.
Such
3
petition
shall
include
the
language
of
the
use
restrictions
4
proposed
to
be
revived.
5
3.
If
a
proposal
is
initiated
under
subsection
2,
the
6
executive
board
shall
prepare
or
cause
to
be
prepared
the
7
complete
text
of
the
proposed
use
restrictions
to
be
submitted
8
to
the
affected
parcel
owners
for
approval.
9
4.
a.
The
executive
board
shall
present
or
cause
to
be
10
presented
to
all
of
the
affected
parcel
owners,
by
mail
or
hand
11
delivery,
all
of
the
following:
12
(1)
A
notice
containing
either
the
place,
date,
and
time
of
13
the
meeting
at
which
the
revival
of
the
use
restrictions
will
14
be
considered
and
voted
upon
or
instructions
for
an
action
by
15
written
ballot,
including
the
last
date
that
a
written
ballot
16
will
be
accepted.
17
(2)
A
copy
of
the
complete
text
of
the
use
restrictions
18
proposed
to
be
revived.
19
(3)
The
existing
declaration,
formation
document,
and
20
bylaws
of
the
homeowners’
association.
21
(4)
A
graphic
depiction
of
the
property
and
the
parcels
to
22
be
governed
by
the
revived
use
restrictions.
23
(5)
A
statement
that
the
use
restrictions
will
be
revived
24
if
parcel
owners
who
own
a
majority
of
the
affected
parcels
25
approve
revival.
26
b.
The
parcel
owners
entitled
to
receive
notice
and
the
27
materials
described
in
paragraph
“a”
are
the
owners
of
affected
28
parcels
as
of
the
close
of
business
on
the
business
day
29
preceding
the
day
on
which
notice
is
given.
30
5.
The
use
restrictions
contained
in
the
proposal
shall
be
31
revived
if
the
owners
of
a
majority
of
the
affected
parcels
32
approve
the
revived
use
restrictions
by
a
vote
at
a
meeting
of
33
the
affected
parcel
owners
conducted
in
the
manner
described
in
34
section
564B.4
or
in
an
action
by
written
ballot
as
described
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in
section
564B.5,
and
shall
be
effective
in
accordance
with
1
section
564B.7.
2
Sec.
4.
NEW
SECTION
.
564B.4
Meetings
to
revive
use
3
restrictions.
4
1.
A
vote
to
revive
use
restrictions
shall
not
be
held
5
unless
the
parcel
owners
described
in
section
564B.3,
6
subsection
4,
paragraph
“b”
,
received
the
notice
and
documents
7
specified
in
section
564B.3,
subsection
4,
not
less
than
8
fourteen
days
or
more
than
sixty
days
before
such
a
vote.
9
2.
A
quorum
shall
be
met
if
parcel
owners
who
own
a
majority
10
of
the
affected
parcels
are
present
at
the
meeting,
either
in
11
person
or
by
proxy.
12
3.
The
parcel
owners
entitled
to
vote
at
the
meeting
are
the
13
owners
of
affected
parcels
as
of
the
date
of
the
meeting.
14
4.
At
the
meeting,
there
shall
be
one
vote
per
parcel,
15
regardless
of
the
number
of
parcel
owners
who
own
such
parcel.
16
5.
a.
The
parcel
owners
have
the
right
to
vote
in
person
17
or
by
proxy.
18
b.
To
be
valid,
a
proxy
must
be
dated,
shall
state
the
date,
19
time,
and
place
of
the
meeting
for
which
the
proxy
was
given,
20
and
shall
be
signed
by
the
parcel
owner.
If
a
parcel
is
owned
21
by
more
than
one
person,
each
owner
of
the
parcel
shall
sign
22
the
proxy
for
such
proxy
to
be
valid.
23
c.
A
proxy
is
effective
only
for
the
specific
meeting
for
24
which
the
proxy
was
originally
given.
25
d.
A
proxy
is
revocable
at
any
time
at
the
discretion
of
a
26
parcel
owner
who
executed
the
proxy.
27
e.
If
the
proxy
form
expressly
so
provides,
any
proxy
holder
28
may
appoint,
in
writing,
a
substitute
to
act
in
the
proxy
29
holder’s
place.
30
Sec.
5.
NEW
SECTION
.
564B.5
Action
by
written
ballot.
31
1.
A
vote
to
revive
use
restrictions
may
be
taken
without
a
32
meeting
if
the
executive
board
delivers
a
written
ballot
with
33
the
notice
and
other
documents
required
to
be
delivered
under
34
section
564B.3,
subsection
4,
to
the
owners
of
every
affected
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parcel.
1
2.
A
written
ballot
shall
set
forth
the
use
restrictions
2
proposed
to
be
revived
and
provide
an
opportunity
to
vote
for
3
or
against
revival.
4
3.
One
written
ballot
shall
be
provided
for
each
parcel,
5
regardless
of
the
number
of
parcel
owners
who
own
such
parcel.
6
4.
The
deadline
for
the
written
ballot
to
be
received
to
7
be
counted
shall
be
at
least
fourteen
days,
but
not
more
than
8
sixty
days,
after
the
written
ballot
was
delivered.
9
5.
A
written
ballot
that
has
been
cast
shall
not
be
revoked.
10
Sec.
6.
NEW
SECTION
.
564B.6
Recording
and
notice
of
11
recording.
12
1.
No
later
than
thirty
days
after
the
parcel
owners
have
13
approved
the
revival
of
the
use
restrictions,
the
executive
14
board
shall
file
the
revived
use
restrictions
with
the
recorder
15
of
each
county
in
which
the
land
comprising
the
common
interest
16
community
is
located.
17
2.
Immediately
after
recording
the
revived
use
18
restrictions,
the
executive
board
shall
mail
or
deliver,
or
19
shall
cause
to
be
mailed
or
delivered,
a
complete
copy
of
the
20
revived
use
restrictions
to
each
parcel
owner.
21
Sec.
7.
NEW
SECTION
.
564B.7
Effect
of
revived
use
22
restrictions.
23
1.
The
revived
use
restrictions
shall
be
effective
upon
24
recordation
with
respect
to
each
affected
parcel,
regardless
25
of
whether
an
owner
of
an
affected
parcel
approved
the
revived
26
use
restrictions.
27
2.
The
revived
use
restrictions
shall
not
be
given
28
retroactive
effect
with
respect
to
any
affected
parcel.
29
3.
A
use
restriction
revived
under
this
chapter
shall
not
be
30
enforced
against
a
parcel
if
each
of
the
following
are
true:
31
a.
A
parcel
owner
made
a
good-faith
investment
that
would
be
32
impaired
by
such
enforcement.
33
b.
The
good-faith
investment
described
in
paragraph
“a”
was
34
made
after
the
use
restriction
was
unenforceable
under
section
35
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614.24
and
before
the
use
restriction
was
revived
pursuant
to
1
this
chapter.
2
Sec.
8.
Section
614.24,
Code
2016,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
4A.
If
use
restrictions
are
revived
5
pursuant
to
chapter
564B,
the
recording
date
for
purposes
of
6
the
twenty-one
year
limitation
in
subsection
1
shall
be
the
7
date
the
revived
use
restrictions
are
recorded
under
section
8
564B.6,
subsection
1.
9
Sec.
9.
APPLICABILITY.
This
Act
applies
to
common
interest
10
communities
created
prior
to,
and
still
in
existence
on,
July
11
1,
2016,
and
created
on
or
after
July
1,
2016.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
relates
to
the
ability
of
a
common
interest
16
community
to
revive
lapsed
use
restrictions.
17
The
bill
defines
“common
interest
community”
as
real
18
estate
described
in
a
declaration
with
respect
to
which
a
19
person,
by
virtue
of
the
person’s
ownership
of
a
parcel,
is
20
obligated
to
pay
for
a
share
of
real
estate
taxes,
insurance
21
premiums,
maintenance,
or
improvement
of,
or
services
or
other
22
expenses
related
to,
common
elements,
other
parcels,
or
other
23
real
estate
described
in
the
declaration.
“Common
interest
24
community”
includes
a
cooperative
under
Code
chapter
499A
and
a
25
horizontal
property
regime
under
Code
chapter
499B.
26
The
bill
references
the
definition
of
“use
restriction”
in
27
Code
section
614.24,
which
is
a
limitation
or
prohibition
on
28
the
rights
of
a
landowner
to
make
use
of
the
landowner’s
real
29
estate,
including
limitations
or
prohibitions
on
commercial
30
uses,
rental
use,
parking
and
storage
of
recreational
vehicles
31
and
their
attachments,
ownership
of
pets,
outdoor
domestic
32
uses,
construction
and
use
of
accessory
structures,
building
33
dimensions
and
colors,
building
construction
materials,
and
34
landscaping.
“Use
restriction”
does
not
include
an
easement
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granting
a
person
an
affirmative
right
to
use
land
in
the
1
possession
of
another
person,
including
but
not
limited
to
an
2
easement
for
pedestrian
or
vehicular
access,
reasonable
ingress
3
and
egress,
solar
access,
utilities,
supporting
utilities,
4
parking
areas,
bicycle
paths,
and
water
flow,
an
agreement
5
between
two
or
more
parcel
owners
providing
for
the
sharing
of
6
costs
and
other
obligations
for
real
estate
taxes,
insurance
7
premiums,
and
for
maintenance,
repair,
improvements,
services,
8
or
other
costs
related
to
two
or
more
parcels
of
real
estate
9
regardless
of
whether
the
parties
to
the
agreement
are
owners
10
of
individual
lots
or
incorporated
or
unincorporated
lots
11
or
have
ownership
interests
in
common
areas
in
a
horizontal
12
property
regime
or
residential
housing
development,
or
an
13
agreement
between
two
or
more
parcel
owners
for
the
joint
use
14
and
maintenance
of
driveways,
party
walls,
landscaping,
fences,
15
wells,
roads,
common
areas,
waterways,
or
bodies
of
water.
16
Under
Code
section
614.24,
an
action
arising
or
existing
17
by
reason
of
the
provisions
of
any
contract
providing
for
use
18
restrictions
in
and
to
real
estate
may
not
be
maintained
after
19
21
years
from
the
recording
of
the
contract
unless
a
claimant
20
has
filed
a
verified
claim
with
the
county
recorder
within
21
the
21-year
period.
Therefore,
if
a
homeowners’
association
22
or
other
claimant
does
not
file
a
verified
claim
regarding
a
23
common
interest
community’s
declaration
before
the
expiration
24
of
the
21-year
period,
the
use
restrictions
in
the
declaration
25
become
unenforceable.
26
The
bill
enacts
new
Code
chapter
564B
to
provide
a
mechanism
27
for
common
interest
communities
to
revive
use
restrictions
28
which
have
become
barred
by
operation
of
Code
section
614.24.
29
A
proposal
to
revive
use
restrictions
may
be
brought
by
the
30
executive
board
of
the
homeowners’
association
or
by
petition
31
of
parcel
owners
who
own
at
least
10
percent
of
the
affected
32
parcels.
33
The
bill
specifies
the
form
of
the
notice
the
executive
board
34
shall
provide
to
parcel
owners
regarding
a
proposal
for
the
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2012
revival
of
use
restrictions.
The
proposal
may
be
voted
upon
at
1
a
meeting
which
shall
be
held
no
less
than
14
days
and
no
more
2
than
60
days
after
notice
was
provided
to
the
parcel
owners.
3
The
proposal
may
also
be
voted
on
by
written
ballot.
If
the
4
vote
is
by
written
ballot,
the
notice
must
specify
when
ballots
5
are
due,
which
must
be
no
earlier
than
14
days
and
no
later
than
6
60
days
after
the
written
ballots
were
delivered.
7
Upon
proper
notice,
if
the
owners
of
a
majority
of
the
8
affected
parcels
in
the
common
interest
community
approve
the
9
revival
of
lapsed
use
restrictions,
the
lapsed
use
restrictions
10
are
revived
as
to
all
parcels
in
the
common
interest
community.
11
The
revived
use
restrictions
become
effective
upon
12
recordation.
The
revived
use
restrictions
are
not
given
13
retroactive
applicability.
Revived
use
restrictions
may
not
be
14
enforced
against
a
parcel
if
a
parcel
owner
made
a
good-faith
15
investment
that
would
be
impaired
by
such
enforcement
and
such
16
investment
was
made
while
the
use
restriction
was
unenforceable
17
under
Code
section
614.24
and
before
the
use
restriction
was
18
revived
under
new
Code
chapter
564B.
19
The
bill
provides
that
if
use
restrictions
are
revived
under
20
new
Code
chapter
564B,
the
21-year
limitation
period
under
Code
21
chapter
614.24
begins
as
of
the
recordation
date
of
the
revived
22
use
restrictions.
23
The
bill
applies
to
common
interest
communities
created
24
prior
to,
and
still
in
existence
on,
July
1,
2016,
and
created
25
on
or
after
July
1,
2016.
26
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