Senate
File
201
-
Introduced
SENATE
FILE
201
BY
HART
A
BILL
FOR
An
Act
relating
to
reinstatement
of
lapsed
use
restrictions
1
within
a
common
interest
community.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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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.
“Common
interest
community”
means
real
estate
described
4
in
a
declaration
with
respect
to
which
a
person,
by
virtue
of
5
the
person’s
ownership
of
a
parcel,
is
obligated
to
pay
for
a
6
share
of
real
estate
taxes,
insurance
premiums,
maintenance,
7
improvements,
services,
or
other
expenses
related
to
common
8
elements
or
other
real
estate
described
in
the
declaration.
9
2.
“Declaration”
means
a
duly
recorded
instrument
and
any
10
amendments
thereto,
however
denominated,
that
establish
the
11
common
interest
community
and
use
restrictions
for
the
common
12
interest
community,
and
that
subject
the
common
interest
13
community
to
administration
by
an
owners’
association
in
which
14
the
parcel
owners
are
required
to
be
members.
15
3.
“Executive
board”
means
the
body,
however
denominated,
16
designated
to
act
on
behalf
of
the
owners’
association.
17
4.
“Owners’
association”
means
an
entity
responsible
for
18
administration
of
a
common
interest
community
in
which
the
19
voting
membership
is
made
up
of
parcel
owners
and
in
which
20
membership
is
a
mandatory
condition
of
parcel
ownership.
21
5.
“Parcel”
means
a
physical
portion
of
the
common
interest
22
community
designated
for
separate
ownership.
23
6.
“Parcel
owner”
means
the
record
owner
of
legal
title
to
24
a
parcel
or,
if
the
parcel
is
subject
to
a
contract
for
deed,
25
the
vendee
of
the
real
estate
contract.
“Parcel
owner”
does
26
not
include
a
person
having
an
interest
in
a
parcel
solely
as
27
security
for
an
obligation.
28
7.
“Use
restrictions”
means
the
same
as
defined
in
section
29
614.24,
subsection
5.
30
Sec.
2.
NEW
SECTION
.
564B.2
Reinstatement
of
use
31
restrictions.
32
1.
Parcel
owners
in
a
common
interest
community
may
33
reinstate
use
restrictions
in
a
declaration
that
have
become
34
unenforceable
by
operation
of
section
614.24
in
the
manner
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provided
in
this
chapter.
1
2.
The
proposal
to
reinstate
use
restrictions
may
contain
2
fewer
than
all
of
the
use
restrictions
that
have
become
3
unenforceable.
The
proposal
must
not
amend
or
modify
any
use
4
restriction
sought
to
be
reinstated.
5
3.
Use
restrictions
reinstated
pursuant
to
this
chapter
6
shall
affect
the
same
parcels
as
were
affected
at
the
time
the
7
use
restrictions
became
unenforceable.
8
Sec.
3.
NEW
SECTION
.
564B.3
Procedure
to
reinstate
use
9
restrictions
by
recorded
agreement.
10
1.
Use
restrictions
may
be
reinstated
upon
the
filing
11
with
the
recorder
of
each
county
in
which
the
common
interest
12
community
is
located
a
reinstatement
agreement
that
contains
13
the
complete
text
of
the
use
restrictions
being
reinstated
14
and
is
executed
by
the
owners
of
a
majority
of
the
affected
15
parcels.
The
executive
board
shall
file
the
reinstatement
16
agreement
within
thirty
days
after
a
majority
of
the
owners
of
17
the
affected
parcels
have
executed
the
reinstatement
agreement.
18
2.
The
reinstated
use
restrictions
filed
by
the
executive
19
board
shall
have
annexed
a
certification
by
the
executive
board
20
that
the
reinstatement
agreement
was
executed
by
the
owners
of
21
a
majority
of
the
affected
parcels.
22
3.
Immediately
after
recording
the
reinstatement
agreement,
23
the
executive
board
shall
mail
or
hand
deliver
to
each
parcel
24
owner
a
complete
copy
of
the
recorded
agreement.
25
Sec.
4.
NEW
SECTION
.
564B.4
Procedure
to
reinstate
use
26
restrictions
by
vote
of
parcel
owners.
27
1.
Use
restrictions
may
be
reinstated
by
vote
of
the
parcel
28
owners
in
the
manner
provided
in
this
section.
29
2.
A
proposal
to
reinstate
use
restrictions
may
be
initiated
30
by
either
of
the
following:
31
a.
The
executive
board.
32
b.
A
petition
signed
by
owners
of
at
least
ten
percent
of
33
the
affected
parcels.
Such
petition
shall
include
the
text
of
34
the
use
restrictions
proposed
to
be
reinstated.
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3.
If
a
proposal
is
initiated
under
subsection
2,
the
1
executive
board
shall
give
notice,
by
mail
or
hand
delivery,
2
to
the
persons
who
own
the
affected
parcels
as
of
the
close
of
3
business
on
the
business
day
preceding
the
day
on
which
notice
4
is
given.
If
notice
is
given
by
mail,
the
notice
is
deemed
5
given
on
the
date
of
mailing.
The
notice
shall
contain
the
6
following
information:
7
a.
The
complete
text
of
the
proposed
use
restrictions
to
be
8
submitted
to
the
affected
parcel
owners
for
approval.
9
b.
A
graphic
depiction
of
the
property
and
parcels
affected
10
by
the
reinstated
use
restrictions.
11
c.
The
place,
date,
and
time
of
the
meeting
at
which
the
12
reinstatement
of
the
use
restrictions
will
be
considered
and
13
voted
upon,
or
instructions
for
an
action
by
written
ballot,
14
including
the
last
date
that
a
written
ballot
will
be
accepted.
15
d.
A
statement
that
the
use
restrictions
will
be
reinstated
16
if
parcel
owners
who
own
a
majority
of
the
affected
parcels
17
vote
to
approve
reinstatement.
18
4.
The
use
restrictions
contained
in
the
proposal
shall
be
19
reinstated
upon
approval
by
the
owners
of
a
majority
of
the
20
affected
parcels
by
a
vote
at
a
meeting
conducted
in
the
manner
21
described
in
section
564B.5,
or
by
written
ballot
as
described
22
in
section
564B.6,
and
shall
be
effective
in
accordance
with
23
section
564B.7.
24
5.
There
shall
be
one
vote
per
parcel,
regardless
of
the
25
number
of
parcel
owners
who
own
such
parcel.
If
a
parcel
is
26
owned
by
more
than
one
person,
all
owners
must
vote
to
approve
27
or
the
vote
shall
not
be
counted
as
a
vote
for
approval.
28
Sec.
5.
NEW
SECTION
.
564B.5
Meetings
to
reinstate
use
29
restrictions.
30
1.
A
meeting
on
the
matter
of
voting
to
reinstate
use
31
restrictions
shall
not
be
held
less
than
fourteen
days
or
more
32
than
sixty
days
after
the
last
notice
is
given
under
section
33
564B.4,
subsection
3.
34
2.
The
parcel
owners
entitled
to
vote
at
the
meeting
are
the
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owners
of
affected
parcels
as
of
the
date
of
the
meeting.
1
3.
a.
The
parcel
owners
have
the
right
to
vote
in
person
2
or
by
proxy.
3
b.
To
be
valid,
a
proxy
must
be
dated,
must
state
the
place,
4
date,
and
time
of
the
meeting
for
which
the
proxy
was
given,
5
and
must
be
signed
by
the
parcel
owner.
If
a
parcel
is
owned
by
6
more
than
one
person,
each
parcel
owner
must
sign
the
proxy
for
7
such
proxy
to
be
valid.
8
c.
A
proxy
is
effective
only
for
the
specific
meeting
for
9
which
the
proxy
was
originally
given.
10
d.
A
proxy
is
revocable
at
any
time
at
the
discretion
of
any
11
parcel
owner
who
executed
the
proxy.
12
e.
If
the
proxy
form
expressly
so
provides,
any
proxy
holder
13
may
appoint,
in
writing,
a
substitute
to
act
in
the
proxy
14
holder’s
place.
15
4.
A
quorum
shall
be
met
if
parcel
owners
who
own
a
majority
16
of
the
affected
parcels
are
present
at
the
meeting,
either
in
17
person
or
by
proxy.
18
Sec.
6.
NEW
SECTION
.
564B.6
Action
by
written
ballot.
19
1.
A
vote
to
reinstate
use
restrictions
may
be
taken
without
20
a
meeting
if
the
executive
board
includes
a
written
ballot
21
with
the
notice
and
other
documents
required
to
be
given
under
22
section
564B.4,
subsection
3.
23
2.
A
written
ballot
must
set
forth
the
use
restrictions
24
proposed
to
be
reinstated
and
provide
an
opportunity
to
vote
25
for
or
against
reinstatement.
26
3.
One
written
ballot
shall
be
provided
for
each
parcel,
27
regardless
of
the
number
of
parcel
owners
who
own
such
parcel.
28
4.
The
deadline
for
the
written
ballot
to
be
received
in
29
order
to
be
counted
shall
be
at
least
fourteen
days,
but
not
30
more
than
sixty
days,
after
the
notice
containing
the
written
31
ballot
is
given.
32
5.
A
written
ballot
that
has
been
cast
shall
not
be
revoked
33
by
any
person.
34
Sec.
7.
NEW
SECTION
.
564B.7
Recording
and
notice
of
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recording.
1
1.
Within
thirty
days
after
a
majority
of
the
parcel
2
owners
have
voted
to
approve
the
reinstatement
of
the
use
3
restrictions,
the
executive
board
shall
file
the
reinstated
4
use
restrictions
with
the
recorder
of
each
county
in
which
the
5
common
interest
community
is
located.
6
2.
The
reinstated
use
restrictions
filed
by
the
executive
7
board
shall
have
annexed
a
certification
by
the
executive
board
8
that
the
reinstated
use
restrictions
were
approved
by
a
vote
of
9
the
owners
of
a
majority
of
the
affected
parcels.
10
3.
Immediately
after
recording
the
reinstated
use
11
restrictions,
the
executive
board
shall
mail
or
hand
deliver
to
12
each
parcel
owner
a
complete
copy
of
the
recorded
reinstated
13
use
restrictions.
14
Sec.
8.
NEW
SECTION
.
564B.8
Effect
of
reinstated
use
15
restrictions.
16
1.
The
reinstated
use
restrictions
shall
be
effective
upon
17
recordation
with
respect
to
each
affected
parcel,
regardless
of
18
whether
an
owner
of
an
affected
parcel
approved
the
reinstated
19
use
restrictions.
20
2.
The
reinstated
use
restrictions
shall
not
be
given
21
retroactive
effect
with
respect
to
any
affected
parcel.
22
3.
A
reinstated
use
restriction
shall
not
be
enforced
23
against
a
parcel
if
each
of
the
following
are
true:
24
a.
A
parcel
owner
made
a
good-faith
investment
that
would
be
25
impaired
by
such
enforcement.
26
b.
The
good-faith
investment
described
in
paragraph
“a”
27
was
made
after
the
use
restriction
became
unenforceable
by
28
operation
of
section
614.24
and
before
reinstatement
under
this
29
chapter.
30
Sec.
9.
Section
614.24,
Code
2017,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
4A.
If
use
restrictions
are
reinstated
33
pursuant
to
chapter
564B,
the
recording
date
for
purposes
of
34
the
twenty-one-year
limitation
in
subsection
1
shall
be
the
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date
the
reinstated
use
restrictions
are
recorded
under
section
1
564B.3
or
564B.7.
2
Sec.
10.
APPLICABILITY.
This
Act
applies
to
common
interest
3
communities
created
prior
to,
and
still
in
existence
on,
July
4
1,
2017,
and
created
on
or
after
July
1,
2017.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
relates
to
the
ability
of
a
common
interest
9
community
to
reinstate
lapsed
use
restrictions.
10
The
bill
defines
“common
interest
community”
as
real
estate
11
described
in
a
declaration
with
respect
to
which
a
person,
by
12
virtue
of
the
person’s
ownership
of
a
parcel,
is
obligated
13
to
pay
for
a
share
of
real
estate
taxes,
insurance
premiums,
14
maintenance,
improvements,
services,
or
other
expenses
related
15
to
common
elements
or
other
real
estate
described
in
the
16
declaration.
17
The
bill
references
the
definition
of
“use
restriction”
in
18
Code
section
614.24,
which
is
a
limitation
or
prohibition
on
19
the
rights
of
a
landowner
to
make
use
of
the
landowner’s
real
20
estate,
including
limitations
or
prohibitions
on
commercial
21
uses,
rental
use,
parking
and
storage
of
recreational
vehicles
22
and
their
attachments,
ownership
of
pets,
outdoor
domestic
23
uses,
construction
and
use
of
accessory
structures,
building
24
dimensions
and
colors,
building
construction
materials,
and
25
landscaping.
“Use
restriction”
does
not
include
an
easement
26
granting
a
person
an
affirmative
right
to
use
land
in
the
27
possession
of
another
person,
including
but
not
limited
to
an
28
easement
for
pedestrian
or
vehicular
access,
reasonable
ingress
29
and
egress,
solar
access,
utilities,
supporting
utilities,
30
parking
areas,
bicycle
paths,
and
water
flow,
an
agreement
31
between
two
or
more
parcel
owners
providing
for
the
sharing
of
32
costs
and
other
obligations
for
real
estate
taxes,
insurance
33
premiums,
and
for
maintenance,
repair,
improvements,
services,
34
or
other
costs
related
to
two
or
more
parcels
of
real
estate
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regardless
of
whether
the
parties
to
the
agreement
are
owners
1
of
individual
lots
or
incorporated
or
unincorporated
lots
2
or
have
ownership
interests
in
common
areas
in
a
horizontal
3
property
regime
or
residential
housing
development,
or
an
4
agreement
between
two
or
more
parcel
owners
for
the
joint
use
5
and
maintenance
of
driveways,
party
walls,
landscaping,
fences,
6
wells,
roads,
common
areas,
waterways,
or
bodies
of
water.
7
Under
Code
section
614.24,
an
action
arising
or
existing
8
by
reason
of
the
provisions
of
any
contract
providing
for
use
9
restrictions
in
and
to
real
estate
may
not
be
maintained
after
10
21
years
from
the
recording
of
the
contract
unless
a
claimant
11
has
filed
a
verified
claim
with
the
county
recorder
within
the
12
21-year
period.
Therefore,
if
an
owners’
association
or
other
13
claimant
does
not
file
a
verified
claim
regarding
a
common
14
interest
community’s
declaration
before
the
expiration
of
the
15
21-year
period,
the
use
restrictions
in
the
declaration
become
16
unenforceable.
17
The
bill
enacts
new
Code
chapter
564B
to
provide
a
mechanism
18
for
common
interest
communities
to
reinstate
use
restrictions
19
which
have
become
barred
by
operation
of
Code
section
614.24.
20
Use
restrictions
may
be
reinstated
upon
the
filing
with
the
21
county
recorder
of
a
reinstatement
agreement
that
contains
the
22
complete
text
of
the
use
restrictions
being
reinstated
and
23
is
executed
by
owners
of
a
majority
of
the
affected
parcels.
24
Use
restrictions
may
also
be
reinstated
after
an
affirmative
25
vote
by
a
majority
of
the
affected
parcel
owners,
either
at
26
a
meeting
or
by
written
ballot.
A
proposal
for
a
vote
to
27
reinstate
use
restrictions
may
be
brought
by
the
executive
28
board
of
the
owners’
association
or
by
petition
of
parcel
29
owners
who
own
at
least
10
percent
of
the
affected
parcels.
30
The
bill
specifies
the
form
of
the
notice
the
executive
31
board
shall
provide
to
parcel
owners
regarding
a
proposal
for
a
32
vote
to
reinstate
use
restrictions.
The
proposal
may
be
voted
33
upon
at
a
meeting
which
shall
be
held
no
less
than
14
days
and
34
no
more
than
60
days
after
notice
is
provided
to
the
parcel
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201
owners.
The
proposal
may
also
be
voted
on
by
written
ballot.
1
If
the
vote
is
by
written
ballot,
the
notice
must
specify
when
2
ballots
are
due,
which
must
be
no
earlier
than
14
days
and
no
3
later
than
60
days
after
the
written
ballots
are
delivered.
4
Upon
proper
notice,
if
the
owners
of
a
majority
of
the
5
affected
parcels
in
the
common
interest
community
approve
6
the
reinstatement
of
lapsed
use
restrictions,
the
lapsed
use
7
restrictions
are
reinstated
as
to
all
parcels
in
the
common
8
interest
community.
9
The
reinstated
use
restrictions
become
effective
upon
10
recordation.
The
reinstated
use
restrictions
are
not
given
11
retroactive
applicability.
Reinstated
use
restrictions
12
cannot
be
enforced
against
a
parcel
if
a
parcel
owner
made
13
a
good-faith
investment
that
would
be
impaired
by
such
14
enforcement
and
such
investment
was
made
while
the
use
15
restriction
was
unenforceable
under
Code
section
614.24
and
16
before
the
use
restriction
was
reinstated
under
new
Code
17
chapter
564B.
18
The
bill
provides
that
if
use
restrictions
are
reinstated
19
under
new
Code
chapter
564B,
the
21-year
limitation
period
20
under
Code
section
614.24
begins
as
of
the
recordation
date
of
21
the
reinstated
use
restrictions.
22
The
bill
applies
to
common
interest
communities
created
23
prior
to,
and
still
in
existence
on,
July
1,
2017,
and
created
24
on
or
after
July
1,
2017.
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