House File 2351 - Introduced HOUSE FILE 2351 BY LOHSE , KAUFMANN , MITCHELL , BOSSMAN , HOLT , LUNDGREN , LANDON , GERHOLD , JUDGE , MATSON , JAMES , BRECKENRIDGE , HALL , FORBES , NIELSEN , and R. SMITH A BILL FOR An Act relating to property law by modifying provisions 1 relating to rental properties, manufactured home 2 communities, mobile home parks, and manufactured mobile 3 home communities, modifying provisions governing actions 4 relating to such properties, making penalties applicable, 5 and including effective date and applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 6108YH (2) 88 md/jh

H.F. 2351 DIVISION I 1 GROUNDS FOR TERMINATION OF TENANCY 2 Section 1. Section 562B.10, Code 2020, is amended by adding 3 the following new subsection: 4 NEW SUBSECTION . 4A. A landlord may only terminate a tenancy 5 if the tenant engages in any of the following or for any of the 6 following reasons: 7 a. A material noncompliance with the rental agreement. 8 b. A material violation of the manufactured home community 9 or mobile home park rules or regulations. 10 c. Any other violation of this chapter for which termination 11 is a remedy. 12 d. A legitimate and material business reason the impact of 13 which is not specific to one tenant. 14 e. A change in the use of the land if change in the use of 15 the land is included in the rental agreement as grounds for 16 termination or nonrenewal. 17 Sec. 2. EFFECTIVE DATE. This division of this Act, being 18 deemed of immediate importance, takes effect upon enactment. 19 Sec. 3. APPLICABILITY. This division of this Act applies 20 to terminations of tenancies on or after the effective date of 21 this division of this Act. 22 DIVISION II 23 RETALIATION 24 Sec. 4. Section 562B.32, subsection 1, paragraph d, Code 25 2020, is amended to read as follows: 26 d. For exercising any of the rights and remedies pursuant 27 to this chapter or chapter 216 . 28 Sec. 5. Section 562B.32, subsection 2, Code 2020, is amended 29 to read as follows: 30 2. If the landlord acts in violation of subsection 1 31 of this section , the tenant is entitled to the remedies 32 provided in section 562B.24 and has a defense in an action for 33 possession. In an action by or against the tenant, evidence 34 of a complaint within six months one year prior to the alleged 35 -1- LSB 6108YH (2) 88 md/jh 1/ 26

H.F. 2351 act of retaliation creates a presumption that the landlord’s 1 conduct was in retaliation. The presumption does not arise 2 if the tenant made the complaint after notice of termination 3 of the rental agreement. For the purpose of this subsection , 4 “presumption” means that the trier of fact must find the 5 existence of the fact presumed unless and until evidence is 6 introduced which would support a finding of its nonexistence. 7 Sec. 6. EFFECTIVE DATE. This division of this Act, being 8 deemed of immediate importance, takes effect upon enactment. 9 DIVISION III 10 CONSUMER FRAUD 11 Sec. 7. Section 562B.4, Code 2020, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3. A violation of this chapter by a 14 landlord, or an agent of the landlord, is an unlawful practice 15 under section 714.16. 16 Sec. 8. Section 714.16, subsection 2, Code 2020, is amended 17 by adding the following new paragraph: 18 NEW PARAGRAPH . q. It is an unlawful practice for a landlord 19 or the landlord’s agent to violate any of the provisions of 20 chapter 562B. 21 Sec. 9. EFFECTIVE DATE. This division of this Act, being 22 deemed of immediate importance, takes effect upon enactment. 23 Sec. 10. APPLICABILITY. This division of this Act applies 24 to violations of chapter 562B occurring on or after the 25 effective date of this division of this Act. 26 DIVISION IV 27 RENT INCREASES 28 Sec. 11. Section 562B.14, subsection 7, Code 2020, is 29 amended by striking the subsection and inserting in lieu 30 thereof the following: 31 7. a. A landlord shall not increase the amount of rent due 32 by any tenant in a manufactured home community or mobile home 33 park unless the tenant is notified, in writing, of the rent 34 increase at least one hundred eighty days before the effective 35 -2- LSB 6108YH (2) 88 md/jh 2/ 26

H.F. 2351 date of the rent increase. The effective date of any increase 1 in the amount of rent shall not be less than one year after 2 either the effective date of the most recent rent increase or 3 the beginning of the tenancy, whichever is later. 4 b. (1) Subject to paragraph “a” , a landlord may increase 5 the amount of rent due by any tenant in an amount greater than 6 the average annual increase of the consumer price index for all 7 urban consumers in the midwest region for the most recently 8 available preceding thirty-six-month period, if the landlord 9 demonstrates the increase is justified for all of the following 10 conditions: 11 (a) The landlord, during the preceding twelve-month period, 12 has not been found in violation of any provision of this 13 chapter that threatens the health or safety of the tenants of 14 or visitors to the manufactured home community or mobile home 15 park that persists for more than fifteen days, beginning on the 16 day the landlord received notice of such violation. 17 (b) The proposed rent increase is directly related to 18 operating, maintaining, or improving the manufactured home 19 community or mobile home park, and is justified by one or more 20 of the following factors: 21 (i) The completion and cost of any capital improvements or 22 repair work in the manufactured home community or mobile home 23 park, as distinguished from ordinary repair, replacement, and 24 maintenance. 25 (ii) An increase in property taxes due on the manufactured 26 home community or mobile home park. 27 (iii) If the landlord is responsible for payment of one 28 or more utilities, an increase in utility expenses within the 29 manufactured home community or mobile home park. 30 (iv) An increase in insurance costs and financing 31 associated with the manufactured home community or mobile home 32 park. 33 (v) An increase in reasonable operating and maintenance 34 expenses relating to the manufactured home community or mobile 35 -3- LSB 6108YH (2) 88 md/jh 3/ 26

H.F. 2351 home park. 1 (vi) An increase in market rent. For purposes of this 2 section, “market rent” means that rent which would result from 3 market forces absent an unequal bargaining position between the 4 landlord and tenants. In determining market rent, relevant 5 considerations include rents charged to recent new tenants of 6 the manufactured home community or mobile home park or rents 7 charged by comparable manufactured home communities or mobile 8 home parks. To be comparable, a manufactured home community or 9 mobile home park must be within the competitive area and must 10 offer similar facilities, services, amenities, and management. 11 (c) The department of revenue shall monitor the consumer 12 price index for all urban consumers in the midwest region and 13 report the relevant data to the consumer protection division of 14 the office of the attorney general for periodic publication. 15 c. The written notice of a rent increase provided to the 16 tenant shall include the specific reasons for the increase 17 including the justification under paragraph “b” , if applicable. 18 d. A decrease in the number or quality of amenities, 19 services, or utilities provided under the rental agreement 20 without a corresponding and proportionate reduction in rent 21 shall be considered a rent increase for the purposes of this 22 chapter. 23 Sec. 12. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 Sec. 13. APPLICABILITY. The following applies to rent 26 increases under chapter 562B occurring on or after the 27 effective date of this division of this Act: 28 Section 562B.14, subsection 7, paragraphs “a” and “d”, as 29 enacted in this division of this Act. 30 Sec. 14. APPLICABILITY. The following applies to rent 31 increases under chapter 562B occurring on or after July 1, 32 2020: 33 Section 562B.14, subsection 7, paragraphs “b” and “c”, as 34 enacted in this division of this Act. 35 -4- LSB 6108YH (2) 88 md/jh 4/ 26

H.F. 2351 DIVISION V 1 LANDLORD REMEDIES AND PROCEDURES 2 Sec. 15. Section 555B.3, Code 2020, is amended to read as 3 follows: 4 555B.3 Action for abandonment —— jurisdiction. 5 A real property owner not requesting notification by the 6 sheriff as provided in section 555B.2 may bring an action 7 alleging abandonment in the court within the county where the 8 real property is located provided that there is no lien on 9 the mobile home or personal property other than a tax lien 10 pursuant to chapter 435 . The action shall be tried as an 11 equitable action. Unless commenced as a small claim, the 12 petition shall be presented to a district judge. Upon receipt 13 of the petition, either the court or the clerk of the district 14 court shall set a date for a hearing not later than fourteen 15 days from the date of the receipt of the petition , except when 16 there is a lien on the mobile home or personal property, other 17 than a tax lien, the court or the clerk of the district court 18 shall set a date for a hearing no sooner than twenty-five days 19 from the date of the receipt of the petition so as to allow for 20 service on the lienholder . 21 Sec. 16. Section 555B.4, Code 2020, is amended by adding the 22 following new subsection: 23 NEW SUBSECTION . 4. If a lien, other than a tax lien, exists 24 on the mobile home or personal property at the time an action 25 for abandonment is initiated, personal service pursuant to rule 26 of civil procedure 1.305 shall be made upon the lienholder 27 no less than twenty days before the hearing. The notice to 28 the lienholder shall describe the mobile home and shall state 29 the docket, case number, date, time at which the hearing is 30 scheduled, and the lienholder’s right to assert a claim to 31 the mobile home at the hearing. The notice shall also state 32 that failure to assert a claim to the mobile home within the 33 judicial proceedings is deemed a waiver of all right, title, 34 claim, and interest in the mobile home and is deemed consent to 35 -5- LSB 6108YH (2) 88 md/jh 5/ 26

H.F. 2351 the sale or disposal of the mobile home. If personal service 1 upon the lienholder cannot be completed in time to give the 2 lienholder the minimum notice required by this section, the 3 court may set a new hearing date. 4 Sec. 17. Section 555B.8, subsections 2 and 3, Code 2020, are 5 amended to read as follows: 6 2. If Except as otherwise ordered by the court, if the 7 mobile home owner or other claimant asserts a claim to the 8 property, the judgment shall be satisfied before the mobile 9 home owner or other claimant may take possession of the mobile 10 home or personal property. 11 3. If no claim is asserted to the mobile home or personal 12 property or if the judgment is not satisfied at the time of 13 entry, an order shall be entered allowing the real property 14 owner to sell or otherwise dispose of the mobile home and 15 personal property pursuant to section 555B.9 . If Except as 16 otherwise ordered by the court, if a claimant satisfies the 17 judgment at the time of entry, the court shall enter an order 18 permitting and directing the claimant to remove the mobile home 19 or personal property from its location within a reasonable time 20 to be fixed by the court. The court shall also determine the 21 amount of further rent or storage charges to be paid by the 22 claimant to the real property owner at the time of removal. 23 Sec. 18. Section 555B.9, subsections 1, 2, 3, and 4, Code 24 2020, are amended to read as follows: 25 1. Pursuant to an order for disposal under section 555B.8, 26 subsection 3 , the real property owner shall dispose of the 27 mobile home and personal property by public or private sale in 28 a commercially reasonable manner. If the personal property , 29 lienholder, owner , or other claimant has asserted a claim 30 to the mobile home or personal property within the judicial 31 proceedings , that person shall be notified of the sale by 32 restricted certified mail not less than five days before the 33 sale. The notice is deemed given upon the mailing. The real 34 property owner may buy at any public sale, and if the mobile 35 -6- LSB 6108YH (2) 88 md/jh 6/ 26

H.F. 2351 home or personal property is of a type customarily sold in 1 a recognized market or is the subject of widely distributed 2 standard price quotations, the real property owner may buy at a 3 private sale. 4 2. A sale pursuant to subsection 1 transfers to the 5 purchaser for value, all of the mobile home owner’s rights 6 in the mobile home and personal property, and discharges the 7 real property owner’s interest in the mobile home and personal 8 property , and any tax lien , and any other lien . The purchaser 9 takes free of all rights and interests even though the real 10 property owner fails to comply with the requirements of this 11 chapter or of any judicial proceedings, if the purchaser acts 12 in good faith. 13 3. The proceeds of the sale of mobile home and personal 14 property shall be distributed as follows: 15 a. First, to satisfy the real property owner’s judgment 16 obtained under section 555B.8 . 17 b. Second, to satisfy any tax lien for which a claim was 18 asserted pursuant to section 555B.4, subsection 3 . 19 0c. Third, to satisfy any other lien for which a claim was 20 asserted pursuant to section 555B.4, subsection 4. 21 c. Any surplus remaining after the proceeds are distributed 22 shall be held by the real property owner for six months. If 23 the mobile home owner fails to claim the surplus in that time, 24 the surplus may be retained by the real property owner. If 25 a deficiency remains after distribution of the proceeds, the 26 mobile home owner is liable for the amount of the deficiency. 27 4. Notwithstanding subsections 1 through 3 , the real 28 property owner may propose to retain the mobile home and 29 personal property in satisfaction of the judgment obtained 30 pursuant to section 555B.8 . Written notice of the proposal 31 shall be sent to the mobile home owner , lienholder, or other 32 claimant, if that person has asserted a claim to the mobile 33 home or personal property in the judicial proceedings. If 34 the real property owner receives objection in writing from 35 -7- LSB 6108YH (2) 88 md/jh 7/ 26

H.F. 2351 the mobile home owner , lienholder, or other claimant within 1 twenty-one days after the notice was sent, the real property 2 owner shall dispose of the mobile home and personal property 3 pursuant to subsection 1 . If no written objection is received 4 by the real property owner within twenty-one days after the 5 notice was sent, the mobile home and personal property may be 6 retained. Retention of the mobile home and personal property 7 discharges the judgment of the real property owner , and any tax 8 lien , and any other lien . 9 Sec. 19. Section 562A.9, subsection 4, Code 2020, is amended 10 to read as follows: 11 4. For rental agreements in which the rent does not exceed 12 seven hundred dollars per month, a rental agreement shall not 13 provide for a late fee that exceeds twelve dollars per day or a 14 total amount of sixty dollars per month. For rental agreements 15 in which the rent is greater than seven hundred dollars per 16 month but less than one thousand four hundred dollars per 17 month , a rental agreement shall not provide for a late fee that 18 exceeds twenty dollars per day or a total amount of one hundred 19 dollars per month. For rental agreements in which the rent is 20 at least one thousand four hundred dollars per month, a rental 21 agreement shall not provide for a late fee that exceeds two 22 percent of the rent per day or a total amount of ten percent of 23 the rent per month. 24 Sec. 20. Section 562B.10, subsections 4 and 7, Code 2020, 25 are amended to read as follows: 26 4. For rental agreements in which the rent does not exceed 27 seven hundred dollars per month, a rental agreement shall not 28 provide for a late fee that exceeds twelve dollars per day or a 29 total amount of sixty dollars per month. For rental agreements 30 in which the rent is greater than seven hundred dollars per 31 month but less than one thousand four hundred dollars per 32 month , a rental agreement shall not provide for a late fee that 33 exceeds twenty dollars per day or a total amount of one hundred 34 dollars per month. For rental agreements in which the rent is 35 -8- LSB 6108YH (2) 88 md/jh 8/ 26

H.F. 2351 at least one thousand four hundred dollars per month, a rental 1 agreement shall not provide for a late fee that exceeds two 2 percent of the rent per day or a total amount of ten percent of 3 the rent per month. 4 7. a. If a tenant who was sole owner of a mobile home dies 5 during the term of a rental agreement then that person’s heirs 6 or legal representative or the landlord shall have the right 7 to cancel the tenant’s lease by giving sixty days’ written 8 notice to the person’s heirs or legal representative or to 9 the landlord, whichever is appropriate, and the heirs or the 10 legal representative shall have the same rights, privileges and 11 liabilities of the original tenant. 12 b. (1) If a tenant who was sole owner of a mobile home dies 13 during the term of a rental agreement resulting in the mobile 14 home being abandoned as provided in section 562B.27, subsection 15 1, and the landlord cannot, despite due diligence, locate such 16 tenant’s heirs or legal representatives, then the landlord may 17 bring an action for abandonment as provided in section 555B.3, 18 naming as defendants the estate of the tenant and any and all 19 unknown heirs of the tenant and, upon the landlord’s filing 20 of an affidavit that personal service cannot be had on any 21 heir, legal representative, or estate of the tenant, the court 22 shall permit original notice of such action to be served by 23 publication pursuant to subparagraph (2) of this paragraph. 24 (2) Publication of the original notice shall be made 25 once each week for three consecutive weeks in a newspaper of 26 general circulation published in the county where the petition 27 is filed, as provided in rules of civil procedure 1.313 and 28 1.314. Service is complete after the third consecutive weekly 29 publication. 30 (3) In the event any tax lien or other lien exists on 31 the mobile home, the landlord may proceed with an action for 32 abandonment as provided in section 555B.3, except that: 33 (a) Notice shall be provided to the county treasurer as 34 provided in section 555B.4, subsection 3, if a tax lien exists. 35 -9- LSB 6108YH (2) 88 md/jh 9/ 26

H.F. 2351 (b) Personal service pursuant to rule of civil procedure 1 1.305 shall be made upon any lienholder no less than twenty 2 days before the hearing. 3 (4) Any notice to a lienholder shall state that failure 4 to assert a claim to the mobile home is deemed a waiver of 5 all right, title, claim, and interest in the mobile home and 6 is deemed consent to the sale or disposal of the mobile home. 7 If personal service upon the lienholder cannot be completed 8 in time to give the lienholder the minimum notice required by 9 subparagraph (3), the court may set a new hearing date. 10 Sec. 21. Section 648.5, subsection 1, Code 2020, is amended 11 to read as follows: 12 1. An action for forcible entry and detainer shall be 13 brought in a county where all or part of the premises is 14 located. Such an action shall be tried as an equitable action. 15 Upon receipt of the petition, the court shall set a date, 16 time, and place for hearing. The court shall set the date 17 of hearing no later than eight days from the filing date, 18 except that the court shall set a later hearing date no later 19 than fifteen days from the date of filing if the plaintiff 20 requests or consents to the later date of hearing. The 21 requirement regarding the setting of the initial hearing is not 22 a jurisdictional requirement and does not affect the court’s 23 subject matter jurisdiction to hear the action for forcible 24 entry and detainer. 25 DIVISION VI 26 MANUFACTURED HOUSING PROGRAM FUND 27 Sec. 22. Section 16.45, subsection 1, Code 2020, is amended 28 to read as follows: 29 1. A manufactured housing program fund is created within 30 the authority to further the goal of providing affordable 31 housing to Iowans. The moneys in the fund are to be used for 32 the purpose of providing funding to financial institutions or 33 other lenders to finance the purchase by an individual of a 34 manufactured home that is in compliance with all laws, rules, 35 -10- LSB 6108YH (2) 88 md/jh 10/ 26

H.F. 2351 and standards that are applicable to manufactured homes and 1 manufactured housing. The manufactured housing program fund 2 is designed exclusively for manufactured homes sited on leased 3 land. 4 DIVISION VII 5 TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE 6 Sec. 23. Section 562B.25, Code 2020, is amended by adding 7 the following new subsection: 8 NEW SUBSECTION . 5. a. In an action for possession based 9 upon nonpayment of the rent or in an action for rent where the 10 tenant is in possession, the tenant may counterclaim for an 11 amount which the tenant may recover under the rental agreement 12 or this chapter. In that event, the court from time to time 13 may order the tenant to pay into court all or part of the rent 14 accrued and thereafter accruing, and shall determine the amount 15 due to each party. The party to whom a net amount is owed 16 shall be paid first from the money paid into court, and the 17 balance by the other party. If rent does not remain due after 18 application of this section, judgment shall be entered for 19 the tenant in the action for possession. If the defense or 20 counterclaim by the tenant is without merit and is not raised 21 in good faith, the landlord may recover reasonable attorney 22 fees. 23 b. In an action for rent where the tenant is not in 24 possession, the tenant may counterclaim as provided in 25 paragraph “a” , but the tenant is not required to pay any rent 26 into court. 27 Sec. 24. EFFECTIVE DATE. This division of this Act, being 28 deemed of immediate importance, takes effect upon enactment. 29 Sec. 25. APPLICABILITY. This division of this Act applies 30 to actions for possession filed on or after the effective date 31 of this division of this Act. 32 DIVISION VIII 33 UTILITY CHARGES 34 Sec. 26. Section 562B.14, subsection 6, Code 2020, is 35 -11- LSB 6108YH (2) 88 md/jh 11/ 26

H.F. 2351 amended to read as follows: 1 6. The landlord or any person authorized to enter into 2 a rental agreement on the landlord’s behalf shall provide 3 a written explanation of utility rates, fees, charges , and 4 services , subject to section 562B.16, subsection 3, to the 5 prospective tenant before the rental agreement is signed unless 6 the utility charges are paid by the tenant directly to the 7 utility company. 8 Sec. 27. Section 562B.16, Code 2020, is amended by adding 9 the following new subsection: 10 NEW SUBSECTION . 3. A landlord that is responsible for 11 payment of utilities being provided to the tenant shall not 12 charge to the tenant an amount in excess of the actual cost of 13 the utility and as specified in writing under section 562B.14, 14 subsection 6. In addition to the actual cost of the utility, 15 a landlord that is responsible for the payment of one or more 16 utilities being provided to the tenant may impose a monthly 17 utility administration fee to each tenant not to exceed five 18 dollars per month. The amount of the utility administration 19 fee shall not exceed five dollars per month regardless of the 20 number of utilities being provided or the actual cost of the 21 utilities being provided. 22 Sec. 28. Section 562B.25, Code 2020, is amended by adding 23 the following new subsection: 24 NEW SUBSECTION . 2A. The failure of a tenant to pay utility 25 charges that exceed the actual cost of the utility provided 26 as required by section 562B.16, subsection 3, shall not be 27 considered noncompliance with the rental agreement. 28 Sec. 29. Section 714H.3, subsection 2, Code 2020, is amended 29 by adding the following new paragraph: 30 NEW PARAGRAPH . h. Section 562B.16, subsection 3. 31 DIVISION IX 32 UNLAWFUL OUSTER 33 Sec. 30. Section 562B.24, Code 2020, is amended to read as 34 follows: 35 -12- LSB 6108YH (2) 88 md/jh 12/ 26

H.F. 2351 562B.24 Tenant’s remedies for landlord’s unlawful ouster, 1 exclusion or diminution of services. 2 If the landlord unlawfully removes or excludes the tenant 3 from the manufactured home community or mobile home park or 4 willfully diminishes services to the tenant by interrupting 5 or causing the interruption of electric, gas, water , or 6 other essential service to the tenant, the tenant may recover 7 possession, require the restoration of essential services or 8 terminate the rental agreement and, in either case, recover an 9 amount not to exceed two months’ periodic rent , and twice the 10 actual damages sustained by the tenant , and reasonable attorney 11 fees . If the rental agreement is terminated, the landlord 12 shall return all prepaid rent and security. 13 Sec. 31. EFFECTIVE DATE. This division of this Act, being 14 deemed of immediate importance, takes effect upon enactment. 15 Sec. 32. APPLICABILITY. This division of this Act applies 16 to actions under section 562B.24 filed on or after the 17 effective date of this division of this Act. 18 DIVISION X 19 WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES 20 Sec. 33. NEW SECTION . 562B.23A Wrongful failure to supply 21 running water or essential services. 22 1. If contrary to the rental agreement or section 562B.16 23 the landlord deliberately or negligently fails to supply 24 running water or other essential services, the tenant may give 25 written notice to the landlord specifying the breach and may 26 do one of the following: 27 a. Procure reasonable amounts of water or other essential 28 services during the period of the landlord’s noncompliance and 29 deduct the actual and reasonable cost from the rent. 30 b. Recover damages based upon the diminution in the fair 31 market value of the mobile home or mobile home space. 32 c. Recover any rent already paid for the period of the 33 landlord’s noncompliance which shall be reimbursed on a pro 34 rata basis. 35 -13- LSB 6108YH (2) 88 md/jh 13/ 26

H.F. 2351 2. If the tenant proceeds under this section, the tenant may 1 not proceed under section 562B.22 as to that breach. 2 3. The rights under this section do not arise until the 3 tenant has given notice to the landlord or if the condition was 4 caused by the deliberate or negligent act or omission of the 5 tenant, a member of the tenant’s family, or other person on the 6 premises with the consent of the tenant. 7 Sec. 34. EFFECTIVE DATE. This division of this Act, being 8 deemed of immediate importance, takes effect upon enactment. 9 Sec. 35. APPLICABILITY. This division of this Act applies 10 to actions under section 562B.23A filed on or after the 11 effective date of this division of this Act. 12 DIVISION XI 13 TENANT CORRECTING DEFICIENCIES 14 Sec. 36. Section 562B.25, Code 2020, is amended by adding 15 the following new subsection: 16 NEW SUBSECTION . 4A. In any action by a landlord for 17 possession based upon nonpayment of rent, proof by the tenant 18 of all of the following shall be a defense to any action or 19 claim for possession by the landlord, and the amounts expended 20 by the tenant in correcting the deficiencies shall be deducted 21 from the amount claimed by the landlord as unpaid rent: 22 a. That the landlord failed to comply either with the rental 23 agreement or with section 562B.16. 24 b. That the tenant notified the landlord at least seven 25 days prior to the due date of the tenant’s rent payment of the 26 tenant’s intention to correct the condition constituting the 27 breach referred to in paragraph “a” at the landlord’s expense. 28 c. That the reasonable cost of correcting the condition 29 constituting the breach is equal to or less than one month’s 30 periodic rent. 31 d. That the tenant in good faith caused the condition 32 constituting the breach to be corrected prior to receipt of 33 written notice of the landlord’s intention to terminate the 34 rental agreement for nonpayment of rent. 35 -14- LSB 6108YH (2) 88 md/jh 14/ 26

H.F. 2351 Sec. 37. EFFECTIVE DATE. This division of this Act, being 1 deemed of immediate importance, takes effect upon enactment. 2 Sec. 38. APPLICABILITY. This division of this Act applies 3 to actions by a landlord for possession filed on or after the 4 effective date of this division of this Act. 5 DIVISION XII 6 DENIAL OF RENTAL OR REFUSAL OF SALE 7 Sec. 39. Section 562B.19, subsection 3, paragraphs a and c, 8 Code 2020, are amended to read as follows: 9 a. Deny rental unless the tenant or prospective tenant 10 cannot conform to manufactured home community or park rules 11 and regulations. A decision to deny rental shall conform 12 to recognized principles, rules, and standards generally 13 accepted by the professional manufactured home community or 14 park industry to ensure the commercially reasonable safety and 15 financial security of comparable manufactured home communities 16 or mobile home parks. A landlord shall deliver the decision 17 in writing to the tenant or prospective tenant as soon as 18 commercially feasible and shall provide the basis for a denial 19 in writing to the tenant or prospective tenant at the time of 20 the decision. 21 c. Deny any resident of a manufactured home community 22 or mobile home park the right to sell that person’s mobile 23 home at a price of the person’s own choosing, but may reserve 24 the right to approve the purchaser of such mobile home as 25 a tenant but such permission shall only be withheld for a 26 legitimate business reason within the recognized principles, 27 rules, and standards described in paragraph “a” , and may not be 28 unreasonably withheld, provided however, that the landlord may, 29 in the event of a sale to a third party, in order to upgrade 30 the quality of the manufactured home community or mobile home 31 park, require that any mobile home in a rundown condition or in 32 disrepair be removed from the manufactured home community or 33 park within sixty days. If the landlord refuses to approve the 34 purchaser of the mobile home as a tenant, a legitimate business 35 -15- LSB 6108YH (2) 88 md/jh 15/ 26

H.F. 2351 reason for the refusal shall be provided in writing to the 1 resident who is selling the mobile home. 2 DIVISION XIII 3 PROHIBITED RENTAL AGREEMENT PROVISION —— HOME EQUIPMENT 4 Sec. 40. Section 562B.11, subsection 1, Code 2020, is 5 amended by adding the following new paragraph: 6 NEW PARAGRAPH . e. Agrees to modify the physical 7 characteristics or equipment of the mobile home, manufactured 8 home, or modular home if the modification impairs the ability 9 of the tenant to move the home from the mobile home space, 10 unless otherwise required by federal or state law or by local 11 ordinance. 12 DIVISION XIV 13 RENTAL AGREEMENT TERMS 14 Sec. 41. Section 562B.11, subsection 1, Code 2020, is 15 amended by adding the following new paragraphs: 16 NEW PARAGRAPH . f. Authorizes imposition of fines, 17 penalties, or fees solely as a punishment or in amounts in 18 excess of actual damages or costs incurred. 19 NEW PARAGRAPH . g. Authorizes a person to confess judgment 20 on a claim arising out of the rental agreement. 21 NEW PARAGRAPH . h. Authorizes prohibitions, limitations, 22 additional deposits, or other restrictive policies that are 23 not based on ordinary wear and tear expected to occur during a 24 tenancy or that are not based on community safety standards. 25 Sec. 42. Section 562B.11, subsection 2, Code 2020, is 26 amended to read as follows: 27 2. A provision prohibited by subsection 1 included in a 28 rental agreement is unenforceable. If a landlord or tenant 29 knowingly and willfully uses a rental agreement containing 30 provisions known to be prohibited by this chapter , the other 31 party tenant may recover actual damages sustained by the tenant 32 and not more than three months’ periodic rent and reasonable 33 attorney fees . 34 DIVISION XV 35 -16- LSB 6108YH (2) 88 md/jh 16/ 26

H.F. 2351 RENTAL DEPOSITS 1 Sec. 43. Section 562B.7, subsection 12, Code 2020, is 2 amended to read as follows: 3 12. “Rental deposit” means a deposit of money to secure 4 performance of a mobile home space rental agreement under this 5 chapter other than a deposit which is exclusively in advance 6 payment of rent . 7 Sec. 44. Section 562B.13, subsection 2, Code 2020, is 8 amended to read as follows: 9 2. All rental deposits shall be held by the landlord for 10 the tenant, who is a party to the agreement, in a bank, credit 11 union, or savings and loan association which is insured by an 12 agency of the federal government. Rental deposits shall not be 13 commingled with the personal funds of the landlord. All rental 14 deposits may be held in a trust account, which may be a common 15 trust account and which may be an interest-bearing account. 16 Any interest earned on a rental deposit during the first five 17 years of a tenancy shall be the property of the landlord. 18 Sec. 45. Section 562B.13, Code 2020, is amended by adding 19 the following new subsection: 20 NEW SUBSECTION . 9. The court may, in any action on a rental 21 agreement, award reasonable attorney fees to the prevailing 22 party. 23 DIVISION XVI 24 LANDLORD SALES 25 Sec. 46. NEW SECTION . 562B.17A Sale of mobile home by 26 landlord. 27 1. Any sale of a mobile home located in a manufactured 28 home community or mobile home park by a landlord or landlord’s 29 agent shall be by written agreement and the landlord shall 30 produce and assign the current certificate of title obtained 31 from the department of transportation. The agreement shall 32 state the basic terms of sale, including the total cost of 33 the mobile home, finance charges, annual percentage rate, and 34 the frequency and amount of each installment payment. Such 35 -17- LSB 6108YH (2) 88 md/jh 17/ 26

H.F. 2351 agreement shall comply with the finance charge rate limitation 1 in section 103A.58, subsection 1. 2 2. Any such sale that does not comply with this section 3 may be voided by the buyer and the buyer may recover damages 4 incurred, amounts paid as a rental deposit in excess of two 5 months’ rent for the mobile home, and reasonable attorney fees. 6 3. A claim under subsection 2 may be combined with an action 7 under chapter 648. 8 Sec. 47. Section 648.19, subsection 1, Code 2020, is amended 9 to read as follows: 10 1. An action under this chapter shall not be filed in 11 connection with any other action, with the exception of a claim 12 for rent or recovery as provided in section 555B.3 , 562A.24 , 13 562A.32 , 562B.17A, 562B.22 , 562B.25 , or 562B.27 , nor shall it 14 be made the subject of counterclaim. 15 DIVISION XVII 16 NONJUDICIAL FORECLOSURE 17 Sec. 48. Section 654.18, Code 2020, is amended by adding the 18 following new subsection: 19 NEW SUBSECTION . 5. Actions under this section initiated 20 on or after July 1, 2020, shall not be allowed for property 21 consisting of a mobile home as defined in section 562B.7. 22 Sec. 49. Section 655A.9, Code 2020, is amended to read as 23 follows: 24 655A.9 Application of chapter. 25 1. This chapter does not apply to real estate used for 26 an agricultural purpose as defined in section 535.13 , or to 27 a one or two family dwelling which is, at the time of the 28 initiation of the foreclosure, occupied by a legal or equitable 29 titleholder. 30 2. Actions under this chapter initiated on or after July 1, 31 2020, shall not be allowed for property consisting of a mobile 32 home as defined in section 562B.7. 33 Sec. 50. EFFECTIVE DATE. This division of this Act, being 34 deemed of immediate importance, takes effect upon enactment. 35 -18- LSB 6108YH (2) 88 md/jh 18/ 26