HF 2207 (LSB 5764YH (2) 91)

HOUSE FILE 2207

BY  BAGNIEWSKI

A BILL FOR

An Act relating to the purchase of single-family residences by certain business entities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 558.1B, Code 2026, is amended by adding the following new subsections:
   NEW SUBSECTION.  4.  “Private equity entity” means a corporation, limited liability company, partnership, trust, real estate investment trust, investment fund, or other legal entity, other than an individual, that pools capital from one or more investors for the purpose of acquiring residential real property for investment, rental, or resale.
   NEW SUBSECTION.  5.  “Single-family residence” means a residential dwelling designed for occupancy by one household and located on property zoned for single-family residential use, including a detached dwelling or townhouse, but excluding duplexes, multifamily dwellings, and condominiums.
    Sec. 2.  Section 558.41, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Private equity entity acquisition restrictions.  A county recorder shall not record a deed conveying a single-family residence to a private equity entity unless the deed is accompanied by a sworn affidavit executed by the grantee and grantor affirming that the acquisition complies with section 558.73.
    Sec. 3.  NEW SECTION.  558.73  Purchase restrictions on single-family residences.
   1.  a.  A private equity entity shall not purchase, contract to purchase, or otherwise acquire a single-family residence during the first seventy-five days that the residence is listed for sale on the open market.
   b.  The seventy-five-day period begins on the date the single-family residence is first offered for sale through a multiple listing service, licensed real estate broker, or publicly accessible listing platform.
   c.  A private equity entity shall not evade the requirements of this section through the use of subsidiaries, affiliates, or agents.
   2.  A private equity entity acquiring a single-family residence shall submit a sworn affidavit stating either of the following:
   a.  The acquisition occurs after the expiration of the seventy-five-day period required under subsection 1.
   b.  The acquisition is otherwise exempt under state or federal law.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the purchase of single-family homes by certain business entities.
   The bill defines “private equity entity” and “single-family residence”. The bill prohibits a private equity entity from purchasing, contracting to purchase, or otherwise acquiring a single-family residence during the first 75 days that the residence is listed for sale on the open market. The 75-day period begins on the date the residence is first listed through a multiple listing service, licensed real estate broker, or publicly accessible listing platform. The bill prohibits evasion of this restriction through subsidiaries, affiliates, or agents.
   The bill also requires a private equity entity to submit a sworn affidavit to the county recorder affirming that the acquisition complies with the 75-day restriction or is otherwise exempt under law. The county recorder is prohibited from recording a deed conveying a single-family residence to a private equity entity unless the affidavit accompanies the deed.