HF 2386 (LSB 5492YH (2) 91)

HOUSE FILE 2386

BY  WICHTENDAHL

A BILL FOR

An Act related to city regulation of single-family residential property.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 414.1, subsection 1, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  i.  (1)  A city may require the first purchaser of a single-family residential home in a new housing development to physically occupy the home for one year after the purchase of the home.
   (2)  The city may charge the owner of a single-family residential home a fine for a violation of subparagraph (1). The fine may not be greater than one-fourth of the fair market value of the home.
   (3)  A city ordinance adopted under this section shall include an exemption allowing the owner to sell or transfer the property within the one-year occupancy period of required occupancy if the sale is a good-faith sale.
   (4)  For purposes of this paragraph:
   (a)  “New housing development” means any housing that is being sold for the first time on the market including housing that is newly constructed as part of a development agreement between the city and a developer.
   (b)  “Occupy” means to physically reside in and use a property as a home, residence, or sleeping space.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill allows a city to require the first purchaser of a single-family residential home in a new housing development to physically occupy the single-family residential home for one year after the purchase of the home. The city may charge the owner of a single-family residential home a fine for a violation of the bill. The bill includes a good-faith exemption for an owner seeking to sell the house in the one-year occupancy period. The bill defines “new housing development” to mean any housing that is being sold for the first time on the market including housing that is newly constructed as part of a development agreement between the city and a developer. The bill defines “occupy” to mean to physically reside in and use a property as a home, residence, or sleeping space.