HF 689 (LSB 1886YH (3) 91)

HOUSE FILE 689

BY  CROKEN

A BILL FOR

An Act relating to landlords and tenants, including the source of income tenants use for rent payments.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 331.304, subsection 13, Code 2025, is amended by striking the subsection.
    Sec. 2.  Section 364.3, subsection 16, Code 2025, is amended by striking the subsection.
    Sec. 3.  NEW SECTION.  562A.11A  Prohibition on distinction, discrimination, or restriction based on source of income of tenant.
   1.  As used in this section, “source of income” includes benefits or subsidy programs including housing assistance, housing choice vouchers provided under 42 U.S.C. §1437f, public assistance, veterans’ benefits, social security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity. “Source of income” does not include income that a prospective tenant cannot demonstrate is derived from sources and activities permitted by law and is provided on an ongoing basis, or housing assistance that is not approved by the appropriate agency within thirty days after the landlord provides all information required as a condition of the agency’s approval, including evidence that all repairs required before occupancy have been completed.
   2.  A landlord shall not, based on the source of income of an otherwise eligible prospective or current tenant, do any of the following:
   a.  Deny or terminate a tenancy to the prospective or current tenant.
   b.  Make any distinction, discrimination, or restriction against the prospective or current tenant in the price, terms, conditions, fees, or privileges relating to the rental, lease, or occupancy of a dwelling unit or in the furnishing of any facilities or services in connection with the rental, lease, or occupancy of the dwelling unit.
   c.  Otherwise make unavailable or deny any dwelling unit to the prospective or current tenant if the prospective or current tenant would be eligible to rent the dwelling unit but for the individual’s source of income.
   d.  Represent to the prospective tenant that a dwelling unit is not available for inspection, rental, or lease when in fact the dwelling unit is available, or knowingly fail to bring a rental listing to the prospective tenant’s attention, or refuse to permit the prospective tenant to inspect a dwelling unit.
   e.  Make any distinction, discrimination, or restriction against the prospective or current tenant in the price, terms, conditions, fees, or privileges relating to the rental, lease, or occupancy of any dwelling unit on the basis of the prospective or current tenant’s use of emergency rental assistance.
   f.  If the landlord requires a prospective or current tenant to have a certain threshold level of income, exclude any source of income in the form of a rent voucher or subsidy when calculating whether the income criteria have been met. This paragraph does not apply to emergency rental assistance.
   g.  Attempt to discourage the rental or lease of any dwelling unit to the prospective or current tenant.
   h.  Publish, circulate, display, or cause to be published, circulated, or displayed any communication, notice, advertisement, or sign of any kind relating to the rental or lease of any dwelling unit that indicates a preference, limitation, or requirement based on any source of income.
   i.  Assist, induce, incite, or coerce another person to commit an act or engage in a practice that violates this section.
   j.  Coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of the person having exercised or enjoyed or having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected under this section.
    Sec. 4.  NEW SECTION.  562B.11A  Prohibition on distinction, discrimination, or restriction based on source of income of tenant.
   1.  As used in this section, “source of income” means the same as defined in section 562A.11A.
   2.  A landlord shall not, based on the source of income of an otherwise eligible prospective or current tenant, do any of the following:
   a.  Deny or terminate a tenancy to the prospective or current tenant.
   b.  Make any distinction, discrimination, or restriction against the prospective or current tenant in the price, terms, conditions, fees, or privileges relating to the rental, lease, or occupancy of a mobile home space or in the furnishing of any facilities or services in connection with the rental, lease, or occupancy of the mobile home space.
   c.  Otherwise make unavailable or deny any mobile home space to the prospective or current tenant if the prospective or current tenant would be eligible to rent the mobile home space but for the individual’s source of income.
   d.  Represent to the prospective tenant that a mobile home space is not available for inspection, rental, or lease when in fact the mobile home space is available, or knowingly fail to bring a rental listing to the prospective tenant’s attention, or refuse to permit the prospective tenant to inspect a mobile home space.
   e.  Make any distinction, discrimination, or restriction against the prospective or current tenant in the price, terms, conditions, fees, or privileges relating to the rental, lease, or occupancy of any mobile home space on the basis of the prospective or current tenant’s use of emergency rental assistance.
   f.  If the landlord requires a prospective or current tenant to have a certain threshold level of income, exclude any source of income in the form of a rent voucher or subsidy when calculating whether the income criteria have been met. This paragraph does not apply to emergency rental assistance.
   g.  Attempt to discourage the rental or lease of any mobile home space to the prospective or current tenant.
   h.  Publish, circulate, display, or cause to be published, circulated, or displayed any communication, notice, advertisement, or sign of any kind relating to the rental or lease of any mobile home space that indicates a preference, limitation, or requirement based on any source of income.
   i.  Assist, induce, incite, or coerce another person to commit an act or engage in a practice that violates this section.
   j.  Coerce, intimidate, threaten, or interfere with any person in the exercise or enjoyment of, or on account of the person having exercised or enjoyed or having aided or encouraged any other person in the exercise or enjoyment of, any right granted or protected under this section.
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 landlords and tenants and the source of income that a tenant may use to pay rent.
   The bill defines “source of income” to include benefits or subsidy programs including housing assistance, housing choice vouchers, public assistance, veterans’ benefits, social security, supplemental security income or other retirement programs, and other programs administered by any federal, state, local, or nonprofit entity. “Source of income” does not, however, include income that a prospective tenant cannot demonstrate is derived from sources and activities permitted by law and is provided on an ongoing basis, or housing assistance that is not approved by the appropriate agency within 30 days after the landlord provides all information required as a condition of the agency’s approval, including evidence that all repairs required before occupancy have been completed.
   The bill provides that under both Code chapters 562A (residential landlord and tenant law) and 562B (manufactured home community or mobile home park landlord and tenant law), a landlord cannot discriminate, make a distinction, or otherwise restrict the source of income that a tenant uses to pay rent for a dwelling unit or mobile home space.
   The bill strikes current prohibitions against municipal ordinances that prohibit property owners from refusing to rent dwelling units to persons because of the prospective tenant’s use of a federal housing choice voucher.