SF 2225 (LSB 6001XS (2) 91)

SENATE FILE 2225

BY  WAHLS, DOTZLER, TOWNSEND, BLAKE, ZIMMER, PETERSEN, BISIGNANO, KNOX, DREY, HARDMAN, STAED, DONAHUE, and WEINER

A BILL FOR

An Act relating to property law, including rental properties, manufactured home communities, mobile home parks, and actions relating to such properties, making penalties applicable, and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

DIVISION I
GROUNDS FOR TERMINATION OF TENANCY

    Section 1.  Section 562B.10, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  A landlord shall not terminate a tenancy unless any of the following apply:
   a.  The tenant engaged in an act of material noncompliance with the rental agreement.
   b.  The tenant committed a material violation of the manufactured home community or mobile home park rules or regulations.
   c.  The tenant committed any other violation of this chapter for which termination is a remedy.
   d.  There exists a legitimate and material business reason the impact of which is not specific to one tenant.
   e.  There is a change in the use of the land, and a change in the use of the land is grounds for termination or nonrenewal under the rental agreement.
    Sec. 2.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  APPLICABILITY.  This division of this Act applies to terminations of tenancies on or after the effective date of this division of this Act.
DIVISION II
CONSUMER FRAUD

    Sec. 4.  Section 562B.4, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  A violation of this chapter by a landlord or the landlord’s agent is an unlawful practice under section 714.16.
    Sec. 5.  Section 714.16, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  t.  It is an unlawful practice for a landlord or the landlord’s agent to violate any of the provisions of chapter 562B.
    Sec. 6.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 7.  APPLICABILITY.  This division of this Act applies to violations of chapter 562B occurring on or after the effective date of this division of this Act.
DIVISION III
RENT INCREASES

    Sec. 8.  Section 562B.7, subsection 10, Code 2026, is amended to read as follows:
   10.  “Rent” means a payment to be made to the landlord under the rental agreement, including base rent, utilities, late fees, and other payments made by the tenant to the landlord under the rental agreement.
    Sec. 9.  Section 562B.14, subsection 7, Code 2026, is amended by striking the subsection and inserting in lieu thereof the following:
   7.  a.  A landlord shall not increase the amount of rent due by any tenant in a manufactured home community or mobile home park unless the tenant is notified in writing of the rent increase at least one hundred eighty days before the effective date of the rent increase. The effective date of any rent increase shall not be less than one year after either the effective date of the most recent rent increase or the beginning of the tenancy, whichever is later.
   b.  (1)  Subject to paragraph “a”, a landlord may increase the amount of rent due by any tenant in an amount greater than the average annual increase of the consumer price index for all urban consumers in the midwest region for the most recently available preceding thirty-six-month period, if the landlord demonstrates all of the following:
   (a)  The landlord, during the preceding twelve-month period, has not been found in violation of any provision of this chapter that threatens the health or safety of the tenants of or visitors to the manufactured home community or mobile home park that persists for more than fifteen days, beginning on the day the landlord received notice of such violation.
   (b)  The proposed rent increase is directly related to operating, maintaining, or improving the manufactured home community or mobile home park, and is justified by one or more of the following factors:
   (i)  The completion and cost of any capital improvements or repair work in the manufactured home community or mobile home park, as distinguished from ordinary repair, replacement, and maintenance.
   (ii)  An increase in property taxes due on the manufactured home community or mobile home park.
   (iii)  If the landlord is responsible for payment of one or more utilities, an increase in utility expenses within the manufactured home community or mobile home park.
   (iv)  An increase in insurance costs and financing associated with the manufactured home community or mobile home park.
   (v)  An increase in reasonable operating and maintenance expenses relating to the manufactured home community or mobile home park.
   (vi)  An increase in market rent. For purposes of this subparagraph subdivision, “market rent” means that rent which would result from market forces absent an unequal bargaining position between the landlord and tenants. In determining market rent, relevant considerations include rents charged to recent new tenants of the manufactured home community or mobile home park or rents charged by comparable manufactured home communities or mobile home parks. To be comparable, a manufactured home community or mobile home park must be within the competitive area and must offer similar facilities, services, amenities, and management.
   (2)  The department of revenue shall monitor the consumer price index for all urban consumers in the midwest region and report the relevant data to the consumer protection division of the office of the attorney general for periodic publication.
   c.  The written notice of a rent increase provided to the tenant must include the specific reasons for the increase including the justification under paragraph “b”, if applicable.
   d.  A decrease in the number or quality of amenities, services, or utilities provided under the rental agreement without a corresponding and proportionate reduction in rent shall be considered a rent increase for the purposes of this chapter.
    Sec. 10.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 11.  APPLICABILITY.  The following applies to rent increases under chapter 562B occurring on or after the effective date of this division of this Act:
   The portion of the section of this division of this Act enacting section 562B.14, subsection 7, paragraphs “a” and “d”.
    Sec. 12.  APPLICABILITY.  The following applies to rent increases under chapter 562B occurring on or after July 1, 2026:
   The portion of the section of this division of this Act enacting section 562B.14, subsection 7, paragraphs “b” and “c”.
DIVISION IV
LANDLORD REMEDIES AND PROCEDURES

    Sec. 13.  Section 562A.9, subsection 4, Code 2026, is amended to read as follows:
   4.  For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month but less than one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.  For rental agreements in which the rent is at least one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds two percent of the rent per day or a total amount of ten percent of the rent per month.
    Sec. 14.  Section 562B.10, subsection 4, Code 2026, is amended to read as follows:
   4.  For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month. For rental agreements in which the rent is greater than seven hundred dollars per month but less than one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twenty dollars per day or a total amount of one hundred dollars per month.  For rental agreements in which the rent is at least one thousand four hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds two percent of the rent per day or a total amount of ten percent of the rent per month.
    Sec. 15.  Section 562B.10, subsection 7, paragraph a, Code 2026, is amended by striking the paragraph and inserting in lieu thereof the following:
   a.  If a tenant who was sole owner of a mobile home dies during the term of a rental agreement, then that person’s heirs or legal representative or the landlord shall have the right to cancel the tenant’s lease by giving sixty days’ written notice to the person’s heirs or legal representative or to the landlord, whichever is appropriate, and the heirs or the legal representative shall have the same rights, privileges, and liabilities of the original tenant.
DIVISION V
MANUFACTURED HOUSING PROGRAM FUND

    Sec. 16.  Section 16.45, subsection 1, Code 2026, is amended to read as follows:
   1.  A manufactured housing program fund is created within the authority to further the goal of providing affordable housing to Iowans. The moneys in the fund are to be used for the purpose of providing funding to financial institutions or other lenders to finance the purchase by an individual of a manufactured home that is in compliance with all laws, rules, and standards that are applicable to manufactured homes and manufactured housing. The manufactured housing program fund is designed exclusively for manufactured homes sited on leased land.
DIVISION VI
TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE

    Sec. 17.  Section 562B.25, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  a.  In an action for possession based upon nonpayment of the rent or in an action for rent where the tenant is in possession, the tenant may counterclaim for an amount which the tenant may recover under the rental agreement or this chapter. In that event, the court from time to time may order the tenant to pay into court all or part of the rent accrued and thereafter accruing, and shall determine the amount due to each party. The party to whom a net amount is owed shall be paid first from the money paid into court, and the balance by the other party. If rent does not remain due after application of this section, judgment shall be entered for the tenant in the action for possession. If the defense or counterclaim by the tenant is without merit and is not raised in good faith, the landlord may recover reasonable attorney fees.
   b.  In an action for rent where the tenant is not in possession, the tenant may counterclaim as provided in paragraph “a”, but the tenant is not required to pay any rent into court.
    Sec. 18.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 19.  APPLICABILITY.  This division of this Act applies to actions for possession filed on or after the effective date of this division of this Act.
DIVISION VII
UTILITY CHARGES

    Sec. 20.  Section 562B.14, subsection 6, paragraphs a and b, Code 2026, are amended to read as follows:
   a.  The landlord or any person authorized to enter into a rental agreement on the landlord’s behalf shall provide a written explanation of utility rates, fees, charges, and services, subject to section 562B.16, subsection 3, to the prospective tenant before the rental agreement is signed unless the utility charges are paid by the tenant directly to the utility company.
   b.  Tenants shall be notified of any increase in utility rates or charges in the manner set forth in subsection 7 for rent increases, unless the landlord does not receive at least ninety days’ prior notice of such increase from the utility provider, in which case no prior notice of the increase from the landlord to the tenant is required for the increase to be effective the landlord shall provide notice to the tenant within five business days of receiving the notice from the utility provider.
    Sec. 21.  Section 562B.16, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  3.  A landlord that is responsible for payment of utilities being provided to the tenant shall not charge to the tenant an amount in excess of the actual cost of the utility and as specified in writing under section 562B.14, subsection 6. In addition to the actual cost of the utility, a landlord that is responsible for the payment of one or more utilities being provided to the tenant may impose a monthly utility administration fee to each tenant not to exceed five dollars per month. The amount of the utility administration fee shall not exceed five dollars per month regardless of the number of utilities being provided or the actual cost of the utilities being provided.
    Sec. 22.  Section 562B.25, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  The failure of a tenant to pay utility charges that exceed the actual cost of the utility provided as required by section 562B.16, subsection 3, shall not be considered noncompliance with the rental agreement.
    Sec. 23.  Section 714H.3, subsection 2, Code 2026, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  i.  Section 562B.16, subsection 3.
DIVISION VIII
UNLAWFUL OUSTER

    Sec. 24.  Section 562B.24, Code 2026, is amended to read as follows:
   562B.24  Tenant’s remedies for landlord’s unlawful ouster, exclusion or diminution of services.
   If the landlord unlawfully removes or excludes the tenant from the manufactured home community or mobile home park or willfully diminishes services to the tenant by interrupting or causing the interruption of electric, gas, water or other essential service to the tenant, the tenant may recover possession, require the restoration of essential services or terminate the rental agreement and, in either case, recover an amount not to exceed two months’ periodic rent, and twice the actual damages sustained by the tenant, and reasonable attorney fees.  If the rental agreement is terminated, the landlord shall return all prepaid rent and security.
    Sec. 25.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 26.  APPLICABILITY.  This division of this Act applies to actions under section 562B.24, as amended in this division of this Act, filed on or after the effective date of this division of this Act.
DIVISION IX
TENANT CORRECTING DEFICIENCIES

    Sec. 27.  Section 562B.25, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  In any action by a landlord for possession based upon nonpayment of rent, proof by the tenant of all of the following shall be a defense to any action or claim for possession by the landlord, and the amounts expended by the tenant in correcting the deficiencies shall be deducted from the amount claimed by the landlord as unpaid rent:
   a.  That the landlord failed to comply either with the rental agreement or with section 562B.16.
   b.  That the tenant notified the landlord at least seven days prior to the due date of the tenant’s rent payment of the tenant’s intention to correct the condition constituting the breach referred to in paragraph “a” at the landlord’s expense.
   c.  That the reasonable cost of correcting the condition constituting the breach is equal to or less than one month’s periodic rent.
   d.  That the tenant in good faith caused the condition constituting the breach to be corrected prior to receipt of written notice of the landlord’s intention to terminate the rental agreement for nonpayment of rent.
    Sec. 28.  EFFECTIVE DATE.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 29.  APPLICABILITY.  This division of this Act applies to actions by a landlord for possession filed on or after the effective date of this division of this Act.
DIVISION X
DENIAL OF RENTAL OR REFUSAL OF SALE

    Sec. 30.  Section 562B.19, subsection 3, paragraphs a and c, Code 2026, are amended to read as follows:
   a.  Deny rental unless the tenant or prospective tenant cannot conform to manufactured home community or park rules and regulations.  A decision to deny rental shall conform to recognized principles, rules, and standards generally accepted by the professional manufactured home community or park industry to ensure the commercially reasonable safety and financial security of comparable manufactured home communities or mobile home parks. A landlord shall deliver the decision in writing to the tenant or prospective tenant as soon as commercially feasible and shall provide the basis for a denial in writing to the tenant or prospective tenant at the time of the decision.
   c.  Deny any resident of a manufactured home community or mobile home park the right to sell that person’s mobile home at a price of the person’s own choosing, but may reserve the right to approve the purchaser of such mobile home as a tenant but such permission may shall only be withheld for a legitimate business reason within the recognized principles, rules, and standards described in paragraph “a”, and shall not be unreasonably withheld, provided however, that the landlord may, in the event of a sale to a third party, in order to upgrade the quality of the manufactured home community or mobile home park, require that any mobile home in a rundown condition or in disrepair be removed from the manufactured home community or park within sixty days. If the landlord does not approve the purchaser as a tenant, the landlord shall provide the purchaser with written notice of such denial and the general reason for the denial, but the landlord shall not be required to provide a specific reason for the denial.  If the landlord refuses to approve the purchaser of the mobile home as a tenant, the landlord shall provide a legitimate business reason for the refusal in writing to the resident who is selling the mobile home.
DIVISION XI
RENTAL AGREEMENT TERMS

    Sec. 31.  Section 562B.11, subsection 1, paragraph e, Code 2026, is amended to read as follows:
   e.  Agrees to modify the physical characteristics or equipment of the mobile home, manufactured home, or modular home in a way that would substantially impair the ability of the tenant to move the home from the mobile home space, unless such modification is required by federal law, including but not limited to the model manufactured home installation standards, 24 C.F.R. pt. 3285, the manufactured home construction and safety standards, 24 C.F.R. pt. 3280, or the manufactured home procedural and enforcement regulations, 24 C.F.R. pt. 3282, or by state or local law, the manufacturer’s installation instructions, any requirement arising from the landlord’s financing of the home or of the mobile home park or manufactured home community in which the home is located, or unless such modification is otherwise necessary for the safe and proper installation of the home.
    Sec. 32.  Section 562B.11, subsection 1, Code 2026, is amended by adding the following new paragraphs:
   NEW PARAGRAPH.  f.  Authorizes imposition of fines, penalties, or fees solely as a punishment or in amounts in excess of actual damages or costs incurred.
   NEW PARAGRAPH.  g.  Authorizes a person to confess judgment on a claim arising out of the rental agreement.
   NEW PARAGRAPH.  h.  Authorizes prohibitions, limitations, additional deposits, or other restrictive policies that are not based on ordinary wear and tear expected to occur during a tenancy or that are not based on community safety standards.
    Sec. 33.  Section 562B.11, subsection 3, Code 2026, is amended to read as follows:
   3.  A provision prohibited by this section included in a rental agreement is unenforceable. If a landlord or tenant knowingly and willfully uses a rental agreement containing provisions known to be prohibited by this chapter, the other party tenant may recover actual damages sustained by the tenant and not more than three months’ periodic rent and reasonable attorney fees.
DIVISION XII
RENTAL DEPOSITS

    Sec. 34.  Section 562B.7, subsection 12, Code 2026, is amended to read as follows:
   12.  “Rental deposit” means a deposit of money to secure performance of a mobile home space rental agreement under this chapter other than a deposit which is exclusively in advance payment of rent.
    Sec. 35.  Section 562B.13, subsection 2, Code 2026, is amended to read as follows:
   2.  All rental deposits shall be held by the landlord for the tenant, who is a party to the agreement, in a bank, credit union, or savings and loan association which is insured by an agency of the federal government. Rental deposits shall not be commingled with the personal funds of the landlord. All rental deposits may be held in a trust account, which may be a common trust account and which may be an interest-bearing account. Any interest earned on a rental deposit during the first five years of a tenancy shall be the property of the landlord.
    Sec. 36.  Section 562B.13, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  9.  The court may, in any action on a rental agreement, award reasonable attorney fees to the prevailing party.
DIVISION XIII
NONJUDICIAL FORECLOSURE

    Sec. 37.  Section 654.18, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  5.  Actions under this section initiated on or after July 1, 2026, shall not be allowed for property consisting of a mobile home as defined in section 562B.7.
    Sec. 38.  Section 655A.9, Code 2026, is amended to read as follows:
   655A.9  Application of chapter.
   1.  This chapter does not apply to real estate used for an agricultural purpose as defined in section 535.13, or to a one or two family dwelling which is, at the time of the initiation of the foreclosure, occupied by a legal or equitable titleholder.
   2.  Actions under this chapter initiated on or after July 1, 2026, shall not be allowed for property consisting of a mobile home as defined in section 562B.7.
DIVISION XIV
RETALIATION

    Sec. 39.  Section 562B.32, subsection 1, paragraph a, Code 2026, is amended to read as follows:
   a.  The tenant has complained to a governmental agency charged with responsibility for enforcement of a building or housing code of a violation applicable to the manufactured home community or mobile home park materially affecting health and safety or other group relating to assisting tenants. For this subsection paragraph to apply, a complaint filed with a governmental body or group must be in good faith.
DIVISION XV
CAPITAL GAIN TAXES EXCLUSION

    Sec. 40.  Section 422.7, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  46.  a.  Subtract, to the extent included, the net capital gain from the sale or exchange of a mobile home park.
   b.  To qualify under this subsection, the sale must be made to any of the following:
   (1)  A tenants’ association or a mobile home park residents’ association.
   (2)  A nonprofit organization under section 501(c)(3) of the Internal Revenue Code that purchases a mobile home park on behalf of a tenants’ association or mobile home park residents’ association.
   (3)  A county housing authority.
   (4)  A municipal housing authority.
   c.  If the eligible business is a partnership, S corporation, limited liability company, or estate or trust electing to have the income taxed directly to the individual, an individual may claim the tax credit allowed. The amount claimed by the individual shall be based upon the pro rata share of the individual’s earnings of the partnership, S corporation, limited liability company, or estate or trust.
   d.  For the purpose of this subsection, “tenants’ association” or “mobile home park residents’ association” means a group of six or more tenants who reside in a mobile home park, have organized for the purpose of eventual purchase of the mobile home park, have established bylaws of the association, and have obtained the approval by vote of at least fifty-one percent of the residents of the mobile home park to purchase the mobile home park.
    Sec. 41.  Section 422.35, Code 2026, is amended by adding the following new subsection:
   NEW SUBSECTION.  15.  a.  Subtract, to the extent included, the net capital gain from the sale or exchange of a mobile home park.
   b.  To qualify under this subsection, the sale must be made to any of the following:
   (1)  A tenants’ association or a mobile home park residents’ association.
   (2)  A nonprofit organization under section 501(c)(3) of the Internal Revenue Code that purchases a mobile home park on behalf of a tenants’ association or mobile home park residents’ association.
   (3)  A county housing authority.
   (4)  A municipal housing authority.
   c.  For the purpose of this subsection, “tenants’ association” or “mobile home park residents’ association” means a group of six or more tenants who reside in a mobile home park, have organized for the purpose of eventual purchase of the mobile home park, have established bylaws of the association, and have obtained the approval by vote of at least fifty-one percent of the residents of the mobile home park to purchase the mobile home park.
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 property law.
   GROUNDS FOR TERMINATION OF TENANCY. The bill prohibits a landlord from terminating a tenancy unless the tenant acts in material noncompliance with the rental agreement, commits a material violation of the manufactured home community or mobile home park rules or regulations, or commits any other violation of Code chapter 562B for which termination is a remedy; or for a legitimate and material business reason, the impact of which is not specific to one tenant; or due to a change in the use of the land, and such change is grounds for termination or nonrenewal under the rental agreement.
   This division of the bill takes effect upon enactment and applies to terminations of tenancies on or after that date.
   CONSUMER FRAUD. The bill provides that a violation of Code chapter 562B by a landlord or the landlord’s agent is an unlawful practice under Code section 714.16, governing consumer frauds. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation.
   This division of the bill takes effect upon enactment and applies to violations of Code chapter 562B occurring on or after that date.
   RENT INCREASES. The bill strikes changes to the definition of “rent” made by the general assembly in 2022 and modifies provisions governing an increase in the amount of rent paid by a tenant. The bill prohibits a landlord from increasing rent unless the tenant is notified in writing of the rent increase at least 180 days before the effective date of the rent increase. The bill further provides that the effective date of any rent increase shall not be less than one year from either the effective date of the most recent rent increase or the beginning of the tenancy, whichever is later.
   A landlord may increase the amount of rent due by any tenant in an amount greater than the average annual increase of the consumer price index for all urban consumers in the midwest region for the most recently available preceding 36-month period, if the landlord demonstrates a number of conditions set forth in the bill. The bill also requires the written notice of a rent increase provided to the tenant to include the specific reasons and justifications for the increase. A decrease in the number or quality of amenities, services, or utilities provided under the rental agreement without a corresponding and proportionate reduction in rent shall be considered a rent increase for the purposes of Code chapter 562B.
   This division of the bill takes effect upon enactment and includes applicability provisions for certain requirements related to rent increases.
   LANDLORD REMEDIES AND PROCEDURES. Current law caps late fees on rental agreements in which rent is greater than $700 per month at $20 per day and $100 per month. The bill allows a rental agreement to provide for late fees not to exceed 2 percent of the rent per day and 10 percent of the rent per month when rent exceeds $1,400 per month. The bill undoes changes made to Code section 562B.10(7)(a) made by the general assembly in 2022 relating occupancy by heirs and personal representatives of a decedent’s estate.
   MANUFACTURED HOUSING PROGRAM FUND. Under current law, the manufactured housing program fund is used for the purpose of providing funding to financial institutions or other lenders to finance the purchase by an individual of a compliant manufactured home. The bill strikes language providing that the fund is designed exclusively for manufactured homes sited on leased land.
   TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE. The bill amends Code section 562B.25, relating to actions by a landlord for noncompliance with a rental agreement by a tenant or failure to pay rent, by establishing authority and procedures similar to those under Code section 562A.24 (landlord’s noncompliance as defense to action for possession or rent —— uniform residential landlord and tenant Act). In a landlord’s action for possession based upon nonpayment of rent or in an action for rent where the tenant is in possession, the tenant may counterclaim for an amount which the tenant may recover under the rental agreement or Code chapter 562B, and pay into court all or part of the rent. If the defense or counterclaim by the tenant is without merit and is not raised in good faith, the landlord may recover reasonable attorney fees. Additionally, in an action for rent where the tenant is not in possession, the tenant may counterclaim but is not required to pay any rent into court.
   This division of the bill takes effect upon enactment and applies to actions for possession filed on or after that date.
   UTILITY CHARGES. The bill provides that a landlord that is responsible for payment of utilities being provided to the tenant shall not charge to the tenant an amount in excess of the actual cost of the utility and the failure of a tenant to pay utility charges that exceed the actual cost of the utility provided shall not be considered noncompliance with the rental agreement. In addition to the actual cost of the utility, the bill authorizes a landlord that is responsible for the payment of one or more utilities to impose a monthly utility administration fee to each tenant not to exceed $5 per month, regardless of the number of utilities being provided or the actual cost of the utilities being provided. The bill also provides that a violation of the limitation on utility charges is a violation of Code section 714H.3 (private right of action for consumer frauds).
   UNLAWFUL OUSTER. The bill amends Code section 562B.24 relating to a tenant’s remedies for a landlord’s unlawful ouster or exclusion or diminution of services. The bill adds reasonable attorney fees to the list of recoverable damages and provides that if the rental agreement is terminated, the landlord shall return all prepaid rent and security.
   This division of the bill takes effect upon enactment and applies to actions under Code section 562B.24 filed on or after that date.
   TENANT CORRECTING DEFICIENCIES. The bill provides that in any action by a landlord for possession based upon nonpayment of rent, proof by the tenant of certain actions set forth in the bill are a defense to any action or claim for possession by the landlord, and the amounts expended by the tenant in correcting the deficiencies shall be deducted from the amount claimed by the landlord as unpaid rent.
   This division of the bill takes effect upon enactment and applies to actions by a landlord for possession filed on or after that date.
   DENIAL OF RENTAL OR REFUSAL OF SALE. Code section 562B.19(3)(a) prohibits a landlord from denying rental unless the tenant or prospective tenant cannot conform to manufactured home community or park rules and regulations. The bill requires any such decision to conform to recognized principles, rules, and standards generally accepted by the professional manufactured home community or park industry to ensure the commercially reasonable safety and financial security of comparable manufactured home communities or parks. The bill also requires a landlord to deliver the decision in writing to the tenant or prospective tenant as soon as commercially feasible and to provide the basis for a denial in writing to the tenant or prospective tenant at the time of the decision. 
   Code section 562B.19(3)(c) prohibits a landlord from denying any resident of a manufactured home community or mobile home park the right to sell that person’s mobile home at a price of the person’s own choosing, but provides that the landlord has the right to approve the purchaser as a tenant but such permission may not be unreasonably withheld. The bill allows such permission to be withheld only for a legitimate business reason within the recognized principles, rules, and standards accepted by the industry. If the landlord refuses to approve the purchaser as a tenant, the landlord must provide a legitimate business reason for the refusal in writing to the resident.
   RENTAL AGREEMENT TERMS. The bill adds to the list of prohibited rental agreement provisions in Code section 562B.11 a provision requiring agreement to modify the physical characteristics or equipment of the mobile home, manufactured home, or modular home if such modification impairs the ability of the tenant to move the home, unless otherwise required by law or local ordinance.
   The bill prohibits rental agreements under Code chapter 562B from providing that the tenant or landlord does any of the following: (1) authorizes imposition of fines, penalties, or fees solely as a punishment or in amounts in excess of actual damages or costs incurred, (2) authorizes a person to confess judgment on a claim arising out of the rental agreement, and (3) authorizes prohibitions, limitations, additional deposits, or other restrictive policies that are not based on ordinary wear and tear or that are not based on community safety standards.
   The bill provides that a tenant may recover up to three months’ rent and attorney fees for a landlord’s knowing and willful use of a rental agreement containing prohibited provisions. The bill also removes the ability of the landlord to recover from the tenant for use of a rental agreement containing prohibited provisions.
   RENTAL DEPOSITS. The bill modifies the definition of “rental deposit” for purposes of Code chapter 562B, provides that the landlord is only entitled to the interest earned on the rental deposit for the first five years of the tenancy, and establishes authority for a court, in any action on a rental agreement, to award reasonable attorney fees to the prevailing party.
   NONJUDICIAL FORECLOSURE. The bill excludes mobile homes from the applicability of nonjudicial foreclosure provisions.
   RETALIATION. Code section 562B.32(1) generally provides that a landlord shall not retaliate by increasing rent or decreasing services or by bringing or threatening to bring an action for possession or by failing to renew a rental agreement after the exercise or assertion of several specified rights and remedies, including complaining to a governmental agency charged with responsibility for enforcement of a building or housing code of a violation applicable to the manufactured home community or mobile home park materially affecting health and safety. The bill instead provides that a landlord cannot retaliate against a tenant for filing a good-faith complaint with a governmental agency or other group relating to assisting tenants.
   CAPITAL GAIN TAX EXCLUSION. The bill creates a capital gain exclusion from sale of a mobile home park to certain entities set forth in the bill.