House File 2562 - Reprinted HOUSE FILE 2562 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HF 2441) (SUCCESSOR TO HF 833) (SUCCESSOR TO HF 442) (As Amended and Passed by the House April 5, 2022 ) A BILL FOR An Act relating to property law, including mobile homes and 1 manufactured housing, rental agreements, landlord and 2 tenant remedies for retaliation, wrongful failure to provide 3 essential services, rent increases, the sale of manufactured 4 home community or mobile home park, regulation by counties 5 and cities of continuing nonconforming uses of manufactured, 6 modular, and mobile homes, forcible entry and detainer 7 actions, abandoned mobile homes, and including effective 8 date and applicability provisions. 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 10 HF 2562 (3) 89 cm/jh/md

H.F. 2562 DIVISION I 1 RETALIATION 2 Section 1. Section 562B.32, subsection 1, paragraph d, Code 3 2022, is amended to read as follows: 4 d. For exercising any of the rights and remedies pursuant 5 to this chapter or chapter 216 . 6 Sec. 2. Section 562B.32, subsection 2, Code 2022, is amended 7 to read as follows: 8 2. If the landlord acts in violation of subsection 1 9 of this section , the tenant is entitled to the remedies 10 provided in section 562B.24 and has a defense in an action for 11 possession. In an action by or against the tenant, evidence 12 of a complaint within six months one year prior to the alleged 13 act of retaliation creates a presumption that the landlord’s 14 conduct was in retaliation. The presumption does not arise 15 if the tenant made the complaint after notice of termination 16 of the rental agreement. For the purpose of this subsection , 17 “presumption” means that the trier of fact must find the 18 existence of the fact presumed unless and until evidence is 19 introduced which would support a finding of its nonexistence. 20 DIVISION II 21 RENTAL AGREEMENTS 22 Sec. 3. Section 562B.7, subsection 10, Code 2022, is amended 23 to read as follows: 24 10. “Rent” means a payment to be made to the landlord under 25 the rental agreement , including base rent, utilities, late 26 fees, and other payments made by the tenant to the landlord 27 under the rental agreement . 28 Sec. 4. Section 562B.10, subsection 5, Code 2022, is amended 29 to read as follows: 30 5. Rental agreements shall be for a term of one year unless 31 otherwise specified in the rental agreement. Rental agreements 32 shall be canceled by at least sixty ninety days’ written notice 33 given by either party. A landlord shall not cancel a rental 34 agreement solely for the purpose of making the tenant’s mobile 35 -1- HF 2562 (3) 89 cm/jh/md 1/ 14

H.F. 2562 home space available for another mobile home. 1 Sec. 5. Section 562B.14, subsection 7, Code 2022, is amended 2 to read as follows: 3 7. Each tenant shall be notified, in writing, of any rent 4 increase at least sixty ninety days before the effective date. 5 Such effective date shall not be sooner than the expiration 6 date of the original rental agreement or any renewal or 7 extension thereof. 8 Sec. 6. EFFECTIVE DATE. This division of this Act, being 9 deemed of immediate importance, takes effect upon enactment. 10 Sec. 7. APPLICABILITY. This division of this Act applies to 11 rent increases first noticed under chapter 562B occurring on or 12 after the effective date of this division of this Act. 13 DIVISION III 14 DISCLOSURE OF UTILITY CHARGES 15 Sec. 8. Section 562B.14, subsection 6, Code 2022, is amended 16 to read as follows: 17 6. a. The landlord or any person authorized to enter into 18 a rental agreement on the landlord’s behalf shall provide a 19 written explanation of utility rates, charges and services to 20 the prospective tenant before the rental agreement is signed 21 unless the utility charges are paid by the tenant directly to 22 the utility company. 23 b. Tenants shall be notified of any increase in utility 24 rates or charges in the manner set forth in subsection 7 for 25 rent increases, unless the landlord does not receive at least 26 ninety days prior notice of such increase from the utility 27 provider, in which case no prior notice of the increase from 28 the landlord to the tenant is required for the increase to be 29 effective. 30 c. Nothing in this chapter shall authorize a landlord to 31 meter a premises contrary to applicable law, rule, or tariff, 32 or assess a utility charge to the tenant contrary to applicable 33 law, rule, or tariff. 34 DIVISION IV 35 -2- HF 2562 (3) 89 cm/jh/md 2/ 14

H.F. 2562 WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES 1 Sec. 9. NEW SECTION . 562B.23A Wrongful failure to supply 2 running water or essential services. 3 1. If contrary to the rental agreement or section 562B.16 4 the landlord deliberately or negligently fails to supply 5 running water or other essential services, the tenant may give 6 written notice to the landlord specifying the breach and may 7 do one of the following: 8 a. Procure reasonable amounts of water or other essential 9 services during the period of the landlord’s noncompliance and 10 deduct the actual and reasonable cost from the rent. 11 b. Recover damages based upon the diminution in the fair 12 market value of the mobile home space. 13 c. Recover any rent already paid for the period of the 14 landlord’s noncompliance which shall be reimbursed on a pro 15 rata basis. 16 2. If the tenant proceeds under this section, the tenant may 17 not proceed under section 562B.22 as to that breach. 18 3. The rights under this section do not arise until the 19 tenant has given notice to the landlord or if the condition was 20 caused by the deliberate or negligent act or omission of the 21 tenant, a member of the tenant’s family, or other person on the 22 premises with the consent of the tenant. 23 Sec. 10. EFFECTIVE DATE. This division of this Act, being 24 deemed of immediate importance, takes effect upon enactment. 25 DIVISION V 26 DENIAL OF RENTAL OR REFUSAL OF SALE 27 Sec. 11. Section 562B.19, subsection 3, paragraph c, Code 28 2022, is amended to read as follows: 29 c. Deny any resident of a manufactured home community 30 or mobile home park the right to sell that person’s mobile 31 home at a price of the person’s own choosing, but may reserve 32 the right to approve the purchaser of such mobile home as a 33 tenant but such permission may not be unreasonably withheld, 34 provided however, that the landlord may, in the event of a 35 -3- HF 2562 (3) 89 cm/jh/md 3/ 14

H.F. 2562 sale to a third party, in order to upgrade the quality of 1 the manufactured home community or mobile home park, require 2 that any mobile home in a rundown condition or in disrepair be 3 removed from the manufactured home community or park within 4 sixty days. If the landlord does not approve the purchaser as 5 a tenant, the landlord shall provide the purchaser with written 6 notice of such denial and the general reason for the denial, 7 but the landlord shall not be required to provide a specific 8 reason for the denial. 9 DIVISION VI 10 PROHIBITED RENTAL AGREEMENT PROVISION —— HOME EQUIPMENT 11 Sec. 12. Section 562B.11, subsection 1, Code 2022, is 12 amended by adding the following new paragraph: 13 NEW PARAGRAPH . e. Agrees to modify the mobile home, 14 manufactured home, or modular home in a way that would 15 substantially impair the ability of the tenant to move the 16 home from the mobile home space, unless such modification is 17 required by federal law, including but not limited to the 18 model manufactured home installation standards, 24 C.F.R. pt. 19 3285, the manufactured home construction and safety standards, 20 24 C.F.R. pt. 3280, or the manufactured home procedural and 21 enforcement regulations, 24 C.F.R. pt. 3282, or by state or 22 local law, the manufacturer’s installation instructions, any 23 requirement arising from the landlord’s financing of the home 24 or of the mobile home park or manufactured home community in 25 which the home is located, or unless such modification is 26 otherwise necessary for the safe and proper installation of the 27 home. 28 DIVISION VII 29 LANDLORD SALES 30 Sec. 13. NEW SECTION . 562B.17A Sale of mobile home by 31 landlord. 32 1. Any sale of a mobile home located in a manufactured home 33 community or mobile home park by a landlord or landlord’s agent 34 shall be by written agreement and the landlord shall, upon the 35 -4- HF 2562 (3) 89 cm/jh/md 4/ 14

H.F. 2562 buyer’s fulfillment of all payment and other terms under the 1 agreement, produce and assign the current certificate of title 2 obtained from the department of transportation. The agreement 3 shall state the basic terms of sale, including the total 4 cost of the mobile home, and, in the case of an installment 5 contract, finance charges, annual percentage rate, and the 6 frequency and amount of each installment payment. 7 2. If such sale does not comply with this section, the 8 court may award monetary or equitable relief, including voiding 9 the sale, and the buyer may recover damages incurred, amounts 10 paid as a rental deposit in excess of two months’ rent, and 11 reasonable attorney fees. 12 3. A claim under subsection 2 may be combined with an action 13 under chapter 648. 14 Sec. 14. Section 648.19, subsection 1, Code 2022, is amended 15 to read as follows: 16 1. An action under this chapter shall not be filed in 17 connection with any other action, with the exception of a claim 18 for rent or recovery as provided in section 555B.3 , 562A.24 , 19 562A.32 , 562B.17A, 562B.22 , 562B.25 , or 562B.27 , nor shall it 20 be made the subject of counterclaim. 21 DIVISION VIII 22 SALE OF MANUFACTURED HOME COMMUNITY OR MOBILE HOME PARK 23 Sec. 15. NEW SECTION . 562B.16A Sale of manufactured home 24 community or mobile home park —— notices. 25 Upon termination of the landlord’s interest in the 26 manufactured home community or mobile home park, the landlord’s 27 successor in interest shall have the same legal obligations, 28 rights, and remedies of the landlord, including with respect to 29 all rental agreements. 30 Sec. 16. APPLICABILITY. This division of this Act applies 31 to manufactured home community or mobile home park sale 32 transactions made on or after the effective date of this 33 division of this Act. 34 DIVISION IX 35 -5- HF 2562 (3) 89 cm/jh/md 5/ 14

H.F. 2562 REGULATION BY COUNTIES AND CITIES —— CONTINUING NONCONFORMING 1 USES 2 Sec. 17. Section 335.3, subsection 2, Code 2022, is amended 3 to read as follows: 4 2. a. When Except as provided in paragraph “b” , when there 5 is a replacement of a preexisting manufactured, modular, or 6 mobile home with another any other manufactured, modular, or 7 mobile home containing no more than the original number of 8 dwelling units, or a replacement of a preexisting site-built 9 dwelling unit with a manufactured, modular, or mobile home or 10 site-built dwelling unit, within a manufactured home community 11 or a mobile home park, the board of supervisors shall not 12 adopt or enforce any ordinance, regulation, or restriction , 13 or impose any conditions on the replacement home, home site 14 upon which the home sits, or the owner’s property that were not 15 required of the preexisting home, home site, or property, that 16 would prevent the continuance of the property owner’s lawful 17 nonconforming use that had existed relating to the preexisting 18 home unless any of the following apply: , home site upon which 19 the home sat, or the owner’s property. 20 b. Paragraph “a” does not apply if any of the following 21 conditions exist: 22 a. (1) A discontinuance is necessary for The replacement 23 of the preexisting home with the replacement home would 24 substantially increase the risk to the safety of life or 25 property. 26 b. (2) The property owner has discontinued and abandoned 27 the nonconforming use has been discontinued for the period 28 of time established by ordinance, unless such discontinuance 29 is caused by circumstances outside the control of the 30 property owner. The period of time so established shall be 31 not less than one year. For purposes of this subparagraph, 32 circumstances outside the control of the property owner 33 include floods, fires, destructive thunderstorm events such 34 as derechos and tornadoes, and similar catastrophic events 35 -6- HF 2562 (3) 89 cm/jh/md 6/ 14

H.F. 2562 causing widespread or localized severe property damage. For 1 purposes of this subparagraph, a property owner shall not be 2 considered to have discontinued and abandoned the nonconforming 3 use if the property owner demonstrates that the applicable home 4 site continues to be available for use as a home site for a 5 replacement home. 6 c. (3) The replacement results in the overall nature and 7 character of the present use being substantially or entirely 8 different from the original lawful preexisting nonconforming 9 use. 10 d. (4) The replacement results in an obstruction to a 11 shared driveway or shared sidewalk providing vehicular or 12 pedestrian access to other homes and uses unless the property 13 owner makes modifications to such shared driveway or sidewalk 14 that extinguishes such obstruction or the effects of such 15 obstruction. 16 Sec. 18. Section 414.1, subsection 1, paragraph c, Code 17 2022, is amended to read as follows: 18 c. (1) When Except when provided in subparagraph (2), when 19 there is a replacement of a preexisting manufactured, modular, 20 or mobile home with another any other manufactured, modular, 21 or mobile home containing no more than the original number of 22 dwelling units, or a replacement of a preexisting site-built 23 dwelling unit with a manufactured, modular, or mobile home or 24 site-built dwelling unit, within a manufactured home community 25 or a mobile home park, the city shall not adopt or enforce any 26 ordinance, regulation, or restriction , or impose any conditions 27 on the replacement home, home site upon which the home 28 sits, or the owner’s property that were not required of the 29 preexisting home, home site, or property, that would prevent 30 the continuance of the property owner’s lawful nonconforming 31 use that had existed relating to the preexisting home unless 32 any of the following apply: , home site upon which the home sat, 33 or the owner’s property. 34 (2) Subparagraph (1) does not apply if any of the following 35 -7- HF 2562 (3) 89 cm/jh/md 7/ 14

H.F. 2562 conditions exist: 1 (1) (a) A discontinuance is necessary for The replacement 2 of the preexisting home with the replacement home would 3 substantially increase the risk to the safety of life or 4 property. 5 (2) (b) The property owner has discontinued and abandoned 6 the nonconforming use has been discontinued for the period of 7 time established by ordinance, unless such discontinuance is 8 caused by circumstances outside the control of the property 9 owner. The period of time so established shall be not less 10 than one year. For purposes of this subparagraph division, 11 circumstances outside the control of the property owner 12 include floods, fires, destructive thunderstorm events such as 13 derechos and tornadoes, and similar catastrophic events causing 14 widespread or localized severe property damage. For purposes 15 of this subparagraph division, a property owner shall not be 16 considered to have discontinued and abandoned the nonconforming 17 use if the property owner demonstrates that the applicable home 18 site continues to be available for use as a home site for a 19 replacement home. 20 (3) (c) The replacement results in the overall nature and 21 character of the present use being substantially or entirely 22 different from the original lawful preexisting nonconforming 23 use. 24 (4) (d) The replacement results in an obstruction to a 25 shared driveway or shared sidewalk providing vehicular or 26 pedestrian access to other homes and uses unless the property 27 owner makes modifications to such shared driveway or sidewalk 28 that extinguishes such obstruction or the effects of such 29 obstruction. 30 DIVISION X 31 FORCIBLE ENTRY AND DETAINER 32 Sec. 19. Section 648.5, subsections 1 and 3, Code 2022, are 33 amended to read as follows: 34 1. a. An action for forcible entry and detainer shall 35 -8- HF 2562 (3) 89 cm/jh/md 8/ 14

H.F. 2562 be brought in a county where all or part of the premises is 1 located. Such an action shall be tried as an equitable action. 2 Upon receipt of the petition, the court shall set a date, time, 3 and place for hearing. The court shall set the date of hearing 4 no later than eight days from the filing date, except that the 5 court shall set a later hearing date no later than fifteen days 6 from the date of filing if the plaintiff requests or consents 7 to the later date of hearing. 8 b. The requirement regarding the setting of the initial 9 hearing in paragraph “a” is not a jurisdictional requirement and 10 does not affect the court’s subject matter jurisdiction to hear 11 the action for forcible entry and detainer. 12 3. Service of original notice by mail is deemed completed 13 four days after the notice is deposited in the mail and 14 postmarked for delivery, whether or not the recipient signs a 15 receipt for the original notice. In computing the time for 16 completion of service, the first day shall be excluded and the 17 final day shall be included regardless of whether the fourth 18 day is a Saturday, Sunday, or federal holiday. 19 DIVISION XI 20 ABANDONED MOBILE HOMES 21 Sec. 20. Section 555B.3, Code 2022, is amended to read as 22 follows: 23 555B.3 Action for abandonment —— jurisdiction. 24 A real property owner not requesting notification by the 25 sheriff as provided in section 555B.2 may bring an action 26 alleging abandonment in the court within the county where the 27 real property is located provided that there is no lien on 28 the mobile home or personal property other than a tax lien 29 pursuant to chapter 435 . The action shall be tried as an 30 equitable action. Unless commenced as a small claim, the 31 petition shall be presented to a district judge. Upon receipt 32 of the petition, either the court or the clerk of the district 33 court shall set a date for a hearing not later than fourteen 34 days from the date of the receipt of the petition , except where 35 -9- HF 2562 (3) 89 cm/jh/md 9/ 14

H.F. 2562 there is a lien on the mobile home or personal property other 1 than a tax lien, the court or the clerk of the district court 2 shall set a date for a hearing no sooner than twenty-five days 3 from the date of the receipt of the petition so as to allow for 4 service on the lienholder . 5 Sec. 21. Section 555B.4, Code 2022, is amended by adding the 6 following new subsections: 7 NEW SUBSECTION . 4. If a lien other than a tax lien exists 8 on the mobile home or personal property at the time an action 9 for abandonment is initiated, the personal service pursuant 10 to the Iowa rules of civil procedure shall be made upon the 11 lienholder no less than twenty days before the hearing. The 12 notice to the lienholder shall describe the mobile home and 13 shall state the docket, case number, date, and time at which 14 the hearing is scheduled, and the lienholder’s right to assert 15 a claim to the mobile home at the hearing. The notice shall 16 state that failure to assert a claim to the mobile home within 17 the judicial proceedings is deemed a waiver of all rights, 18 title, claims, and interest in the mobile home and deemed to 19 be consent to the sale or disposal of the mobile home. If 20 personal service cannot be completed in time to give the 21 lienholder the minimum notice required by this subsection, the 22 court may set a new hearing date. 23 NEW SUBSECTION . 5. In the event a tenant who was sole owner 24 of a mobile home dies during the term of the rental agreement 25 resulting in the mobile home being abandoned, service shall be 26 made in accordance with section 562B.10, subsection 7. 27 Sec. 22. Section 555B.8, subsections 2 and 3, Code 2022, are 28 amended to read as follows: 29 2. If Except as otherwise ordered by the court, if the 30 mobile home owner or other claimant asserts a claim to the 31 property, the judgment shall be satisfied before the mobile 32 home owner or other claimant may take possession of the mobile 33 home or personal property. 34 3. If no claim is asserted to the mobile home or personal 35 -10- HF 2562 (3) 89 cm/jh/md 10/ 14

H.F. 2562 property or if the judgment is not satisfied at the time of 1 entry, an order shall be entered allowing the real property 2 owner to sell or otherwise dispose of the mobile home and 3 personal property pursuant to section 555B.9 . If Except as 4 otherwise ordered by the court, if a claimant satisfies the 5 judgment at the time of entry, the court shall enter an order 6 permitting and directing the claimant to remove the mobile home 7 or personal property from its location within a reasonable time 8 to be fixed by the court. The court shall also determine the 9 amount of further rent or storage charges to be paid by the 10 claimant to the real property owner at the time of removal. 11 Sec. 23. Section 555B.9, subsections 1, 2, and 4, Code 2022, 12 are amended to read as follows: 13 1. Pursuant to an order for disposal under section 555B.8, 14 subsection 3 , the real property owner shall dispose of the 15 mobile home and personal property by public or private sale in 16 a commercially reasonable manner. If the personal property 17 owner , lienholder, or other claimant has asserted a claim 18 to the mobile home or personal property within the judicial 19 proceedings , that person shall be notified of the sale by 20 restricted certified mail not less than five days before the 21 sale. The notice is deemed given upon the mailing. The real 22 property owner may buy at any public sale, and if the mobile 23 home or personal property is of a type customarily sold in 24 a recognized market or is the subject of widely distributed 25 standard price quotations, the real property owner may buy at a 26 private sale. 27 2. A sale pursuant to subsection 1 transfers to the 28 purchaser for value, all of the mobile home owner’s rights 29 in the mobile home and personal property, and discharges the 30 real property owner’s interest in the mobile home and personal 31 property , and any tax lien , and any other lien . The purchaser 32 takes free of all rights and interests even though the real 33 property owner fails to comply with the requirements of this 34 chapter or of any judicial proceedings, if the purchaser acts 35 -11- HF 2562 (3) 89 cm/jh/md 11/ 14

H.F. 2562 in good faith. 1 4. Notwithstanding subsections 1 through 3 , the real 2 property owner may propose to retain the mobile home and 3 personal property in satisfaction of the judgment obtained 4 pursuant to section 555B.8 . Written notice of the proposal 5 shall be sent to the mobile home owner , lienholder, or other 6 claimant, if that person has asserted a claim to the mobile 7 home or personal property in the judicial proceedings. If 8 the real property owner receives objection in writing from 9 the mobile home owner , lienholder, or other claimant within 10 twenty-one days after the notice was sent, the real property 11 owner shall dispose of the mobile home and personal property 12 pursuant to subsection 1 . If no written objection is received 13 by the real property owner within twenty-one days after the 14 notice was sent, the mobile home and personal property may be 15 retained. Retention of the mobile home and personal property 16 discharges the judgment of the real property owner , and any tax 17 lien , and any other lien . 18 Sec. 24. Section 555B.9, subsection 3, Code 2022, is amended 19 by adding the following new paragraph: 20 NEW PARAGRAPH . 0c. Third, to satisfy any other lien 21 for which a claim was asserted pursuant to section 555B.4, 22 subsection 4. 23 Sec. 25. Section 562B.10, subsection 7, Code 2022, is 24 amended to read as follows: 25 7. a. If a tenant who was sole owner of a mobile home dies 26 during the term of a rental agreement then that person’s heirs 27 at law or legal the personal representative of the decedent’s 28 estate, or the landlord shall have the right to cancel the 29 tenant’s lease by giving sixty days’ written notice to the 30 person’s heirs at law or legal the personal representative 31 of the decedent’s estate, or to the landlord, whichever 32 is appropriate, and the heirs at law or the legal personal 33 representative of the decedent’s estate, shall have the same 34 rights, privileges and liabilities of the original tenant , 35 -12- HF 2562 (3) 89 cm/jh/md 12/ 14

H.F. 2562 provided that such heirs at law and personal representative 1 of the estate shall not have the right to occupy or otherwise 2 use the home or mobile home space as a tenant unless approved 3 by the landlord as a tenant. In the event the landlord, 4 after such a written notice is given and the tenant’s lease 5 is canceled, brings an action for forcible entry and detainer 6 or action for abandonment, the estate of the tenant and the 7 person’s located heirs at law or personal representative shall 8 be named as defendants in the action. The landlord may serve 9 notice upon such defendants pursuant to the method set forth 10 in section 562B.27A, subsection 1, paragraph “c” , or by mailing 11 notice by both regular mail and certified mail, as defined in 12 section 618.15, to the defendant’s last known address . 13 b. (1) If a tenant who was sole owner of a mobile home dies 14 during the term of a rental agreement resulting in the mobile 15 home being abandoned as provided in section 562B.27, subsection 16 1, and the landlord cannot, despite due diligence, locate such 17 a tenant’s heirs at law or personal representative, then the 18 landlord may bring an action for abandonment as provided in 19 section 555B.3, naming as defendants the estate of the tenant 20 and all unknown heirs at law of the tenant, and, upon the 21 landlord’s filing of an affidavit that personal service cannot 22 be had on any heirs at law, personal representative, or estate 23 of the tenant, the court shall permit original notice of such 24 action to be served by publication pursuant to subparagraph 25 (2). 26 (2) Publication of original notice shall be made once each 27 week for three consecutive weeks in a newspaper of general 28 circulation published in the county where the petition is 29 filed, pursuant to the Iowa rules of civil procedure. Service 30 is complete after the third consecutive weekly publication. 31 (3) In the event any tax lien or other liens exist on 32 the mobile home, the landlord may proceed with an action for 33 abandonment as provided in section 555B.3, except that the 34 notice shall be provided to the county treasurer as provided 35 -13- HF 2562 (3) 89 cm/jh/md 13/ 14

H.F. 2562 in section 555B.4, subsection 3, if a tax lien exists, and 1 personal service pursuant to the Iowa rules of civil procedure 2 shall be made upon any lienholder no less than twenty days 3 before the hearing. Any notice to a lienholder shall state 4 that failure to assert a claim to the mobile home is deemed a 5 waiver of all rights, title, claims, and interest in the mobile 6 home and is deemed consent to the sale or disposal of the 7 mobile home. If personal service upon the lienholder cannot 8 be completed in time to give the lienholder the minimum notice 9 required by this subsection, the court may set a new hearing 10 date. 11 -14- HF 2562 (3) 89 cm/jh/md 14/ 14