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House File 442 - IntroducedA Bill ForAn Act 1relating to property law by modifying provisions
2relating to rental properties, manufactured home
3communities, mobile home parks, and manufactured mobile
4home communities, modifying provisions governing actions
5relating to such properties, making penalties applicable,
6and including effective date and applicability provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2GROUNDS FOR TERMINATION OF TENANCY
3 Section 1. Section 562B.10, Code 2021, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. a. A landlord may only terminate a
6tenancy if the tenant engages in any of the following or for
7any of the following reasons:
8(1) A material noncompliance with the rental agreement.
9(2) A material violation of the manufactured home community
10or mobile home park rules or regulations.
11(3) Any other violation of this chapter for which
12termination is a remedy.
13(4) A legitimate and material business reason the impact of
14which is not specific to one tenant.
15(5) A change in the use of the land if change in the use
16of the land is included in the rental agreement as grounds for
17termination or nonrenewal.
18b. A landlord may, upon providing ninety-day prior written
19notice, elect to not renew a tenancy for any reason not
20otherwise prohibited by law.
21c. If the landlord presents evidence of written notice to a
22tenant on at least three occasions, each notice dated not less
23than ten days apart, of a condition identified in paragraph
24“a”, subparagraph (1), (2), or (3), such evidence creates a
25presumption of the existence of the condition unless and until
26evidence is introduced which would support a finding of the
27condition’s nonexistence.
28 Sec. 2. EFFECTIVE DATE. This division of this Act, being
29deemed of immediate importance, takes effect upon enactment.
30 Sec. 3. APPLICABILITY. This division of this Act applies
31to landlord decisions to not renew tenancies on or after the
32effective date of this division of this Act.
33DIVISION II
34RETALIATION
35 Sec. 4. Section 562B.32, subsection 1, paragraph d, Code
-1-12021, is amended to read as follows:
2d. For exercising any of the rights and remedies pursuant
3to this chapter or chapter 216.
4 Sec. 5. Section 562B.32, subsection 2, Code 2021, is amended
5to read as follows:
62. If the landlord acts in violation of subsection 1
7of this section, the tenant is entitled to the remedies
8provided in section 562B.24 and has a defense in an action for
9possession. In an action by or against the tenant, evidence
10of a complaint within six months one year prior to the alleged
11act of retaliation creates a presumption that the landlord’s
12conduct was in retaliation. The presumption does not arise
13if the tenant made the complaint after notice of termination
14of the rental agreement. For the purpose of this subsection,
15“presumption” means that the trier of fact must find the
16existence of the fact presumed unless and until evidence is
17introduced which would support a finding of its nonexistence.
18 Sec. 6. EFFECTIVE DATE. This division of this Act, being
19deemed of immediate importance, takes effect upon enactment.
20DIVISION III
21CONSUMER FRAUD
22 Sec. 7. Section 562B.4, Code 2021, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 3. A violation of this chapter by a
25landlord, or an agent of the landlord, is an unlawful practice
26under section 714.16.
27 Sec. 8. Section 714.16, subsection 2, Code 2021, is amended
28by adding the following new paragraph:
29 NEW PARAGRAPH. q. It is an unlawful practice for a landlord
30or the landlord’s agent to violate any of the provisions of
31chapter 562B.
32 Sec. 9. EFFECTIVE DATE. This division of this Act, being
33deemed of immediate importance, takes effect upon enactment.
34 Sec. 10. APPLICABILITY. This division of this Act applies
35to violations of chapter 562B occurring on or after the
-2-1effective date of this division of this Act.
2DIVISION IV
3RENT INCREASES
4 Sec. 11. Section 562B.14, subsection 7, Code 2021, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
77. a. A landlord shall not increase the amount of rent due
8by any tenant in a manufactured home community or mobile home
9park unless the tenant is notified, in writing, of the rent
10increase at least one hundred twenty days before the effective
11date of the rent increase. The effective date of any increase
12in the amount of rent shall not be less than one year after
13either the effective date of the most recent rent increase or
14the beginning of the tenancy, whichever is later.
15b. A decrease in the number or quality of amenities,
16services, or utilities provided under the rental agreement
17without a corresponding and proportionate reduction in rent
18shall be considered a rent increase for the purposes of this
19chapter.
20 Sec. 12. EFFECTIVE DATE. This division of this Act, being
21deemed of immediate importance, takes effect upon enactment.
22 Sec. 13. APPLICABILITY. This division of this Act applies
23to rent increases under chapter 562B occurring on or after the
24effective date of this division of this Act.
25DIVISION V
26MANUFACTURED HOUSING PROGRAM FUND
27 Sec. 14. Section 16.45, subsection 1, Code 2021, is amended
28to read as follows:
291. A manufactured housing program fund is created within
30the authority to further the goal of providing affordable
31housing to Iowans. The moneys in the fund are to be used for
32the purpose of providing funding to financial institutions or
33other lenders to finance the purchase by an individual of a
34manufactured home that is in compliance with all laws, rules,
35and standards that are applicable to manufactured homes and
-3-1manufactured housing. The manufactured housing program fund
2is designed exclusively for manufactured homes sited on leased
3land.
4DIVISION VI
5TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE
6 Sec. 15. Section 562B.25, Code 2021, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 5. a. In an action for possession based
9upon nonpayment of the rent or in an action for rent where the
10tenant is in possession, the tenant may counterclaim for an
11amount which the tenant may recover under the rental agreement
12or this chapter. In that event, the court from time to time
13may order the tenant to pay into court all or part of the rent
14accrued and thereafter accruing, and shall determine the amount
15due to each party. The party to whom a net amount is owed
16shall be paid first from the money paid into court, and the
17balance by the other party. If rent does not remain due after
18application of this section, judgment shall be entered for
19the tenant in the action for possession. If the defense or
20counterclaim by the tenant is without merit and is not raised
21in good faith, the landlord may recover reasonable attorney
22fees.
23b. In an action for rent where the tenant is not in
24possession, the tenant may counterclaim as provided in
25paragraph “a”, but the tenant is not required to pay any rent
26into court.
27 Sec. 16. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 17. APPLICABILITY. This division of this Act applies
30to actions for possession filed on or after the effective date
31of this division of this Act.
32DIVISION VII
33DISCLOSURE OF UTILITY CHARGES
34 Sec. 18. Section 562B.14, subsection 6, Code 2021, is
35amended to read as follows:
-4- 16. a. The landlord or any person authorized to enter into
2a rental agreement on the landlord’s behalf shall provide a
3written explanation of utility rates, charges and services to
4the prospective tenant before the rental agreement is signed
5unless the utility charges are paid by the tenant directly to
6the utility company.
7b. If a landlord obtains a utility service from a utility
8provider and furnishes the utility to the tenant and the
9landlord’s charge to the tenant is based upon the utility
10provider’s charge or rate for the use of such utility to
11consumers, an increase in the landlord’s charge to a tenant
12for the utility that corresponds to the same increase in the
13utility provider’s charge or rate to the landlord shall be
14effective thirty days after the landlord provides written
15notice of such increase to the tenant, unless the landlord does
16not receive at least sixty days’ prior notice of such increase
17from the utility provider in which case no prior notice of the
18increase from the landlord to the tenant is required for the
19increase to be effective.
20DIVISION VIII
21FURNISHING OF WATER AND UTILITY CHARGES
22 Sec. 19. Section 423.3, subsection 103, Code 2021, is
23amended to read as follows:
24103. a. (1) The sales price from the sale or furnishing by
25a water utility of a water service in the state to consumers or
26users.
27(2) Water service furnished by a mobile home park that does
28not engage in the sale of water service. For purposes of this
29subsection, a mobile home park does not engage in the sale of
30water service if all of the following apply:
31(a) The water service is not furnished to tenants for a
32separately itemized price.
33(b) The water service is not otherwise identifiable from
34an invoice, bill, catalogue, price list, rate card, receipt,
35agreement, or other similar document, including where the total
-5-1sales price increases when water service is included in the
2sale to tenants.
3(c) The water service is incidental to the rental of real
4property.
5b. For purposes of this subsection:
6(1) “Mobile home park” means the same as defined in section
7562B.7.
8(1) (2) “Water service” means the delivery of water by
9piped distribution system.
10(2) (3) “Water utility” means a public utility as defined
11in section 476.1 that furnishes water by piped distribution
12system to the public for compensation.
13 Sec. 20. Section 423G.4, Code 2021, is amended by striking
14the section and inserting in lieu thereof the following:
15423G.4 Exemptions.
16There is exempted from the tax imposed by this chapter the
17following:
181. The sales price from transactions exempt from state
19sales tax under section 423.3. However, the sales price from
20transactions exempt from state sales tax under section 423.3,
21subsection 103, shall not be exempt unless as provided in
22subsection 2 or 3.
232. a. The sales price from the sale or furnishing of water
24by a mobile home park through a piped distribution system
25maintained by the mobile home park, to a consumer or user of
26water who is a tenant, if all of the following apply:
27(1) The water was obtained from a water utility.
28(2) A tax was imposed by this chapter on the sales price
29from the sale or furnishing of water by a water utility to the
30mobile home park based upon readings of the master meter of the
31mobile home park.
32(3) The tenant is not charged for water by the mobile home
33park in an amount that is more than the rate the tenant would be
34charged for consuming or using water from the water utility,
35plus an administrative fee under section 562B.16, subsection 3,
-6-1not to exceed five dollars per month.
2b. As used in this section:
3(1) “Master meter” means a single meter used in determining
4the amount of water provided to a mobile home park.
5(2) “Mobile home park” means the same as defined in section
6562B.7 and also includes a “manufactured home community”, as
7defined in section 562B.7.
8(3) “Piped distribution system” includes a submetered
9distribution system.
10(4) “Tenant” means the same as defined in section 562B.7.
11(5) “Water utility” means a public utility as defined in
12section 476.1 that furnishes water by a piped distribution
13system to the public for compensation.
143. Water service furnished by a mobile home park that does
15not engage in the sale of water service. For purposes of this
16subsection, a mobile home park does not engage in the sale of
17water service if all of the following apply:
18a. The water service is not furnished to tenants for a
19separately itemized price.
20b. The water service is not otherwise identifiable from
21an invoice, bill, catalogue, price list, rate card, receipt,
22agreement, or other similar document, including where the total
23sales price increases when water service is included in the
24sale to tenants.
25c. The water service is incidental to the rental of real
26property.
27 Sec. 21. Section 455B.171, subsection 26, Code 2021, is
28amended to read as follows:
2926. “Public water supply system” means, except as provided
30in section 455B.200, a system for the provision to the public
31of piped water for human consumption, if the system has at
32least fifteen service connections or regularly serves at least
33twenty-five individuals. The term includes any source of
34water and any collection, treatment, storage, and distribution
35facilities under control of the operator of the system and used
-7-1primarily in connection with the system, and any collection or
2pretreatment storage facilities not under such control which
3are used primarily in connection with the system.
4 Sec. 22. NEW SECTION. 455B.200 Mobile home parks.
51. As used in this section:
6a. “Mobile home park” means the same as defined in section
7423G.4.
8b. “Tenant” means the same as defined in section 562B.7.
9c. “Water utility” means a public utility as defined in
10section 476.1 that furnishes water by a piped distribution
11system to the public for compensation.
122. For purposes of this part 1, a mobile home park shall
13not be considered a public water supply system if the mobile
14home park sells or furnishes water to a tenant and all of the
15following apply:
16a. The water was obtained from a water utility prior to
17selling or furnishing the water to a tenant.
18b. The tenant is not charged more than the rate the tenant
19would be charged for consuming or using water from the water
20utility, plus an administrative fee under section 562B.16,
21subsection 3, not to exceed five dollars per month.
22 Sec. 23. Section 562B.14, subsection 6, Code 2021, is
23amended to read as follows:
246. The landlord or any person authorized to enter into
25a rental agreement on the landlord’s behalf shall provide
26a written explanation of utility rates, fees, charges, and
27services, subject to section 562B.16, subsection 3, to the
28prospective tenant before the rental agreement is signed unless
29the utility charges are paid by the tenant directly to the
30utility company.
31 Sec. 24. Section 562B.16, Code 2021, is amended by adding
32the following new subsection:
33 NEW SUBSECTION. 3. A landlord that is responsible for
34payment of utilities being provided to the tenant shall not
35charge to the tenant an amount in excess of the actual cost of
-8-1the utility and as specified in writing under section 562B.14,
2subsection 6. However, in addition to the actual cost of the
3utility, a landlord that is responsible for the payment of one
4or more utilities being provided to the tenant may impose a
5monthly utility administration fee to each tenant not to exceed
6five dollars per month.
7 Sec. 25. Section 562B.25, Code 2021, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 2A. The failure of a tenant to pay utility
10charges that exceed the actual cost of the utility provided
11as required by section 562B.16, subsection 3, shall not be
12considered noncompliance with the rental agreement.
13DIVISION IX
14UNLAWFUL OUSTER
15 Sec. 26. Section 562B.24, Code 2021, is amended to read as
16follows:
17562B.24 Tenant’s remedies for landlord’s unlawful ouster,
18exclusion or diminution of services.
19If the landlord unlawfully removes or excludes the tenant
20from the manufactured home community or mobile home park or
21willfully diminishes services to the tenant by interrupting
22or causing the interruption of electric, gas, water, or
23other essential service to the tenant, the tenant may recover
24possession, require the restoration of essential services or
25terminate the rental agreement and, in either case, recover an
26amount not to exceed two months’ periodic rent, and twice the
27actual damages sustained by the tenant, and reasonable attorney
28fees. If the rental agreement is terminated, the landlord
29shall return all prepaid rent and security.
30 Sec. 27. EFFECTIVE DATE. This division of this Act, being
31deemed of immediate importance, takes effect upon enactment.
32 Sec. 28. APPLICABILITY. This division of this Act applies
33to actions under section 562B.24 filed on or after the
34effective date of this division of this Act.
35DIVISION X
-9-1WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES
2 Sec. 29. NEW SECTION. 562B.23A Wrongful failure to supply
3running water or essential services.
41. If contrary to the rental agreement or section 562B.16
5the landlord deliberately or negligently fails to supply
6running water or other essential services, the tenant may give
7written notice to the landlord specifying the breach and may
8do one of the following:
9a. Procure reasonable amounts of water or other essential
10services during the period of the landlord’s noncompliance and
11deduct the actual and reasonable cost from the rent.
12b. Recover damages based upon the diminution in the fair
13market value of the mobile home space.
14c. Recover any rent already paid for the period of the
15landlord’s noncompliance which shall be reimbursed on a pro
16rata basis.
172. If the tenant proceeds under this section, the tenant may
18not proceed under section 562B.22 as to that breach.
193. The rights under this section do not arise until the
20tenant has given notice to the landlord or if the condition was
21caused by the deliberate or negligent act or omission of the
22tenant, a member of the tenant’s family, or other person on the
23premises with the consent of the tenant.
24 Sec. 30. EFFECTIVE DATE. This division of this Act, being
25deemed of immediate importance, takes effect upon enactment.
26 Sec. 31. APPLICABILITY. This division of this Act applies
27to actions under section 562B.23A filed on or after the
28effective date of this division of this Act.
29DIVISION XI
30DENIAL OF RENTAL OR REFUSAL OF SALE
31 Sec. 32. Section 562B.19, subsection 3, paragraphs a and c,
32Code 2021, are amended to read as follows:
33a. Deny rental unless the tenant or prospective tenant
34cannot conform to manufactured home community or park rules
35and regulations. A decision to deny rental shall conform
-10-1to recognized principles, rules, and standards generally
2accepted by the professional manufactured home community or
3park industry to ensure the commercially reasonable safety and
4financial security of comparable manufactured home communities
5or mobile home parks. A landlord shall deliver the decision
6in writing to the tenant or prospective tenant as soon as
7commercially feasible and shall provide the basis for a denial
8in writing to the tenant or prospective tenant at the time of
9the decision.
10c. Deny any resident of a manufactured home community
11or mobile home park the right to sell that person’s mobile
12home at a price of the person’s own choosing, but may reserve
13the right to approve the purchaser of such mobile home as
14a tenant but such permission shall only be withheld for a
15legitimate business reason within the recognized principles,
16rules, and standards described in paragraph “a”, and may not be
17unreasonably withheld, provided however, that the landlord may,
18in the event of a sale to a third party, in order to upgrade
19the quality of the manufactured home community or mobile home
20park, require that any mobile home in a rundown condition or in
21disrepair be removed from the manufactured home community or
22park within sixty days. If the landlord refuses to approve the
23purchaser of the mobile home as a tenant, a legitimate business
24reason for the refusal shall be provided in writing to the
25resident who is selling the mobile home.
26DIVISION XII
27PROHIBITED RENTAL AGREEMENT PROVISION — HOME EQUIPMENT
28 Sec. 33. Section 562B.11, subsection 1, Code 2021, is
29amended by adding the following new paragraph:
30 NEW PARAGRAPH. e. Agrees to modify the mobile home,
31manufactured home, or modular home in a way that would
32substantially impair the ability of the tenant to move the
33home from the mobile home space, unless such modification is
34required by federal law, including but not limited to the
35model manufactured home installation standards, 24 C.F.R. pt.
-11-13285, the manufactured home construction and safety standards,
224 C.F.R. pt.3280, or the manufactured home procedural and
3enforcement regulations, 24 C.F.R. pt.3282, or by state or
4local law, the manufacturer’s installation instructions, any
5requirement arising from the landlord’s financing of the home
6or of the mobile home park or manufactured home community in
7which the home is located, or unless such modification is
8otherwise necessary for the safe and proper installation of the
9home.
10DIVISION XIII
11RENTAL AGREEMENT TERMS
12 Sec. 34. Section 562B.11, subsection 1, Code 2021, is
13amended by adding the following new paragraphs:
14 NEW PARAGRAPH. f. Authorizes imposition of fines,
15penalties, or fees solely as a punishment or in amounts in
16excess of actual damages or costs incurred.
17 NEW PARAGRAPH. g. Authorizes a person to confess judgment
18on a claim arising out of the rental agreement.
19 NEW PARAGRAPH. h. Authorizes prohibitions, limitations,
20additional deposits, or other restrictive policies that are
21not based on ordinary wear and tear expected to occur during a
22tenancy or that are not based on community safety standards.
23 Sec. 35. Section 562B.11, subsection 2, Code 2021, is
24amended to read as follows:
252. A provision prohibited by subsection 1 included in a
26rental agreement is unenforceable. If a landlord or tenant
27 knowingly and willfully uses a rental agreement containing
28provisions known to be prohibited by this chapter, the other
29party tenant may recover actual damages sustained by the tenant
30and not more than three months’ periodic rent and reasonable
31attorney fees.
32DIVISION XIV
33LANDLORD SALES
34 Sec. 36. NEW SECTION. 562B.17A Sale of mobile home by
35landlord.
-12- 11. Any sale of a mobile home located in a manufactured
2home community or mobile home park by a landlord or landlord’s
3agent shall be by written agreement and the landlord shall
4produce and assign the current certificate of title obtained
5from the department of transportation. The agreement shall
6state the basic terms of sale, including the total cost of
7the mobile home, finance charges, annual percentage rate, and
8the frequency and amount of each installment payment. Such
9agreement shall comply with the finance charge rate limitation
10in section 103A.58, subsection 1.
112. Any such sale that does not comply with this section
12may be voided by the buyer and the buyer may recover damages
13incurred, amounts paid as a rental deposit in excess of two
14months’ rent for the mobile home, and reasonable attorney fees.
153. A claim under subsection 2 may be combined with an action
16under chapter 648.
17 Sec. 37. Section 648.19, subsection 1, Code 2021, is amended
18to read as follows:
191. An action under this chapter shall not be filed in
20connection with any other action, with the exception of a claim
21for rent or recovery as provided in section 555B.3, 562A.24,
22562A.32, 562B.17A, 562B.22, 562B.25, or 562B.27, nor shall it
23be made the subject of counterclaim.
24DIVISION XV
25NONJUDICIAL FORECLOSURE
26 Sec. 38. Section 654.18, Code 2021, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 5. Actions under this section initiated
29on or after July 1, 2021, shall not be allowed for property
30consisting of a mobile home as defined in section 562B.7.
31 Sec. 39. Section 655A.9, Code 2021, is amended to read as
32follows:
33655A.9 Application of chapter.
341. This chapter does not apply to real estate used for
35an agricultural purpose as defined in section 535.13, or to
-13-1a one or two family dwelling which is, at the time of the
2initiation of the foreclosure, occupied by a legal or equitable
3titleholder.
42. Actions under this chapter initiated on or after July 1,
52021, shall not be allowed for property consisting of a mobile
6home as defined in section 562B.7.
7 Sec. 40. EFFECTIVE DATE. This division of this Act, being
8deemed of immediate importance, takes effect upon enactment.
9DIVISION XVI
10SALE OF MANUFACTURED HOME COMMUNITY OR MOBILE HOME PARK
11 Sec. 41. NEW SECTION. 562B.16A Sale of manufactured home
12community or mobile home park — notices.
131. If a landlord offers for sale all or a portion of the
14manufactured home community or mobile home park, each current
15tenant of the community or park shall be given notice of the
16sale by certified mail not less than ninety days prior to the
17sale. Each notice must include the name of the proposed buyer,
18the business address and contact information of the proposed
19buyer, the proposed date of the sale, and a summary of each
20tenant’s rights under subsection 2.
212. Following the sale of all or a portion of the
22manufactured home community or mobile home park and upon
23renewal or extension of a tenancy in the manufactured home
24community or mobile home park in effect at the time of
25the sale, the landlord shall not change a term of a rental
26agreement, excluding a rent increase governed by the notice
27provision of section 562B.14, subsection 7, paragraph “a”,
28for the renewed or extended term of the tenancy, unless the
29tenant is notified in writing of the proposed change at least
30ninety days prior to the effective date of the change and such
31notice includes a summary of the tenant’s rights under this
32subsection.
33 Sec. 42. APPLICABILITY. This division of this Act applies
34to the sale of manufactured home communities and mobile home
35parks occurring on or after July 1, 2021.
-14-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill relates to property law by modifying provisions
5relating to rental properties, manufactured home communities,
6and mobile home parks, and modifying provisions governing
7actions relating to such properties.
8Division I of the bill amends Code section 562B.10 to provide
9that a landlord may only terminate a tenancy if the tenant acts
10in material noncompliance of the rental agreement, commits a
11material violation of the manufactured home community or mobile
12home park rules or regulations, or commits any other violation
13of Code chapter 562B which allows the remedy of termination,
14or for a legitimate and material business reason the impact
15of which is not specific to one tenant or a change in the use
16of the land if change in the use of the land is included in
17the rental agreement as grounds for termination or nonrenewal.
18A landlord may, upon providing 90-day written notice, elect
19not to renew a tenancy for any reason. If a landlord presents
20evidence of a written notice to a tenant on at least three
21occasions and each notice is dated at least 10 days apart and
22identifies a material noncompliance of the rental agreement,
23a material violation of the manufactured home community or
24mobile home park rules or regulations, or any other violation
25of Code chapter 562B which allows the remedy of termination,
26such evidence creates a presumption of the existence of the
27condition unless and until other evidence is introduced which
28would support otherwise.
29Division I of the bill takes effect upon enactment and
30applies to terminations of tenancies on or after the effective
31date of the division of the bill.
32Code section 562B.32(1) generally provides that a landlord
33shall not retaliate by increasing rent or decreasing services
34or by bringing or threatening to bring an action for possession
35or by failing to renew a rental agreement after the exercise or
-15-1assertion of several specified rights and remedies. Division
2II of the bill adds the exercise of any of the rights and
3remedies under Code chapter 216 (Iowa civil rights Act of 1965)
4to that enumerated list.
5Current law provides that evidence of a complaint within
6six months prior to the alleged act of retaliation creates a
7presumption that the landlord’s conduct was in retaliation.
8Division II of the bill changes that period of presumption from
9six months to one year.
10Division II of the bill takes effect upon enactment.
11Division III of the bill provides that a violation of Code
12chapter 562B by a landlord or the landlord’s agent is an
13unlawful practice under Code section 714.16, governing consumer
14frauds. Division III takes effect upon enactment and applies
15to violations of Code chapter 562B occurring on or after the
16effective date of the division.
17Division IV of the bill modifies provisions governing an
18increase in the amount of rent paid by a tenant. The bill
19prohibits a landlord from increasing the amount of rent unless
20the tenant is notified, in writing, of the rent increase at
21least 120 days before the effective date of the rent increase.
22The bill further provides that the effective date of any
23increase in the amount of rent shall not be less than one year
24from either the effective date of the most recent rent increase
25or the beginning of the tenancy, whichever is later.
26The bill also specifies that a decrease in the number or
27quality of amenities, services, or utilities provided under
28the rental agreement without a corresponding and proportionate
29reduction in rent shall be considered a rent increase for the
30purposes of the Code chapter.
31Division IV of the bill takes effect upon enactment.
32Division V of the bill amends Code section 16.45, which
33creates the manufactured housing program fund for the purpose
34of providing funding to financial institutions or other
35lenders to finance the purchase by an individual of a compliant
-16-1manufactured home. The bill strikes language providing that
2the manufactured housing program fund is designed exclusively
3for manufactured homes sited on leased land.
4Division VI of the bill amends Code section 562B.25
5relating to actions by a landlord for noncompliance with a
6rental agreement by a tenant or failure to pay rent. The
7bill establishes authority and procedures similar to those
8under Code section 562A.24 (uniform residential landlord and
9tenant Act) where in the case of a landlord’s action for
10possession based upon nonpayment of the rent or in an action
11for rent where the tenant is in possession, the tenant may
12counterclaim for an amount which the tenant may recover under
13the rental agreement or Code chapter 562B. In the event of
14such a counterclaim, the court from time to time may order the
15tenant to pay into court all or part of the rent accrued and
16thereafter accruing, and shall determine the amount due to each
17party. The party to whom a net amount is owed shall be paid
18first from the money paid into court, and the balance by the
19other party. If rent does not remain due after application
20of the Code section, judgment shall be entered for the tenant
21in the action for possession. If the defense or counterclaim
22by the tenant is without merit and is not raised in good
23faith, the landlord may recover reasonable attorney fees.
24Additionally, in an action for rent where the tenant is not in
25possession, the tenant may counterclaim but is not required to
26pay any rent into court.
27Division VI of the bill takes effect upon enactment and
28applies to actions for possession filed on or after the
29effective date of the division of the bill.
30Division VII provides that if a landlord obtains a utility
31service from a utility provider and furnishes that utility to
32the tenant and the utility provider increases the charge or
33rate to the landlord, the landlord may increase the charge or
34rate to the tenant after providing the tenant a 30-day written
35notice. If the landlord does not receive a 60-day prior notice
-17-1of a rate increase from the utility provider, the landlord is
2not required to provide the tenant with a written notice of the
3rate increase to be effective.
4Division VIII of the bill provides that water service
5furnished by a mobile home park that does not sell water
6service is exempt from the sales tax if all of the following
7apply: the water is not provided to tenants for a separately
8itemized price, the water service is not otherwise identifiable
9from an invoice, bill, catalogue, price list, rate card,
10receipt, agreement, or other similar document, or the water
11service, and the water service is incidental to the rental of
12real property. Division VIII of the bill defines “mobile home
13park” to mean the same as defined in Code section 562B.7.
14Division VIII of the bill provides exemptions to Code
15chapter 423G (water service tax), which include the sales
16price from transactions exempt from state sales tax under Code
17section 423.3. However, sales exempt pursuant to Code section
18423.3(103) are not exempt except as provided for in Code
19section 423G.4(2) or (3). Code section 423G.4(2) provides the
20sales price from the sale or furnishing of water by a mobile
21home provider to a tenant is exempt if all of the following
22apply: the water was obtained from a water utility, a tax was
23imposed by Code chapter 423 on the sales price from the sale or
24furnishing of water by a water utility to the mobile home park,
25and the tenant is not charged for water by the mobile home park
26in an amount that is more than the rate the tenant would be
27charged for consuming or using water from the water utility,
28plus the administration fee not to exceed $5 per month. Code
29section 423G.4(3) provides that water furnished by a mobile
30home park that does not engage in the sale of the water service
31is exempt if the water service is not furnished to tenants for
32a separately itemized price, the water service is not otherwise
33identifiable from an invoice, bill, catalogue, price list, rate
34card, receipt, agreement, or other similar document, and the
35water is incidental to the rental of real property.
-18- 1Division VIII of the bill provides that a mobile home park
2shall not be considered a public water supply system if the
3mobile home park sells or furnishes water to a tenant and that
4the water was obtained from a water utility prior to selling or
5furnishing the water to a tenant and the tenant is not charged
6more than the rate the tenant would be charged for consuming or
7using water from the water utility, plus an administrative fee
8not to exceed $5 a month.
9Division VIII of the bill provides that a landlord that is
10responsible for payment of utilities being provided to the
11tenant shall not charge to the tenant an amount in excess of
12the actual cost of the utility and the failure of a tenant to
13pay utility charges that exceed the actual cost of the utility
14provided shall not be considered noncompliance with the rental
15agreement. In addition to the actual cost of the utility, the
16bill authorizes a landlord that is responsible for the payment
17of one or more utilities being provided to the tenant to impose
18a monthly utility administration fee to each tenant not to
19exceed $5 per month. The amount of the utility administration
20fee may not exceed $5 per month regardless of the number of
21utilities being provided or the actual cost of the utilities
22being provided.
23Division IX of the bill amends Code section 562B.24 relating
24to a tenant’s remedies for a landlord’s unlawful ouster or
25exclusion or diminution of services. The bill adds reasonable
26attorney fees to the list of recoverable damages and provides
27that if the rental agreement is terminated, the landlord shall
28return all prepaid rent and security.
29Division IX of the bill takes effect upon enactment and
30applies to actions under Code section 562B.24 filed on or after
31the effective date of the division of the bill.
32Division X of the bill provides that if contrary to
33the rental agreement or Code section 562B.16 the landlord
34deliberately or negligently fails to supply running water
35or other essential services, the tenant may give written
-19-1notice to the landlord specifying the breach and may do one
2of the following: (1) procure reasonable amounts of water
3or the essential service during the period of the landlord’s
4noncompliance and deduct the actual and reasonable cost from
5the rent; (2) recover damages based upon the diminution in the
6fair market value of the mobile home or mobile home space;
7or (3) recover any rent already paid for the period of the
8landlord’s noncompliance which shall be reimbursed on a pro
9rata basis.
10Division X of the bill takes effect upon enactment and
11applies to actions under Code section 562B.23A filed on or
12after the effective date of the division of the bill.
13Code section 562B.19(3)(a) prohibits a landlord from denying
14rental unless the tenant or prospective tenant cannot conform
15to manufactured home community or park rules and regulations.
16Division XI requires any such decision to conform to recognized
17principles, rules, and standards generally accepted by the
18professional manufactured home community or park industry
19to ensure the commercially reasonable safety and financial
20security of comparable manufactured home communities or parks.
21Division XI also requires a landlord to deliver the decision
22in writing to the tenant or prospective tenant as soon as
23commercially feasible and shall provide the basis for a denial
24in writing to the tenant or prospective tenant at the time of
25the decision.
26Code section 562B.19(3)(c) prohibits a landlord from denying
27any resident of a manufactured home community or mobile home
28park the right to sell that person’s mobile home at a price of
29the person’s own choosing, but provides that the landlord has
30the right to approve the purchaser of such mobile home as a
31tenant but such permission may not be unreasonably withheld.
32Division XI allows such permission to be withheld only for a
33legitimate business reason within the recognized principles,
34rules, and standards accepted by the industry. If the landlord
35refuses to approve the purchaser of the mobile home as a
-20-1tenant, a legitimate business reason for the refusal shall be
2provided in writing to the resident who is selling the mobile
3home.
4Division XII of the bill adds to the list of prohibited
5rental agreement provisions in Code section 562B.11 a provision
6requiring agreement to modify the physical characteristics or
7equipment of the mobile home, manufactured home, or modular
8home if such modification impairs the ability of the tenant
9to move the home, unless otherwise required by law or local
10ordinance.
11Division XIII of the bill prohibits rental agreements under
12Code chapter 562B from providing that the tenant or landlord
13does any of the following: (1) authorizing a person to confess
14judgment on a claim arising out of the rental agreement; (2)
15authorizing imposition of fines, penalties, or fees solely
16as a punishment or in amounts in excess of actual damages or
17costs incurred; and (3) authorizing prohibitions, limitations,
18additional deposits, or other restrictive policies that are
19not based on ordinary wear and tear expected to occur during a
20tenancy or that are not based on community safety standards.
21Division XIII also amends language relating to the
22consequences and damages for using a rental agreement
23containing provisions known to be prohibited by Code chapter
24562B.
25Division XIV of the bill provides that any sale of a mobile
26home located in a manufactured home community or mobile home
27park by a landlord or landlord’s agent shall be by written
28agreement and the landlord must produce and assign the
29current certificate of title obtained from the department of
30transportation. The agreement shall state the basic terms of
31sale, including the total cost of the mobile home, finance
32charges, annual percentage rate, and the frequency and amount
33of each installment payment. Any such agreement shall also
34comply with Code section 103A.58(1), relating to maximum
35finance charges. The bill also authorizes a buyer to void
-21-1any such sale that does not comply with the requirements, to
2collect specified damage amounts, and to combine such an action
3with a forcible entry and detainer action under Code chapter
4648.
5Division XV of the bill prohibits the use of nonjudicial
6foreclosure proceedings initiated under Code section 654.18 or
7Code chapter 655A against property consisting of a mobile home,
8as defined in Code section 562B.7, on or after July 1, 2021.
9Division XV of the bill takes effect upon enactment.
10Division XVI of the bill provides that if a landlord offers
11for sale all or a portion of the manufactured home community
12or mobile home park, each current tenant shall be given notice
13of the sale by certified mail at least 90 days prior to the
14sale. The notice must include the name, business address, and
15contact information of the proposed buyer, the proposed date of
16the sale, and a summary of each tenant’s rights, which are that
17following a sale of, all or a portion of, the manufactured home
18community or mobile home park and upon renewal or extension of
19a tenancy in the manufactured home community or mobile home
20park in effect at the time of the sale, the landlord shall not
21change a term of a rental agreement, excluding a rent increase
22for the renewed or extended term of the tenancy, unless the
23tenant is notified in writing of the proposed change at least
2490 days prior to the effective date of the change and the
25notice includes a summary of the tenant’s rights.
26Division XVI of the bill applies to the sale of manufactured
27home communities and mobile home parks occurring on or after
28July 1, 2021.
-22-cm/jh
2relating to rental properties, manufactured home
3communities, mobile home parks, and manufactured mobile
4home communities, modifying provisions governing actions
5relating to such properties, making penalties applicable,
6and including effective date and applicability provisions.
7BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2GROUNDS FOR TERMINATION OF TENANCY
3 Section 1. Section 562B.10, Code 2021, is amended by adding
4the following new subsection:
5 NEW SUBSECTION. 4A. a. A landlord may only terminate a
6tenancy if the tenant engages in any of the following or for
7any of the following reasons:
8(1) A material noncompliance with the rental agreement.
9(2) A material violation of the manufactured home community
10or mobile home park rules or regulations.
11(3) Any other violation of this chapter for which
12termination is a remedy.
13(4) A legitimate and material business reason the impact of
14which is not specific to one tenant.
15(5) A change in the use of the land if change in the use
16of the land is included in the rental agreement as grounds for
17termination or nonrenewal.
18b. A landlord may, upon providing ninety-day prior written
19notice, elect to not renew a tenancy for any reason not
20otherwise prohibited by law.
21c. If the landlord presents evidence of written notice to a
22tenant on at least three occasions, each notice dated not less
23than ten days apart, of a condition identified in paragraph
24“a”, subparagraph (1), (2), or (3), such evidence creates a
25presumption of the existence of the condition unless and until
26evidence is introduced which would support a finding of the
27condition’s nonexistence.
28 Sec. 2. EFFECTIVE DATE. This division of this Act, being
29deemed of immediate importance, takes effect upon enactment.
30 Sec. 3. APPLICABILITY. This division of this Act applies
31to landlord decisions to not renew tenancies on or after the
32effective date of this division of this Act.
33DIVISION II
34RETALIATION
35 Sec. 4. Section 562B.32, subsection 1, paragraph d, Code
-1-12021, is amended to read as follows:
2d. For exercising any of the rights and remedies pursuant
3to this chapter or chapter 216.
4 Sec. 5. Section 562B.32, subsection 2, Code 2021, is amended
5to read as follows:
62. If the landlord acts in violation of subsection 1
7of this section, the tenant is entitled to the remedies
8provided in section 562B.24 and has a defense in an action for
9possession. In an action by or against the tenant, evidence
10of a complaint within six months one year prior to the alleged
11act of retaliation creates a presumption that the landlord’s
12conduct was in retaliation. The presumption does not arise
13if the tenant made the complaint after notice of termination
14of the rental agreement. For the purpose of this subsection,
15“presumption” means that the trier of fact must find the
16existence of the fact presumed unless and until evidence is
17introduced which would support a finding of its nonexistence.
18 Sec. 6. EFFECTIVE DATE. This division of this Act, being
19deemed of immediate importance, takes effect upon enactment.
20DIVISION III
21CONSUMER FRAUD
22 Sec. 7. Section 562B.4, Code 2021, is amended by adding the
23following new subsection:
24 NEW SUBSECTION. 3. A violation of this chapter by a
25landlord, or an agent of the landlord, is an unlawful practice
26under section 714.16.
27 Sec. 8. Section 714.16, subsection 2, Code 2021, is amended
28by adding the following new paragraph:
29 NEW PARAGRAPH. q. It is an unlawful practice for a landlord
30or the landlord’s agent to violate any of the provisions of
31chapter 562B.
32 Sec. 9. EFFECTIVE DATE. This division of this Act, being
33deemed of immediate importance, takes effect upon enactment.
34 Sec. 10. APPLICABILITY. This division of this Act applies
35to violations of chapter 562B occurring on or after the
-2-1effective date of this division of this Act.
2DIVISION IV
3RENT INCREASES
4 Sec. 11. Section 562B.14, subsection 7, Code 2021, is
5amended by striking the subsection and inserting in lieu
6thereof the following:
77. a. A landlord shall not increase the amount of rent due
8by any tenant in a manufactured home community or mobile home
9park unless the tenant is notified, in writing, of the rent
10increase at least one hundred twenty days before the effective
11date of the rent increase. The effective date of any increase
12in the amount of rent shall not be less than one year after
13either the effective date of the most recent rent increase or
14the beginning of the tenancy, whichever is later.
15b. A decrease in the number or quality of amenities,
16services, or utilities provided under the rental agreement
17without a corresponding and proportionate reduction in rent
18shall be considered a rent increase for the purposes of this
19chapter.
20 Sec. 12. EFFECTIVE DATE. This division of this Act, being
21deemed of immediate importance, takes effect upon enactment.
22 Sec. 13. APPLICABILITY. This division of this Act applies
23to rent increases under chapter 562B occurring on or after the
24effective date of this division of this Act.
25DIVISION V
26MANUFACTURED HOUSING PROGRAM FUND
27 Sec. 14. Section 16.45, subsection 1, Code 2021, is amended
28to read as follows:
291. A manufactured housing program fund is created within
30the authority to further the goal of providing affordable
31housing to Iowans. The moneys in the fund are to be used for
32the purpose of providing funding to financial institutions or
33other lenders to finance the purchase by an individual of a
34manufactured home that is in compliance with all laws, rules,
35and standards that are applicable to manufactured homes and
-3-1manufactured housing. The manufactured housing program fund
2is designed exclusively for manufactured homes sited on leased
3land.
4DIVISION VI
5TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE
6 Sec. 15. Section 562B.25, Code 2021, is amended by adding
7the following new subsection:
8 NEW SUBSECTION. 5. a. In an action for possession based
9upon nonpayment of the rent or in an action for rent where the
10tenant is in possession, the tenant may counterclaim for an
11amount which the tenant may recover under the rental agreement
12or this chapter. In that event, the court from time to time
13may order the tenant to pay into court all or part of the rent
14accrued and thereafter accruing, and shall determine the amount
15due to each party. The party to whom a net amount is owed
16shall be paid first from the money paid into court, and the
17balance by the other party. If rent does not remain due after
18application of this section, judgment shall be entered for
19the tenant in the action for possession. If the defense or
20counterclaim by the tenant is without merit and is not raised
21in good faith, the landlord may recover reasonable attorney
22fees.
23b. In an action for rent where the tenant is not in
24possession, the tenant may counterclaim as provided in
25paragraph “a”, but the tenant is not required to pay any rent
26into court.
27 Sec. 16. EFFECTIVE DATE. This division of this Act, being
28deemed of immediate importance, takes effect upon enactment.
29 Sec. 17. APPLICABILITY. This division of this Act applies
30to actions for possession filed on or after the effective date
31of this division of this Act.
32DIVISION VII
33DISCLOSURE OF UTILITY CHARGES
34 Sec. 18. Section 562B.14, subsection 6, Code 2021, is
35amended to read as follows:
-4- 16. a. The landlord or any person authorized to enter into
2a rental agreement on the landlord’s behalf shall provide a
3written explanation of utility rates, charges and services to
4the prospective tenant before the rental agreement is signed
5unless the utility charges are paid by the tenant directly to
6the utility company.
7b. If a landlord obtains a utility service from a utility
8provider and furnishes the utility to the tenant and the
9landlord’s charge to the tenant is based upon the utility
10provider’s charge or rate for the use of such utility to
11consumers, an increase in the landlord’s charge to a tenant
12for the utility that corresponds to the same increase in the
13utility provider’s charge or rate to the landlord shall be
14effective thirty days after the landlord provides written
15notice of such increase to the tenant, unless the landlord does
16not receive at least sixty days’ prior notice of such increase
17from the utility provider in which case no prior notice of the
18increase from the landlord to the tenant is required for the
19increase to be effective.
20DIVISION VIII
21FURNISHING OF WATER AND UTILITY CHARGES
22 Sec. 19. Section 423.3, subsection 103, Code 2021, is
23amended to read as follows:
24103. a. (1) The sales price from the sale or furnishing by
25a water utility of a water service in the state to consumers or
26users.
27(2) Water service furnished by a mobile home park that does
28not engage in the sale of water service. For purposes of this
29subsection, a mobile home park does not engage in the sale of
30water service if all of the following apply:
31(a) The water service is not furnished to tenants for a
32separately itemized price.
33(b) The water service is not otherwise identifiable from
34an invoice, bill, catalogue, price list, rate card, receipt,
35agreement, or other similar document, including where the total
-5-1sales price increases when water service is included in the
2sale to tenants.
3(c) The water service is incidental to the rental of real
4property.
5b. For purposes of this subsection:
6(1) “Mobile home park” means the same as defined in section
7562B.7.
8(1) (2) “Water service” means the delivery of water by
9piped distribution system.
10(2) (3) “Water utility” means a public utility as defined
11in section 476.1 that furnishes water by piped distribution
12system to the public for compensation.
13 Sec. 20. Section 423G.4, Code 2021, is amended by striking
14the section and inserting in lieu thereof the following:
15423G.4 Exemptions.
16There is exempted from the tax imposed by this chapter the
17following:
181. The sales price from transactions exempt from state
19sales tax under section 423.3. However, the sales price from
20transactions exempt from state sales tax under section 423.3,
21subsection 103, shall not be exempt unless as provided in
22subsection 2 or 3.
232. a. The sales price from the sale or furnishing of water
24by a mobile home park through a piped distribution system
25maintained by the mobile home park, to a consumer or user of
26water who is a tenant, if all of the following apply:
27(1) The water was obtained from a water utility.
28(2) A tax was imposed by this chapter on the sales price
29from the sale or furnishing of water by a water utility to the
30mobile home park based upon readings of the master meter of the
31mobile home park.
32(3) The tenant is not charged for water by the mobile home
33park in an amount that is more than the rate the tenant would be
34charged for consuming or using water from the water utility,
35plus an administrative fee under section 562B.16, subsection 3,
-6-1not to exceed five dollars per month.
2b. As used in this section:
3(1) “Master meter” means a single meter used in determining
4the amount of water provided to a mobile home park.
5(2) “Mobile home park” means the same as defined in section
6562B.7 and also includes a “manufactured home community”, as
7defined in section 562B.7.
8(3) “Piped distribution system” includes a submetered
9distribution system.
10(4) “Tenant” means the same as defined in section 562B.7.
11(5) “Water utility” means a public utility as defined in
12section 476.1 that furnishes water by a piped distribution
13system to the public for compensation.
143. Water service furnished by a mobile home park that does
15not engage in the sale of water service. For purposes of this
16subsection, a mobile home park does not engage in the sale of
17water service if all of the following apply:
18a. The water service is not furnished to tenants for a
19separately itemized price.
20b. The water service is not otherwise identifiable from
21an invoice, bill, catalogue, price list, rate card, receipt,
22agreement, or other similar document, including where the total
23sales price increases when water service is included in the
24sale to tenants.
25c. The water service is incidental to the rental of real
26property.
27 Sec. 21. Section 455B.171, subsection 26, Code 2021, is
28amended to read as follows:
2926. “Public water supply system” means, except as provided
30in section 455B.200, a system for the provision to the public
31of piped water for human consumption, if the system has at
32least fifteen service connections or regularly serves at least
33twenty-five individuals. The term includes any source of
34water and any collection, treatment, storage, and distribution
35facilities under control of the operator of the system and used
-7-1primarily in connection with the system, and any collection or
2pretreatment storage facilities not under such control which
3are used primarily in connection with the system.
4 Sec. 22. NEW SECTION. 455B.200 Mobile home parks.
51. As used in this section:
6a. “Mobile home park” means the same as defined in section
7423G.4.
8b. “Tenant” means the same as defined in section 562B.7.
9c. “Water utility” means a public utility as defined in
10section 476.1 that furnishes water by a piped distribution
11system to the public for compensation.
122. For purposes of this part 1, a mobile home park shall
13not be considered a public water supply system if the mobile
14home park sells or furnishes water to a tenant and all of the
15following apply:
16a. The water was obtained from a water utility prior to
17selling or furnishing the water to a tenant.
18b. The tenant is not charged more than the rate the tenant
19would be charged for consuming or using water from the water
20utility, plus an administrative fee under section 562B.16,
21subsection 3, not to exceed five dollars per month.
22 Sec. 23. Section 562B.14, subsection 6, Code 2021, is
23amended to read as follows:
246. The landlord or any person authorized to enter into
25a rental agreement on the landlord’s behalf shall provide
26a written explanation of utility rates, fees, charges, and
27services, subject to section 562B.16, subsection 3, to the
28prospective tenant before the rental agreement is signed unless
29the utility charges are paid by the tenant directly to the
30utility company.
31 Sec. 24. Section 562B.16, Code 2021, is amended by adding
32the following new subsection:
33 NEW SUBSECTION. 3. A landlord that is responsible for
34payment of utilities being provided to the tenant shall not
35charge to the tenant an amount in excess of the actual cost of
-8-1the utility and as specified in writing under section 562B.14,
2subsection 6. However, in addition to the actual cost of the
3utility, a landlord that is responsible for the payment of one
4or more utilities being provided to the tenant may impose a
5monthly utility administration fee to each tenant not to exceed
6five dollars per month.
7 Sec. 25. Section 562B.25, Code 2021, is amended by adding
8the following new subsection:
9 NEW SUBSECTION. 2A. The failure of a tenant to pay utility
10charges that exceed the actual cost of the utility provided
11as required by section 562B.16, subsection 3, shall not be
12considered noncompliance with the rental agreement.
13DIVISION IX
14UNLAWFUL OUSTER
15 Sec. 26. Section 562B.24, Code 2021, is amended to read as
16follows:
17562B.24 Tenant’s remedies for landlord’s unlawful ouster,
18exclusion or diminution of services.
19If the landlord unlawfully removes or excludes the tenant
20from the manufactured home community or mobile home park or
21willfully diminishes services to the tenant by interrupting
22or causing the interruption of electric, gas, water, or
23other essential service to the tenant, the tenant may recover
24possession, require the restoration of essential services or
25terminate the rental agreement and, in either case, recover an
26amount not to exceed two months’ periodic rent, and twice the
27actual damages sustained by the tenant, and reasonable attorney
28fees. If the rental agreement is terminated, the landlord
29shall return all prepaid rent and security.
30 Sec. 27. EFFECTIVE DATE. This division of this Act, being
31deemed of immediate importance, takes effect upon enactment.
32 Sec. 28. APPLICABILITY. This division of this Act applies
33to actions under section 562B.24 filed on or after the
34effective date of this division of this Act.
35DIVISION X
-9-1WRONGFUL FAILURE TO PROVIDE ESSENTIAL SERVICES
2 Sec. 29. NEW SECTION. 562B.23A Wrongful failure to supply
3running water or essential services.
41. If contrary to the rental agreement or section 562B.16
5the landlord deliberately or negligently fails to supply
6running water or other essential services, the tenant may give
7written notice to the landlord specifying the breach and may
8do one of the following:
9a. Procure reasonable amounts of water or other essential
10services during the period of the landlord’s noncompliance and
11deduct the actual and reasonable cost from the rent.
12b. Recover damages based upon the diminution in the fair
13market value of the mobile home space.
14c. Recover any rent already paid for the period of the
15landlord’s noncompliance which shall be reimbursed on a pro
16rata basis.
172. If the tenant proceeds under this section, the tenant may
18not proceed under section 562B.22 as to that breach.
193. The rights under this section do not arise until the
20tenant has given notice to the landlord or if the condition was
21caused by the deliberate or negligent act or omission of the
22tenant, a member of the tenant’s family, or other person on the
23premises with the consent of the tenant.
24 Sec. 30. EFFECTIVE DATE. This division of this Act, being
25deemed of immediate importance, takes effect upon enactment.
26 Sec. 31. APPLICABILITY. This division of this Act applies
27to actions under section 562B.23A filed on or after the
28effective date of this division of this Act.
29DIVISION XI
30DENIAL OF RENTAL OR REFUSAL OF SALE
31 Sec. 32. Section 562B.19, subsection 3, paragraphs a and c,
32Code 2021, are amended to read as follows:
33a. Deny rental unless the tenant or prospective tenant
34cannot conform to manufactured home community or park rules
35and regulations. A decision to deny rental shall conform
-10-1to recognized principles, rules, and standards generally
2accepted by the professional manufactured home community or
3park industry to ensure the commercially reasonable safety and
4financial security of comparable manufactured home communities
5or mobile home parks. A landlord shall deliver the decision
6in writing to the tenant or prospective tenant as soon as
7commercially feasible and shall provide the basis for a denial
8in writing to the tenant or prospective tenant at the time of
9the decision.
10c. Deny any resident of a manufactured home community
11or mobile home park the right to sell that person’s mobile
12home at a price of the person’s own choosing, but may reserve
13the right to approve the purchaser of such mobile home as
14a tenant but such permission shall only be withheld for a
15legitimate business reason within the recognized principles,
16rules, and standards described in paragraph “a”, and may not be
17unreasonably withheld, provided however, that the landlord may,
18in the event of a sale to a third party, in order to upgrade
19the quality of the manufactured home community or mobile home
20park, require that any mobile home in a rundown condition or in
21disrepair be removed from the manufactured home community or
22park within sixty days. If the landlord refuses to approve the
23purchaser of the mobile home as a tenant, a legitimate business
24reason for the refusal shall be provided in writing to the
25resident who is selling the mobile home.
26DIVISION XII
27PROHIBITED RENTAL AGREEMENT PROVISION — HOME EQUIPMENT
28 Sec. 33. Section 562B.11, subsection 1, Code 2021, is
29amended by adding the following new paragraph:
30 NEW PARAGRAPH. e. Agrees to modify the mobile home,
31manufactured home, or modular home in a way that would
32substantially impair the ability of the tenant to move the
33home from the mobile home space, unless such modification is
34required by federal law, including but not limited to the
35model manufactured home installation standards, 24 C.F.R. pt.
-11-13285, the manufactured home construction and safety standards,
224 C.F.R. pt.3280, or the manufactured home procedural and
3enforcement regulations, 24 C.F.R. pt.3282, or by state or
4local law, the manufacturer’s installation instructions, any
5requirement arising from the landlord’s financing of the home
6or of the mobile home park or manufactured home community in
7which the home is located, or unless such modification is
8otherwise necessary for the safe and proper installation of the
9home.
10DIVISION XIII
11RENTAL AGREEMENT TERMS
12 Sec. 34. Section 562B.11, subsection 1, Code 2021, is
13amended by adding the following new paragraphs:
14 NEW PARAGRAPH. f. Authorizes imposition of fines,
15penalties, or fees solely as a punishment or in amounts in
16excess of actual damages or costs incurred.
17 NEW PARAGRAPH. g. Authorizes a person to confess judgment
18on a claim arising out of the rental agreement.
19 NEW PARAGRAPH. h. Authorizes prohibitions, limitations,
20additional deposits, or other restrictive policies that are
21not based on ordinary wear and tear expected to occur during a
22tenancy or that are not based on community safety standards.
23 Sec. 35. Section 562B.11, subsection 2, Code 2021, is
24amended to read as follows:
252. A provision prohibited by subsection 1 included in a
26rental agreement is unenforceable. If a landlord or tenant
27 knowingly and willfully uses a rental agreement containing
28provisions known to be prohibited by this chapter, the other
29party tenant may recover actual damages sustained by the tenant
30and not more than three months’ periodic rent and reasonable
31attorney fees.
32DIVISION XIV
33LANDLORD SALES
34 Sec. 36. NEW SECTION. 562B.17A Sale of mobile home by
35landlord.
-12- 11. Any sale of a mobile home located in a manufactured
2home community or mobile home park by a landlord or landlord’s
3agent shall be by written agreement and the landlord shall
4produce and assign the current certificate of title obtained
5from the department of transportation. The agreement shall
6state the basic terms of sale, including the total cost of
7the mobile home, finance charges, annual percentage rate, and
8the frequency and amount of each installment payment. Such
9agreement shall comply with the finance charge rate limitation
10in section 103A.58, subsection 1.
112. Any such sale that does not comply with this section
12may be voided by the buyer and the buyer may recover damages
13incurred, amounts paid as a rental deposit in excess of two
14months’ rent for the mobile home, and reasonable attorney fees.
153. A claim under subsection 2 may be combined with an action
16under chapter 648.
17 Sec. 37. Section 648.19, subsection 1, Code 2021, is amended
18to read as follows:
191. An action under this chapter shall not be filed in
20connection with any other action, with the exception of a claim
21for rent or recovery as provided in section 555B.3, 562A.24,
22562A.32, 562B.17A, 562B.22, 562B.25, or 562B.27, nor shall it
23be made the subject of counterclaim.
24DIVISION XV
25NONJUDICIAL FORECLOSURE
26 Sec. 38. Section 654.18, Code 2021, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 5. Actions under this section initiated
29on or after July 1, 2021, shall not be allowed for property
30consisting of a mobile home as defined in section 562B.7.
31 Sec. 39. Section 655A.9, Code 2021, is amended to read as
32follows:
33655A.9 Application of chapter.
341. This chapter does not apply to real estate used for
35an agricultural purpose as defined in section 535.13, or to
-13-1a one or two family dwelling which is, at the time of the
2initiation of the foreclosure, occupied by a legal or equitable
3titleholder.
42. Actions under this chapter initiated on or after July 1,
52021, shall not be allowed for property consisting of a mobile
6home as defined in section 562B.7.
7 Sec. 40. EFFECTIVE DATE. This division of this Act, being
8deemed of immediate importance, takes effect upon enactment.
9DIVISION XVI
10SALE OF MANUFACTURED HOME COMMUNITY OR MOBILE HOME PARK
11 Sec. 41. NEW SECTION. 562B.16A Sale of manufactured home
12community or mobile home park — notices.
131. If a landlord offers for sale all or a portion of the
14manufactured home community or mobile home park, each current
15tenant of the community or park shall be given notice of the
16sale by certified mail not less than ninety days prior to the
17sale. Each notice must include the name of the proposed buyer,
18the business address and contact information of the proposed
19buyer, the proposed date of the sale, and a summary of each
20tenant’s rights under subsection 2.
212. Following the sale of all or a portion of the
22manufactured home community or mobile home park and upon
23renewal or extension of a tenancy in the manufactured home
24community or mobile home park in effect at the time of
25the sale, the landlord shall not change a term of a rental
26agreement, excluding a rent increase governed by the notice
27provision of section 562B.14, subsection 7, paragraph “a”,
28for the renewed or extended term of the tenancy, unless the
29tenant is notified in writing of the proposed change at least
30ninety days prior to the effective date of the change and such
31notice includes a summary of the tenant’s rights under this
32subsection.
33 Sec. 42. APPLICABILITY. This division of this Act applies
34to the sale of manufactured home communities and mobile home
35parks occurring on or after July 1, 2021.
-14-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill relates to property law by modifying provisions
5relating to rental properties, manufactured home communities,
6and mobile home parks, and modifying provisions governing
7actions relating to such properties.
8Division I of the bill amends Code section 562B.10 to provide
9that a landlord may only terminate a tenancy if the tenant acts
10in material noncompliance of the rental agreement, commits a
11material violation of the manufactured home community or mobile
12home park rules or regulations, or commits any other violation
13of Code chapter 562B which allows the remedy of termination,
14or for a legitimate and material business reason the impact
15of which is not specific to one tenant or a change in the use
16of the land if change in the use of the land is included in
17the rental agreement as grounds for termination or nonrenewal.
18A landlord may, upon providing 90-day written notice, elect
19not to renew a tenancy for any reason. If a landlord presents
20evidence of a written notice to a tenant on at least three
21occasions and each notice is dated at least 10 days apart and
22identifies a material noncompliance of the rental agreement,
23a material violation of the manufactured home community or
24mobile home park rules or regulations, or any other violation
25of Code chapter 562B which allows the remedy of termination,
26such evidence creates a presumption of the existence of the
27condition unless and until other evidence is introduced which
28would support otherwise.
29Division I of the bill takes effect upon enactment and
30applies to terminations of tenancies on or after the effective
31date of the division of the bill.
32Code section 562B.32(1) generally provides that a landlord
33shall not retaliate by increasing rent or decreasing services
34or by bringing or threatening to bring an action for possession
35or by failing to renew a rental agreement after the exercise or
-15-1assertion of several specified rights and remedies. Division
2II of the bill adds the exercise of any of the rights and
3remedies under Code chapter 216 (Iowa civil rights Act of 1965)
4to that enumerated list.
5Current law provides that evidence of a complaint within
6six months prior to the alleged act of retaliation creates a
7presumption that the landlord’s conduct was in retaliation.
8Division II of the bill changes that period of presumption from
9six months to one year.
10Division II of the bill takes effect upon enactment.
11Division III of the bill provides that a violation of Code
12chapter 562B by a landlord or the landlord’s agent is an
13unlawful practice under Code section 714.16, governing consumer
14frauds. Division III takes effect upon enactment and applies
15to violations of Code chapter 562B occurring on or after the
16effective date of the division.
17Division IV of the bill modifies provisions governing an
18increase in the amount of rent paid by a tenant. The bill
19prohibits a landlord from increasing the amount of rent unless
20the tenant is notified, in writing, of the rent increase at
21least 120 days before the effective date of the rent increase.
22The bill further provides that the effective date of any
23increase in the amount of rent shall not be less than one year
24from either the effective date of the most recent rent increase
25or the beginning of the tenancy, whichever is later.
26The bill also specifies that a decrease in the number or
27quality of amenities, services, or utilities provided under
28the rental agreement without a corresponding and proportionate
29reduction in rent shall be considered a rent increase for the
30purposes of the Code chapter.
31Division IV of the bill takes effect upon enactment.
32Division V of the bill amends Code section 16.45, which
33creates the manufactured housing program fund for the purpose
34of providing funding to financial institutions or other
35lenders to finance the purchase by an individual of a compliant
-16-1manufactured home. The bill strikes language providing that
2the manufactured housing program fund is designed exclusively
3for manufactured homes sited on leased land.
4Division VI of the bill amends Code section 562B.25
5relating to actions by a landlord for noncompliance with a
6rental agreement by a tenant or failure to pay rent. The
7bill establishes authority and procedures similar to those
8under Code section 562A.24 (uniform residential landlord and
9tenant Act) where in the case of a landlord’s action for
10possession based upon nonpayment of the rent or in an action
11for rent where the tenant is in possession, the tenant may
12counterclaim for an amount which the tenant may recover under
13the rental agreement or Code chapter 562B. In the event of
14such a counterclaim, the court from time to time may order the
15tenant to pay into court all or part of the rent accrued and
16thereafter accruing, and shall determine the amount due to each
17party. The party to whom a net amount is owed shall be paid
18first from the money paid into court, and the balance by the
19other party. If rent does not remain due after application
20of the Code section, judgment shall be entered for the tenant
21in the action for possession. If the defense or counterclaim
22by the tenant is without merit and is not raised in good
23faith, the landlord may recover reasonable attorney fees.
24Additionally, in an action for rent where the tenant is not in
25possession, the tenant may counterclaim but is not required to
26pay any rent into court.
27Division VI of the bill takes effect upon enactment and
28applies to actions for possession filed on or after the
29effective date of the division of the bill.
30Division VII provides that if a landlord obtains a utility
31service from a utility provider and furnishes that utility to
32the tenant and the utility provider increases the charge or
33rate to the landlord, the landlord may increase the charge or
34rate to the tenant after providing the tenant a 30-day written
35notice. If the landlord does not receive a 60-day prior notice
-17-1of a rate increase from the utility provider, the landlord is
2not required to provide the tenant with a written notice of the
3rate increase to be effective.
4Division VIII of the bill provides that water service
5furnished by a mobile home park that does not sell water
6service is exempt from the sales tax if all of the following
7apply: the water is not provided to tenants for a separately
8itemized price, the water service is not otherwise identifiable
9from an invoice, bill, catalogue, price list, rate card,
10receipt, agreement, or other similar document, or the water
11service, and the water service is incidental to the rental of
12real property. Division VIII of the bill defines “mobile home
13park” to mean the same as defined in Code section 562B.7.
14Division VIII of the bill provides exemptions to Code
15chapter 423G (water service tax), which include the sales
16price from transactions exempt from state sales tax under Code
17section 423.3. However, sales exempt pursuant to Code section
18423.3(103) are not exempt except as provided for in Code
19section 423G.4(2) or (3). Code section 423G.4(2) provides the
20sales price from the sale or furnishing of water by a mobile
21home provider to a tenant is exempt if all of the following
22apply: the water was obtained from a water utility, a tax was
23imposed by Code chapter 423 on the sales price from the sale or
24furnishing of water by a water utility to the mobile home park,
25and the tenant is not charged for water by the mobile home park
26in an amount that is more than the rate the tenant would be
27charged for consuming or using water from the water utility,
28plus the administration fee not to exceed $5 per month. Code
29section 423G.4(3) provides that water furnished by a mobile
30home park that does not engage in the sale of the water service
31is exempt if the water service is not furnished to tenants for
32a separately itemized price, the water service is not otherwise
33identifiable from an invoice, bill, catalogue, price list, rate
34card, receipt, agreement, or other similar document, and the
35water is incidental to the rental of real property.
-18- 1Division VIII of the bill provides that a mobile home park
2shall not be considered a public water supply system if the
3mobile home park sells or furnishes water to a tenant and that
4the water was obtained from a water utility prior to selling or
5furnishing the water to a tenant and the tenant is not charged
6more than the rate the tenant would be charged for consuming or
7using water from the water utility, plus an administrative fee
8not to exceed $5 a month.
9Division VIII of the bill provides that a landlord that is
10responsible for payment of utilities being provided to the
11tenant shall not charge to the tenant an amount in excess of
12the actual cost of the utility and the failure of a tenant to
13pay utility charges that exceed the actual cost of the utility
14provided shall not be considered noncompliance with the rental
15agreement. In addition to the actual cost of the utility, the
16bill authorizes a landlord that is responsible for the payment
17of one or more utilities being provided to the tenant to impose
18a monthly utility administration fee to each tenant not to
19exceed $5 per month. The amount of the utility administration
20fee may not exceed $5 per month regardless of the number of
21utilities being provided or the actual cost of the utilities
22being provided.
23Division IX of the bill amends Code section 562B.24 relating
24to a tenant’s remedies for a landlord’s unlawful ouster or
25exclusion or diminution of services. The bill adds reasonable
26attorney fees to the list of recoverable damages and provides
27that if the rental agreement is terminated, the landlord shall
28return all prepaid rent and security.
29Division IX of the bill takes effect upon enactment and
30applies to actions under Code section 562B.24 filed on or after
31the effective date of the division of the bill.
32Division X of the bill provides that if contrary to
33the rental agreement or Code section 562B.16 the landlord
34deliberately or negligently fails to supply running water
35or other essential services, the tenant may give written
-19-1notice to the landlord specifying the breach and may do one
2of the following: (1) procure reasonable amounts of water
3or the essential service during the period of the landlord’s
4noncompliance and deduct the actual and reasonable cost from
5the rent; (2) recover damages based upon the diminution in the
6fair market value of the mobile home or mobile home space;
7or (3) recover any rent already paid for the period of the
8landlord’s noncompliance which shall be reimbursed on a pro
9rata basis.
10Division X of the bill takes effect upon enactment and
11applies to actions under Code section 562B.23A filed on or
12after the effective date of the division of the bill.
13Code section 562B.19(3)(a) prohibits a landlord from denying
14rental unless the tenant or prospective tenant cannot conform
15to manufactured home community or park rules and regulations.
16Division XI requires any such decision to conform to recognized
17principles, rules, and standards generally accepted by the
18professional manufactured home community or park industry
19to ensure the commercially reasonable safety and financial
20security of comparable manufactured home communities or parks.
21Division XI also requires a landlord to deliver the decision
22in writing to the tenant or prospective tenant as soon as
23commercially feasible and shall provide the basis for a denial
24in writing to the tenant or prospective tenant at the time of
25the decision.
26Code section 562B.19(3)(c) prohibits a landlord from denying
27any resident of a manufactured home community or mobile home
28park the right to sell that person’s mobile home at a price of
29the person’s own choosing, but provides that the landlord has
30the right to approve the purchaser of such mobile home as a
31tenant but such permission may not be unreasonably withheld.
32Division XI allows such permission to be withheld only for a
33legitimate business reason within the recognized principles,
34rules, and standards accepted by the industry. If the landlord
35refuses to approve the purchaser of the mobile home as a
-20-1tenant, a legitimate business reason for the refusal shall be
2provided in writing to the resident who is selling the mobile
3home.
4Division XII of the bill adds to the list of prohibited
5rental agreement provisions in Code section 562B.11 a provision
6requiring agreement to modify the physical characteristics or
7equipment of the mobile home, manufactured home, or modular
8home if such modification impairs the ability of the tenant
9to move the home, unless otherwise required by law or local
10ordinance.
11Division XIII of the bill prohibits rental agreements under
12Code chapter 562B from providing that the tenant or landlord
13does any of the following: (1) authorizing a person to confess
14judgment on a claim arising out of the rental agreement; (2)
15authorizing imposition of fines, penalties, or fees solely
16as a punishment or in amounts in excess of actual damages or
17costs incurred; and (3) authorizing prohibitions, limitations,
18additional deposits, or other restrictive policies that are
19not based on ordinary wear and tear expected to occur during a
20tenancy or that are not based on community safety standards.
21Division XIII also amends language relating to the
22consequences and damages for using a rental agreement
23containing provisions known to be prohibited by Code chapter
24562B.
25Division XIV of the bill provides that any sale of a mobile
26home located in a manufactured home community or mobile home
27park by a landlord or landlord’s agent shall be by written
28agreement and the landlord must produce and assign the
29current certificate of title obtained from the department of
30transportation. The agreement shall state the basic terms of
31sale, including the total cost of the mobile home, finance
32charges, annual percentage rate, and the frequency and amount
33of each installment payment. Any such agreement shall also
34comply with Code section 103A.58(1), relating to maximum
35finance charges. The bill also authorizes a buyer to void
-21-1any such sale that does not comply with the requirements, to
2collect specified damage amounts, and to combine such an action
3with a forcible entry and detainer action under Code chapter
4648.
5Division XV of the bill prohibits the use of nonjudicial
6foreclosure proceedings initiated under Code section 654.18 or
7Code chapter 655A against property consisting of a mobile home,
8as defined in Code section 562B.7, on or after July 1, 2021.
9Division XV of the bill takes effect upon enactment.
10Division XVI of the bill provides that if a landlord offers
11for sale all or a portion of the manufactured home community
12or mobile home park, each current tenant shall be given notice
13of the sale by certified mail at least 90 days prior to the
14sale. The notice must include the name, business address, and
15contact information of the proposed buyer, the proposed date of
16the sale, and a summary of each tenant’s rights, which are that
17following a sale of, all or a portion of, the manufactured home
18community or mobile home park and upon renewal or extension of
19a tenancy in the manufactured home community or mobile home
20park in effect at the time of the sale, the landlord shall not
21change a term of a rental agreement, excluding a rent increase
22for the renewed or extended term of the tenancy, unless the
23tenant is notified in writing of the proposed change at least
2490 days prior to the effective date of the change and the
25notice includes a summary of the tenant’s rights.
26Division XVI of the bill applies to the sale of manufactured
27home communities and mobile home parks occurring on or after
28July 1, 2021.
-22-cm/jh