Relating to property law by modifying provisions relating to rental properties, manufactured home communities, mobile home parks, and manufactured mobile home communities, modifying provisions governing actions relating to such properties, making penalties applicable, and including effective date and applicability provisions

This bill relates to property law by modifying provisions relating to rental properties, manufactured home communities, and mobile home parks, and modifying provisions governing actions relating to such properties.10 to provide that a landlord may only terminate a tenancy if the tenant acts in material noncompliance of the rental agreement, commits a material violation of the manufactured home community or mobile home park rules or regulations, or commits any other violation of Code chapter 562B which allows the remedy of termination, or for a legitimate and material business reason the impact of which is not specific to one tenant or a change in the use of the land if change in the use of the land is included in the rental agreement as grounds for termination or nonrenewal. Division I of the bill takes effect upon enactment and applies to terminations of tenancies on or after the effective date of the division of the bill.32(1) generally provides that a landlord shall not retaliate by increasing rent or decreasing services or by bringing or threatening to bring an action for possession or by failing to renew a rental agreement after the exercise or assertion of several specified rights and remedies. Division II of the bill adds the exercise of any of the rights and remedies under Code chapter 216 (Iowa civil rights Act of 1965) to that enumerated list. Current law provides that evidence of a complaint within six months prior to the alleged act of retaliation creates a presumption that the landlord’s conduct was in retaliation. Division II of the bill changes that period of presumption from six months to one year. Division II of the bill takes effect upon enactment.16, governing consumer frauds. Division III of the bill takes effect upon enactment and applies to violations of Code chapter 562B occurring on or after the effective date of the division of the bill. Division IV of the bill modifies provisions governing an increase in the amount of rent paid by a tenant. The bill prohibits a landlord from increasing the amount of rent unless the tenant is notified, in writing, of the rent increase at least 180 days before the effective date of the rent increase. The bill further provides that the effective date of any increase in the amount of rent shall not be less than one year from either the effective date of the most recent rent increase or the beginning of the tenancy, whichever is later. Division IV of the bill provides that a landlord may increase the amount of rent due by any tenant in an amount greater than the average annual increase of the consumer price index for all urban consumers in the midwest region for the most recently available preceding 36-month period, if the landlord demonstrates the increase is justified for all of the following conditions: (1) the landlord, during the preceding 12-month period, has not been found in violation of any provision of Code chapter 562B that threatens the health or safety of the tenants of or visitors to the manufactured home community or mobile home park that persists for more than days; and (2) the proposed rent increase is directly related to operating, maintaining, or improving the manufactured home community or mobile home park, and is justified by one or more factors specified in the bill. The bill also requires the written notice of a rent increase provided to the tenant to include the specific reasons and justifications for the increase. The bill also specifies that a decrease in the number or quality of amenities, services, or utilities provided under the rental agreement without a corresponding and proportionate reduction in rent shall be considered a rent increase for the purposes of the Code chapter. Division IV of the bill takes effect upon enactment and includes applicability provisions for certain requirements related to rent increases. Division V of the bill relates to landlord remedies and procedures relating to failure to timely pay rent, abandonment, and forcible entry and detainer. Current law caps late fees on rental agreements in which rent is greater than $700 per month at $20 per day and $100 per month. Division V of the bill allows a rental agreement to provide for late fees not to exceed percent of the rent per day and percent of the rent per month when rent exceeds $1,400 per month. Division V of the bill makes changes to the process for an action for abandonment of mobile homes. The bill extends the time by which a district court shall set a hearing after receiving a petition from not later than days to no sooner than days when there is a lien other than a tax lien on the mobile home or personal property. The bill provides notice, service, and publication procedures in an action for abandonment if the sole owner of a mobile home dies during the term of a rental agreement. Division V of the bill also makes a procedural change relating to jurisdiction in actions for forcible entry and detainer.45, which creates the manufactured housing program fund for the purpose of providing funding to financial institutions or other lenders to finance the purchase by an individual of a compliant manufactured home. The bill strikes language providing that the manufactured housing program fund is designed exclusively for manufactured homes sited on leased land.25 relating to actions by a landlord for noncompliance with a rental agreement by a tenant or failure to pay rent.24 (uniform residential landlord and tenant Act) where in the case of a landlord’s action for possession based upon nonpayment of the rent or in an action for rent where the tenant is in possession, the tenant may counterclaim for an amount which the tenant may recover under the rental agreement or Code chapter 562B. In the event of such a counterclaim, the court from time to time may order the tenant to pay into court all or part of the rent accrued and thereafter accruing, and shall determine the amount due to each party. The party to whom a net amount is owed shall be paid first from the money paid into court, and the balance by the other party. If rent does not remain due after application of this section, judgment shall be entered for the tenant in the action for possession. If the defense or counterclaim by the tenant is without merit and is not raised in good faith, the landlord may recover reasonable attorney fees. Additionally, in an action for rent where the tenant is not in possession, the tenant may counterclaim but is not required to pay any rent into court. Division VII of the bill takes effect upon enactment and applies to actions for possession filed on or after the effective date of the division of the bill. Division VIII of the bill provides that a landlord that is responsible for payment of utilities being provided to the tenant shall not charge to the tenant an amount in excess of the actual cost of the utility and the failure of a tenant to pay utility charges that exceed the actual cost of the utility provided shall not be considered noncompliance with the rental agreement. In addition to the actual cost of the utility, the bill authorizes a landlord that is responsible for the payment of one or more utilities being provided to the tenant to impose a monthly utility administration fee to each tenant not to exceed $5 per month. The amount of the utility administration fee may not exceed $5 per month regardless of the number of utilities being provided or the actual cost of the utilities being provided.3 (private right of action for consumer frauds Act).24 relating to a tenant’s remedies for a landlord’s unlawful ouster or exclusion or diminution of services. The bill adds reasonable attorney fees to the list of recoverable damages and provides that if the rental agreement is terminated, the landlord shall return all prepaid rent and security.24 filed on or after the effective date of the division of the bill.16 the landlord deliberately or negligently fails to supply running water or other essential services, the tenant may give written notice to the landlord specifying the breach and may do one of the following: (1) procure reasonable amounts of water or the essential service during the period of the landlord’s noncompliance and deduct the actual and reasonable cost from the rent; (2) recover damages based upon the diminution in the fair market value of the mobile home or mobile home space; or (3) recover any rent already paid for the period of the landlord’s noncompliance which shall be reimbursed on a pro rata basis.23A filed on or after the effective date of the division of the bill.25 by providing that in any action by a landlord for possession based upon nonpayment of rent, proof by the tenant of all of the following shall be a defense to any action or claim for possession by the landlord, and the amounts expended by the tenant in correcting the deficiencies shall be deducted from the amount claimed by the landlord as unpaid rent: (1) that the landlord failed to comply either with the rental agreement or with the landlord’s duty to maintain a fit premises; (2) that the tenant notified the landlord at least seven days prior to the due date of the tenant’s rent payment of the tenant’s intention to correct the condition constituting the breach referred to at the landlord’s expense; (3) that the reasonable cost of correcting the condition constituting the breach is equal to or less than one month’s periodic rent; and (4) that the tenant in good faith caused the condition constituting the breach to be corrected prior to receipt of written notice of the landlord’s intention to terminate the rental agreement for nonpayment of rent. Division XI of the bill takes effect upon enactment and applies to actions by a landlord for possession filed on or after the effective date of the division of the bill.19(3)(a) prohibits a landlord from denying rental unless the tenant or prospective tenant cannot conform to manufactured home community or park rules and regulations. Division XII requires any such decision to conform to recognized principles, rules, and standards generally accepted by the professional manufactured home community or park industry to ensure the commercially reasonable safety and financial security of comparable manufactured home communities or parks. Division XII also requires a landlord to deliver the decision in writing to the tenant or prospective tenant as soon as commercially feasible and shall provide the basis for a denial in writing to the tenant or prospective tenant at the time of the decision.19(3)(c) prohibits a landlord from denying any resident of a manufactured home community or mobile home park the right to sell that person’s mobile home at a price of the person’s own choosing, but provides that the landlord has the right to approve the purchaser of such mobile home as a tenant but such permission may not be unreasonably withheld. Division XII allows such permission to be withheld only for a legitimate business reason within the recognized principles, rules, and standards accepted by the industry. If the landlord refuses to approve the purchaser of the mobile home as a tenant, a legitimate business reason for the refusal shall be provided in writing to the resident who is selling the mobile home.11 a provision requiring agreement to modify the physical characteristics or equipment of the mobile home, manufactured home, or modular home if such modification impairs the ability of the tenant to move the home, unless otherwise required by law or local ordinance. Division XIV of the bill prohibits rental agreements under Code chapter 562B from providing that the tenant or landlord does any of the following: (1) authorizing a person to confess judgment on a claim arising out of the rental agreement; (2) authorizing imposition of fines, penalties, or fees solely as a punishment or in amounts in excess of actual damages or costs incurred; and (3) authorizing prohibitions, limitations, additional deposits, or other restrictive policies that are not based on ordinary wear and tear expected to occur during a tenancy or that are not based on community safety standards. Division XIV also amends language relating to the consequences and damages for using a rental agreement containing provisions known to be prohibited by Code chapter 562B. Division XV of the bill modifies the definition of “rental deposit” for purposes of Code chapter 562B, provides that the landlord is only entitled to the interest earned on the rental deposit for the first five years of the tenancy, and establishes authority for a court, in any action on a rental agreement, to award reasonable attorney fees to the prevailing party. Division XVI of the bill provides that any sale of a mobile home located in a manufactured home community or mobile home park by a landlord or landlord’s agent shall be by written agreement and the landlord must produce and assign the current certificate of title obtained from the department of transportation. The agreement shall state the basic terms of sale, including the total cost of the mobile home, finance charges, annual percentage rate, and the frequency and amount of each installment payment.58(1), relating to maximum finance charges. The bill also authorizes a buyer to void any such sale that does not comply with the requirements, to collect specified damage amounts, and to combine such an action with a forcible entry and detainer action under Code chapter 648.7, on or after July 1, 2020. Division XVII of the bill takes effect upon enactment.