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. A landlord may, upon providing 90-day written notice, elect not to renew a tenancy for any reason. If a landlord presents evidence of a written notice to a tenant on at least three occasions and each notice is dated at least days apart and identifies a material noncompliance of the rental agreement, a material violation of the manufactured home community or mobile home park rules or regulations, or any other violation of Code chapter 562B which allows the remedy of termination, such evidence creates a presumption of the existence of the condition unless and until other evidence is introduced which would support otherwise. 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 takes effect upon enactment and applies to violations of Code chapter 562B occurring on or after the effective date of the division. 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 120 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. 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.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 the Code 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 VI 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 VII provides that if a landlord obtains a utility service from a utility provider and furnishes that utility to the tenant and the utility provider increases the charge or rate to the landlord, the landlord may increase the charge or rate to the tenant after providing the tenant a 30-day written notice. If the landlord does not receive a 60-day prior notice of a rate increase from the utility provider, the landlord is not required to provide the tenant with a written notice of the rate increase to be effective. Division VIII of the bill provides that water service furnished by a mobile home park that does not sell water service is exempt from the sales tax if all of the following apply: the water is not provided to tenants for a separately itemized price, the water service is not otherwise identifiable from an invoice, bill, catalogue, price list, rate card, receipt, agreement, or other similar document, or the water service, and the water service is incidental to the rental of real property.7.3.4(2) or (3).4(2) provides the sales price from the sale or furnishing of water by a mobile home provider to a tenant is exempt if all of the following apply: the water was obtained from a water utility, a tax was imposed by Code chapter 423 on the sales price from the sale or furnishing of water by a water utility to the mobile home park, and the tenant is not charged for water by the mobile home park in an amount that is more than the rate the tenant would be charged for consuming or using water from the water utility, plus the administration fee not to exceed $5 per month.4(3) provides that water furnished by a mobile home park that does not engage in the sale of the water service is exempt if the water service is not furnished to tenants for a separately itemized price, the water service is not otherwise identifiable from an invoice, bill, catalogue, price list, rate card, receipt, agreement, or other similar document, and the water is incidental to the rental of real property. Division VIII of the bill provides that a mobile home park shall not be considered a public water supply system if the mobile home park sells or furnishes water to a tenant and that the water was obtained from a water utility prior to selling or furnishing the water to a tenant and the tenant is not charged more than the rate the tenant would be charged for consuming or using water from the water utility, plus an administrative fee not to exceed $5 a month. 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.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.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 XI 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 XI 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 XI 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 XIII 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 XIII 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 XIV 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, 2021. Division XV of the bill takes effect upon enactment. Division XVI of the bill provides that if a landlord offers for sale all or a portion of the manufactured home community or mobile home park, each current tenant shall be given notice of the sale by certified mail at least days prior to the sale. The notice must include the name, business address, and contact information of the proposed buyer, the proposed date of the sale, and a summary of each tenant’s rights, which are that following a sale of, all or a portion of, the manufactured home community or mobile home park and upon renewal or extension of a tenancy in the manufactured home community or mobile home park in effect at the time of the sale, the landlord shall not change a term of a rental agreement, excluding a rent increase for the renewed or extended term of the tenancy, unless the tenant is notified in writing of the proposed change at least days prior to the effective date of the change and the notice includes a summary of the tenant’s rights. Division XVI of the bill applies to the sale of manufactured home communities and mobile home parks occurring on or after July 1, 2021.