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

This division of the bill takes effect upon enactment and applies to terminations of tenancies on or after that date. CONSUMER FRAUD.16, governing consumer frauds. Several types of remedies are available if a court finds that a person has committed an unlawful practice, including injunctive relief, disgorgement of moneys or property, and a civil penalty not to exceed $40,000 per violation. This division of the bill takes effect upon enactment and applies to violations of Code chapter 562B occurring on or after that date. RENT INCREASES. The bill strikes changes to the definition of “rent” made by the general assembly in 2022 and modifies provisions governing an increase in the amount of rent paid by a tenant. The bill prohibits a landlord from increasing rent unless the tenant is notified in writing of the rent increase at least 180 days before the effective date of the rent increase. The bill further provides that the effective date of any rent increase shall not be less than one year from either the effective date of the most recent rent increase or the beginning of the tenancy, whichever is later. A landlord may increase the amount of rent due by any tenant in an amount greater than the average annual increase of the consumer price index for all urban consumers in the midwest region for the most recently available preceding 36-month period, if the landlord demonstrates a number of conditions set forth in the bill. The bill also requires the written notice of a rent increase provided to the tenant to include the specific reasons and justifications for the increase. A decrease in the number or quality of amenities, services, or utilities provided under the rental agreement without a corresponding and proportionate reduction in rent shall be considered a rent increase for the purposes of Code chapter 562B. This division of the bill takes effect upon enactment and includes applicability provisions for certain requirements related to rent increases. LANDLORD REMEDIES AND PROCEDURES. Current law caps late fees on rental agreements in which rent is greater than $700 per month at $20 per day and $100 per month. The bill allows a rental agreement to provide for late fees not to exceed percent of the rent per day and percent of the rent per month when rent exceeds $1,400 per month.10(7)(a) made by the general assembly in 2022 relating occupancy by heirs and personal representatives of a decedent’s estate. MANUFACTURED HOUSING PROGRAM FUND. Under current law, the manufactured housing program fund is used for the purpose of providing funding to financial institutions or other lenders to finance the purchase by an individual of a compliant manufactured home. The bill strikes language providing that the fund is designed exclusively for manufactured homes sited on leased land. TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE.24 (landlord’s noncompliance as defense to action for possession or rent —— uniform residential landlord and tenant Act). In a landlord’s action for possession based upon nonpayment of rent or in an action for rent where the tenant is in possession, the tenant may counterclaim for an amount which the tenant may recover under the rental agreement or Code chapter 562B, and pay into court all or part of the rent. If the defense or counterclaim by the tenant is without merit and is not raised in good faith, the landlord may recover reasonable attorney fees. Additionally, in an action for rent where the tenant is not in possession, the tenant may counterclaim but is not required to pay any rent into court. This division of the bill takes effect upon enactment and applies to actions for possession filed on or after that date. UTILITY CHARGES. The bill provides that a landlord that is responsible for payment of utilities being provided to the tenant shall not charge to the tenant an amount in excess of the actual cost of the utility and the failure of a tenant to pay utility charges that exceed the actual cost of the utility provided shall not be considered noncompliance with the rental agreement. In addition to the actual cost of the utility, the bill authorizes a landlord that is responsible for the payment of one or more utilities to impose a monthly utility administration fee to each tenant not to exceed $5 per month, regardless of the number of utilities being provided or the actual cost of the utilities being provided.3 (private right of action for consumer frauds). UNLAWFUL OUSTER.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 that date. TENANT CORRECTING DEFICIENCIES. The bill provides that in any action by a landlord for possession based upon nonpayment of rent, proof by the tenant of certain actions set forth in the bill are a defense to any action or claim for possession by the landlord, and the amounts expended by the tenant in correcting the deficiencies shall be deducted from the amount claimed by the landlord as unpaid rent. This division of the bill takes effect upon enactment and applies to actions by a landlord for possession filed on or after that date. DENIAL OF RENTAL OR REFUSAL OF SALE.19(3)(a) prohibits a landlord from denying rental unless the tenant or prospective tenant cannot conform to manufactured home community or park rules and regulations. The bill requires any such decision to conform to recognized principles, rules, and standards generally accepted by the professional manufactured home community or park industry to ensure the commercially reasonable safety and financial security of comparable manufactured home communities or parks. The bill also requires a landlord to deliver the decision in writing to the tenant or prospective tenant as soon as commercially feasible and to provide the basis for a denial in writing to the tenant or prospective tenant at the time of the decision.19(3)(c) prohibits a landlord from denying any resident of a manufactured home community or mobile home park the right to sell that person’s mobile home at a price of the person’s own choosing, but provides that the landlord has the right to approve the purchaser as a tenant but such permission may not be unreasonably withheld. The bill allows such permission to be withheld only for a legitimate business reason within the recognized principles, rules, and standards accepted by the industry. If the landlord refuses to approve the purchaser as a tenant, the landlord must provide a legitimate business reason for the refusal in writing to the resident. RENTAL AGREEMENT TERMS.11 a provision requiring agreement to modify the physical characteristics or equipment of the mobile home, manufactured home, or modular home if such modification impairs the ability of the tenant to move the home, unless otherwise required by law or local ordinance. The bill prohibits rental agreements under Code chapter 562B from providing that the tenant or landlord does any of the following: (1) authorizes imposition of fines, penalties, or fees solely as a punishment or in amounts in excess of actual damages or costs incurred, (2) authorizes a person to confess judgment on a claim arising out of the rental agreement, and (3) authorizes prohibitions, limitations, additional deposits, or other restrictive policies that are not based on ordinary wear and tear or that are not based on community safety standards. The bill provides that a tenant may recover up to three months’ rent and attorney fees for a landlord’s knowing and willful use of a rental agreement containing prohibited provisions. The bill also removes the ability of the landlord to recover from the tenant for use of a rental agreement containing prohibited provisions. RENTAL DEPOSITS. The bill modifies the definition of “rental deposit” for purposes of Code chapter 562B, provides that the landlord is only entitled to the interest earned on the rental deposit for the first five years of the tenancy, and establishes authority for a court, in any action on a rental agreement, to award reasonable attorney fees to the prevailing party. NONJUDICIAL FORECLOSURE. The bill excludes mobile homes from the applicability of nonjudicial foreclosure provisions. RETALIATION.32(1) generally provides that a landlord shall not retaliate by increasing rent or decreasing services or by bringing or threatening to bring an action for possession or by failing to renew a rental agreement after the exercise or assertion of several specified rights and remedies, including complaining to a governmental agency charged with responsibility for enforcement of a building or housing code of a violation applicable to the manufactured home community or mobile home park materially affecting health and safety. The bill instead provides that a landlord cannot retaliate against a tenant for filing a good-faith complaint with a governmental agency or other group relating to assisting tenants. CAPITAL GAIN TAX EXCLUSION. The bill creates a capital gain exclusion from sale of a mobile home park to certain entities set forth in the bill.