Relating to business entity-owned residential arrangements, and including effective date provisions

This bill regulates certain business entity-owned residential arrangements. The bill defines “business entity”, “managing entity”, “residential arrangement”, and “residential property”. The bill requires that an agreement for the purchase of an interest in a managing entity must disclose to the purchaser that the agreement is for the purchase of an interest in the entity and not for the purchase of any residential property. The bill prohibits a purchase agreement, operating agreement, bylaws, rules, or other governing document relating to a residential arrangement or ownership interest from requiring that disputes be resolved in a forum other than a court established under the laws of this state or the United States. The bill requires that a managing entity not take action relating to an ownership interest in a manner that would violate Code chapter 216 (Iowa civil rights Act) if the interest is an interest in real property. Prohibited actions include restricting or prohibiting the transfer of an interest, imposing discriminatory conditions to retain or maintain an interest, or refusing to grant an interest to an otherwise qualified person. The bill provides that, notwithstanding any agreement to the contrary, an owner may transfer the ownership interest without approval by the managing entity. The bill prohibits a managing entity from charging a fee or sharing in the proceeds of the transfer of an ownership interest from an owner to a subsequent purchaser.16 (consumer fraud Act) and Code chapter 714H (consumer fraud —— private actions).16, including injunctive relief, disgorgement of moneys or property, and civil penalties not to exceed $40,000 per violation. In an action under Code chapter 714H, a court may order equitable relief, including reasonable attorney fees and injunctive relief. If the violation constitutes willful and wanton disregard for the rights and safety of another, in addition to an award of actual damages, statutory damages up to three times the amount of actual damages may be awarded to the prevailing consumer. A court that finds a violation of the bill may enjoin a managing entity or a person affiliated with the managing entity from further developing or constructing residential property used in a residential arrangement subject to a civil action under the bill, including seeking to become or operating as a public utility, or receiving any public moneys or benefit directly or indirectly. Current law exempts certain entities from prohibited unfair or discriminatory practices related to housing, including certain religious institutions. The bill creates an exception to the religious exemption, providing that the sale, rental, or occupancy of a dwelling that is a single-family house, duplex, triplex, or quadruplex located on a subdivided lot with a parcel of land 25 acres or more that is owned by a religious organization, association, or society, or a nonprofit institution or organization operated, supervised, or controlled by or in conjunction with a religious organization, association, or society is subject to the unfair or discriminatory practices prohibited by law. The bill takes effect upon enactment.