Read the full stored bill text
Senate
File
2225
-
Introduced
SENATE
FILE
2225
BY
WAHLS
,
DOTZLER
,
TOWNSEND
,
BLAKE
,
ZIMMER
,
PETERSEN
,
BISIGNANO
,
KNOX
,
DREY
,
HARDMAN
,
STAED
,
DONAHUE
,
and
WEINER
A
BILL
FOR
An
Act
relating
to
property
law,
including
rental
properties,
1
manufactured
home
communities,
mobile
home
parks,
and
2
actions
relating
to
such
properties,
making
penalties
3
applicable,
and
including
effective
date
and
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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DIVISION
I
1
GROUNDS
FOR
TERMINATION
OF
TENANCY
2
Section
1.
Section
562B.10,
Code
2026,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
4A.
A
landlord
shall
not
terminate
a
5
tenancy
unless
any
of
the
following
apply:
6
a.
The
tenant
engaged
in
an
act
of
material
noncompliance
7
with
the
rental
agreement.
8
b.
The
tenant
committed
a
material
violation
of
the
9
manufactured
home
community
or
mobile
home
park
rules
or
10
regulations.
11
c.
The
tenant
committed
any
other
violation
of
this
chapter
12
for
which
termination
is
a
remedy.
13
d.
There
exists
a
legitimate
and
material
business
reason
14
the
impact
of
which
is
not
specific
to
one
tenant.
15
e.
There
is
a
change
in
the
use
of
the
land,
and
a
change
in
16
the
use
of
the
land
is
grounds
for
termination
or
nonrenewal
17
under
the
rental
agreement.
18
Sec.
2.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
19
deemed
of
immediate
importance,
takes
effect
upon
enactment.
20
Sec.
3.
APPLICABILITY.
This
division
of
this
Act
applies
21
to
terminations
of
tenancies
on
or
after
the
effective
date
of
22
this
division
of
this
Act.
23
DIVISION
II
24
CONSUMER
FRAUD
25
Sec.
4.
Section
562B.4,
Code
2026,
is
amended
by
adding
the
26
following
new
subsection:
27
NEW
SUBSECTION
.
3.
A
violation
of
this
chapter
by
a
28
landlord
or
the
landlord’s
agent
is
an
unlawful
practice
under
29
section
714.16.
30
Sec.
5.
Section
714.16,
subsection
2,
Code
2026,
is
amended
31
by
adding
the
following
new
paragraph:
32
NEW
PARAGRAPH
.
t.
It
is
an
unlawful
practice
for
a
landlord
33
or
the
landlord’s
agent
to
violate
any
of
the
provisions
of
34
chapter
562B.
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Sec.
6.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
1
deemed
of
immediate
importance,
takes
effect
upon
enactment.
2
Sec.
7.
APPLICABILITY.
This
division
of
this
Act
applies
to
3
violations
of
chapter
562B
occurring
on
or
after
the
effective
4
date
of
this
division
of
this
Act.
5
DIVISION
III
6
RENT
INCREASES
7
Sec.
8.
Section
562B.7,
subsection
10,
Code
2026,
is
amended
8
to
read
as
follows:
9
10.
“Rent”
means
a
payment
to
be
made
to
the
landlord
under
10
the
rental
agreement
,
including
base
rent,
utilities,
late
11
fees,
and
other
payments
made
by
the
tenant
to
the
landlord
12
under
the
rental
agreement
.
13
Sec.
9.
Section
562B.14,
subsection
7,
Code
2026,
is
amended
14
by
striking
the
subsection
and
inserting
in
lieu
thereof
the
15
following:
16
7.
a.
A
landlord
shall
not
increase
the
amount
of
rent
17
due
by
any
tenant
in
a
manufactured
home
community
or
mobile
18
home
park
unless
the
tenant
is
notified
in
writing
of
the
19
rent
increase
at
least
one
hundred
eighty
days
before
the
20
effective
date
of
the
rent
increase.
The
effective
date
of
21
any
rent
increase
shall
not
be
less
than
one
year
after
either
22
the
effective
date
of
the
most
recent
rent
increase
or
the
23
beginning
of
the
tenancy,
whichever
is
later.
24
b.
(1)
Subject
to
paragraph
“a”
,
a
landlord
may
increase
25
the
amount
of
rent
due
by
any
tenant
in
an
amount
greater
than
26
the
average
annual
increase
of
the
consumer
price
index
for
all
27
urban
consumers
in
the
midwest
region
for
the
most
recently
28
available
preceding
thirty-six-month
period,
if
the
landlord
29
demonstrates
all
of
the
following:
30
(a)
The
landlord,
during
the
preceding
twelve-month
period,
31
has
not
been
found
in
violation
of
any
provision
of
this
32
chapter
that
threatens
the
health
or
safety
of
the
tenants
of
33
or
visitors
to
the
manufactured
home
community
or
mobile
home
34
park
that
persists
for
more
than
fifteen
days,
beginning
on
the
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day
the
landlord
received
notice
of
such
violation.
1
(b)
The
proposed
rent
increase
is
directly
related
to
2
operating,
maintaining,
or
improving
the
manufactured
home
3
community
or
mobile
home
park,
and
is
justified
by
one
or
more
4
of
the
following
factors:
5
(i)
The
completion
and
cost
of
any
capital
improvements
or
6
repair
work
in
the
manufactured
home
community
or
mobile
home
7
park,
as
distinguished
from
ordinary
repair,
replacement,
and
8
maintenance.
9
(ii)
An
increase
in
property
taxes
due
on
the
manufactured
10
home
community
or
mobile
home
park.
11
(iii)
If
the
landlord
is
responsible
for
payment
of
one
12
or
more
utilities,
an
increase
in
utility
expenses
within
the
13
manufactured
home
community
or
mobile
home
park.
14
(iv)
An
increase
in
insurance
costs
and
financing
15
associated
with
the
manufactured
home
community
or
mobile
home
16
park.
17
(v)
An
increase
in
reasonable
operating
and
maintenance
18
expenses
relating
to
the
manufactured
home
community
or
mobile
19
home
park.
20
(vi)
An
increase
in
market
rent.
For
purposes
of
this
21
subparagraph
subdivision,
“market
rent”
means
that
rent
which
22
would
result
from
market
forces
absent
an
unequal
bargaining
23
position
between
the
landlord
and
tenants.
In
determining
24
market
rent,
relevant
considerations
include
rents
charged
25
to
recent
new
tenants
of
the
manufactured
home
community
or
26
mobile
home
park
or
rents
charged
by
comparable
manufactured
27
home
communities
or
mobile
home
parks.
To
be
comparable,
28
a
manufactured
home
community
or
mobile
home
park
must
be
29
within
the
competitive
area
and
must
offer
similar
facilities,
30
services,
amenities,
and
management.
31
(2)
The
department
of
revenue
shall
monitor
the
consumer
32
price
index
for
all
urban
consumers
in
the
midwest
region
and
33
report
the
relevant
data
to
the
consumer
protection
division
of
34
the
office
of
the
attorney
general
for
periodic
publication.
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c.
The
written
notice
of
a
rent
increase
provided
to
the
1
tenant
must
include
the
specific
reasons
for
the
increase
2
including
the
justification
under
paragraph
“b”
,
if
applicable.
3
d.
A
decrease
in
the
number
or
quality
of
amenities,
4
services,
or
utilities
provided
under
the
rental
agreement
5
without
a
corresponding
and
proportionate
reduction
in
rent
6
shall
be
considered
a
rent
increase
for
the
purposes
of
this
7
chapter.
8
Sec.
10.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
9
deemed
of
immediate
importance,
takes
effect
upon
enactment.
10
Sec.
11.
APPLICABILITY.
The
following
applies
to
rent
11
increases
under
chapter
562B
occurring
on
or
after
the
12
effective
date
of
this
division
of
this
Act:
13
The
portion
of
the
section
of
this
division
of
this
Act
14
enacting
section
562B.14,
subsection
7,
paragraphs
“a”
and
“d”.
15
Sec.
12.
APPLICABILITY.
The
following
applies
to
rent
16
increases
under
chapter
562B
occurring
on
or
after
July
1,
17
2026:
18
The
portion
of
the
section
of
this
division
of
this
Act
19
enacting
section
562B.14,
subsection
7,
paragraphs
“b”
and
“c”.
20
DIVISION
IV
21
LANDLORD
REMEDIES
AND
PROCEDURES
22
Sec.
13.
Section
562A.9,
subsection
4,
Code
2026,
is
amended
23
to
read
as
follows:
24
4.
For
rental
agreements
in
which
the
rent
does
not
exceed
25
seven
hundred
dollars
per
month,
a
rental
agreement
shall
not
26
provide
for
a
late
fee
that
exceeds
twelve
dollars
per
day
or
a
27
total
amount
of
sixty
dollars
per
month.
For
rental
agreements
28
in
which
the
rent
is
greater
than
seven
hundred
dollars
per
29
month
but
less
than
one
thousand
four
hundred
dollars
per
30
month
,
a
rental
agreement
shall
not
provide
for
a
late
fee
that
31
exceeds
twenty
dollars
per
day
or
a
total
amount
of
one
hundred
32
dollars
per
month.
For
rental
agreements
in
which
the
rent
is
33
at
least
one
thousand
four
hundred
dollars
per
month,
a
rental
34
agreement
shall
not
provide
for
a
late
fee
that
exceeds
two
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percent
of
the
rent
per
day
or
a
total
amount
of
ten
percent
of
1
the
rent
per
month.
2
Sec.
14.
Section
562B.10,
subsection
4,
Code
2026,
is
3
amended
to
read
as
follows:
4
4.
For
rental
agreements
in
which
the
rent
does
not
exceed
5
seven
hundred
dollars
per
month,
a
rental
agreement
shall
not
6
provide
for
a
late
fee
that
exceeds
twelve
dollars
per
day
or
a
7
total
amount
of
sixty
dollars
per
month.
For
rental
agreements
8
in
which
the
rent
is
greater
than
seven
hundred
dollars
per
9
month
but
less
than
one
thousand
four
hundred
dollars
per
10
month
,
a
rental
agreement
shall
not
provide
for
a
late
fee
that
11
exceeds
twenty
dollars
per
day
or
a
total
amount
of
one
hundred
12
dollars
per
month.
For
rental
agreements
in
which
the
rent
is
13
at
least
one
thousand
four
hundred
dollars
per
month,
a
rental
14
agreement
shall
not
provide
for
a
late
fee
that
exceeds
two
15
percent
of
the
rent
per
day
or
a
total
amount
of
ten
percent
of
16
the
rent
per
month.
17
Sec.
15.
Section
562B.10,
subsection
7,
paragraph
a,
Code
18
2026,
is
amended
by
striking
the
paragraph
and
inserting
in
19
lieu
thereof
the
following:
20
a.
If
a
tenant
who
was
sole
owner
of
a
mobile
home
dies
21
during
the
term
of
a
rental
agreement,
then
that
person’s
heirs
22
or
legal
representative
or
the
landlord
shall
have
the
right
23
to
cancel
the
tenant’s
lease
by
giving
sixty
days’
written
24
notice
to
the
person’s
heirs
or
legal
representative
or
to
the
25
landlord,
whichever
is
appropriate,
and
the
heirs
or
the
legal
26
representative
shall
have
the
same
rights,
privileges,
and
27
liabilities
of
the
original
tenant.
28
DIVISION
V
29
MANUFACTURED
HOUSING
PROGRAM
FUND
30
Sec.
16.
Section
16.45,
subsection
1,
Code
2026,
is
amended
31
to
read
as
follows:
32
1.
A
manufactured
housing
program
fund
is
created
within
33
the
authority
to
further
the
goal
of
providing
affordable
34
housing
to
Iowans.
The
moneys
in
the
fund
are
to
be
used
for
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the
purpose
of
providing
funding
to
financial
institutions
or
1
other
lenders
to
finance
the
purchase
by
an
individual
of
a
2
manufactured
home
that
is
in
compliance
with
all
laws,
rules,
3
and
standards
that
are
applicable
to
manufactured
homes
and
4
manufactured
housing.
The
manufactured
housing
program
fund
5
is
designed
exclusively
for
manufactured
homes
sited
on
leased
6
land.
7
DIVISION
VI
8
TENANT
COUNTERCLAIM
FOR
LANDLORD
NONCOMPLIANCE
9
Sec.
17.
Section
562B.25,
Code
2026,
is
amended
by
adding
10
the
following
new
subsection:
11
NEW
SUBSECTION
.
5.
a.
In
an
action
for
possession
based
12
upon
nonpayment
of
the
rent
or
in
an
action
for
rent
where
the
13
tenant
is
in
possession,
the
tenant
may
counterclaim
for
an
14
amount
which
the
tenant
may
recover
under
the
rental
agreement
15
or
this
chapter.
In
that
event,
the
court
from
time
to
time
16
may
order
the
tenant
to
pay
into
court
all
or
part
of
the
rent
17
accrued
and
thereafter
accruing,
and
shall
determine
the
amount
18
due
to
each
party.
The
party
to
whom
a
net
amount
is
owed
19
shall
be
paid
first
from
the
money
paid
into
court,
and
the
20
balance
by
the
other
party.
If
rent
does
not
remain
due
after
21
application
of
this
section,
judgment
shall
be
entered
for
22
the
tenant
in
the
action
for
possession.
If
the
defense
or
23
counterclaim
by
the
tenant
is
without
merit
and
is
not
raised
24
in
good
faith,
the
landlord
may
recover
reasonable
attorney
25
fees.
26
b.
In
an
action
for
rent
where
the
tenant
is
not
in
27
possession,
the
tenant
may
counterclaim
as
provided
in
28
paragraph
“a”
,
but
the
tenant
is
not
required
to
pay
any
rent
29
into
court.
30
Sec.
18.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
31
deemed
of
immediate
importance,
takes
effect
upon
enactment.
32
Sec.
19.
APPLICABILITY.
This
division
of
this
Act
applies
33
to
actions
for
possession
filed
on
or
after
the
effective
date
34
of
this
division
of
this
Act.
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DIVISION
VII
1
UTILITY
CHARGES
2
Sec.
20.
Section
562B.14,
subsection
6,
paragraphs
a
and
b,
3
Code
2026,
are
amended
to
read
as
follows:
4
a.
The
landlord
or
any
person
authorized
to
enter
into
5
a
rental
agreement
on
the
landlord’s
behalf
shall
provide
6
a
written
explanation
of
utility
rates,
fees,
charges,
and
7
services
,
subject
to
section
562B.16,
subsection
3,
to
the
8
prospective
tenant
before
the
rental
agreement
is
signed
unless
9
the
utility
charges
are
paid
by
the
tenant
directly
to
the
10
utility
company.
11
b.
Tenants
shall
be
notified
of
any
increase
in
utility
12
rates
or
charges
in
the
manner
set
forth
in
subsection
7
for
13
rent
increases,
unless
the
landlord
does
not
receive
at
least
14
ninety
days’
prior
notice
of
such
increase
from
the
utility
15
provider,
in
which
case
no
prior
notice
of
the
increase
from
16
the
landlord
to
the
tenant
is
required
for
the
increase
to
17
be
effective
the
landlord
shall
provide
notice
to
the
tenant
18
within
five
business
days
of
receiving
the
notice
from
the
19
utility
provider
.
20
Sec.
21.
Section
562B.16,
Code
2026,
is
amended
by
adding
21
the
following
new
subsection:
22
NEW
SUBSECTION
.
3.
A
landlord
that
is
responsible
for
23
payment
of
utilities
being
provided
to
the
tenant
shall
not
24
charge
to
the
tenant
an
amount
in
excess
of
the
actual
cost
of
25
the
utility
and
as
specified
in
writing
under
section
562B.14,
26
subsection
6.
In
addition
to
the
actual
cost
of
the
utility,
27
a
landlord
that
is
responsible
for
the
payment
of
one
or
more
28
utilities
being
provided
to
the
tenant
may
impose
a
monthly
29
utility
administration
fee
to
each
tenant
not
to
exceed
five
30
dollars
per
month.
The
amount
of
the
utility
administration
31
fee
shall
not
exceed
five
dollars
per
month
regardless
of
the
32
number
of
utilities
being
provided
or
the
actual
cost
of
the
33
utilities
being
provided.
34
Sec.
22.
Section
562B.25,
Code
2026,
is
amended
by
adding
35
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the
following
new
subsection:
1
NEW
SUBSECTION
.
2A.
The
failure
of
a
tenant
to
pay
utility
2
charges
that
exceed
the
actual
cost
of
the
utility
provided
3
as
required
by
section
562B.16,
subsection
3,
shall
not
be
4
considered
noncompliance
with
the
rental
agreement.
5
Sec.
23.
Section
714H.3,
subsection
2,
Code
2026,
is
amended
6
by
adding
the
following
new
paragraph:
7
NEW
PARAGRAPH
.
i.
Section
562B.16,
subsection
3.
8
DIVISION
VIII
9
UNLAWFUL
OUSTER
10
Sec.
24.
Section
562B.24,
Code
2026,
is
amended
to
read
as
11
follows:
12
562B.24
Tenant’s
remedies
for
landlord’s
unlawful
ouster,
13
exclusion
or
diminution
of
services.
14
If
the
landlord
unlawfully
removes
or
excludes
the
tenant
15
from
the
manufactured
home
community
or
mobile
home
park
or
16
willfully
diminishes
services
to
the
tenant
by
interrupting
17
or
causing
the
interruption
of
electric,
gas,
water
or
other
18
essential
service
to
the
tenant,
the
tenant
may
recover
19
possession,
require
the
restoration
of
essential
services
or
20
terminate
the
rental
agreement
and,
in
either
case,
recover
an
21
amount
not
to
exceed
two
months’
periodic
rent
,
and
twice
the
22
actual
damages
sustained
by
the
tenant
,
and
reasonable
attorney
23
fees
.
If
the
rental
agreement
is
terminated,
the
landlord
24
shall
return
all
prepaid
rent
and
security.
25
Sec.
25.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
26
deemed
of
immediate
importance,
takes
effect
upon
enactment.
27
Sec.
26.
APPLICABILITY.
This
division
of
this
Act
applies
28
to
actions
under
section
562B.24,
as
amended
in
this
division
29
of
this
Act,
filed
on
or
after
the
effective
date
of
this
30
division
of
this
Act.
31
DIVISION
IX
32
TENANT
CORRECTING
DEFICIENCIES
33
Sec.
27.
Section
562B.25,
Code
2026,
is
amended
by
adding
34
the
following
new
subsection:
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NEW
SUBSECTION
.
4A.
In
any
action
by
a
landlord
for
1
possession
based
upon
nonpayment
of
rent,
proof
by
the
tenant
2
of
all
of
the
following
shall
be
a
defense
to
any
action
or
3
claim
for
possession
by
the
landlord,
and
the
amounts
expended
4
by
the
tenant
in
correcting
the
deficiencies
shall
be
deducted
5
from
the
amount
claimed
by
the
landlord
as
unpaid
rent:
6
a.
That
the
landlord
failed
to
comply
either
with
the
rental
7
agreement
or
with
section
562B.16.
8
b.
That
the
tenant
notified
the
landlord
at
least
seven
9
days
prior
to
the
due
date
of
the
tenant’s
rent
payment
of
the
10
tenant’s
intention
to
correct
the
condition
constituting
the
11
breach
referred
to
in
paragraph
“a”
at
the
landlord’s
expense.
12
c.
That
the
reasonable
cost
of
correcting
the
condition
13
constituting
the
breach
is
equal
to
or
less
than
one
month’s
14
periodic
rent.
15
d.
That
the
tenant
in
good
faith
caused
the
condition
16
constituting
the
breach
to
be
corrected
prior
to
receipt
of
17
written
notice
of
the
landlord’s
intention
to
terminate
the
18
rental
agreement
for
nonpayment
of
rent.
19
Sec.
28.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
20
deemed
of
immediate
importance,
takes
effect
upon
enactment.
21
Sec.
29.
APPLICABILITY.
This
division
of
this
Act
applies
22
to
actions
by
a
landlord
for
possession
filed
on
or
after
the
23
effective
date
of
this
division
of
this
Act.
24
DIVISION
X
25
DENIAL
OF
RENTAL
OR
REFUSAL
OF
SALE
26
Sec.
30.
Section
562B.19,
subsection
3,
paragraphs
a
and
c,
27
Code
2026,
are
amended
to
read
as
follows:
28
a.
Deny
rental
unless
the
tenant
or
prospective
tenant
29
cannot
conform
to
manufactured
home
community
or
park
rules
30
and
regulations.
A
decision
to
deny
rental
shall
conform
31
to
recognized
principles,
rules,
and
standards
generally
32
accepted
by
the
professional
manufactured
home
community
or
33
park
industry
to
ensure
the
commercially
reasonable
safety
and
34
financial
security
of
comparable
manufactured
home
communities
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or
mobile
home
parks.
A
landlord
shall
deliver
the
decision
1
in
writing
to
the
tenant
or
prospective
tenant
as
soon
as
2
commercially
feasible
and
shall
provide
the
basis
for
a
denial
3
in
writing
to
the
tenant
or
prospective
tenant
at
the
time
of
4
the
decision.
5
c.
Deny
any
resident
of
a
manufactured
home
community
or
6
mobile
home
park
the
right
to
sell
that
person’s
mobile
home
7
at
a
price
of
the
person’s
own
choosing,
but
may
reserve
the
8
right
to
approve
the
purchaser
of
such
mobile
home
as
a
tenant
9
but
such
permission
may
shall
only
be
withheld
for
a
legitimate
10
business
reason
within
the
recognized
principles,
rules,
11
and
standards
described
in
paragraph
“a”
,
and
shall
not
be
12
unreasonably
withheld,
provided
however,
that
the
landlord
may,
13
in
the
event
of
a
sale
to
a
third
party,
in
order
to
upgrade
14
the
quality
of
the
manufactured
home
community
or
mobile
home
15
park,
require
that
any
mobile
home
in
a
rundown
condition
or
in
16
disrepair
be
removed
from
the
manufactured
home
community
or
17
park
within
sixty
days.
If
the
landlord
does
not
approve
the
18
purchaser
as
a
tenant,
the
landlord
shall
provide
the
purchaser
19
with
written
notice
of
such
denial
and
the
general
reason
for
20
the
denial,
but
the
landlord
shall
not
be
required
to
provide
21
a
specific
reason
for
the
denial.
If
the
landlord
refuses
22
to
approve
the
purchaser
of
the
mobile
home
as
a
tenant,
the
23
landlord
shall
provide
a
legitimate
business
reason
for
the
24
refusal
in
writing
to
the
resident
who
is
selling
the
mobile
25
home.
26
DIVISION
XI
27
RENTAL
AGREEMENT
TERMS
28
Sec.
31.
Section
562B.11,
subsection
1,
paragraph
e,
Code
29
2026,
is
amended
to
read
as
follows:
30
e.
Agrees
to
modify
the
physical
characteristics
or
31
equipment
of
the
mobile
home,
manufactured
home,
or
modular
32
home
in
a
way
that
would
substantially
impair
the
ability
of
33
the
tenant
to
move
the
home
from
the
mobile
home
space,
unless
34
such
modification
is
required
by
federal
law,
including
but
not
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limited
to
the
model
manufactured
home
installation
standards,
1
24
C.F.R.
pt.
3285,
the
manufactured
home
construction
and
2
safety
standards,
24
C.F.R.
pt.
3280
,
or
the
manufactured
3
home
procedural
and
enforcement
regulations,
24
C.F.R.
4
pt.
3282,
or
by
state
or
local
law,
the
manufacturer’s
5
installation
instructions,
any
requirement
arising
from
the
6
landlord’s
financing
of
the
home
or
of
the
mobile
home
park
or
7
manufactured
home
community
in
which
the
home
is
located,
or
8
unless
such
modification
is
otherwise
necessary
for
the
safe
9
and
proper
installation
of
the
home.
10
Sec.
32.
Section
562B.11,
subsection
1,
Code
2026,
is
11
amended
by
adding
the
following
new
paragraphs:
12
NEW
PARAGRAPH
.
f.
Authorizes
imposition
of
fines,
13
penalties,
or
fees
solely
as
a
punishment
or
in
amounts
in
14
excess
of
actual
damages
or
costs
incurred.
15
NEW
PARAGRAPH
.
g.
Authorizes
a
person
to
confess
judgment
16
on
a
claim
arising
out
of
the
rental
agreement.
17
NEW
PARAGRAPH
.
h.
Authorizes
prohibitions,
limitations,
18
additional
deposits,
or
other
restrictive
policies
that
are
19
not
based
on
ordinary
wear
and
tear
expected
to
occur
during
a
20
tenancy
or
that
are
not
based
on
community
safety
standards.
21
Sec.
33.
Section
562B.11,
subsection
3,
Code
2026,
is
22
amended
to
read
as
follows:
23
3.
A
provision
prohibited
by
this
section
included
in
a
24
rental
agreement
is
unenforceable.
If
a
landlord
or
tenant
25
knowingly
and
willfully
uses
a
rental
agreement
containing
26
provisions
known
to
be
prohibited
by
this
chapter
,
the
other
27
party
tenant
may
recover
actual
damages
sustained
by
the
tenant
28
and
not
more
than
three
months’
periodic
rent
and
reasonable
29
attorney
fees
.
30
DIVISION
XII
31
RENTAL
DEPOSITS
32
Sec.
34.
Section
562B.7,
subsection
12,
Code
2026,
is
33
amended
to
read
as
follows:
34
12.
“Rental
deposit”
means
a
deposit
of
money
to
secure
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performance
of
a
mobile
home
space
rental
agreement
under
this
1
chapter
other
than
a
deposit
which
is
exclusively
in
advance
2
payment
of
rent
.
3
Sec.
35.
Section
562B.13,
subsection
2,
Code
2026,
is
4
amended
to
read
as
follows:
5
2.
All
rental
deposits
shall
be
held
by
the
landlord
for
6
the
tenant,
who
is
a
party
to
the
agreement,
in
a
bank,
credit
7
union,
or
savings
and
loan
association
which
is
insured
by
an
8
agency
of
the
federal
government.
Rental
deposits
shall
not
be
9
commingled
with
the
personal
funds
of
the
landlord.
All
rental
10
deposits
may
be
held
in
a
trust
account,
which
may
be
a
common
11
trust
account
and
which
may
be
an
interest-bearing
account.
12
Any
interest
earned
on
a
rental
deposit
during
the
first
five
13
years
of
a
tenancy
shall
be
the
property
of
the
landlord.
14
Sec.
36.
Section
562B.13,
Code
2026,
is
amended
by
adding
15
the
following
new
subsection:
16
NEW
SUBSECTION
.
9.
The
court
may,
in
any
action
on
a
rental
17
agreement,
award
reasonable
attorney
fees
to
the
prevailing
18
party.
19
DIVISION
XIII
20
NONJUDICIAL
FORECLOSURE
21
Sec.
37.
Section
654.18,
Code
2026,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
5.
Actions
under
this
section
initiated
24
on
or
after
July
1,
2026,
shall
not
be
allowed
for
property
25
consisting
of
a
mobile
home
as
defined
in
section
562B.7.
26
Sec.
38.
Section
655A.9,
Code
2026,
is
amended
to
read
as
27
follows:
28
655A.9
Application
of
chapter.
29
1.
This
chapter
does
not
apply
to
real
estate
used
for
30
an
agricultural
purpose
as
defined
in
section
535.13
,
or
to
31
a
one
or
two
family
dwelling
which
is,
at
the
time
of
the
32
initiation
of
the
foreclosure,
occupied
by
a
legal
or
equitable
33
titleholder.
34
2.
Actions
under
this
chapter
initiated
on
or
after
July
1,
35
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2026,
shall
not
be
allowed
for
property
consisting
of
a
mobile
1
home
as
defined
in
section
562B.7.
2
DIVISION
XIV
3
RETALIATION
4
Sec.
39.
Section
562B.32,
subsection
1,
paragraph
a,
Code
5
2026,
is
amended
to
read
as
follows:
6
a.
The
tenant
has
complained
to
a
governmental
agency
7
charged
with
responsibility
for
enforcement
of
a
building
or
8
housing
code
of
a
violation
applicable
to
the
manufactured
9
home
community
or
mobile
home
park
materially
affecting
health
10
and
safety
or
other
group
relating
to
assisting
tenants
.
For
11
this
subsection
paragraph
to
apply,
a
complaint
filed
with
a
12
governmental
body
or
group
must
be
in
good
faith.
13
DIVISION
XV
14
CAPITAL
GAIN
TAXES
EXCLUSION
15
Sec.
40.
Section
422.7,
Code
2026,
is
amended
by
adding
the
16
following
new
subsection:
17
NEW
SUBSECTION
.
46.
a.
Subtract,
to
the
extent
included,
18
the
net
capital
gain
from
the
sale
or
exchange
of
a
mobile
home
19
park.
20
b.
To
qualify
under
this
subsection,
the
sale
must
be
made
21
to
any
of
the
following:
22
(1)
A
tenants’
association
or
a
mobile
home
park
residents’
23
association.
24
(2)
A
nonprofit
organization
under
section
501(c)(3)
of
25
the
Internal
Revenue
Code
that
purchases
a
mobile
home
park
on
26
behalf
of
a
tenants’
association
or
mobile
home
park
residents’
27
association.
28
(3)
A
county
housing
authority.
29
(4)
A
municipal
housing
authority.
30
c.
If
the
eligible
business
is
a
partnership,
S
corporation,
31
limited
liability
company,
or
estate
or
trust
electing
to
have
32
the
income
taxed
directly
to
the
individual,
an
individual
33
may
claim
the
tax
credit
allowed.
The
amount
claimed
by
34
the
individual
shall
be
based
upon
the
pro
rata
share
of
35
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the
individual’s
earnings
of
the
partnership,
S
corporation,
1
limited
liability
company,
or
estate
or
trust.
2
d.
For
the
purpose
of
this
subsection,
“tenants’
3
association”
or
“mobile
home
park
residents’
association”
means
a
4
group
of
six
or
more
tenants
who
reside
in
a
mobile
home
park,
5
have
organized
for
the
purpose
of
eventual
purchase
of
the
6
mobile
home
park,
have
established
bylaws
of
the
association,
7
and
have
obtained
the
approval
by
vote
of
at
least
fifty-one
8
percent
of
the
residents
of
the
mobile
home
park
to
purchase
9
the
mobile
home
park.
10
Sec.
41.
Section
422.35,
Code
2026,
is
amended
by
adding
the
11
following
new
subsection:
12
NEW
SUBSECTION
.
15.
a.
Subtract,
to
the
extent
included,
13
the
net
capital
gain
from
the
sale
or
exchange
of
a
mobile
home
14
park.
15
b.
To
qualify
under
this
subsection,
the
sale
must
be
made
16
to
any
of
the
following:
17
(1)
A
tenants’
association
or
a
mobile
home
park
residents’
18
association.
19
(2)
A
nonprofit
organization
under
section
501(c)(3)
of
20
the
Internal
Revenue
Code
that
purchases
a
mobile
home
park
on
21
behalf
of
a
tenants’
association
or
mobile
home
park
residents’
22
association.
23
(3)
A
county
housing
authority.
24
(4)
A
municipal
housing
authority.
25
c.
For
the
purpose
of
this
subsection,
“tenants’
26
association”
or
“mobile
home
park
residents’
association”
means
a
27
group
of
six
or
more
tenants
who
reside
in
a
mobile
home
park,
28
have
organized
for
the
purpose
of
eventual
purchase
of
the
29
mobile
home
park,
have
established
bylaws
of
the
association,
30
and
have
obtained
the
approval
by
vote
of
at
least
fifty-one
31
percent
of
the
residents
of
the
mobile
home
park
to
purchase
32
the
mobile
home
park.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
property
law.
2
GROUNDS
FOR
TERMINATION
OF
TENANCY.
The
bill
prohibits
a
3
landlord
from
terminating
a
tenancy
unless
the
tenant
acts
in
4
material
noncompliance
with
the
rental
agreement,
commits
a
5
material
violation
of
the
manufactured
home
community
or
mobile
6
home
park
rules
or
regulations,
or
commits
any
other
violation
7
of
Code
chapter
562B
for
which
termination
is
a
remedy;
or
8
for
a
legitimate
and
material
business
reason,
the
impact
of
9
which
is
not
specific
to
one
tenant;
or
due
to
a
change
in
the
10
use
of
the
land,
and
such
change
is
grounds
for
termination
or
11
nonrenewal
under
the
rental
agreement.
12
This
division
of
the
bill
takes
effect
upon
enactment
and
13
applies
to
terminations
of
tenancies
on
or
after
that
date.
14
CONSUMER
FRAUD.
The
bill
provides
that
a
violation
of
15
Code
chapter
562B
by
a
landlord
or
the
landlord’s
agent
is
16
an
unlawful
practice
under
Code
section
714.16,
governing
17
consumer
frauds.
Several
types
of
remedies
are
available
18
if
a
court
finds
that
a
person
has
committed
an
unlawful
19
practice,
including
injunctive
relief,
disgorgement
of
moneys
20
or
property,
and
a
civil
penalty
not
to
exceed
$40,000
per
21
violation.
22
This
division
of
the
bill
takes
effect
upon
enactment
and
23
applies
to
violations
of
Code
chapter
562B
occurring
on
or
24
after
that
date.
25
RENT
INCREASES.
The
bill
strikes
changes
to
the
definition
26
of
“rent”
made
by
the
general
assembly
in
2022
and
modifies
27
provisions
governing
an
increase
in
the
amount
of
rent
paid
28
by
a
tenant.
The
bill
prohibits
a
landlord
from
increasing
29
rent
unless
the
tenant
is
notified
in
writing
of
the
rent
30
increase
at
least
180
days
before
the
effective
date
of
the
31
rent
increase.
The
bill
further
provides
that
the
effective
32
date
of
any
rent
increase
shall
not
be
less
than
one
year
from
33
either
the
effective
date
of
the
most
recent
rent
increase
or
34
the
beginning
of
the
tenancy,
whichever
is
later.
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A
landlord
may
increase
the
amount
of
rent
due
by
any
tenant
1
in
an
amount
greater
than
the
average
annual
increase
of
the
2
consumer
price
index
for
all
urban
consumers
in
the
midwest
3
region
for
the
most
recently
available
preceding
36-month
4
period,
if
the
landlord
demonstrates
a
number
of
conditions
5
set
forth
in
the
bill.
The
bill
also
requires
the
written
6
notice
of
a
rent
increase
provided
to
the
tenant
to
include
7
the
specific
reasons
and
justifications
for
the
increase.
A
8
decrease
in
the
number
or
quality
of
amenities,
services,
9
or
utilities
provided
under
the
rental
agreement
without
a
10
corresponding
and
proportionate
reduction
in
rent
shall
be
11
considered
a
rent
increase
for
the
purposes
of
Code
chapter
12
562B.
13
This
division
of
the
bill
takes
effect
upon
enactment
and
14
includes
applicability
provisions
for
certain
requirements
15
related
to
rent
increases.
16
LANDLORD
REMEDIES
AND
PROCEDURES.
Current
law
caps
late
17
fees
on
rental
agreements
in
which
rent
is
greater
than
$700
18
per
month
at
$20
per
day
and
$100
per
month.
The
bill
allows
19
a
rental
agreement
to
provide
for
late
fees
not
to
exceed
2
20
percent
of
the
rent
per
day
and
10
percent
of
the
rent
per
21
month
when
rent
exceeds
$1,400
per
month.
The
bill
undoes
22
changes
made
to
Code
section
562B.10(7)(a)
made
by
the
general
23
assembly
in
2022
relating
occupancy
by
heirs
and
personal
24
representatives
of
a
decedent’s
estate.
25
MANUFACTURED
HOUSING
PROGRAM
FUND.
Under
current
law,
the
26
manufactured
housing
program
fund
is
used
for
the
purpose
of
27
providing
funding
to
financial
institutions
or
other
lenders
28
to
finance
the
purchase
by
an
individual
of
a
compliant
29
manufactured
home.
The
bill
strikes
language
providing
that
30
the
fund
is
designed
exclusively
for
manufactured
homes
sited
31
on
leased
land.
32
TENANT
COUNTERCLAIM
FOR
LANDLORD
NONCOMPLIANCE.
The
bill
33
amends
Code
section
562B.25,
relating
to
actions
by
a
landlord
34
for
noncompliance
with
a
rental
agreement
by
a
tenant
or
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failure
to
pay
rent,
by
establishing
authority
and
procedures
1
similar
to
those
under
Code
section
562A.24
(landlord’s
2
noncompliance
as
defense
to
action
for
possession
or
rent
——
3
uniform
residential
landlord
and
tenant
Act).
In
a
landlord’s
4
action
for
possession
based
upon
nonpayment
of
rent
or
in
an
5
action
for
rent
where
the
tenant
is
in
possession,
the
tenant
6
may
counterclaim
for
an
amount
which
the
tenant
may
recover
7
under
the
rental
agreement
or
Code
chapter
562B,
and
pay
into
8
court
all
or
part
of
the
rent.
If
the
defense
or
counterclaim
9
by
the
tenant
is
without
merit
and
is
not
raised
in
good
10
faith,
the
landlord
may
recover
reasonable
attorney
fees.
11
Additionally,
in
an
action
for
rent
where
the
tenant
is
not
in
12
possession,
the
tenant
may
counterclaim
but
is
not
required
to
13
pay
any
rent
into
court.
14
This
division
of
the
bill
takes
effect
upon
enactment
and
15
applies
to
actions
for
possession
filed
on
or
after
that
date.
16
UTILITY
CHARGES.
The
bill
provides
that
a
landlord
that
17
is
responsible
for
payment
of
utilities
being
provided
to
the
18
tenant
shall
not
charge
to
the
tenant
an
amount
in
excess
of
19
the
actual
cost
of
the
utility
and
the
failure
of
a
tenant
to
20
pay
utility
charges
that
exceed
the
actual
cost
of
the
utility
21
provided
shall
not
be
considered
noncompliance
with
the
rental
22
agreement.
In
addition
to
the
actual
cost
of
the
utility,
23
the
bill
authorizes
a
landlord
that
is
responsible
for
the
24
payment
of
one
or
more
utilities
to
impose
a
monthly
utility
25
administration
fee
to
each
tenant
not
to
exceed
$5
per
month,
26
regardless
of
the
number
of
utilities
being
provided
or
the
27
actual
cost
of
the
utilities
being
provided.
The
bill
also
28
provides
that
a
violation
of
the
limitation
on
utility
charges
29
is
a
violation
of
Code
section
714H.3
(private
right
of
action
30
for
consumer
frauds).
31
UNLAWFUL
OUSTER.
The
bill
amends
Code
section
562B.24
32
relating
to
a
tenant’s
remedies
for
a
landlord’s
unlawful
33
ouster
or
exclusion
or
diminution
of
services.
The
bill
adds
34
reasonable
attorney
fees
to
the
list
of
recoverable
damages
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and
provides
that
if
the
rental
agreement
is
terminated,
the
1
landlord
shall
return
all
prepaid
rent
and
security.
2
This
division
of
the
bill
takes
effect
upon
enactment
and
3
applies
to
actions
under
Code
section
562B.24
filed
on
or
after
4
that
date.
5
TENANT
CORRECTING
DEFICIENCIES.
The
bill
provides
that
in
6
any
action
by
a
landlord
for
possession
based
upon
nonpayment
7
of
rent,
proof
by
the
tenant
of
certain
actions
set
forth
in
8
the
bill
are
a
defense
to
any
action
or
claim
for
possession
9
by
the
landlord,
and
the
amounts
expended
by
the
tenant
in
10
correcting
the
deficiencies
shall
be
deducted
from
the
amount
11
claimed
by
the
landlord
as
unpaid
rent.
12
This
division
of
the
bill
takes
effect
upon
enactment
and
13
applies
to
actions
by
a
landlord
for
possession
filed
on
or
14
after
that
date.
15
DENIAL
OF
RENTAL
OR
REFUSAL
OF
SALE.
Code
section
16
562B.19(3)(a)
prohibits
a
landlord
from
denying
rental
unless
17
the
tenant
or
prospective
tenant
cannot
conform
to
manufactured
18
home
community
or
park
rules
and
regulations.
The
bill
19
requires
any
such
decision
to
conform
to
recognized
principles,
20
rules,
and
standards
generally
accepted
by
the
professional
21
manufactured
home
community
or
park
industry
to
ensure
the
22
commercially
reasonable
safety
and
financial
security
of
23
comparable
manufactured
home
communities
or
parks.
The
bill
24
also
requires
a
landlord
to
deliver
the
decision
in
writing
25
to
the
tenant
or
prospective
tenant
as
soon
as
commercially
26
feasible
and
to
provide
the
basis
for
a
denial
in
writing
to
27
the
tenant
or
prospective
tenant
at
the
time
of
the
decision.
28
Code
section
562B.19(3)(c)
prohibits
a
landlord
from
denying
29
any
resident
of
a
manufactured
home
community
or
mobile
home
30
park
the
right
to
sell
that
person’s
mobile
home
at
a
price
31
of
the
person’s
own
choosing,
but
provides
that
the
landlord
32
has
the
right
to
approve
the
purchaser
as
a
tenant
but
such
33
permission
may
not
be
unreasonably
withheld.
The
bill
allows
34
such
permission
to
be
withheld
only
for
a
legitimate
business
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reason
within
the
recognized
principles,
rules,
and
standards
1
accepted
by
the
industry.
If
the
landlord
refuses
to
approve
2
the
purchaser
as
a
tenant,
the
landlord
must
provide
a
3
legitimate
business
reason
for
the
refusal
in
writing
to
the
4
resident.
5
RENTAL
AGREEMENT
TERMS.
The
bill
adds
to
the
list
of
6
prohibited
rental
agreement
provisions
in
Code
section
7
562B.11
a
provision
requiring
agreement
to
modify
the
physical
8
characteristics
or
equipment
of
the
mobile
home,
manufactured
9
home,
or
modular
home
if
such
modification
impairs
the
ability
10
of
the
tenant
to
move
the
home,
unless
otherwise
required
by
11
law
or
local
ordinance.
12
The
bill
prohibits
rental
agreements
under
Code
chapter
562B
13
from
providing
that
the
tenant
or
landlord
does
any
of
the
14
following:
(1)
authorizes
imposition
of
fines,
penalties,
or
15
fees
solely
as
a
punishment
or
in
amounts
in
excess
of
actual
16
damages
or
costs
incurred,
(2)
authorizes
a
person
to
confess
17
judgment
on
a
claim
arising
out
of
the
rental
agreement,
and
18
(3)
authorizes
prohibitions,
limitations,
additional
deposits,
19
or
other
restrictive
policies
that
are
not
based
on
ordinary
20
wear
and
tear
or
that
are
not
based
on
community
safety
21
standards.
22
The
bill
provides
that
a
tenant
may
recover
up
to
three
23
months’
rent
and
attorney
fees
for
a
landlord’s
knowing
24
and
willful
use
of
a
rental
agreement
containing
prohibited
25
provisions.
The
bill
also
removes
the
ability
of
the
landlord
26
to
recover
from
the
tenant
for
use
of
a
rental
agreement
27
containing
prohibited
provisions.
28
RENTAL
DEPOSITS.
The
bill
modifies
the
definition
of
29
“rental
deposit”
for
purposes
of
Code
chapter
562B,
provides
30
that
the
landlord
is
only
entitled
to
the
interest
earned
on
31
the
rental
deposit
for
the
first
five
years
of
the
tenancy,
and
32
establishes
authority
for
a
court,
in
any
action
on
a
rental
33
agreement,
to
award
reasonable
attorney
fees
to
the
prevailing
34
party.
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NONJUDICIAL
FORECLOSURE.
The
bill
excludes
mobile
homes
1
from
the
applicability
of
nonjudicial
foreclosure
provisions.
2
RETALIATION.
Code
section
562B.32(1)
generally
provides
3
that
a
landlord
shall
not
retaliate
by
increasing
rent
or
4
decreasing
services
or
by
bringing
or
threatening
to
bring
an
5
action
for
possession
or
by
failing
to
renew
a
rental
agreement
6
after
the
exercise
or
assertion
of
several
specified
rights
7
and
remedies,
including
complaining
to
a
governmental
agency
8
charged
with
responsibility
for
enforcement
of
a
building
or
9
housing
code
of
a
violation
applicable
to
the
manufactured
10
home
community
or
mobile
home
park
materially
affecting
health
11
and
safety.
The
bill
instead
provides
that
a
landlord
cannot
12
retaliate
against
a
tenant
for
filing
a
good-faith
complaint
13
with
a
governmental
agency
or
other
group
relating
to
assisting
14
tenants.
15
CAPITAL
GAIN
TAX
EXCLUSION.
The
bill
creates
a
capital
gain
16
exclusion
from
sale
of
a
mobile
home
park
to
certain
entities
17
set
forth
in
the
bill.
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