This bill amends existing laws regarding business entity-owned residential arrangements in Iowa, specifically addressing the sale, rental, or occupancy of certain residential properties owned by religious organizations. It introduces new definitions for terms such as "business entity," "managing entity," "residential arrangement," and "residential property." The bill mandates that any agreement for purchasing an interest in a managing entity must clearly disclose that the agreement pertains to the business entity and not to the residential property itself. Additionally, it prohibits managing entities from taking actions that would violate the Iowa Civil Rights Act if the interest were considered real property, including imposing discriminatory conditions or restricting transfers of ownership interests.

Furthermore, the bill creates an exception to the existing religious exemption in housing laws, stating that the sale, rental, or occupancy of single-family residences, duplexes, triplexes, or quadruplexes on subdivided lots of 25 acres or more owned by religious organizations is subject to the same unfair or discriminatory practices prohibited by law. Violations of this bill are classified as unlawful practices under the Iowa Consumer Fraud Act, allowing for various remedies, including injunctive relief and civil penalties. The bill is effective immediately upon enactment.

Statutes affected:
Introduced: 216.12, 714.16, 714H.3