Senate File 403 - Introduced
SENATE FILE 403
BY KOELKER
(COMPANION TO HF 442 BY LOHSE)
A BILL FOR
1 An Act relating to property law by modifying provisions
2 relating to rental properties, manufactured home
3 communities, mobile home parks, and manufactured mobile
4 home communities, modifying provisions governing actions
5 relating to such properties, making penalties applicable,
6 and including effective date and applicability provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2003XS (2) 89
cm/jh
S.F. 403
1 DIVISION I
2 GROUNDS FOR TERMINATION OF TENANCY
3 Section 1. Section 562B.10, Code 2021, is amended by adding
4 the following new subsection:
5 NEW SUBSECTION. 4A. a. A landlord may only terminate a
6 tenancy if the tenant engages in any of the following or for
7 any of the following reasons:
8 (1) A material noncompliance with the rental agreement.
9 (2) A material violation of the manufactured home community
10 or mobile home park rules or regulations.
11 (3) Any other violation of this chapter for which
12 termination is a remedy.
13 (4) A legitimate and material business reason the impact of
14 which is not specific to one tenant.
15 (5) A change in the use of the land if change in the use
16 of the land is included in the rental agreement as grounds for
17 termination or nonrenewal.
18 b. A landlord may, upon providing ninety-day prior written
19 notice, elect to not renew a tenancy for any reason not
20 otherwise prohibited by law.
21 c. If the landlord presents evidence of written notice to a
22 tenant on at least three occasions, each notice dated not less
23 than ten days apart, of a condition identified in paragraph
24 “a”, subparagraph (1), (2), or (3), such evidence creates a
25 presumption of the existence of the condition unless and until
26 evidence is introduced which would support a finding of the
27 condition’s nonexistence.
28 Sec. 2. EFFECTIVE DATE. This division of this Act, being
29 deemed of immediate importance, takes effect upon enactment.
30 Sec. 3. APPLICABILITY. This division of this Act applies
31 to landlord decisions to not renew tenancies on or after the
32 effective date of this division of this Act.
33 DIVISION II
34 RETALIATION
35 Sec. 4. Section 562B.32, subsection 1, paragraph d, Code
LSB 2003XS (2) 89
-1- cm/jh 1/22
S.F. 403
1 2021, is amended to read as follows:
2 d. For exercising any of the rights and remedies pursuant
3 to this chapter or chapter 216.
4 Sec. 5. Section 562B.32, subsection 2, Code 2021, is amended
5 to read as follows:
6 2. If the landlord acts in violation of subsection 1
7 of this section, the tenant is entitled to the remedies
8 provided in section 562B.24 and has a defense in an action for
9 possession. In an action by or against the tenant, evidence
10 of a complaint within six months one year prior to the alleged
11 act of retaliation creates a presumption that the landlord’s
12 conduct was in retaliation. The presumption does not arise
13 if the tenant made the complaint after notice of termination
14 of the rental agreement. For the purpose of this subsection,
15 “presumption” means that the trier of fact must find the
16 existence of the fact presumed unless and until evidence is
17 introduced which would support a finding of its nonexistence.
18 Sec. 6. EFFECTIVE DATE. This division of this Act, being
19 deemed of immediate importance, takes effect upon enactment.
20 DIVISION III
21 CONSUMER FRAUD
22 Sec. 7. Section 562B.4, Code 2021, is amended by adding the
23 following new subsection:
24 NEW SUBSECTION. 3. A violation of this chapter by a
25 landlord, or an agent of the landlord, is an unlawful practice
26 under section 714.16.
27 Sec. 8. Section 714.16, subsection 2, Code 2021, is amended
28 by adding the following new paragraph:
29 NEW PARAGRAPH. q. It is an unlawful practice for a landlord
30 or the landlord’s agent to violate any of the provisions of
31 chapter 562B.
32 Sec. 9. EFFECTIVE DATE. This division of this Act, being
33 deemed of immediate importance, takes effect upon enactment.
34 Sec. 10. APPLICABILITY. This division of this Act applies
35 to violations of chapter 562B occurring on or after the
LSB 2003XS (2) 89
-2- cm/jh 2/22
S.F. 403
1 effective date of this division of this Act.
2 DIVISION IV
3 RENT INCREASES
4 Sec. 11. Section 562B.14, subsection 7, Code 2021, is
5 amended by striking the subsection and inserting in lieu
6 thereof the following:
7 7. a. A landlord shall not increase the amount of rent due
8 by any tenant in a manufactured home community or mobile home
9 park unless the tenant is notified, in writing, of the rent
10 increase at least one hundred twenty days before the effective
11 date of the rent increase. The effective date of any increase
12 in the amount of rent shall not be less than one year after
13 either the effective date of the most recent rent increase or
14 the beginning of the tenancy, whichever is later.
15 b. A decrease in the number or quality of amenities,
16 services, or utilities provided under the rental agreement
17 without a corresponding and proportionate reduction in rent
18 shall be considered a rent increase for the purposes of this
19 chapter.
20 Sec. 12. EFFECTIVE DATE. This division of this Act, being
21 deemed of immediate importance, takes effect upon enactment.
22 Sec. 13. APPLICABILITY. This division of this Act applies
23 to rent increases under chapter 562B occurring on or after the
24 effective date of this division of this Act.
25 DIVISION V
26 MANUFACTURED HOUSING PROGRAM FUND
27 Sec. 14. Section 16.45, subsection 1, Code 2021, is amended
28 to read as follows:
29 1. A manufactured housing program fund is created within
30 the authority to further the goal of providing affordable
31 housing to Iowans. The moneys in the fund are to be used for
32 the purpose of providing funding to financial institutions or
33 other lenders to finance the purchase by an individual of a
34 manufactured home that is in compliance with all laws, rules,
35 and standards that are applicable to manufactured homes and
LSB 2003XS (2) 89
-3- cm/jh 3/22
S.F. 403
1 manufactured housing. The manufactured housing program fund
2 is designed exclusively for manufactured homes sited on leased
3 land.
4 DIVISION VI
5 TENANT COUNTERCLAIM FOR LANDLORD NONCOMPLIANCE
6 Sec. 15. Section 562B.25, Code 2021, is amended by adding
7 the following new subsection:
8 NEW SUBSECTION. 5. a. In an action for possession based
9 upon nonpayment of the rent or in an action for rent where the
10 tenant is in possession, the tenant may counterclaim for an
11 amount which the tenant may recover under the rental agreement
12 or this chapter. In that event, the court from time to time
13 may order the tenant to pay into court all or part of the rent
14 accrued and thereafter accruing, and shall determine the amount
15 due to each party. The party to whom a net amount is owed
16 shall be paid first from the money paid into court, and the
17 balance by the other party. If rent does not remain due after
18 application of this section, judgment shall be entered for
19 the tenant in the action for possession. If the defense or
20 counterclaim by the tenant is without merit and is not raised
21 in good faith, the landlord may recover reasonable attorney
22 fees.
23 b. In an action for rent where the tenant is not in
24 possession, the tenant may counterclaim as provided in
25 paragraph “a”, but the tenant is not required to pay any rent
26 into court.
27 Sec. 16. EFFECTIVE DATE. This division of this Act, being
28 deemed of immediate importance, takes effect upon enactment.
29 Sec. 17. APPLICABILITY. This division of this Act applies
30 to actions for possession filed on or after the effective date
31 of this division of this Act.
32 DIVISION VII
33 DISCLOSURE OF UTILITY CHARGES
34 Sec. 18. Section 562B.14, subsection 6, Code 2021, is
35 amended to read as follows:
LSB 2003XS (2) 89
-4- cm/jh 4/22
S.F. 403
1 6. a. The landlord or any person authorized to enter into
2 a rental agreement on the landlord’s behalf shall provide a
3 written explanation of utility rates, charges and services to
4 the prospective tenant before the rental agreement is signed
5 unless the utility charges are paid by the tenant directly to
6 the utility company.
7 b. If a landlord obtains a utility service from a utility
8 provider and furnishes the utility to the tenant and the
9 landlord’s charge to the tenant is based upon the utility
10 provider’s charge or rate for the use of such utility to
11 consumers, an increase in the landlord’s charge to a tenant
12 for the utility that corresponds to the same increase in the
13 utility provider’s charge or rate to the landlord shall be
14 effective thirty days after the landlord provides written
15 notice of such increase to the tenant, unless the landlord does
16 not receive at least sixty days’ prior notice of such increase
17 from the utility provider in which case no prior notice of the
18 increase from the landlord to the tenant is required for the
19 increase to be effective.
20 DIVISION VIII
21 FURNISHING OF WATER AND UTILITY CHARGES
22 Sec. 19. Section 423.3, subsection 103, Code 2021, is
23 amended to read as follows:
24 103. a. (1) The sales price from the sale or furnishing by
25 a water utility of a water service in the state to consumers or
26 users.
27 (2) Water service furnished by a mobile home park that does
28 not engage in the sale of water service. For purposes of this
29 subsection, a mobile home park does not engage in the sale of
30 water service if all of the following apply:
31 (a) The water service is not furnished to tenants for a
32 separately itemized price.
33 (b) The water service is not otherwise identifiable from
34 an invoice, bill, catalogue, price list, rate card, receipt,
35 agreement, or other similar document, including where the total
LSB 2003XS (2) 89
-5- cm/jh 5/22
S.F. 403
1 sales price increases when water service is included in the
2 sale to tenants.
3 (c) The water service is incidental to the rental of real
4 property.
5 b. For purposes of this subsection:
6 (1) “Mobile home park” means the same as defined in section
7 562B.7.
8 (1) (2) “Water service” means the delivery of water by
9 piped distribution system.
10 (2) (3) “Water utility” means a public utility as defined
11 in section 476.1 that furnishes water by piped distribution
12 system to the public for compensation.
13 Sec. 20. Section 423G.4, Code 2021, is amended by striking
14 the section and inserting in lieu thereof the following:
15 423G.4 Exemptions.
16 There is exempted from the tax imposed by this chapter the
17 following:
18 1. The sales price from transactions exempt from state
19 sales tax under section 423.3. However, the sales price from
20 transactions exempt from state sales tax under section 423.3,
21 subsection 103, shall not be exempt unless as provided in
22 subsection 2 or 3.
23 2. a. The sales price from the sale or furnishing of water
24 by a mobile home park through a piped distribution system
25 maintained by the mobile home park, to a consumer or user of
26 water who is a tenant, if all of the following apply:
27 (1) The water was obtained from a water utility.
28 (2) A tax was imposed by this chapter on the sales price
29 from the sale or furnishing of water by a water utility to the
30 mobile home park based upon readings of the master meter of the
31 mobile home park.
32 (3) The tenant is not charged for water by the mobile home
33 park in an amount that is more than the rate the tenant would be
34 charged for consuming or using water from the water utility,
35 plus an administrative fee under section 562B.16, subsection 3,
LSB 2003XS (2) 89
-6- cm/jh 6/22
S.F. 403
1 not to exceed five dollars per month.
2 b. As used in this section:
3 (1) “Master meter” means a single meter used in determining
4 the amount of water provided to a mobile home park.
5 (2) “Mobile home park” means the same as defined in section
6 562B.7 and also includes a “manufactured home community”, as
7 defined in section 562B.7.
8 (3) “Piped distribution system” includes a submetered
9 distribution system.
10 (4) “Tenant” means the same as defined in section 562B.7.
11 (5) “Water utility” means a public utility as defined in
12 section 476.1 that furnishes water by a piped distribution
13 system to the public for compensation.
14 3. Water service furnished by a mobile home park that does
15 not engage in the sale of water service. For purposes of this
16 subsection, a mobile home park does not engage in the sale of
17 water service if all of the following apply:
18 a. The water service is not furnished to tenants for a
19 separately itemized price.
20 b. The water service is not otherwise identifiable from
21 an invoice, bill, catalogue, price list, rate card, receipt,
22 agreement, or other similar document, including where the total
23 sales price increases when water service is included in the
24 sale to tenants.
25 c. The water service is incidental to the rental of real
26 property.
27 Sec. 21. Section 455B.171, subsection 26, Code 2021, is
28 amended to read as follows:
29 26. “Public water supply system” means, except as provided
30 in section 455B.200, a system for the provision to the public
31 of piped water for human consumption, if the system has at
32 least fifteen service connections or regularly serves at least
33 twenty-five individuals. The term includes any source of
34 water and any collection, treatment, storage, and distribution
35 facilities under control of the operator of the system and used
LSB 2003XS (2) 89
-7- cm/jh 7/22
S.F. 403
1 primarily in connection with the system, and any collection or
2 pretreatment storage facilities not under such control which
3 are used primarily in connection with the system.
4 Sec. 22. NEW SECTION. 455B.200 Mobile home parks.
5 1. As used in this section:
6 a. “Mobile home park” means the same as defined in section
7 423G.4.
8 b. “Tenant” means the same as defined in section 562B.7.
9 c. “Water utility” means a public utility as defined in
10 section 476.1 that furnishes water by a piped distribution
11 system to the public for compensation.
12 2. For purposes of this part 1, a mobile home park shall
13 not be considered a public water supply system if the mobile
14 home park sells or furnishes water to a tenant and all of the
15 following apply:
16 a. The water was obtained from a water utility prior to
17 selling or furnishing the water to a tenant.
18 b. The tenant is not charged more than the rate the tenant
19 would be charged for consuming or using water from the water
20 utility, plus an administrative fee under section 562B.16,
21 subsection 3, not to exceed five dollars per month.
22 Sec. 23. Section 562B.14, subsection 6, Code 2021, is
23 amended to read as follows:
24 6. The landlord or any person authorized to enter into
25 a rental agreement on the landlord’s behalf shall provide
26 a written explanation of utility rates, fees, charges, and
27 services, subject to section 562B.16, subsection 3, to the
28 prospective tenant before the rental agreement is signed unless
29 the utility charges are paid by the tenant directly to the
30 utility company.
31 Sec. 24. Section 562B.16, Code 2021, is amended by adding
32 the following new subsection:
33 NEW SUBSECTION. 3. A landlord that is responsible for
34 payment of utilities being provided to the tenant shall not
35 charge to the tenant an amount in excess of the actual cost of
LSB 2003XS (2) 89
-8- cm/jh 8/22