Bill Text: IA HF2394 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to the declaration and bylaws for residential condominiums, and including applicability provisions.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-02-17 - Introduced, referred to Judiciary. H.J. 281. [HF2394 Detail]

Download: Iowa-2019-HF2394-Introduced.html
House File 2394 - Introduced HOUSE FILE 2394 BY WINCKLER A BILL FOR An Act relating to the declaration and bylaws for residential 1 condominiums, and including applicability provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 6042YH (3) 88 ko/jh
H.F. 2394 Section 1. Section 499B.2, Code 2020, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 2A. “Bylaws” means the instruments, however 3 denominated, that contain the procedures for the administration 4 of a horizontal property regime, regardless of the form of 5 administration, including any amendments to such instruments. 6 NEW SUBSECTION . 4A. “Declaration” means the instrument, 7 however denominated, that creates a horizontal property regime, 8 including any amendments to the instrument. 9 Sec. 2. NEW SECTION . 499B.15A Declaration and bylaws —— 10 residential condominiums. 11 1. As used in this section, unless the context otherwise 12 requires: 13 a. “Administration” means the administrator, board 14 of administration, or other form of administration for a 15 horizontal property regime as contained in the bylaws pursuant 16 to section 499B.15. 17 b. “Developer” means a person or group of persons who as the 18 record title owner of real estate, by a declaration pursuant 19 to section 499B.3, establish a residential horizontal property 20 regime, also known as residential condominiums. 21 2. The declaration recorded pursuant to section 499B.3 and 22 the bylaws recorded pursuant to section 499B.14 for residential 23 condominiums shall each contain a clause that either has the 24 effect of or provides for all of the following: 25 a. The administration, except as otherwise provided in the 26 declaration, the bylaws, paragraph “b” , or this chapter, acts on 27 behalf of the council of co-owners. In the performance of its 28 duties, the administration members appointed by the developer 29 shall exercise the degree of care and loyalty to the council of 30 co-owners required of a trustee. Members of the administration 31 not appointed by the developer shall exercise the degree of 32 care and loyalty to the council of co-owners required of an 33 officer or director of a corporation organized under chapter 34 504, and such members are subject to the conflict of interest 35 -1- LSB 6042YH (3) 88 ko/jh 1/ 4
H.F. 2394 rules governing directors and officers under chapter 504. 1 b. The administration shall not act on behalf of the 2 council of co-owners to amend the declaration, to terminate 3 the horizontal property regime, to elect members of the 4 administration, or to determine the qualifications, powers and 5 duties, or terms of office of administration members. The 6 administration may fill member vacancies in the administration 7 for the unexpired portion of any member’s term. 8 c. (1) Subject to paragraph “d” , the declaration 9 may provide for a period of developer control of the 10 administration during which a developer, or persons designated 11 by the developer, may appoint and remove members of the 12 administration. In no case, however, shall a period of 13 developer control continue upon the occurrence of any of the 14 following: 15 (a) Sixty days after the conveyance of seventy-five 16 percent of all apartments in the horizontal property regime to 17 co-owners other than the developer. 18 (b) Two years after the developer has ceased to offer 19 apartments for sale in the ordinary course of business. 20 (c) Two years after the addition of any number of new 21 apartments to the horizontal property regime. 22 (d) The date the developer, after giving written notice to 23 the council of co-owners, records an instrument voluntarily 24 surrendering all rights to control the administration of the 25 horizontal property regime. 26 (2) A developer may voluntarily surrender the right to 27 appoint members of the administration before termination of 28 the period under subparagraph (1). However, the developer 29 may retain, for the duration of the period of developer 30 control, approval authority for specified actions of the 31 administration, as described in a recorded instrument executed 32 by the developer. 33 d. (1) Not later than sixty days after conveyance of 34 twenty-five percent of the apartments to co-owners other than a 35 -2- LSB 6042YH (3) 88 ko/jh 2/ 4
H.F. 2394 developer, at least one member, and not less than twenty-five 1 percent of the members of the administration, must be elected 2 by co-owners other than the developer. 3 (2) Not later than sixty days after conveyance of fifty 4 percent of the apartments to co-owners other than the 5 developer, not less than one-third of the members of the 6 administration must be elected by co-owners other than the 7 developer. 8 e. Following the termination of any period of developer 9 control under this section, the council of co-owners shall 10 elect an administration, at least a majority of whom must be 11 co-owners. 12 f. Notwithstanding any provision of the declaration 13 or bylaws to the contrary, the council of co-owners, by a 14 two-thirds vote of all persons present and entitled to vote at 15 any meeting of the council of co-owners at which a quorum is 16 present, may remove any member of the administration with or 17 without cause, other than a member appointed by the developer. 18 Sec. 3. APPLICABILITY. This Act applies to all declarations 19 and bylaws for residential condominiums, amendments to 20 declarations and bylaws for residential condominiums, and 21 modifications to declarations and bylaws for residential 22 condominiums, that are recorded pursuant to sections 499B.3 and 23 499B.14 on or after July 1, 2020. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill relates to the declaration and bylaws recorded for 28 residential condominiums. 29 The bill requires that the declaration and bylaws 30 recorded for residential condominiums contain certain 31 language placing limitations on the residential condominium 32 developer’s long-term control over the residential condominium. 33 “Developer” is defined in the bill as a person or group of 34 persons who as the record title owner of real estate establish 35 -3- LSB 6042YH (3) 88 ko/jh 3/ 4
H.F. 2394 a horizontal property regime, also known as residential 1 condominiums, by declaration. 2 The bill applies to all declarations and bylaws for 3 residential condominiums, amendments to declarations and bylaws 4 for residential condominiums, and modifications to declarations 5 and bylaws for residential condominiums, that are recorded on 6 or after July 1, 2020. 7 -4- LSB 6042YH (3) 88 ko/jh 4/ 4
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