Bill Text: IA HSB158 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to access to unit owners associations' financial information and meeting minutes.(See HF 432.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-02-24 - Committee report approving bill, renumbered as HF 432. [HSB158 Detail]
Download: Iowa-2023-HSB158-Introduced.html
House
Study
Bill
158
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
access
to
unit
owners
associations’
1
financial
information
and
meeting
minutes.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1053YC
(2)
90
ko/ns
H.F.
_____
Section
1.
NEW
SECTION
.
499C.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Bylaws”
means
the
instruments,
however
denominated,
that
4
contain
the
procedures
for
conducting
the
affairs
of
a
unit
5
owners
association
or
an
executive
board
regardless
of
the
form
6
in
which
the
association
is
organized,
including
any
amendments
7
to
such
instruments.
8
2.
“Common
element”
means:
9
a.
For
a
cooperative
under
chapter
499A
or
a
horizontal
10
property
regime
under
chapter
499B,
all
portions
of
the
common
11
interest
community
other
than
the
units.
12
b.
For
a
planned
community,
any
real
estate
within
the
13
planned
community
which
is
owned
or
leased
by
the
unit
owners
14
association,
other
than
a
unit.
15
c.
For
all
common
interest
communities,
any
other
interests
16
in
real
estate
for
the
benefit
of
unit
owners
identified
in
the
17
declaration.
18
3.
a.
“Common
interest
community”
means
real
estate
19
described
in
a
declaration
with
respect
to
which
a
person,
20
by
virtue
of
the
person’s
ownership
of
a
unit,
is
obligated
21
to
pay
for
a
share
of
real
estate
taxes,
insurance
premiums,
22
maintenance,
or
improvement
of,
or
services
or
other
expenses
23
related
to,
common
elements,
other
units,
or
other
real
estate
24
described
in
the
declaration.
“Common
interest
community”
25
includes
a
planned
community,
a
cooperative
under
chapter
499A,
26
and
a
horizontal
property
regime
under
chapter
499B.
27
b.
“Common
interest
community”
does
not
include:
28
(1)
A
covenant
that
requires
the
owners
of
separate
parcels
29
of
real
estate
to
share
costs
or
other
obligations
related
to
a
30
wall,
driveway,
well,
or
other
similar
structure,
unless
all
31
such
owners
consent
in
writing
to
the
creation
of
a
common
32
interest
community.
33
(2)
Real
estate
described
in
paragraph
“a”
if
all
units
are
34
owned
by
a
single
owner.
35
-1-
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1053YC
(2)
90
ko/ns
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6
H.F.
_____
4.
“Declarant”
means
a
person
or
group
of
persons
who,
1
as
the
record
title
owner
of
real
estate,
by
a
declaration,
2
creates
a
common
interest
community.
3
5.
“Declaration”
means
the
instrument,
however
denominated,
4
that
creates
a
common
interest
community,
including
any
5
amendments
to
the
instrument.
6
6.
“Executive
board”
means
the
body,
regardless
of
name,
7
designated
in
the
declaration
or
bylaws
to
act
on
behalf
of
a
8
unit
owners
association.
9
7.
“Planned
community”
means
a
common
interest
community
10
that
is
not
solely
a
cooperative
under
chapter
499A
or
solely
11
a
horizontal
property
regime
under
chapter
499B,
and
includes
12
property
owner
or
homeowner
associations.
A
cooperative
under
13
chapter
499A
or
a
horizontal
property
regime
under
chapter
14
499B,
however,
may
be
part
of
a
planned
community.
15
8.
“Rule”
means
a
policy,
guideline,
restriction,
procedure,
16
or
regulation,
however
denominated,
which
is
not
set
forth
in
17
the
declaration
or
bylaws.
18
9.
“Unit”
means
a
portion
of
a
common
interest
community
19
designated
for
separate
ownership
or
occupancy
or
as
otherwise
20
defined
in
the
statute
under
which
the
common
interest
21
community
is
organized,
including
but
not
limited
to
an
22
apartment
as
defined
in
section
499B.2.
23
10.
“Unit
owner”
means
a
declarant
or
other
person
that
owns
24
a
unit,
but
does
not
include
a
person
having
an
interest
in
a
25
unit
solely
as
security
for
an
obligation.
In
a
horizontal
26
property
regime
under
chapter
499B
or
a
planned
community,
27
the
declarant
is
the
owner
of
a
unit.
In
a
cooperative
under
28
chapter
499A,
the
declarant
is
the
owner
of
any
unit
to
29
which
an
interest
has
been
allocated
until
that
unit
has
been
30
conveyed
to
another
person.
31
11.
“Unit
owners
association”
means
an
association,
32
regardless
of
name,
organized
as
a
for-profit
or
nonprofit
33
corporation,
trust,
limited
liability
company,
partnership,
34
unincorporated
association,
or
any
other
form
of
organization
35
-2-
LSB
1053YC
(2)
90
ko/ns
2/
6
H.F.
_____
authorized
by
the
laws
of
this
state,
the
membership
of
1
which
consists
solely
of
unit
owners
except
following
2
termination
of
the
common
interest
community,
at
which
time
the
3
association
shall
consist
of
all
former
unit
owners
entitled
4
to
distributions
of
proceeds
or
their
heirs,
successors,
or
5
assigns.
6
Sec.
2.
NEW
SECTION
.
499C.2
Records
retention.
7
1.
A
unit
owners
association
shall
retain
all
of
the
8
following
records
for
the
duration
of
the
existence
of
the
unit
9
owners
association:
10
a.
Detailed
records
of
receipts
and
expenditures
relating
to
11
the
operation
and
administration
of
the
unit
owners
association
12
and
other
appropriate
accounting
records.
13
b.
Minutes
of
all
unit
owners
meetings
and
executive
board
14
meetings,
a
record
of
all
actions
taken
by
the
unit
owners
or
15
the
executive
board
without
a
meeting,
and
a
record
of
all
16
actions
taken
by
a
committee
of
the
unit
owners
association
17
authorized
to
act
for
the
association.
The
minutes
retained
18
by
the
unit
owners
association
shall
indicate
the
date,
time,
19
and
place
of
the
meeting,
the
names
of
all
persons
present
20
at
the
meeting,
and
each
action
taken
at
the
meeting.
The
21
minutes
shall
also
include
the
results
of
each
vote
taken
at
22
the
meeting,
including
information
indicating
the
vote
of
each
23
executive
board
member
present
at
the
meeting,
and
the
vote
of
24
each
executive
board
member
present
shall
be
made
public
at
the
25
open
session.
26
c.
The
unit
owners
association’s
original
and
amended
27
organizational
documents,
bylaws
including
all
amendments
to
28
the
bylaws,
and
all
rules
and
amendments
to
the
rules
of
the
29
common
interest
community.
30
d.
The
unit
owners
association’s
annual
reports
delivered
to
31
the
secretary
of
state,
if
applicable.
32
e.
Copies
of
each
contract
to
which
the
unit
owners
33
association
has
been
or
is
currently
a
party.
34
2.
A
unit
owners
association
shall
maintain
all
financial
35
-3-
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1053YC
(2)
90
ko/ns
3/
6
H.F.
_____
statements
and
tax
returns
of
the
unit
owners
association
for
1
the
immediately
preceding
ten
years.
2
Sec.
3.
NEW
SECTION
.
499C.3
Right
to
access
——
exceptions.
3
1.
a.
Except
as
provided
under
subsection
2,
all
records
4
and
documents
retained
by
a
unit
owners
association
under
5
section
499C.2
must
be
available
for
examination
and
copying
6
by
a
unit
owner
or
the
unit
owner’s
authorized
agent
during
7
reasonable
business
hours
or
at
a
mutually
convenient
time
and
8
location
upon
the
unit
owner
or
the
unit
owner’s
authorized
9
agent
providing
five
days’
notice
that
reasonably
identifies
10
the
specific
records
that
are
being
requested.
11
b.
Except
as
provided
under
subsection
2,
all
records
and
12
documents
retained
by
a
unit
owners
association
under
section
13
499C.2
must
be
available
for
examination
and
copying
by
a
14
bona
fide
prospective
purchaser
of
a
unit
or
the
bona
fide
15
prospective
purchaser’s
authorized
agent
during
reasonable
16
business
hours
or
at
a
mutually
convenient
time
and
location
17
upon
the
bona
fide
prospective
purchaser
or
the
bona
fide
18
prospective
purchaser’s
authorized
agent
providing
two
days’
19
notice
that
reasonably
identifies
the
specific
records
that
are
20
being
requested.
21
2.
Records
and
documents
retained
by
a
unit
owners
22
association
under
section
499C.2
may
be
withheld
from
23
inspection
and
copying
to
the
extent
that
the
records
or
24
documents
concern
any
of
the
following:
25
a.
Personally
identifiable
information,
salary,
or
medical
26
information
relating
to
specific
individuals.
27
b.
Information
relating
to
contracts,
leases,
and
other
28
commercial
transactions
that
are
currently
under
negotiation
to
29
purchase
or
provide
goods
or
services.
30
c.
Information
relating
to
existing
or
potential
litigation,
31
mediation,
arbitration,
or
governmental
administrative
32
proceedings.
33
d.
Information
relating
to
existing
or
potential
matters
34
involving
governmental
administrative
proceedings
or
other
35
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1053YC
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ko/ns
4/
6
H.F.
_____
proceedings
before
a
government
tribunal
for
enforcement
of
the
1
declaration,
bylaws,
or
rules.
2
e.
Communications
with
the
unit
owners
association
attorney
3
which
are
otherwise
protected
by
the
attorney-client
privilege
4
or
the
attorney
work-product
doctrine.
5
f.
Information
that
if
disclosed
would
violate
another
6
provision
of
law.
7
g.
Records
directly
related
to
the
personal,
health,
or
8
financial
information
of
a
unit
owner
if
the
person
requesting
9
the
records
is
not
the
unit
owner
that
is
the
subject
of
the
10
records.
11
3.
A
unit
owners
association
shall
not
charge
a
fee
for
12
providing
copies
of
any
records
or
documents
under
this
13
section,
or
for
supervising
the
inspection
of
such
records
or
14
documents.
15
4.
The
right
to
inspect
records
under
this
section
includes
16
the
right
to
copy
records
by
photocopying
or
other
means
and
17
includes
the
right
to
receive
copies
through
an
encrypted
18
electronic
transmission,
if
available,
upon
request
of
the
19
requester.
20
5.
A
unit
owners
association
shall
not
be
obligated
to
21
compile
or
synthesize
information
or
records
under
this
22
section.
23
6.
Information
or
records
obtained
under
this
section
shall
24
not
be
used
for
commercial
purposes.
25
EXPLANATION
26
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
27
the
explanation’s
substance
by
the
members
of
the
general
assembly.
28
This
bill
relates
to
access
to
unit
owners
associations’
29
financial
information
and
meeting
minutes.
30
Under
the
bill,
a
unit
owners
association
is
an
organization
31
of
unit
owners
in
a
common
interest
community,
including
a
32
planned
community,
a
cooperative
under
Code
chapter
499A,
or
33
a
horizontal
property
regime
under
Code
chapter
499B.
The
34
bill
requires
unit
owners
associations
(association)
to
retain
35
-5-
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6
H.F.
_____
certain
records
and
documents
(records)
as
specified
in
the
1
bill.
2
All
records
retained
by
an
association
must
be
available
3
for
examination
and
copying
by
a
unit
owner
or
the
unit
4
owner’s
authorized
agent
during
reasonable
business
hours
or
5
at
a
mutually
convenient
time
and
location
upon
five
days’
6
notice
that
reasonably
identifies
the
specific
records
being
7
requested.
All
records
retained
by
an
association
must
8
also
be
available
for
examination
and
copying
by
a
bona
fide
9
prospective
purchaser
of
a
unit
or
the
prospective
purchaser’s
10
authorized
agent
upon
two
days’
notice.
Records
that
may
be
11
excluded
from
being
made
available
for
examination
and
copying
12
are
detailed
in
the
bill.
13
An
association
is
prohibited
from
charging
a
fee
for
either
14
copies
of
the
records
or
for
supervising
the
inspection
of
the
15
records.
The
right
to
inspect
records
includes
the
right
to
16
copy
records
by
photocopying
or
other
means
and
to
receive
17
copies
via
encrypted
electronic
transmission,
if
available.
18
An
association
is
not
obligated
to
compile
or
synthesize
19
records,
and
the
bill
prohibits
the
records
from
being
used
for
20
commercial
purposes.
21
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1053YC
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90
ko/ns
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6
