A bill for an act relating to business entity-owned residential arrangements, and including effective date provisions.

HF 2698 regulates business entities that own residential properties (like apartment complexes or multi-unit homes) by requiring clear disclosure that buyers are purchasing an ownership interest in the business, not the property itself. It prohibits businesses from charging transfer fees for ownership interests, restricting sales based on discrimination, or forcing disputes to non-court forums. The law also bans businesses from taking actions that would violate Iowa’s civil rights laws (Chapter 216) if the interest were real estate, such as denying sales to qualified buyers. Violations are enforced under Iowa’s consumer fraud laws, allowing courts to issue injunctions or impose penalties. This directly affects residential property owners operating as businesses and their residents.