Housing (Building Codes)

HF 2386 allows Iowa cities to require the first buyer of a single-family home in a new housing development to live in the home as their primary residence for one year after purchase. Cities may impose fines of up to 25% of the home’s fair market value for violations, but must include a good-faith sale exemption if the owner needs to sell during the occupancy period. The bill defines "new housing development" as homes sold for the first time, including newly built properties under city-developer agreements, and specifies "occupy" means physically living in the home as a residence. This bill directly affects first-time homebuyers in new developments and gives cities a regulatory tool to address potential investor speculation.