Iowa Supreme Court Rules No Permanent CARES Act 30-Day Notice Requirement
Iowa Supreme Court Rules No Permanent CARES Act 30-Day Notice Requirement
A win for Iowa housing providers.
Overview
The Iowa Supreme Court recently addressed two pivotal cases concerning the CARES Act 30-day notice to vacate, MIMG CLXXII Retreat on 6th, LLC v. Mackenzie Miller and Parties in Possession (“Miller”) and MIMG CLXXII Retreat on 6th, LLC v. Nathan Williams and Parties in Possession (“Williams”). As these cases involved the same issue, the Iowa Supreme Court’s full opinion is published under Miller.
These cases arose when MIMG CLXXII Retreat on 6th, LLC (“The Retreat”) appealed a district court decision affirming the dismissal of its eviction actions against two distinct residents (Miller and Williams) for not providing a CARES Act 30-day notice to vacate. The disputes centered on whether the CARES Act was a temporary measure or a permanent change, prompting the Iowa Supreme Court to clarify its application and implications for state landlord-tenant laws.
Ruling
On January 24th, the Iowa Supreme Court concluded that the 30-day notice requirement under the CARES Act (15 U.S.C. § 9058(c)(1)) should be read in conjunction with the 120-day eviction moratorium in section 9058(b) and applies only to rent defaults during that moratorium period.
The decision reversed the lower court's ruling, emphasizing that the CARES Act's notice provision is not a permanent change to state landlord-tenant laws but was intended to address temporary COVID-19-related circumstances.
Impact on Iowa Housing Providers
The Iowa Supreme Court’s ruling hands a victory to Iowa housing providers. Housing providers in the state can now resume serving three-day notices, as required by Iowa Code sections 562A.27(2) (three-day notice of nonpayment of rent) and 648.3(2) (three-day notice to quit).
What’s Next
NAA’s Legal Affairs team is reviewing the court’s full decision, and an in-depth analysis is forthcoming.