IA HF2386

Cities may require first-time purchasers of single-family homes in new housing developments to physically occupy the property for one year after purchase.

Violations may result in fines up to one-fourth of the home's fair market value.

Ordinances must include a good-faith exemption allowing owners to sell or transfer the property within the one-year occupancy period without penalty.

"New housing development" covers any housing sold for the first time on the market, including newly constructed homes built under city-developer agreements.

"Occupy" is defined as physically residing in and using a property as a home, residence, or sleeping space.