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Victory for Landlords: Iowa Court Ruling Clarifies Temporary Scope of CARES Act

January 30, 2025

In a major legal victory for landlords and property owners, a recent court ruling has clarified that a key provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act – Section 9058(c)(1) – was never meant to impose a permanent federal eviction notice requirement. This decision marks an important step in restoring property owners’ rights and reestablishing the traditional balance between state and federal landlord-tenant law.

The Case at Hand

For years, there has been considerable debate over whether Section 9058(c)(1) created a lasting federal mandate requiring landlords of certain federally backed properties to provide a 30-day eviction notice, even beyond the pandemic. Some courts had interpreted the law as permanently altering state eviction procedures, leading to uncertainty and additional burdens on property owners. However, a recent Iowa Supreme Court ruling has provided the answer property owners have been looking for.

What This Means for Landlords in Iowa

This decision is a significant relief for landlords who have been burdened by conflicting interpretations of federal law. By confirming that the 30-day eviction notice requirement was temporary, the ruling:

  • Restores State Authority: Eviction procedures will once again be governed by state laws rather than an ambiguous federal standard. In Iowa, a three-day notice is sufficient even for properties receiving federal funding or with a federally backed mortgage.
  • Reduces Uncertainty: Property owners no longer have to fear that a pandemic-era provision has permanently altered their rights.
  • Reaffirms Property Rights: The ruling underscores the principle that legislative actions affecting property owners must be explicit and temporary measures should not be transformed into permanent regulations by judicial interpretation.

What’s Next?

For landlords and property owners in Iowa, this decision represents a clear win. It affirms that the CARES Act’s eviction protections were a temporary response to an unprecedented crisis, not an indefinite federal imposition on property rights. By adhering to established legal principles and respecting the traditional role of state law, the ruling brings much-needed clarity and reaffirms the fundamental protections of property ownership.

As legal battles over landlord-tenant law continue, this case sets an important precedent: federal interventions in state-regulated affairs must be both clear and limited in scope. Property owners can now move forward with greater confidence, knowing that their rights remain intact and protected under the law. The hope is that this ruling will bring similar clarity to surrounding states and other jurisdictions so each state can return to their own notice requirements.

This post was drafted by Tara Holterhaus and Ethan Sotak, an attorney and summer associate, respectively, in the Omaha, Nebraska office of Spencer Fane LLP. For more information, visit spencerfane.com.

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