Iowa Code ch. 404 § 404.6
Relocation expense of tenant
Operative Text
Upon application to it and after verification by it, the city or county shall require compensation of at least one month’s rent and may require compensation of actual relocation expenses be paid to a qualified tenant whose displacement is due to action on the part of a property owner to qualify for the benefits under this chapter. However, the city or county may require the persons causing the qualified tenant to be displaced to pay all or a part of the relocation payments as a condition for receiving a tax exemption under section 404.3. “Qualified tenant” as used in this chapter shall mean the legal occupant of a residential dwelling unit which is located within a designated revitalization area and who has occupied the same dwelling unit continuously since one year prior to the city’s or county’s adoption of the plan pursuant to section 404.2.
Iowa Code § 404.6 establishes a relocation compensation requirement that applies when a tenant is displaced because a property owner takes action to qualify for tax benefits under Iowa's urban revitalization program. When a qualifying displacement occurs, the local city or county must require the property owner to pay the displaced tenant at least one month's rent, and may additionally require payment of the tenant's actual relocation costs. A 'qualified tenant' under this provision is a legal occupant of a residential unit in a designated revitalization area who has lived continuously in that unit for at least one year before the city or county adopted its revitalization plan.
Plain English — not legal advice.
Property owners pursuing tax exemption benefits under Iowa Code § 404.6 should be aware that displacing a qualified tenant as part of that process triggers a mandatory compensation obligation — at minimum, one month's rent paid to the displaced tenant. The local city or county may also require reimbursement of the tenant's actual relocation expenses, and can make payment of those costs a condition of receiving the tax exemption under § 404.3. Operators generally document the tenant's occupancy history and displacement circumstances carefully, since the city or county must verify the qualifying conditions before compensation is ordered.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Iowa Code § 404.6 gives certain tenants the right to receive relocation compensation when they are displaced because their landlord is seeking urban revitalization tax benefits. If a tenant qualifies — meaning they have legally occupied a unit in a designated revitalization area continuously for at least one year before the local plan was adopted — they may apply to their city or county to have that status verified and compensation ordered. Tenants who believe they meet these criteria can contact their local city or county housing office to begin the application and verification process, or reach out to a tenant-rights organization for general guidance on how § 404.6 protections are applied locally.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 18, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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