2026 Legislative Session: What Didn't Pass

Although the 2026 Iowa Legislative session produced several meaningful policy changes impacting real estate professionals and property owners, a number of high-profile proposals ultimately stalled before reaching the finish line.

From insurance transparency reforms to landlord utility protections and regulatory restructuring, many of the issues debated this session revealed ongoing conversations that are likely to resurface in future years.

Iowa REALTORS® remained actively engaged throughout the process and will continue monitoring these evolving policy discussions to ensure REALTOR® voices remain at the table as lawmakers revisit issues affecting housing, property rights, and the real estate industry across Iowa.

What Didn't Pass This Session:

SF2233/HSB702: Property Insurance Transparency Bill 
The proposed Property Insurance Transparency Bill (SF2233/HSB702) aimed to significantly strengthen consumer protections and improve transparency in property and casualty insurance claims across Iowa. Under the bill, insurers would have been required to provide key policy and claim information within 15 days of a request and would be prohibited from withholding non-privileged information. The legislation also sought to prevent insurers from imposing unreasonable deadlines on claim notices or depreciation recovery and would have established clearer timelines for acknowledging, investigating, and paying claims. 

Additional provisions outlined how replacement costs and actual cash value must be calculated, including requirements that repairs result in a reasonably similar appearance and that coverage brings properties up to code unless knowingly waived. The bill further addressed the use of aerial imagery in underwriting decisions and protected a policyholder’s right to hire a public adjuster. While the proposal did not ultimately pass, it highlighted ongoing efforts to enhance fairness, clarity, and accountability within the insurance claims process.

SF2438, The Landlord Utility Notification
SF2438, The Landlord Utility Notification bill, sought to modernize and improve communication between cities, landlords, and tenants when utility accounts become delinquent. Under the legislation, utility providers would have been required to notify not only the tenant but also the property owner or landlord when an account was at least 60 days past due and at least 10 days prior to disconnection. The bill also streamlined the process for landlords to protect their properties from liens caused by unpaid tenant utility bills by allowing notifications to be submitted through multiple channels, including online, email, mail, or fax. Although the bill did not pass, it underscored ongoing efforts to provide greater clarity and safeguards for rental owners and operators.

HF2666: Department of Inspections, Appeals, and Licensing Reform Legislation
Stopping HF2666 was a major win for Iowa REALTORS®, as it preserved the independence and industry expertise of the Iowa Real Estate Commission. The proposal would have shifted core regulatory functions, including licensing, enforcement, and trust account oversight, into a broader state agency, potentially diluting the specialized knowledge and consistency that come with a dedicated, profession-specific regulator. 

It also would have replaced clear statutory standards with more flexible administrative rules, creating uncertainty around enforcement and disciplinary processes. By preventing this shift, REALTORS® helped ensure that real estate professionals continue to be regulated by a body that understands the complexities of the industry, protecting both practitioners and consumers through stable, transparent, and accountable oversight. 

At the same time, Iowa REALTORS® recognizes the importance of ongoing dialogue around efficiency and modernization in licensing and regulation and will continue engaging with lawmakers, regulators, and stakeholders to explore thoughtful, balanced approaches in future sessions.

On the Horizon

Overall, the 2026 session reflects a continued focus on transparency, housing opportunity, and property rights. While key victories were achieved, particularly in the areas of transaction transparency and property taxes, important work remains. As always, Iowa REALTORS® will continue to advocate for policies that support a strong real estate market and vibrant communities across the state.

Staying engaged in the legislative process is critical to ensuring these efforts succeed. REALTOR® voices make a difference, and continued involvement will help shape the policies that impact the industry and homeownership in Iowa for years to come.

If you have any questions about the legislation outlined above, please contact Director of Government Affairs, Greta Haas at greta@iowarealtors.com.

 Check out these other important updates on the Iowa REALTORS® 2026 Legislative wins related to Property Tax Reform, HOA Transparency/Home Inspector Clarifications, and ADU Legislation.