HB 243: "An Act relating to horizontal property regimes and common interest communities; and relating to mortgages, deeds of trust, and other property liens."
00 HOUSE BILL NO. 243 01 "An Act relating to horizontal property regimes and common interest communities; and 02 relating to mortgages, deeds of trust, and other property liens." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 34.07 is amended by adding a new section to read: 05 Sec. 34.07.025. Amendment of declaration; lienholder consent. (a) If a 06 declaration requires an association of apartment owners to obtain the consent of a 07 lienholder with a lien on the property before the association may amend the 08 declaration, the association may obtain the consent of the lienholder under this section. 09 (b) To amend the declaration under (a) of this section, the association of 10 apartment owners shall send to a lienholder a dated written notice and a copy of the 11 proposed amendment by certified mail, return receipt requested, to the most recent 12 address of the lienholder shown on the mortgage, deed of trust, or other document that 13 established the lien and to any other address provided by the lienholder to the 14 association in writing.
01 (c) The association of apartment owners shall include in the notice provided 02 under (b) of this section 03 (1) a statement that the association intends to amend the declaration; 04 (2) a request that the lienholder consent to the amendment; 05 (3) a statement that the association will amend the declaration if the 06 lienholder fails to respond to the notice within 60 days after the postmark date of the 07 notice; and 08 (4) a statement that the lienholder may not unreasonably withhold the 09 lienholder's consent. 10 (d) If an association of apartment owners complies with (b) and (c) of this 11 section and the lienholder fails to respond to the association within 60 days after the 12 postmark date of the notice provided under (b) of this section, the lienholder is 13 considered to have approved the proposed amendment. 14 (e) A lienholder may not unreasonably withhold the lienholder's consent to an 15 amendment under this section. 16 (f) This section is not intended to be the exclusive method for an association 17 of apartment owners to obtain the consent of a lienholder to an amendment of the 18 declaration. If the association obtains the consent of a lienholder without using the 19 method provided by this section, the association may obtain the consent of other 20 lienholders by using the method provided by this section. 21 (g) This section applies to a lienholder whose lien on the property has been 22 recorded under AS 40.17. 23 (h) In this section, "lienholder" means a person that is a mortgagee, lender, or 24 other holder of a lien on the property. 25 * Sec. 2. AS 34.08.040 is amended by adding a new subsection to read: 26 (b) For the purposes of (a) of this section, the application of AS 34.08.470 to a 27 common interest community created under AS 34.07 before January 1, 1986, with 28 respect to an event or circumstance occurring after January 1, 1986, does not 29 invalidate a provision in the declaration of the common interest community, even if 30 the provision in the declaration conflicts with AS 34.08.470. 31 * Sec. 3. AS 34.08.250 is amended by adding new subsections to read:
01 (g) If a declaration requires an association to obtain the consent of a lienholder 02 with a lien on the property before the association may amend the declaration, the 03 association may obtain the consent of the lienholder under (h) - (n) of this section. 04 (h) To amend the declaration under (g) of this section, the association shall 05 send to a lienholder a dated written notice and a copy of the proposed amendment by 06 certified mail, return receipt requested, to the most recent address of the lienholder 07 shown on the mortgage, deed of trust, or other document that established the lien and 08 to any other address provided by the lienholder to the association in writing. 09 (i) The association shall include in the notice provided under (h) of this 10 section 11 (1) a statement that the association intends to amend the declaration; 12 (2) a request that the lienholder consent to the amendment; 13 (3) a statement that the association will amend the declaration if the 14 lienholder fails to respond to the notice within 60 days after the postmark date of the 15 notice; and 16 (4) a statement that the lienholder may not unreasonably withhold the 17 lienholder's consent. 18 (j) If an association complies with (h) and (i) of this section and the lienholder 19 fails to respond to the association within 60 days after the postmark date of the notice 20 provided under (h) of this section, the lienholder is considered to have approved the 21 proposed amendment. 22 (k) A lienholder may not unreasonably withhold the lienholder's consent to an 23 amendment under (g) - (n) of this section. 24 (l) The provisions of (g) - (n) of this section are not intended to be the 25 exclusive method for an association to obtain the consent of a lienholder to an 26 amendment of the declaration. If an association obtains the consent of a lienholder 27 without using the method provided by (g) - (n) of this section, the association may 28 obtain the consent of other lienholders by using the method provided by (g) - (n) of 29 this section. 30 (m) The provisions of (g) - (n) of this section apply to a lienholder whose lien 31 on the property has been recorded under AS 40.17.
01 (n) In (g) - (m) of this section, "lienholder" means a person that is a 02 mortgagee, lender, or other holder of a lien on the property.