Legislature(2021 - 2022)BARNES 124
03/01/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS
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| Audio | Topic |
|---|---|
| Start | |
| HB227 | |
| HB243|| SB143 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 227 | TELECONFERENCED | |
| *+ | HB 243 | TELECONFERENCED | |
| + | SB 143 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 243-COMMON INTEREST COMMUNITIES; LIENS
SB 143-COMMON INTEREST COMMUNITIES; LIENS
9:33:18 AM
CO-CHAIR HANNAN announced that the next order of business would
be HOUSE BILL NO. 243, "An Act relating to horizontal property
regimes and common interest communities; and relating to
mortgages, deeds of trust, and other property liens." and SENATE
BILL NO. 143, "An Act relating to horizontal property regimes
and common interest communities; and relating to mortgages,
deeds of trust, and other property liens."
CO-CHAIR HANNAN noted that HB 243 and SB 143 are companion
pieces of legislation, and she explained that today the
committee would focus primarily on SB 143.
9:33:48 AM
REPRESENTATIVE DAVID NELSON, Alaska State Legislature, as prime
sponsor of HB 243, gave a brief introduction to companion bill
SB 143, which he said would help over 250 homeowner and
condominium associations formed prior to 1986 collect dues and
amend their governing documents.
9:34:55 AM
SENATOR JOSH REVAK, Alaska State Legislature, as prime sponsor,
presented SB 143. He said the issue was brought to his office
by a constituent; [the bill] has been legally vetted; and thus
far there has been no opposition. He explained that in 1986,
the Uniform Common Interest Ownership Act (UCIOA) made major
revisions to Alaska statutes governing homeowners associations
(HOAs) and condominium owners associations (COAs) in Alaska.
The amendment process created by UCIOA requires that homeowners
associations receive written consent from all loan holders
before the association can make amendments to its governing
document, and associations have found it nearly impossible to
obtain written responses and have, therefore, been left with
outdated rules they find impossible to legally change. He noted
that Susan Jensen, a manager of a homeowners association in
Anchorage was available to speak on how this issue has been a
problem in her community.
SENATOR REVAK discussed the two changes that would be made under
SB 143. First, SB 143 would not repeal the current process but
would create an alternative: If homeowners associations provide
the required notice to lien holders, then the lien holder will
be considered to have approved the notice if the association
does not receive a response within 60 days. Second, SB 143
would clarify language already in statute to assure pre-1986
associations will be able to collect unpaid dues just like their
counterparts since 1986 have are able to do. The clarification
would provide consistency in how liens are handled for both pre-
and post-UCIOA communities.
9:40:00 AM
CO-CHAIR HANNAN opened [invited] testimony on SB 143.
9:40:28 AM
SUSAN JENSEN, Manager, Bayshore Owners Association, said
Bayshore was founded in 1974 and has been unable to make
amendments. As an example of the negative impact, she said the
association had been offered $100,000 to create a safe walking
path for children in a greenbelt area, but it could not proceed
because the required written consent was not possible to obtain.
She gave other examples, including the issue of foreclosures and
bad debt being passed on from previous owners, all a result of
this issue. She urged the committee to pass SB 143.
9:43:34 AM
SARAH BADTEN, Attorney at Law, Birch Horton Bittner & Cherot,
noted she has been practicing community association law in
Alaska for over 15 years. The focus of her work has been to
assist associations in interpreting and enforcing their
governing documents. She emphasized the numerous times she has
seen associations wishing to amend their governing documents be
unable to do so "because of this burdensome requirement that
they get mortgage lender approval in writing." She emphasized
how wonderful SB 143 would be in addressing the two major issues
faced by the older associations. She gave examples. She said
the banks are "apathetic" and will not take action without
approval in writing, and many simple progressive changes go
unmade because of this. She said the issue effects not only
associations, but the homeowners, as well. The only option is
for associations to operate in violation of their documents,
which she said she cannot advise. She pointed out another
positive result of SB 143 would be equitable treatment of both
older and newer associations, especially regarding "the super
priority lien."
9:48:42 AM
REPRESENTATIVE PRAX asked whether the bill sponsor had reached
out directly to the banking community regarding SB 143.
9:49:02 AM
CO-CHAIR SCHRAGE responded yes. He said he had spoken directly
with banking lobbyists, who are aware of the goal of SB 143 and
have "zero opposition."
9:49:25 AM
CO-CHAIR HANNAN asked for affirmation that SB 143 would
establish neither a new super lien procedure nor a new way to
amend association documents; rather, the proposed legislation
would simply allow the older associations into current
operational standards.
9:50:09 AM
EMMA TORKELSON, Staff, Senator Josh Revak, Alaska State
Legislature, on behalf of Senator Revak, prime sponsor of SB
143, confirmed that Co-Chair Hannan was correct. She indicated
that new language would allow action if the association does not
hear back [from the homeowner within 60 days].
9:51:35 AM
CO-CHAIR SCHRAGE, in response to a question from Representative
Prax, reemphasized that the only change created under SB 143
would be the provision that no response after 60 days equals
consent.
MS. TORKELSON, in response to a follow-up question from
Representative Prax, explained that SB 143 would not affect "the
two-thirds requirement" for changes; it is just about lien
holders.
9:53:13 AM
MS. BADTEN, in response to a question from Co-Chair Hannan,
provided information about the amendment process of homeowners
associations. In response to Representative Prax, she clarified
that currently there must be an affirmative vote to change
bylaws, and the vote can be made in person or by proxy.
9:56:45 AM
CO-CHAIR HANNAN announced that SB 143 [and HB 243] were held
over.