Legislature(2013 - 2014)BARNES 124
03/14/2014 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| HB203 | |
| HB282 | |
| HB230 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 203 | TELECONFERENCED | |
| += | HB 282 | TELECONFERENCED | |
| += | HB 230 | TELECONFERENCED | |
| += | HB 316 | TELECONFERENCED | |
HB 282-LANDLORD AND TENANT ACT
4:00:54 PM
CHAIR OLSON announced that the next order of business would be
HOUSE BILL NO. 282, "An Act relating to the rights and
obligations of residential landlords and tenants; and relating
to the taking of a permanent fund dividend for rent and damages
owed to a residential landlord."
CHAIR OLSON removed his objection. [Version O was before the
committee.]
4:01:24 PM
BRENDA HEWITT, Staff, Representative Doug Isaacson, Alaska State
Legislature, stated that this bill would provide landlords and
tenants a mutual basis for the condition of the property and
should alleviate some of the load on the legal system. The bill
would add protections for domestic violence victims, allow
landlords to require an additional pet deposit, changes methods
of returning damage deposits, and differentiates between service
and comfort animals. She highlighted that the sponsor worked
with Alaska Network on Domestic Violence & Sexual Assault
(ANDVSA) on an amendment. She indicated that landlords who fall
under federal regulations must follow federal law. She noted
that a wonderful booklet has been published to assist landlords
and tenants and she anticipated that it will incorporate HB 282
changes to the landlord tenant law. In response to a question,
she said Version O contains one amendment.
4:04:50 PM
REPRESENTATIVE SADDLER made a motion to adopt an Amendment 1,
labeled 28-LS0930\O.1, Bullock, 2/28/14, which read, as follows:
Page 12, line 28, following "housing":
Insert ";
(9) occupancy by an individual who is a
victim of trauma from a sexual assault or domestic
violence and who is receiving housing assistance from
a victim counselling center; in this paragraph,
"victim counselling center" has the meaning given in
AS 18.66.250"
REPRESENTATIVE OLSON objected for the purpose of discussion.
4:05:05 PM
MS. HEWITT stated that the [Alaska Network on] Domestic Violence
& Sexual Assault (ANDVSA) asked that the language be added. She
read Amendment 1. She explained that if a man and his children
are victims of domestic violence and need housing they can't be
housed at the [women's] shelter, but are placed in housing paid
for by the ANDVSA. In those instances the assistance will fall
under transient housing.
REPRESENTATIVE JOSEPHSON anticipated that these victims would be
released from their tenant contract.
4:06:11 PM
CHAIR OLSON removed his objection. There being no further
objection, Amendment 1 was adopted.
4:06:32 PM
PAMELA COOK, Property Manager, MB Management, stated that she is
a licensed realtor, but works as a property manager. She stated
that she supports the changes to HB 282. She related that she
specifically supports changing the security deposit return date
from 14 days to 30 days. She said that this typically spans two
weekends so the effect is 10 days - less if a holiday falls
during the week. This additional time will give the property
manager time to attend to any issues. For example, when the
property typically is checked during the inspection, the carpets
are clean and the place smells like cleaning products, which may
mask smoke or pet odors that reappear in a few days. In the
event that any carpets or dry wall need replacing it takes extra
time. She works hard to return the deposit prior to the 14
days. She has also returned deposits to military tenants at the
inspection if they are ready to deploy. Additionally, the
landlord tenant act allows tenants up to 15 days to remove
property. The water companies often don't read the meter to
generate bills until two weeks after the tenant leaves, which
means that the property manager will need to estimate the
billing. She related his understanding that many other states
have a 30-day deposit return requirement. She said it doesn't
mean property managers will hold the check for 30 days, but it
would allow them additional time to "do it the right way." She
supported the pet fee increase since so many people arrive in
Alaska with pets.
4:11:12 PM
MS. COOK said that requiring "professionally cleaned" carpets at
the end of tenancy has been challenged by tenants. She thinks
of this as being a common courtesy, but often the tenants don't
have the money since they are paying for security deposits and
other expenses. She said if the rentals are professionally
cleaned prior to occupying the rental, the tenants should
professionally clean the carpets when they leave. She offered
her belief that this is covered in proposed Section 13, too.
She understands normal wear and tear, but appreciated having a
definition in the bill.
4:12:20 PM
MS. COOK related she had questions on occupancy. For example, a
family of seven may wish to move into a one-bedroom apartment.
She acknowledged occupancy is covered but says "by applicable
law" and she could not find any reference in state and federal
law. She would like to be able to turn these tenants away
legally since seven occupants represent too many for a one-
bedroom apartment.
CHAIR OLSON suggested that perhaps this is covered by the city
ordinances. He recalled that the city and borough ordinances
cover this in Kenai and Anchorage.
4:13:17 PM
ANTOWETTE BREWER, Property Manager and Realtor, Coldwell Banker,
understood that getting out of the situation is important for
victims of domestic violence. She asked whether the landlord
will be provided paperwork, such as a police report if one party
is staying and one is leaving.
4:14:36 PM
CHAIR OLSON said he was not sure. He suggested that she raise
the issue with the sponsor.
MS. BREWER asked whether drug use was covered. She related a
scenario in which a furnace repairman reported when he fixed the
furnace he noticed drug paraphernalia and pipes. Tenants
typically are not forthcoming about drug use and will not admit
to it.
4:16:00 PM
KIRK MAYNARD, Owner and Broker, Coldwell Banker, stated he will
discuss his concerns about the amendment for early termination
for victims of domestic violence with the sponsor. He offered
his support for the testimony by Ms. Cook and said he has the
same concerns.
4:16:47 PM
RICHARD BLOCK, Manager, Mellen Investment Company, LLC, stated
that Mellen Investment Company manages over 110 properties. He
apologized since he recently discovered the bill, but he
immediately began discussions with the sponsor's staff. He said
has reviewed Version O. He indicated he has written a position
paper which he urged members to review [letter of March 14,
2014, 5 pages]. Although the bill has many provisions worthy of
consideration and adoption, a number of things raise serious
questions that warrant slowing down to work out some of the
"kinks." He offered to discuss 2 of 16 recommended changes. He
referred to proposed Section 6 of the bill, to the inclusion of
"normal wear and tear." The question becomes what is that
standard that landlords expect tenants to return the apartment
in at the time they vacate. He expressed concern over "normal
wear and tear" since it could become a lightning rod for
litigation. One person's idea of "destruction" might be viewed
as "normal wear and tear." He offered his belief that should
not be the standard. Under the bill, the landlord tenant law
would require a pre-tenancy condition statement signed by the
landlord and the tenant. He suggested that the "pre-tenancy
condition statement" becomes the standard for what the apartment
should look like at the end of the tenancy and make no allowance
for excuses that denting in the walls, holes in the doors, and
stains in the carpet are a result of reasonable wear and tear.
He said that there may be a way to fix the definition and
offered to work on this but he found it to be unsatisfactory.
4:20:19 PM
MR. BLOCK turned to the second item - the issue of victims of
abuse being able to unilaterally terminate a lease. He
understood the problem from the victim's perspective; however,
he is uncertain that it is the responsibility of the landlord.
The landlord has made the space available and the parties have
signed an agreement for the finance and occupancy obligations.
There shouldn't be any way a tenant can unilaterally abrogate
those responsibilities. He pointed out that if two people
occupy a residence and are buying the residence, but one person
has to leave [due to domestic violence], the departing occupant
cannot write a letter to the bank to indicate he/she will no
longer make payments on the note. The buyers must make payment
no matter what the situation. He acknowledged there could be
some harmonious mid-ground to find a way to allow an abused
tenant to leave; however, it must be with provisions that
maintain that tenant's legal obligation up until the termination
of the tenancy, including returning the property in its previous
condition. He stated while some landlords may have been
involved in the process that he did not see any indication that
the bill takes into consideration those with a financial
investment in the real estate. He would like an opportunity to
participate in that process.
4:22:44 PM
CHAIR OLSON said the sponsor is shaking his head yes, and
determining no one else wished to testify, closed public
testimony on HB 282.
[HB 282 was held over.]