Legislature(2021 - 2022)BARNES 124

03/01/2022 08:00 AM House COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 227 MUNI ENERGY IMPROVEMNT ASSESSMENT PROGRAM TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
*+ HB 243 COMMON INTEREST COMMUNITIES; LIENS TELECONFERENCED
Heard & Held
+ SB 143 COMMON INTEREST COMMUNITIES; LIENS TELECONFERENCED
Heard & Held
-- Testimony <Invitation Only> --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            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.                                                                                                                           

Document Name Date/Time Subjects
HB 227 CPACE Sectional 1.27.22.pdf HCRA 3/1/2022 8:00:00 AM
HB 227
HB 227 DCCED CRA Fiscal Note 1.27.22.pdf HCRA 3/1/2022 8:00:00 AM
HCRA 3/3/2022 8:00:00 AM
HB 227
HB 227 Letters of Support 2.24.22.pdf HCRA 3/1/2022 8:00:00 AM
HCRA 3/3/2022 8:00:00 AM
HB 227
HB 227 Sponsor Statement 1.27.22.pdf HCRA 3/1/2022 8:00:00 AM
HCRA 3/3/2022 8:00:00 AM
HB 227
HB 227 Version I 1.27.22.PDF HCRA 3/1/2022 8:00:00 AM
HB 227
SB 143 Bill Version I.PDF HCRA 3/1/2022 8:00:00 AM
HCRA 3/3/2022 8:00:00 AM
HCRA 3/8/2022 8:00:00 AM
HL&C 3/14/2022 3:15:00 PM
SB 143
SB 143 Sectional Analysis 2.8.22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Support Document 1 Sarah Badten 2.1.22.PDF HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Support Document 2 Pre-1986 Home-Condominium Owners Associations 2.1.22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Support Document 3 Post-1986 Home-Condominium Owners Associations 2.1.22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Sponsor Statement 2.1.22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Fiscal Note 2.5.22.pdf HCRA 3/1/2022 8:00:00 AM
HCRA 3/3/2022 8:00:00 AM
SB 143
SB 143 Support Letter Edgewater Villa HOA Anchorage 2-9-22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
SB 143 Support Letter Matthew Widmer 1.21.22.pdf HCRA 3/1/2022 8:00:00 AM
SB 143
HB243 Letter of Support Edgewater Villa HOA Anchorage.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 - Supporting Documents - List of Pre - 1986 HOA's and COA's.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 - Supporting Documents - List of Post - 1986 HOA's and COA's.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Letter of Support Matthew Widmer.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Sectional Analysis .pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Sponsor Statement 2.7.22.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Supporting Document Sarah Badten.PDF HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Supporting Documents CAI.pdf HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Ver A.PDF HCRA 3/1/2022 8:00:00 AM
HB 243
HB243 Fiscal Note - OMB - 2.25.22.pdf HCRA 3/1/2022 8:00:00 AM
HB 243