Legislature(2001 - 2002)

03/22/2001 09:11 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 6(L&C)                                                                                                   
"An Act relating to required  notice of eviction to mobile home park                                                            
dwellers and tenants before redevelopment of the park."                                                                         
                                                                                                                                
                                                                                                                                
DENNIS   MCMILLEN,  United   Way,  testified   via  teleconference,                                                             
indicated that  about a year ago they  became aware that  there were                                                            
developers  asking  for re-zoning  on  property that  was  currently                                                            
occupied  by manufactured homes.   He noted  that while many  people                                                            
living in those  neighborhoods had the capacity to  move, the United                                                            
Way was concerned  that some of them were marginal  and might not be                                                            
able to  move their mobile  homes.  The intent  was that if  nothing                                                            
was done they might be  creating a new class of homeless families in                                                            
their communities  and  indeed when  they did the  research that  is                                                            
what they  found.  He pointed  out that they  pulled all the  groups                                                            
working with housing, many  non-profit organizations, municipalities                                                            
of the state  and most importantly  residents of the communities  to                                                            
discuss the  issue.  He  added that they  also pulled in  developers                                                            
and looked  at what was going  on and the  possible impact  and what                                                            
other state's  have done.   He explained  that  what they found  was                                                            
that current  laws were  not adequate  to protect  these people  and                                                            
they put together  what was called  "the manufactured home  report."                                                            
He noted that  listed in the report were many different  options for                                                            
the municipalities  of the state to look at, which  would help build                                                            
a  structure  to  keep people  from  being  so  much  at risk.    He                                                            
explained that the key  was to give people a longer period from when                                                            
they understood  that their  property was  going to be redeveloped.                                                             
He concluded  that he was very pleased  to see that it was  going to                                                            
be looked at by a task force and the legislature.                                                                               
                                                                                                                                
ANGELA  LISTEN,  Director,  Department of  Justice,  Archdiocese  of                                                            
Anchorage, testified  via teleconference, indicated  that she worked                                                            
on the  task force.   She  said that  they thought  that a  one-year                                                            
notice was  reasonable, on the other  hand, time was of the  essence                                                            
for  the  developer  and  they  only  needed   six  months  on  this                                                            
legislation.   She expressed  their support  for SB 6 and said  that                                                            
they believed  it was a balance between  the right of the  landowner                                                            
and the right of the tenant.                                                                                                    
                                                                                                                                
STEPHANIE  WHEELER,  Program  Director,  Catholic  Social  Services,                                                            
testified via teleconference  from Anchorage, echoed the concerns of                                                            
Mr.  McMillen  and Ms.  Listen  and reported  that  Catholic  Social                                                            
Services  were currently working  with some  residents who  had been                                                            
recently impacted  by the rezoning and they were assisting  with the                                                            
re-location  plan.  She noted  that SB 6  addressed their two  major                                                            
concerns,  which were adequate  notice and  financial compensation.                                                             
She urged the Committee to support SB 6.                                                                                        
                                                                                                                                
MACKENNA JOHNS,  Director, AMHRAC (tenant advocacy  group) testified                                                            
via teleconference  from Anchorage, indicated that  they support the                                                            
bill and urged the Committee to pass SB 6.                                                                                      
                                                                                                                                
Amendment #1:                                                                                                                   
                                                                                                                                
Page 4, line 2:  following "provided in a valid lease."                                                                         
                                                                                                                                
INSERT:                                                                                                                         
                                                                                                                                
If the  change in  land use requires  relocating  10 or more  mobile                                                          
homes, the  mobile home park owner  or operator may contribute  to a                                                          
pooled relocation fund  $5,000 for each mobile home being relocated,                                                          
and  the  relocation  fund  shall  pay  the  actual  disconnection,                                                           
relocation, and reestablishment  costs of each mobile home; however,                                                          
the relocation  fund may not be required to pay more  than the total                                                          
received from the owner or operator.                                                                                          
                                                                                                                                
Senator Leman moved to adopt the amendment.                                                                                     
                                                                                                                                
Co-Chair Kelly asked if  there were any objections, there being none                                                            
Amendment #1 was adopted.                                                                                                       
                                                                                                                                
Senator Green wondered if any of the developers had testified.                                                                  
                                                                                                                                
Senator Ellis indicated  that one of the developers might be on-line                                                            
to testify, but did send in a letter of support.                                                                                
                                                                                                                                
Senator Green  wondered since this  was an additional obligation  to                                                            
the  developer whether  they  would  cross over  into  the issue  of                                                            
"taking."                                                                                                                       
                                                                                                                                
Senator  Green  clarified  that she  was  talking about  signing  an                                                            
obligation  to  a landowner  in  order to  use  their  land and  she                                                            
wondered if they have then  imposed the equivalent of a reduction in                                                            
value to  that person, because  of what they  have to go through  to                                                            
vacate  the  property  or change  the  use  of the  property.    She                                                            
inquired  as to whether that  would be seen  as a "taking"  that the                                                            
state is imposing on the landowner.                                                                                             
                                                                                                                                
Senator  Ellis  did not  believe  that  it would  be  imposing  some                                                            
unjustified "taking."   He noted that there was no effective date on                                                            
the bill.                                                                                                                       
                                                                                                                                
Co-Chair  Kelly  indicated  that  a "taking"  would  be  an  extreme                                                            
explanation and said that  it is more of a procedural matter and did                                                            
not see that it would drop the value of the property.                                                                           
                                                                                                                                
Ms. Listen commented  that she found, originally,  a similar statute                                                            
in Oregon and at that time it had not been challenged.                                                                          
                                                                                                                                
Senator Green indicated  that she was not sure in Alaska if "taking"                                                            
would be challenged,  since they do  not have a "taking"  provision,                                                            
but  clarified that  what  she was  saying was  if  a landowner  has                                                            
another bar  that he has to meet in  order to use his/her  land when                                                            
it has  been legally rezoned  than the state  is imposing a  penalty                                                            
until they  can do what they  want with their  land.  She  said that                                                            
she did  not see it as  something she could  support.  She  believed                                                            
that if a person  owned the land and got the rezoning  provision and                                                            
was able to move forward  with the change in purpose then they would                                                            
have that right.                                                                                                                
                                                                                                                                
Senator  Ellis  explained  that the  research  shows  that  Arizona,                                                            
Florida,  Pennsylvania,  California and  Oregon all  have, in  their                                                            
landlord/tenant  laws, a  notice and compensation  requirement.   He                                                            
noted that  it was really  not adequate compensation,  but  it would                                                            
cover  some people  and  it was  a compromise  and  an  effort.   He                                                            
believed that it was a measured and balanced approach.                                                                          
                                                                                                                                
Senator Green  commented that she  would be really reluctant  to use                                                            
Oregon as an example of land use.                                                                                               
                                                                                                                                
Senator Hoffman  indicated that he is a mobile home  park owner.  He                                                            
asserted that if the mobile  home owner had been using that land for                                                            
income and then  wanted to change that income source  there would be                                                            
some  obligation to  those people  who  have provided  him with  his                                                            
livelihood.  He expressed support for SB 6.                                                                                     
                                                                                                                                
Senator Green  wondered if  there was any  other provision  in state                                                            
law  that  would  present  a  penalty  or buy  out  to  whoever  was                                                            
currently renting or using that income producing property.                                                                      
                                                                                                                                
Co-Chair  Kelly explained  that  anytime the  terms of  a lease  are                                                            
interrupted  there is not  a penalty, but  there would certainly  be                                                            
compensation to the leaseholder.   He believed that SB 6 was sort of                                                            
an extrapolation on that concept.                                                                                               
                                                                                                                                
AT EASE 9:44 AM/ 9:45 AM                                                                                                        
                                                                                                                                
Senator  Leman  moved to  report  CS  SB 6  (L&C),  22-LS0216\P,  as                                                            
amended   from  Committee   with  individual   recommendations   and                                                            
accompanying fiscal note.                                                                                                       
                                                                                                                                
Co-Chair Kelly asked if  there were any objections, there being none                                                            
CS SB 6 (L&C) was reported from Committee.                                                                                      
                                                                                                                                
                                                                                                                                

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