SB 143-COMMON INTEREST COMMUNITIES; LIENS  9:45:00 AM CO-CHAIR HANNAN announced that the final order of business would be 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." 9:45:27 AM CO-CHAIR HANNAN opened public testimony on SB 143. 9:45:48 AM ANNA BRAWLEY, President, Edgewater Villa HOA Board, referred to a letter of support from the Edgewater Villa Home Owner's Association Board, "in a prior committee." She emphasized the financial impact of one financial delinquency from one unit on all the other units. She said SB 143 addresses this issue. She described a situation in which the HOA, incorporated prior to 1986, did not have first priority on a lien and was unable to collect an unpaid assessment, and this resulted in costly legal fees. She said the HOA has considered changing its bylaws to address this problem, but there would be cost to mitigate the risk. She indicated that SB 143 also addresses this issue. She strongly urged the committee to pass SB 143. In response to Representative Drummond, she confirmed she is the chair of the Turnagain Community Council. 9:50:01 AM DEBORAH BOROLLINI, representing self, testified in opposition to SB 143. She said the committee should have heard testimony from the Alaska Housing Finance Corporation (AHFC), which she said is the property owner of several pre-1986 condominiums. She spoke about law suits and the effects of them on homeowners. She mentioned the notice requirement and pointed out the length of time it takes for mail to be delivered, including when mailed from out of state. She said she is a former paralegal. She warned that condominium association boards can "go rouge" and "have taken unlawful actions against homeowners in the past." She talked about the trauma faced by homeowners, and she said it is not uncommon for HOA board members to not understand financial records and federal and state laws. She related that the majority of those who have reached out to her for assistance have been Alaska Native minorities and first-time home buyers who do not have the money to hire lawyers. Sharing her own story, Ms. Borollini expressed that if she had not reached out to AHFC directly, she would have lost her own home. She indicated a desire to see legislation that will protect homeowners, most especially those who own condominium properties. 9:55:06 AM JASON HENNINGS, representing self, stated that he has worked with HOAs on and off for ten years and supports SB 143. He said of two condominiums he has managed, the one built in 1986 had a delinquency rate of 5 percent, while the one built in 1985 had a delinquency rate of 24 percent. He talked about going directly to the bank when there is a delinquency and working out a plan to avoid foreclosures. He emphasized getting everything "on the same playing field" by giving those HOAs formed prior to 1986 the same rights as those formed in 1986 and later. He said he thinks "this process" will help HOAs in Alaska and "make everything fair." 9:56:43 AM CINDY LENTINE, President, Commodore Park HOA, testified in support of SB 143. She described the condominiums and the variety of residents, indicating some are on fixed incomes. She said there have been multiple occasions in which some owners have not paid, and the other owners "must meet the cost when this happens." Meanwhile, the bank gets the benefit of the HOA interest without contributing to the cost. She said SB 143 will solve this problem by treating pre-1986 properties the same as post-1986 properties in regard to the liens. She said Commodore Park has one or two amended governing documents but has not been able to get response from the bank to get lienholder approval in writing a requirement. The proposed legislation solves this problem. 9:58:38 AM CO-CHAIR HANNAN asked Emma Torgerson whether the bill sponsor had heard from AHFC. 9:59:06 AM EMMA TORGERSON, Staff, Senator Josh Revak, Alaska State Legislature, on behalf of Senator Revak, prime sponsor of SB 143, stated that the sponsor's office had not heard from AHFC regarding the proposed legislation. 9:59:29 AM CO-CHAIR HANNAN, after ascertaining there was no one else who wished to testify, closed public testimony on SB 143. CO-CHAIR HANNAN stated her intention to have the committee send a formal request to AHFC "to weigh in on the bill." [SB 143 was held over.]