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.]