SB 104-MANUFACTURED HOMES AS REAL PROPERTY  2:47:20 PM CHAIR FRENCH announced the consideration of SB 104 and asked for a motion to adopt the proposed committee substitute (CS), version D. 2:47:44 PM SENATOR WIELECHOWSKI moved to adopt CS for SB 104, labeled 27- LS0467\D, as the working document. CHAIR FRENCH objected for discussion purposes. ANDY MODEROW, Staff to Senator French, described the changes as follows: Sec. 40.17.125(a) was modified so that the recorder's office won't have to determine whether an affixation or severance affidavit meets requirements under Sec. 34.85, which relates to how a manufactured home is affixed to real property. Under AS 40.17.035, the recorder's office cannot be tasked with determining whether the contents of a document are legally sufficient to achieve the purposes of the document; instead, as clarified under the regulation, the person submitting documents for recording must ensure that the prerequisites for recording as established by regulation and statute are met. CHAIR FRENCH noted that Whitney Brewster with the Division of Motor Vehicles, Vicky Backus with the State Recorder's Office, Jeff Harris with Wells Fargo, and Pat Green with Wells Fargo were available online to answer questions. MR. MODEROW continued as follows: Sec. 40.17.125(b) received two minor changes in the CS. The first modifies the action taken by the recorder on the recording affidavit, changing "write" to "place" on page 20, line 30, of the legislation. This change reflects that the recording office no longer writes on recorded affidavits - instead, they affix bar codes that contain relevant information. In addition, the original draft required an affidavit to be recorded in land records; in the CS, Sec. 40.17.125(b) changes "in land records" to "the public record," to match where the recorder files land records today. Sec. 40.17.125(c) in the original draft (version I) was removed in the CS. This language required the recorder's office to automatically send a certified copy of the recorded affidavit to a person designated on an affidavit. This doesn't match current recording office procedures, which require an individual to request and pay for certified copies of affidavits. In regards to this last change, conforming amendments were made to Sec. 34.85.060(12) and Sec. 34.85.120(7) in Section 26 of the CS to remove references to the automatic mailing of a certified affidavit. In addition, Sec. 28.10.266(7) and Sec. 28.10.266(8) of the CS, found in Section 16 on page 10 of the legislation, were modified to ensure that an affidavit complies with affixation requirements under Sec. 34.85 of the legislation. Page 6, Section 16, of the original draft required DMV to notify a primary lienholder of completed conversion procedures when the conversion involved cancelling a manufacturer's certificate of origin or title. But under Sec. 28.10.267, a conversion cannot take place until a manufactured home is free and clear of all liens and encumbrances. Because a primary lienholder would never exist through a conversion procedure, the lienholder notification provisions were replaced in the CS with language that allows the applicant to indicate one person, in addition to the owner, that receives written acknowledgement of completed conversions under Sec. 28.10.262-265. This change is reflected in Sec. 28.10.262(c), 28.10.263(c), 28.10.264(d), 28.10.265(c), 28.10.266(12), of version D. 2:51:31 PM SENATOR PASKVAN referenced page 15, lines 14-20, and asked what the lessor of the real property consents to, and what interest in the real property the lessor of the park gives up or has subject to the real estate loss. MR. MODEROW deferred to the Wells Fargo representative. 2:52:34 PM PAT GREEN, State Government Relations Director, Wells Fargo Bank, said this legislation is primarily intended for those manufactured home owners that also own the land under the home. CHAIR FRENCH asked Mr. Harris if he could tell the committee what the lessor of the real property is consenting to under Sec. 34.85.040(2). 2:53:17 PM JEFF HARRIS, Loan Administration Manager, Wells Fargo Home Mortgage, Anchorage, AK, explained that an individual that has a home in a mobile home park would need to move the manufactured home onto a piece of land they own in order to affix it, get a fee simple transaction, and get a mortgage on the home. The homeowner must own the land and home together get a mortgage. CHAIR FRENCH asked if he agrees that a mobile home owner in a park could get a mortgage if he had a 20-year lease and the park owner consents. MR. HARRIS replied there's less risk with a long-term lease, so that option was put into the legislation. SENATOR PASKVAN asked if deficiency judgments would be prohibited, assuming that any foreclosure would be non-judicial. MR. GREEN answered yes. His understanding is that, in the event of default, all the normal real property foreclosure procedures would be followed. MR. HARRIS agreed; the foreclosure proceedings would be the same as for a "stick-built" home CHAIR FRENCH announced he would hold SB 104 in committee.