Legislative Update - Two Important Bills this Week

This Legislative Update is provided courtesy of the Nick Norman, RPOA Director of Legislative Affairs

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Howdee everyone,

The rush of new legislation is now at an end. Bills are working their way through the legislature.

I am working on an option to give an early alert email that just contains the schedule of these bills. If you would like the advance schedule notice please contact me directly and I will add you to the list. (The legislative schedule is only active from beginning of year through mid spring).

The most important bill to work on this week is
HB482, The Bedbug Bill which has passed the committee and will be voted on by the full house shortly.

It is critical now to contact your legislator and request them to vote for the bill as is and really stress no amendments or changes of any kind.

A group of stake holders including landlords took 3 years to study this issue a come up with a balance proposal. Any change could easily upset the balance and make this a bad bill.
Ask your House representative to vote for bill as is with no changes.

Email to Committee: ~HouseJudiciaryCommittee@leg.state.nh.us
Subject: HB482

The 2nd important bill is
HB463, Certification Of Property Managers
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: Against

Email to Committee:
To: ~HouseExecutiveDepartmentsandAdministration@leg.state.nh.us
Subject: HB463

Please email or call your legislator to give them your input on the bills still active & ask your legislator to vote in our favor.

See more info in Summaries & Full Detail for each category further below. (includes property owner position, contact info, Talking points, and more).(to jump right to bill detail, use Control-F, Find).

Rooming House Bill

One of the rooming house landlords has expressed an extreme concern over
HB472, Definition Of Tenancy In Rooming Houses
Check it out at the bottom of this posting, see if you agree and if so support him by contacting legislators.

This week's Hearings

02/19/2013 at 10:00 AM LOB 306
HB421, Real Estate Brokerage Regulation
Level of Response: LimitedImpact; You Decide
Property Owner Position: LimitedImpact; You Decide

02/19/2013 at 10:00 AM LOB 301
HB672, Exemptions For Water & Air Pollution Facilities
Level of Response: You Decide
Property Owner Position: You Decide

02/19/2013 at 10:30 AM LOB 306
HB463, Certification Of Property Managers
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: Against

02/19/2013 at 01:00 PM LOB 301
HB655, Deferred Taxes For The Elderly Or Disabled
Level of Response: You Decide
Property Owner Position: You Decide

Next week:

02/26/2013 at 02:30 PM LOB 304
HB630, Repeal The New Hampshire Greenhouse Gas Initiative
Level of Response: You Decide
Property Owner Position: You Decide

Many bills have an updated status. See summary below.

Important Bills with Updated Status:

HB482, The Bedbug Bill
OUGHT TO PASS, Vote 17-2.

Further below is:Bills Updated Status summary
All Bills Still Active summary
Full details on all bills above
Which includes Talking points, much more

Love & Light,
Nick Norman
RPOA Director of Legislative Affairs
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Bills Updated Status summary:We only list the committee reports on the most important bills affecting the real estate business. If you want to get the committee report on one of the other bills contact me & I will show you how to get them on line. Its not terribly hard to get but not straight ahead either.

HB298, Prohibit Publishing Property Tax Exemptions
Property Owner Position: Against
General Status: In the HOUSE
House Status: REPORT FILED

SB60, Assisted Living Facilities; Advance Payments and Security Deposits
Property Owner Position: Limited Impact; You Decide
General Status: In the SENATE
Senate Status: PASSED / ADOPTED WITH AMENDMENT

HB446, Raising Optional Property Tax Credit For A Totally Disabled Veteran
Property Owner Position:  Limited Impact; You Decide
General Status: In the HOUSE
House Status: REPORT FILED

SB42, Applications For Appraisers License
Property Owner Position: Limited Impact; You Decide
General Status: In the SENATE
Senate Status: PASSED / ADOPTED

HB318, Collection Of Education Tax
Property Owner Position: You Decide
General Status: In the HOUSE
House Status: REPORT FILED

HB438, Amends The Definition Of Residential Real Estate In An Industrial Zone
Property Owner Position: Limited Impact; You Decide
General Status: In the HOUSE
House Status: REPORT FILED

HB377, Archeological Investigation On Private Land
Property Owner Position: For
General Status: In the HOUSE
House Status: REPORT FILED

SB43, Reduced assessments for history buildings
Property Owner Position: You Decide
General Status: In the SENATE
Senate Status: PASSED / ADOPTED

HB543, Ascertaining Damages To Abutting Landowners
Property Owner Position: For
General Status: In the HOUSE
House Status: REPORT FILED

HB482, The Bedbug Bill
Property Owner Position: For
General Status: In the HOUSE
House Status: HB 482-FN, regarding infestation of bed bugs in rental housing. MAJORITY: OUGHT TO PASS. MINORITY: INEXPEDIENT TO LEGISLATE.
Rep. Gary S Hopper for the Majority of Judiciary: This proposed legislation has come forward as the product of the New Hampshire bed bug action committee which has been working diligently for nearly three years to address the multiple challenges faced by landlords, tenants, public health professionals, housing advocates and others upon the discovery of infestations of bed bugs in rental properties. One significant outbreak in Manchester took place in a multi-unit dwelling more than three years ago and left a number of families quite destitute and emotionally devastated when the outbreak occurred and continued recurrence of these pests illustrated just how difficult bed bugs are to eradicate. The legislation provides remedies that have been agreed upon by a wide cross-section of landlords, tenants and others and provides a framework for a comprehensive response to the amelioration of these troublesome insects.
Not acting on this bill may have a profound negative effect on tourism if not dealt with promptly. Vote 17-2.
Rep. Lawrence M Kappler for the Minority of Judiciary: The minority believes this is a “local housing law” and “minimum housing standards” problem that needs to be addressed at the local level, versus creating more government. This investigation work would just increase tenant/landlord tensions.
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Full details on all bills Still Active:HB472, Definition Of Tenancy In Rooming Houses
02/05/2013 at 11:30 AM LOB 302
Title: relative to residential units in rooming houses.

Summary: Presently RSA 540 is excluded from tenants in a rooming house where the tenant stays fewer than 90 days.

This bill changes the exclusion by adding:
“For purposes of this subparagraph, if the owner of the facility directs the occupant to move from one room to another in the same rooming or boarding house, the 90-day period for computing consecutive days of occupancy shall not be broken.”

Property Owner Position: Limited Impact; You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H43

Email to Committee:
To: ~HouseCommerceAndConsumerAffairs@leg.state.nh.us
Subject: HB472

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0472.html

Analysis Stated in Bill: This bill clarifies that the exclusion of rooming houses from the definition of tenancy cannot be extended by directing the occupant to move from one room to another within the 90-day exemption period.
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HB482, The Bedbug Bill
02/07/2013 at 02:30 PM LOB 208
Title: regarding infestation of bed bugs in rental housing.

Summary: This is a good bill because it puts some of the burden of infestation back to the tenant. It allows landlords to evict based on non-payment if the tenant does not pay for extermination if it is determined that the tenant brought them in.

Property Owner Position: For

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H10

Email to Committee:
To: ~HouseJudiciaryCommittee@leg.state.nh.us
Subject: HB482

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0482.html
Analysis Stated in Bill: This bill addresses landlord, tenant, and municipality responsibility for bed bug infestations.

Talking Points:
This is one of the most complicated bills that will have a very direct impact on both landlords and tenants.

The first paragraph of the bill, the declaration of purpose, if the bill passes, is a declaration by the legislature that reasonable measures need to be taken to promote prompt and effective mediation of bedbug infestation. This declaration can open the door to lawsuits for failure to take such actions. It is a statement to everyone not to ignore the problem.

The second and third paragraph of the bill incorporates into the state housing code that not taking measures to remediate a bedbug infestation will be a violation of the minimum standards for housing in the state. Communities can enact their own more stringent codes. This section gives building inspectors the power to deal with bedbug infestations the same powers they have to deal with other infestations.

The fourth paragraph, by amending RSA 540-A, WILL ALLOW LANDLORDS TO ENTER APARTMENTS WITHOUT TENANT CONSENT OR NOTICE to formulate a plan or engage in emergency remediation of rodents or insects, including bedbugs, so long as the entry took place within 72 hours of the landlord first receiving notice of the infestation. This paragraph is a major benefit to landlords to start dealing with the problem promptly. If it takes longer than the 72 hours, the current law applies, the landlord must give the tenant reasonable notice under the circumstances and a tenant is barred from prohibiting the landlord from entering.

The fifth paragraph of the bill makes it a violation of RSA 540-A for a landlord willfully, that means the landlord intended, not to investigate a complaint within 7 days and to take reasonable measures to remediate an infestation.

The fifth paragraph also makes it a violation of RSA 540-A for:
the tenant to refuse the landlord access to his or her apartment to make emergency repairs;
the tenant to refuse the landlord to evaluate if bedbugs are present if the landlord received a complaint about an adjacent unit as long as the landlord gave 48 hours notice;
the tenant to willfully fail to comply with written instructions from the landlord or pest control operator to remediate so long as the instructions were given to an adult, someone 18 years or older, and the tenant was given a reasonable opportunity to comply of not less than 72 hours.

This section of the bill makes it clear that a landlord may only enter without the consent of the tenant to make emergency repairs or with a court order.

Paragraph 6 defines infestation of bedbugs as any bedbugs in rented residential property, and remediation as any treatment that substantially reduces the presence of bedbugs for 60 days. NOTE landlords are not required to use a licensed exterminator nor totally eradicate the insects, as this can be very difficult and expensive. These definitions will be in RSA 540 and not in RSA 540-A, although I expect the courts will use these definitions when reading RSA 540-A

Paragraph 6 also makes the landlord responsible for the cost of remediation in the first instance. The landlord can bill the tenant for the cost if the landlord believes the tenant is responsible for the infestation. If the tenant does not pay the landlord within 30 days or enter into an agreement to repay the landlord, such becomes a ground for eviction for non-payment of rent (A seven day notice and a demand for rent is required)

If the landlord tries to evict the tenant or seek damages for the infestation, the landlord bears the burden of proof (by the preponderance of evidence) that the tenant was responsible for infestation and the landlord offered the tenant the opportunity to enter into a payment plan.

However, the bill gives the landlord a rebuttable presumption that if there were no reports of bedbugs in the tenants unit or directly adjacent units or units directly above or below within 6 months then the tenant was responsible for the infestation. Paragraph 6 then goes on to give courts guidance to be used in determining if the tenant was responsible for the infestation or the bedbugs came from another unit or were in the unit at the time the tenant took possession of the apartment or single family house.

Paragraph 7 of the bill adds a new ground for eviction, but on a 30 days notice. That ground is willful failure of the tenant to prepare a unit for remediation after the tenant was given reasonable notice. Keep in mind that although this paragraph requires a 30 days notice, the landlord can seek a court order as noted above pursuant to RSA 540-A. Those orders can be obtained fairly quickly.

Paragraph 7 also makes it clear that the $1,000 fine for the initial violation and the $1,000 per day fine for a violation after a court order set forth in RSA 540-A is issued does not apply when dealing with infestations.

We support this bill. It is a balance between the interests of society, the landlords and the tenants. As landlords we now have a clearly defined responsibility to remediate the bedbugs, but we have the ability to seek financial reimbursement from a tenant who brought the problem into our building. We also gain the ablity to have the courts order the irresponsible tenants to join in the remediation effort or face contempt and/or eviction. The tenants will have means to force the landlords who do not maintain their buildings, the irresponsible landlord, to remediate.

We also support this bill because I fear that someone will propose, if this does not pass, a bill that would not be as balanced, and the landlord would be responsible not only for remediation but all the costs of such. Further, such a bill may not include as a ground for eviction failure of a tenant to cooperate in the remediation effort. WE COULD DO A LOT WORSE AND LET'S NOT TAKE THAT RISK.
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HB421, Real Estate Brokerage Regulation
02/19/2013 at 10:00 AM LOB 306
Title: relative to regulation of real estate brokerage and sales by the real estate commission.

Summary: Changed a lot of the wording around to be more clear – addressed disciplinary actions by Board, increased credit requirements from 9 to 12 hours.

Property Owner Position: Limited Impact; You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H07

Email to Committee:
To: ~HouseExecutiveDepartmentsandAdministration@leg.state.nh.us
Subject: HB421

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0421.html
Analysis Stated in Bill: This bill makes various changes to the real estate practice act and regulation by the New Hampshire real estate commission, including the investigation and prosecution of unlicensed practice.

Talking Points:
The first part of the bill attempts to modify who is exempt from needing a license to sell or lease real estate. We are not sure if they intended to amend the statute to the extent that we are reading it. It seems that the owner of real estate has to be licensed but not his employees. This is problematic for those of us who rent our own property.

The rest of the bill is wording changes that appear to be just for clarification, and one provision dealing with Continuing education of the brokers and salespeople increasing credit requirements from 9 to 12 hours.
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HB463, Certification Of Property Managers
02/19/2013 at 10:30 AM LOB 306
Title: requiring property managers to be certified.

Summary: This bill requires that a person employed by an association of unit owners, basically a condo association, be currently certified by the Community Associations Institute. If such a person is not certified, that person is guilty of a violation, meaning that person can be fined in criminal court.

Property Owner Position: Against

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H07

Email to Committee:
To: ~HouseExecutiveDepartmentsandAdministration@leg.state.nh.us
Subject: HB463

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0463.html
Analysis Stated in Bill: This bill requires property managers for associations of unit owners of real property to be certified as qualified by the national Community Associations Institute.

Talking Points:
The bill does not directly impact landlords, but if condo managers have to be certified, will the state require property managers to be certified, even if the property manager of an apartment complex is a direct employee of the owners of the apartment complex?

We recommend writing committee members to express concerns about the bill - who is the institute?, does certification really protect the assets of the unit owners?, there is no bonding requirements to handle money?, and anything else anyone can think of.
If this more directly affects you please attend hearings as well.

Of course as a general rule we are against more regulation.
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HB655, Deferred Taxes For The Elderly Or Disabled
02/19/2013 at 01:00 PM LOB 301
Title: relative to the collection of the amount of the property tax deferral for the elderly or disabled upon sale of the property.

Summary: RSA 72:38-a allows for deferral of property taxes for elderly and the disabled. The current law does address the payment of the taxes upon the death of the elderly or disabled person. (Elderly is someone 65 or older, a disabled person is someone receiving Social Security Disability Income Benefits). The taxing authorities can grant the deferment if the taxes cause, in their opinion undue hardship or the possible loss of the property. Current law does not address what happens if the property is sold.

Property Owner Position: You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H18

Email to Committee:
To: ~HouseMunicipalandCountyGovt@leg.state.nh.us
Subject: HB655

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0655.html
Analysis Stated in Bill: This bill requires that the amount of the tax deferral and accrued interest be paid to the municipality granting the deferral upon the sale of the property to a purchaser.

Talking Points:
HB 655 fills that void in RSA 72:38-a. Simply, all deferred taxes are to be paid upon sale, and the municipal lien is to be released. The rest of the bill addresses situations when the taxes are not paid upon sale, basically stating times and procedure for a tax sale.

This bill deals with owners of limited means occupying their own housing.
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HB630, Repeal The New Hampshire Greenhouse Gas Initiative
02/26/2013 at 02:30 PM LOB 304
Title: repealing the New Hampshire regional greenhouse gas initiative program.

Summary: This is a complex bill dealing with the regulation of the discharge of pollutants into the air. The first provision would remove state wide caps on sulfur dioxide and oxides of nitrogen emissions. The bill then goes on to repeal the greenhouse gas initiative.

Property Owner Position: You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H24

Email to Committee:
To: ~HouseScienceTechnologyandEnergy@leg.state.nh.us
Subject: HB630

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0630.html
Analysis Stated in Bill: This bill repeals the New Hampshire regional greenhouse gas initiative program.

Talking Points:
Some of our membership make reference to legislation in the name of environmental causes that actually push socialist agendas.

In order to really understand the bill, it would take hours, and expertise that we just do not have. If you follow this kind of thing please let us know your thoughts.
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HB672, Exemptions For Water & Air Pollution Facilities
02/19/2013 at 10:00 AM LOB 301
Title: relative to the property tax exemption for water and air pollution control facilities.

Summary: The bill would change then amount allowed for the exemption to the net book value of the facility. Net book value being original cost less straight line depreciation. (They do not define how many years have to be used for staight line depreciation) The bill stops the exemption from being limitless.

Property Owner Position: You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/house/committees/committeedetails.aspx?code=H18

Email to Committee:
To: ~HouseMunicipalandCountyGovt@leg.state.nh.us
Subject: HB672

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2013/HB0672.html
Analysis Stated in Bill: This bill requires that the property tax exemption for water and air pollution control facilities shall only apply to the net book value of the facility or portion thereof.

Talking Points:
Same comment as HB630.
Some of our membership make reference to legislation in the name of environmental causes that actually push socialist agendas.

In order to really understand the bill, it would take hours, and expertise that we just do not have. If you follow this kind of thing please let us know your thoughts.

Rooming House Bill - Letter from Rooming House owner

  Guaraldi  Rentals

Larry@guaraldi.com

5 February 2013

RE:  HB 472

  residential units in rooming houses

Members of Commerce and Consumer Affairs

Thank you for your time dedication to the legislative process

I am here to ask that you find HB 472 inexpedient to legislate.  

Rooming Houses pay room & meals tax for 185 days.  If this law passes, the state would lose the income after 90 days.  Those who operate rooming houses have been doing this for years based on the RSA and Rules.  I have for 40 years.

I don’t know how much tax the state receives from this but in this economy I am sure that we don’t want to loose it. 

If this bill passes, I will seriously consider shutting down my rooming house.  This is already a tough area to do business as most of my roomers don’t have credit of any kind; no references and many are on parole, probation or are registered sex offenders. 

Without housing they will remain in or return to prison.  This will cost the state more money either through prison costs and/or welfare costs for housing if they qualify and can find housing.  Very few landlords want to rent to those with prison records or those on ‘the list”.  This will substantially increase your Homeless Population. 

I’ve rented to people whom I have judgments against when the shelters expelled them.  I give free rooms to many people for a short time until they are able to put together needed cash.  The only control I have is the threat of locking them out. 

If this bill passes, making these residents tenants rather than roomers, I will close down our 33 units and sell the building.  It is too costly to do the number of evictions that history has shown we will need to do and we almost never collect on a judgment.

This bill will also hurt low income innocents.  For instance we currently have a lady paying $145 per week rent in a very large room.   She has a serious illness and we are working with her possibly moving to a lower priced room in the same building.  This bill would prohibit that.

If someone moves into a lower priced room and wants a larger, nicer room in the same building this may not be allowed.

I am further going to be so bold as to suggest that if any changes are needed in this RSA, it should be to change it to read:

“Rooms in rooming or boarding houses which are rented to transient guests for fewer than 185 consecutive days”    This will coordinate RSA 540 with RSA 78-A. 

Thank you for hearing my concern with this proposal.  

Lawrence (Larry) Guaraldi