==Legislative Update, 2014 #03== Critical landlord tenant bills being decided; Contact legislators;

This Legislative Update is provided by Nick Norman, Director of Legislative Affairs for the RPOA.

Last weeks Landlord tenant hearings had reasonably good attendance.  Thank you for those that attended.  We desperately need your support however.   There are critical bills that will help of hinder out business.  We need WAY MORE people contacting legislators and attending the critical hearings.

Are you contacting the legislators?
Some important bills being are decided tomorrow 1/28/14.  The big bill this year, HB1409, still has time to get in your input to the legislators.  Please get active. We need you to contact the legislators now on the Critical Bills this Season.

Everything you need is below in these emails.

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).

Critical bills this season:HB1409, Antidiscrimination Section 8, Domestic Violence
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: Against

HB1274, Quarterly Semi-annual Rent
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: For

HB1275, Towing Tenant Vehicle
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: For

HB1336, $500 Fine For Failing To Register Landlord Agent
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: Against

HB1214, Termination of Tenancy
Level of Response: Attend hearings, Email & Call Legislators
Property Owner Position: For


Bills being decided now:1/28/14 Judicial Committee Executive session deciding on 
HB1274, Quarterly Semi-annual Rent
HB1275, Towing Tenant Vehicle


This week:01/28/2014 at 01:00 PM    LOB 101
SB341, Eviction on Foreclosed Property
Level of Response: You Decide
Property Owner Position: Against

01/28/2014 at 02:30 PM    LOB 101
SB306, NH Study Commission on Foreclosure Law
Level of Response: You Decide
Property Owner Position: LimitedImpact; You Decide

01/30/2014 at 10:00 AM    LOB 302
HB1111, Insurance Not Canceled After Claim
Level of Response: Email Legislators
Property Owner Position: For

Next week:None scheduled so far

Decisions:See Bills Updated Status summary below.

Please email or call your legislator to give them your input on the bills still active & ask your legislator to vote in our favor.
Further below is:Bills Updated Status summary:
Full details on all bills above
(Which includes property owner position, contact info, talking points, and more)

Love & Light,
Nick Norman
RPOA Director of Legislative Affairs
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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.
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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.

Committee report available for:
SB223,
SB243, Business Profits, Real Estate Transfer Tax
SB333,
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Full details on all bills above:SB243, Business Profits, Real Estate Transfer Tax
01/14/2014 at 09:15 AM    SH 103
Title: relative to the carry forward of a credit against the business profits tax and relative to rulemaking concerning the real estate transfer tax.

Summary: This bill clarifies the taxable years for which the business profits tax credit for business enterprise tax aid may be carried forward. The bill also allows for rules concerning the real estate transfer tax to include examples in its rules regarding the transfer tax.  This is currently done in IRS regulations, which makes them easier to understand.

Property Owner Position: Limited Impact; You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/Senate/committees/committee_details.aspx?cc=S17

Email to Committee:
To: andrew.hosmer@leg.state.nh.us; dalas@leg.state.nh.us; chuck.morse@leg.state.nh.us; bob.odell@leg.state.nh.us; james.rausch@leg.state.nh.us; ;
Subject: SB243

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/SB0243.html
Analysis Stated in Bill:

Talking Points:
Limited Impact, no talking points developed.
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SB223,
01/15/2014 at 09:30 AM    LOB 102
Title: authorizing municipalities to enter into contracts for the private funding and repayment of construction of sewer systems.

Summary: Not Analyzed yet

Property Owner Position: Not Analyzed yet

Link to Committee Info: http://www.gencourt.state.nh.us/Senate/committees/committee_details.aspx?cc=S27

Email to Committee:
To: jeanie.forrester@leg.state.nh.us; bette.lasky@leg.state.nh.us; NH.Sen.Pierce@gmail.com; nancy.stiles@leg.state.nh.us; dboutin1465@comcast.net; ;
Subject: SB223

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/SB0223.html
Analysis Stated in Bill:

Talking Points:
Not Analyzed yet
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SB333,
01/21/2014 at 09:00 AM    SH 103
Title: relative to property taxation of manufactured housing.

Summary: Not Analyzed yet

Property Owner Position: Not Analyzed yet

Link to Committee Info: http://www.gencourt.state.nh.us/Senate/committees/committee_details.aspx?cc=S17

Email to Committee:
To: andrew.hosmer@leg.state.nh.us; dalas@leg.state.nh.us; chuck.morse@leg.state.nh.us; bob.odell@leg.state.nh.us; james.rausch@leg.state.nh.us; ;
Subject: SB333

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/SB0333.html
Analysis Stated in Bill:

Talking Points:
Not Analyzed yet
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HB1274, Quarterly Semi-annual Rent
01/21/2014 at 11:00 AM    LOB 208
Title: relative to the quarterly or semi-annual payment of rent.

Summary: Allows a landlord to enter into a residential lease requiring a tenant to pay rent either quarterly or semi-annually without violating the security deposit statute where a landlord can not ask for more than one month's rent.

We think the bill should also include a provision that a landlord may accept an offer by a tenant to prepay more than one month's rent.  It rarely happens, but some people when they receive their tax refund want to pay ahead when they are moving into a new apartment or over come bad credit or some other application default by prepaying a large portion of rent. Prepayment of rent should be just that and not considered a security deposit.

The bill merely clears up an ambiguity for landlords who want quarterly or semi-annual payments. We anticipate this only happens with expensive high end rentals, or seasonal rentals.

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: HB1274

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1274.html
Analysis Stated in Bill:

Talking Points:
See Summary & this greatly affects college communities.  In Durham, Dover, Keene, etc., you have landlords routinely taking a full semester's rent up front.  The bill was intended to give them an option to legally allow this kind of option.

There is also the situation where someone with bad credit has a tax refund, personal injury settlement or other lump sum and the landlord might be willing to take a chance on the tenant if the landlord were permitted to due so under the law.
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HB1275, Towing Tenant Vehicle
01/21/2014 at 11:30 AM    LOB 208
Title: permitting a landlord to tow a tenant's vehicle under certain circumstances.

Summary: Simply it allows a landlord to tow a car in the circumstances stated in the bill (tow a tenants car if the car is parked in a place or manner that violates the terms of a written lease or in a fire lane, or the tenant fails to move the car during snow removal) without violating RSA 540-A:3(III)  which states: "No landlord shall willfully seize, hold or otherwise directly or indirectly deny a tenant access to and possession of such tenant's property, other than by proper judicial process."

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: HB1275

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1275.html
Analysis Stated in Bill:

Talking Points:
The bill would allow us to protect tenants by having cars in fire lanes towed or not moved during snow removal, protect our property by allowing us to tow cars parked improperly, such as on the lawns or walk ways, and if it is in a lease, cars that are uninspected, unregistered, or being repaired and possibly left on jacks in a parking lot or blocking or taking up a tenants reserved parking space.  We would like to see language that says that towing in these cases is at the tenant's expense.  Hey maybe we can finally able to clean up front yard to keep with city ordinances.
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HB1336, $500 Fine For Failing To Register Landlord Agent
01/21/2014 at 01:00 PM    LOB 208
Title: relative to the landlord's agent requirement.

Summary: Imposes a fine of $500 for any landlord who fails to register a Landlord Agent in the city or town of the property

Property Owner Position: Against

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: HB1336

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1336.html
Analysis Stated in Bill:

Talking Points:
We need to address this bill and oppose it in its current form.  The bill does not state who enforces it, nor who receives the fine.  Further, if a landlord is new, doesn't even know about this requirement, and does not register he/she is subject to this expensive fine.  That landlord should be given notice to register by the city or town and a grace period before being subject to the fine.  Should the broker who sells a building to a landlord be required to inform the landlord of the registration requirement?  Should there be some notice or form at a property closing? Perhaps the City or Town must be held responsible to notify all property owners of this law.

There have been several attempts to repeal this Landlord Agent requirement. Many towns do not even know the requirement exists.  This is a crazy fine for a law that should not even exist.

Lastly, if this should go through the fine is way too expensive and should be $50, then $100, the cap at $200 on some type of time line to respond.
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HB1409, Antidiscrimination Section 8, Domestic Violence
01/21/2014 at 01:30 PM    LOB 208
Title: expanding the law against discrimination to prohibit housing discrimination against recipients of rental assistance and victims of domestic violence, sexual assault, or stalking.

Summary: Proposed and drafted by NHLA (tenant advocates) expanding the law against discrimination to prohibit housing discrimination against recipients of rental assistance (any kind of assistance including Section 8) and any one who claims to be a victim of domestic violence, sexual assault, or stalking.  Note: merely making an unverified call to the police or violence center would constitute some one now in a protected class.

Property Owner Position: Against

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: HB1409

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1409.html
Analysis Stated in Bill:

Talking Points:
WE NEED EVERYONE TO SHOW UP AND OPPOSE THIS BILL. MARK YOUR CALENDARS AND BE THERE!
1/21/14 1:30pm LOB 208.

This bill makes two significant changes by adding two distinct and separate categories to RSA 354-A.

First addition to the protected classes (protected from discrimination) is any person who has merely reported to law enforcement, a victim’s violence center, or obtained a temporary or permanent protective order.

The second addition to RSA 354-A the protected classes (protected from discrimination) is for people who receive rental assistance..

We met with NHLA about this bill and were told two of the reasons NHLA put forward the bill are:
1. NHLA was told that people in these classes have difficulty finding apartments. However, NHLA has not provided any statistics to back this up.  Further people have 60 days to locate an apartment that can be extended up to 120 days.  If they work as hard at finding an apartment as the members of the legislature do during a session they should be able to locate an apartment within the allotted time frames.

We were told the victims of domestic violence sometimes have trouble getting apartments because they come with bad landlord references.

2. The second reason is that NHLA feels all tenants should be able to live where they want (despite their bad landlord references) and that these classes of tenants would  have a better chance of improving theirs situations if they could live in better areas.

Note that rental assistance vouchers have rental amount limits as to how much can be spent on rent.
Does this mean that all public housing that concentrates poor people in one project should be eliminated?

Notice that non-profit agencies are exempt.  Why?

There are so many problems with this bill it is crazy.  Here goes a listing of some.
1. Abusing the system by tenants
To obtain this protection against discrimination one would merely need to report abuse to any law enforcement officer or a violence center.    Making a lie to a victims violence center is not a crime,.  Many people have no problem not telling the police the  truth to get what they want, or filing a false affidavit to obtain a temporary order.  Just reporting the domestic violence or stalking is enough.  There is no judicial review or any determination of truth to obtain this protection.  It is easy to abuse the good intentions of the bill to the detriment of the landlords.

Many times at an apartment couples are arguing and the police are called. Now that arguing couple is a protected class and you can’t evict because an agency was called. This is really poorly written and will create another opportunity for a professional tenant to get away without paying rent. A landlord should be able to evict if there is a problem tenant. If the abuser keeps coming back and starting an augment the landlord and neighboring tenants will be stuck with the problem tenant and lose the good law abiding ones because of this law.  A “professional” tenant could make good money here.

2. Perpetrators allowed back in by victim.
Second: many times the victims allow the perpetrator into the new apartment. Other tenants to be in danger if new tenant who is victim of DV lets abuser back into their living space.  What if one of the tenants are harmed by the perpetrator.  Can the landlord now be held some how liable because the landlord could not do anything to eliminate the perpetrator?
If this happens, landlords have limited ability to evict unless they are witnesses to new abuse or disturbance of the peace.  The eviction requires a 30 days notice plus all the time the courts take  so it could take 2 to 3 months at a minimum to evict the perpetrator.  Mean time all the other tenants in the building who are subject to the fights, generally are reluctant to call police, and may move on account of the continued problem.  Now the landlord is only left with the troubled unit and will likely have trouble rerenting because of the troublesome unit.

Ultimately we need to stop this bill entirely.  If the bill moves forward, it needs to provide safeguards against abuse of the protections for victims, and needs to provide a way for a landlord to have the perpetrator removed quickly from the rented unit if the perpetrator was not on the lease or rental agreement, or a tenant. Only victims who have obtained a permanent order and have maintained the order should have this protection.

3. Section 8 tenants are more costly for landlords although landlords by HUD rules can not charge more for them.
a. more paper work.  The Section 8 lease and contract is very large with an extreme number of clauses.  Does this mean you have to except all the provisions that this government body dreams up and the landlord as no control over.
b.   must take time for initial inspection
c.   annual inspections
d.   annual financial reviews of the tenants if not more often, which changes the amount paid by the housing authority and the tenant.  Increases bookkeeping time and chances of errors.
e.   More regulations, and different standards such as with lead paint renovations which would now have to meet more stringent HUD rules.
Did you know that having a housing assistance tenant forces you to follow HUD RRP rules instead of EPA RRP rules.  The HUD rules are more restrictive and expense to follow which will absolutely increase your expenses and create more vacancy.
f.   Need housing authority approval to raise rents, and there are limitations on rent increases based upon what is allowed by HUD
g.  Sec 8 is funded by what has been a disfuctional  Congress.  Who knows what they will continue to fund.
h   Landlords should not be forced to have too many sec 8 tenants, if funding is reduced the landlord could face fancial             ruin.
i. This will open all our rental properties to having to be up to government (HUD) codes including at least annual inspections, not just current building code.

The bill gives people on sec 8 & any type of housing assistance greater rights than people who work and pay rent from their paychecks.

4.  Limited ability to screen new tenants.
This will force you to accept Section 8 tenants.  You will not be allowed to deny some one your apartment if they have bad landlord references or bad credit if those references and credit are "caused" by the domestic violence, sexual assault, or stalking.  Maybe this could be stretched to say the reasons that cause a tenant to be eligible for Section 8 are the reasons for their bad credit.  If so landlords could not refuse a Section 8 tenant because of their bad credit.  Could that be extended to say the could not be refuse because of bad past rental payments.

5. More legal battles to fight.
It happens often that a landlord who never had any intent to discriminate winds up spending hours and hours and thousands of dollars in an effort to convince an investigator of their innocence.  How could you know that some one is a victim of domestic violence  or if they have reported domestic violence or verify of these?  What does that mean?  To be safe from a descrimination lawsuit a landlord must simply accept anybody?   This could easily open up many “frivolous” lawsuits against landlords.

6. Potential issues with property insurance
Some insurance companies won’t do insurance if Section 8 more than 20%-50%.

This is a terrible bill for landlords.  There is so much to talk about here that it will take us a while to put together all the notes required.  We are even still collecting and summarizing notes against the bill.

Stay tuned and show up for this hearing.
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HB1214, Termination of Tenancy
01/21/2014 at 02:30 PM    LOB 208
Title: relative to grounds for termination of tenancy.

Summary: Allows a landlord to evict a tenant based upon the expiration of a lease or the rightful termination of the term of the lease or rental agreement.

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: HB1214

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1214.html
Analysis Stated in Bill:

Talking Points:
Surrounding states have this already as law.  A lease is a contract – by law it has to have a beginning and an end date.  The tenant can have the end date as the last day, the landlord should have that option as well.

It is a short one line bill that would overrule the NH Supreme Court case that says that Landlords have to have a valid reason to evict a tenant, as set for the RSA 540:2.

There are many instances where we need to evict a problematic tenant where it can be difficult to prove the facts needed to evict.  For instance the loud bully who other tenants do not want to testify against. (How about the member of a motor cycle gang, not club, but gang.) If this bill passes, we could evict that tenant without involving other residents of the building.
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SB341, Eviction on Foreclosed Property
01/28/2014 at 01:00 PM    LOB 101
Title: relative to eviction procedures on foreclosed properties.

Summary: This bill does two things, it exempts from RSA 540, the statute governing evictions, a mortgagor who remains in a foreclosed property after the recording of a foreclosure deed, and it established a new section on evicting a mortgagor from his or her former property faster than a normal eviction. Also allows banks to hold on to property for only 3 days before disposing it.

Property Owner Position: Against

Link to Committee Info: http://www.gencourt.state.nh.us/Senate/committees/committee_details.aspx?cc=S37

Email to Committee:
To: jeb.bradley@leg.state.nh.us; casac@worldpath.net; andrew.hosmer@leg.state.nh.us; NH.Sen.Pierce@gmail.com; andy.sanborn@leg.state.nh.us; ;
Subject: SB341

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/SB0341.html
Analysis Stated in Bill:

Talking Points:
Also does not take into consideration private mortgages – that would open up a whole additional area that would allow mis treatment of tenants and such.
I would hope that NH legal aid would be against this bill as well and maybe we could collaborate efforts.

Under currently law, a person who remains in a home that has been forclosed upon must be evicted pursuant to RSA 540, including giving an evicition notice and serving the landlord and tenant writ.

If this bill passes the purchaser at a forclosure sale would only have to serve the foreclosed mortgagor in possession a thirty days notice, either in hand or posting on the primary entrance of the foreclosed property.  After the expiration of the thirty days, the purchaser at forclosure can take possession, including calling for assistance from local law enforcement.

Any personal property left in the property at foreclosure can disposed of in 3 days.

This bill, if it became law, does have potential to impact our membership in two ways.  First, we do have a number of owner occupants of either single family houses or multi unit properties. If foreclosure occurs, they will be quickly forced out of their homes after the foreclosure sale, without any judicial review.

The other way the bill can impact us is if a member buys a building at foreclosure. Rather than having to wait months to obtain possession from the former owner of either the house or one of the units, there is now a quick and fast procedure to follow.

We do not like the bill because it is adding a special exception to the landlord and tenant laws for the benefit of the banks who are most of the time the high bidders at the auctions.
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SB306, NH Study Commission on Foreclosure Law
01/28/2014 at 02:30 PM    LOB 101
Title: establishing a commission to study New Hampshire mortgage foreclosure law, new federal regulations, and fair foreclosure practices.

Summary: This bill would establish a commission to study New Hampshire foreclosure law, Federal Regulations, and Fair Forclosure Practices. The commission is as with all commissions, would then report back to the legislature its findings and recommendations, including aligning NH law with the federal regs.

Property Owner Position: LimitedImpact; You Decide

Link to Committee Info: http://www.gencourt.state.nh.us/Senate/committees/committee_details.aspx?cc=S37

Email to Committee:
To: jeb.bradley@leg.state.nh.us; casac@worldpath.net; andrew.hosmer@leg.state.nh.us; NH.Sen.Pierce@gmail.com; andy.sanborn@leg.state.nh.us; ;
Subject: SB306

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/SB0306.html
Analysis Stated in Bill:

Talking Points:
This bill does not change any existing laws. Until we see what the commission recommends, and how it would effect us, we recommend no action.
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HB1111, Insurance Not Canceled After Claim
01/30/2014 at 10:00 AM    LOB 302
Title: clarifying the term "valid claim" for property insurance.

Summary: Does not allow insurance companies to cancel policy after a claim.

Property Owner Position: For

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: HB1111

Link to Bill Text: http://www.gencourt.state.nh.us/legislation/2014/HB1111.html
Analysis Stated in Bill:

Talking Points:
This bill amends current law which prohibits an insurance company from not renewing a homeowners insurance policy if the homeowner made one valid claim within the previous year or policy period.  The bill adds the following: "Inquiries about coverage do not constitute a valid claim."

Although the bill effects homeowners policies and not commercial policies, it may effect our membership who have owner occupied units, such as duplexes. The problem with the bill is that it is unclear if it opens the door to non-renewal if the homeowner inquires about coverage and does not file a claim, which does not appear to be the intent of the bill. It maybe covered elsewhere in the statute, and common sense would say that an inquiry without a claim should not be grounds for the non renewal of a policy.