IMPORTANT! Landlord bill hearing on Tuesday Jan 15th

2013 Legislative Update #1

Provided as a courtesy to our members from Nick Norman, Director RPOA, Legislative Affairs

    _________________________________________________________

Landlord bill hearing on Tuesday Jan 15th

NOTE: THIS IS AN IMPORTANT BILL FOR LANDLORDS!!
We need you to attend; more landlord bills on the way

Howdee everyone,

The 2013 legislative season has begun and started with 820 LSR’s (proposed bills).

The legislative offices have been slow this year to get bills converted from LSR (proposal) to actual bill language. Of the 47 LSRs we have already identified as potentially affecting our real estate business only 9 have actual bill text so far. Being we’re at mid January this seems very slow. (5 were withdrawn).

What that means is we are likely to be flooded with the newly released bills over the next few days. So please get ready to be active emailing and calling your legislators. It might be challenging at first to keep up with the volume.

This week:
HB106: Lease Charges In Demand For Rent, Eviction Liquidated Damages, Agent Registration
DATE  & TIME: 01/15/2013 at 01:00 PM

Location: Legislative Office Building (LOB) RM 208

Please email, call legislators and attend the hearing to support the bill. See more detail below.

SPONSORS:

Mark Warden

Phone: 603-391-2888

Email: mark.warden@leg.state.nh.us

Joseph Pitre

Phone: (603)755-2447
Email: joseph.pitre@leg.state.nh.us

Donald Lebrun

Phone: (603)886-1725
Email: donald.lebrun@leg.state.nh.us

Laura Jones

Phone: (603)948-2264
Email: laurajonesnh@gmail.com

Email the Judiciary COMMITTEE: HouseJudiciaryCommittee@leg.state.nh.us

Next week:
Still waiting for bills to be released and scheduled.

Full details on HB106

http://www.gencourt.state.nh.us/legislation/2013/HB0106.html

Love & Light,
Nick Norman
RPOA Director of Legislative Affairs
==============================================
Full detail on HB106
Bill Name: Lease Charges In Demand For Rent~Eviction Liquidated Damages ~ Agent Registration
Property Owners Position: FOR
Level of Response: Email, Call Legislators, Attend hearing

Summary:
1. Allow Demand For Rent to include any unpaid financial obligation per the lease agreement
2. Increase Eviction Liquidated Damages from $15 to $160
3. Repeal town landlord-agent registration

Landlord Talking Points:
1. Presently a landlord can only include in a Demand for Rent that is due. No other charges can be included in the amount demanded. If the tenant owes, pursuant to the lease, late fees, utility bills, a fee for a bounced check, reimbursement for damages, the landlord cannot include these in the amount demanded. If the tenant pays the amount stated in the Demand for Rent plus, under current law $15.00, the tenant will defeat the eviction action and be allowed to stay even though the tenant has not paid their other financial obligations per the lease.

One dollar of rent is the same as one dollar of a utility payment to a landlord. Why should non-payment of “rent” be treated different than non-payment of any other financial obligation of the tenant?

The Lease Agreement clearly identifies the amount of the rent, late fees, utility charges, etc. Failure of the tenant to pay any one or all of these items results in a financial loss to the landlord.

If a tenant pays their rent and does not pay for their heat, electricity, water… Is justice served?

This is further confused by attempting to separate 7 day notice requirements and 30 day notice requirements.
Under current law a landlord must give a tenant 30 days notice for a breach of a material term of the lease, such as non-payment of utilities.

To evict for both non-payment of rent and utilities a landlord either has to serve a 30 day notice at the same time as the 7 days notice, or serve the 30 days notice just after the tenant pays all arrears within the 7 day period. This is expensive and totally confusing.

This is even worse in the case of a tenant who has agreed to pay their own heat & electric but is not doing so. If it is winter, the landlord may have to pay the tenant’s electric and heat just to keep the property from freezing.
The required 30 day eviction (for non-payment of utilities) would not force the tenant to pay up until probably 9 to 12 weeks (if the tenant requests a court hearing).

How much simpler is this?
If HB 106 becomes law, a landlord can demand all charges owed by a tenant, that the tenant agreed to pay when entering into the lease agreement, on a single 7 day Eviction.


2.The $15 fee for service of the Eviction Notice has not changed since at least 1985, 28 years ago. The actual costs of preparing the document, even using the forms on the internet, and serving the forms including travel, far exceeds the $15. (Our time is valuable and we deserve to be paid for this if we do not hire others to prepare the forms for us and serve them.)

Further, if a landlord does not hire an attorney and does not account for their time , the cost of filing a landlord-tenant writ at the district court is $101 and the cost to have the Sheriff serve the notice is typically around $60 (Sheriff fees are variable based on the number of names served and the travel time from the Sheriff’s office). $160 is a minimum number that would cover out of pocket expenses for a typical eviction.

3.The third provision of the bill would simply eliminate the requirement that owners of restricted residential property register with the city or town clerks, naming a person for service of process.

Obviously the towns already know who to serve because they bill us for the property taxes.

Further, RSA 540:1-b is unnecessary because all real estate transfers in the State of NH are reported to the State and the municipalities have access to this information. If they can collect taxes than they should be able to serve legal notices. If they cannot collect taxes, than they have the power to lien the property…

The record keeping for RSA 540:1-b is cumbersome & useless for the local towns and we have heard representatives from town governments saying they don’t want it.
=====================

Free Bed Bug Seminar for Landlords

Take the Bite out of Bed Bugs

Landlord Seminar

Bed Bugs are back in a big way, and the web is full of misinformation on what to do when they invade your life. NH property owners are finding out the hard way that these pesky critters are expensive and difficult to eradicate. Have no fear, help is here!

The Manchester Bed Bug Action Committee is pleased to offer a series of seminars aimed at helping the NH property owner to deal with bed bugs at all stages of infestation.

The Manchester Bed Bug Action Committee is pleased to offer a series of seminars aimed at helping the NH property owner to deal with bed bugs at all stages of infestation.

• Bed Bug Behavior and Identification
• How to Protect YOUR Property Against Infestation
• Preparation and Monitoring
• Treatment Options
• Tenant Relations and Responsibility
• Bust the Myths and Discover What Really Works
• Q&A

This is a FREE seminar and all property owner and property managers are encouraged to attend. Space is limited. Please RSVP by 2/1/2013 to cschleyer@elmgrovecompanies.com

_______________________________________________________________________

When: February 19, 2013 from 6pm – 8pm 

Where: Manchester Health Department - 1528 Elm Street, Manchester NH. 

Contact: Chris Schleyer - Elm Grove Companies - 603-821-0077

___________________________________________________________________________________

Presented by: nhbedbugs, Atlantic Pest Solutions, Elm Grove Companies, and JP Pest Services

Money for lead removal available in Manchester

From Manchester Union Leader

January 05. 2013 12:32AM

MARK HAYWARD

New Hampshire Union Leader

MANCHESTER - A $3.9 million government program that provides no-interest, no-payment loans to remove lead hazards from Manchester apartment buildings is getting few takers, but city officials say they are confident the program will increase in popularity, after changes went into effect last summer.

At the end of December, the city was half-way through the 42-month timeline established by the U.S. Department of Housing and Urban Development grant.

While city officials hope the grant will finance the elimination of lead dangers in 250 apartments by its August 2014 expiration date, only 78 apartments had been cleared as of Dec. 31.

"At this point, we'd like to have more applicants in the pipeline," said Todd Fleming, a senior planner with the city. But he said the city is on track and meeting benchmarks of the grant.

Lead can cause neurological damage in children, leading to learning disabilities, behavioral problems and even death. As of this month, state health officials have identified 84 apartments that are under order in the city, meaning that children living in the apartment were found to have high lead levels and the landlord has been ordered to remove or isolate the lead hazard.

The program offers financing of up to $15,000 to clear or abate lead from an individual apartment. The loan comes with 0 percent interest, and it only has to be repaid when the property is sold. The landlord must come up with a 10 percent match for the project.

A landlord told the New Hampshire Union Leader that she has twice tried to qualify for the loan, only to have her application fall apart.

"The guidelines are so strict," said the owner, who did not want to be named, fearing it will hurt prospects for a future grant.

The first time the landlord applied, one tenant exceeded the income limits for tenants - $60,800 for a family of four - that the program sets. The second time, the project costs exceeded the maximum loan by $20,000, thanks in part to federal regulations that govern the project. For example, the regulations prevented the use of inexpensive replacement windows and required the restoration of the windows in the three-family building, she said.

"I don't have the money. I am trying to survive and hold on to the building," the landlord said. In the meantime, investors with deep pockets have received lead hazard loans and used the funds to rehab empty buildings, the landlord said.

Fleming said some investors have received financing; the program sets no limitation on the income of the landlord, only the tenants.

"HUD's viewpoint on this program is they want to get lead out of housing units," Fleming said. "Their objective is to benefit low and moderate income households, the families occupying the apartments."

He said the program also requires that properly licensed contractors do the work, which can affect the cost. But most projects draw bids from five to seven contractors.

He said federal funds do come with strings. For example, replacement windows may run afoul of historic preservation efforts in some buildings, but that doesn't happen often.

"It is a federally funded program. There are rules we have to follow, but we attempt to streamline the process as much as we can," Fleming said. 

The grant is the third for Manchester to remove lead for apartments. Earlier grants in 2003 and 2006 totaled $2.64 million and resulted in lead hazard reductions in 378 city apartments.

Last March, both the city of Nashua and the New Hampshire Housing Finance Authority received a $2.48 million grant for lead abatement. The Housing Finance Authority program has slightly different terms - landlords can only receive up to $12,500, but it never has to be repaid.

Typical lead abatement work involves window and door replacements, scraping and painting of hazardous surfaces, vinyl siding and replacement of stair treads and rizers.

The city says benefits of lead-hazard reduction include a lead-safe environment, lower energy costs, reduced liability and improved property value.

With the program under the city's control, Fleming said a push is under way to market the program.

He said the city took over the program in July, after a contract ended with a consultant who had been doing the work. The city hired a program manager, a clerk of the works and an administrative support person. 

"We thought by bringing it in-house there would be more oversight and more cost efficiency," he said. 

The Town of Durham is on the verge of passing a “NEW” Housing Standards Ordinance.

Its important to also pay attention to local legislative action. For more information, please contact Tom Toye at 603-413-6175

The town of Durham is on the verge of passing a COC like ordinance.  Currently Manchester is the only NH town or city that has this.

A very short version is that apartments will be forced to have a recurring inspection that the property owner has to pay for and which will likely trigger many repairs some of which some could be quite costly.  If Durham gets it then it will be more and more likely that it will eventually come to your town too.

The Town of Durham is presently scheduled to hold a public hearing on this ordinance at its regular Council meeting at 7 PM, Monday, January 7, 2013.  We very strongly recommend that each and every one of you speak at this meeting.  If you cannot attend, then please write a letter to Mr. Todd Selig, Town Manager, 15 Newmarket Road, Durham, NH  03824 or E-mail to tselig@ci.durham.nh.us.

Thank you for your attention to this important topic.  We recommend that you forward this letter to other landlords as well as owners of fraternities/sororities and/or the UNH Inter-fraternity and Panhellenic Councils. The managers of the DLA will be discussing this ordinance at our January meeting. 

Here's a copy of the letter from Tom Richardson, Chair of the Durham Landlords Association

Dear Members of the Durham Landlords Association and other non-member residential Durham landlords,

The Town of Durham is on the verge of passing a “NEW” Housing Standards Ordinance.

Cick here for full ordinance text

 The purpose of the ordinance is to protect the health and safety of occupants of residential rental properties in Durham, a program that seeks to correct dilapidation, dangerous defects which are likely to result in fire, accidents or other calamities, unhealthful lack of ventilation or sanitary facilities or due to other unhealthy or hazardous or dilapidated conditions. In addition, the ordinance will not only mandate safety inspections of ALL apartments in Durham, it will also pass on the FULL COST OF A NEW FIRE INSPECTOR and a DEDICATED PART-TIME ADMINISTRATOR to the owners of the inspected properties.  Although this ordinance is intended to address concerns with apartments and rental houses that are NOT professionally managed, it will impact all residential landlords (large, small, professional, non-professional) as well as owners of fraternities and sororities. For further clarification of this new ordinance, please contact Mr. Todd Selig, Town Manager, 15 Newmarket Road, Durham, NH  03824 or E-mail Todd at tselig@ci.durham.nh.us.

According to section IV. B of the ordinance, the inspection is for residential rental property owners but shall not include the owners of dormitories at UNH, hotels, inns or bed and breakfasts, but does include the owners of fraternities and sororities.  Under this ordinance, the Durham Fire Chief or designee has the responsibility to investigate the dwelling conditions in the municipality in order to determine which dwellings therein are unfit for human habitation. The Fire Chief/designee may determine that a dwelling is unfit for human habitation if it is found that conditions exist in such dwelling which are dangerous or injurious to the health and safety of the occupants of such dwelling, the occupants of neighboring dwellings or other residents of such municipality.

Under the ordinance, all owners of residential rental property in Durham shall identify their rental property and request an inspection in writing from the Fire Department of all of their residential rental properties and dwelling units within 60 days of adoption of this ordinance. Any residential rental property owner who fails to request the inspection within the specified timeframe will be fined $1,000. The residential property owner will be responsible for paying an inspection fee as well as re-inspection fees and non-complaint fines. It appears that for a typical accessory apartment in a home, the inspection fee will be a $130 base fee plus $25 for the apartment plus $25 for the owner-occupied portion of the home for a total inspection fee of $180.  Any violations would result in a re-inspection fee and possibly daily non-compliant fines.  For the larger properties in Durham, the inspection fee could be anywhere from a few hundred to a few thousand dollars, i.e. a 26-unit apartment building would have an inspection fee of $780!

Durham residential landlords pay exorbitant property taxes. Many have the added burden of providing trash removal service and private security service to police their property. The addition of an inspection fee is illogical and biased.  The Town of Durham wants to conduct legitimate health and safety inspections and has every legal right to do so. However, it is illegal to target only residential landlords and to apply the proposed costs, which burdens these businesses even further. Why is this not a health and safety ordinance versus targeting residential rental properties? The business of a residential landlord is no different than any other business in regards to taxation and fees, so why not include hair and nail salons, restaurants, food stores, etc. in the inspection process?  Perhaps every business in Durham, including homes that are listed as the legal address for any business, should also fall under this inspection process and taxation.

Tom Richardson,

Chair, Durham Landlords Association

With the assistance of members Janice Aviza and Carolyn Ricker

Save $50 on Lead Safety Training

Register by January 15th for any EPA/HUD Lead-Safety RRP training taking place prior to March 1st and take $50 off the training price. For a schedule of current classes click here.

Lead-Edu is one of the leading authorities in New England on Lead-Paint Safety, Lead-Poisoning Prevention, Education & Training. We are certified nationwide to offer the combined EPA/HUD Lead-Safety RRP Training required for all renovators, contractors, painters and landlords working on pre-1978 housing or child occupied facilities.

In addition, Lead-Edu has recently partnered with the Home Builders & Renovators Association of NH | Construction Institute of NH to offer a wide variety of education and training programs for both the general public as well as the construction industry.  

Details at our website, http://lead-edu.info/.

Contact Information: 

251 Pine St.

Manchester, NH 03103

603 716-2901

603 203-6430 (cell)

K.Kirkwood Consulting, LLC

ben@kkirkwood.com

New England Health and Housing Lead-Edu

Reminder: Free Landlord Workshop Jan 7th

Free Landlord Workshop
Monday January 7, 2013 7:00-9:00 PM

50 Queen City Ave. Manchester NH
Community Room

Topic:

• Advertising to get the ideal tenant.
• How to get the best tenant, screening process.
• Leasing your apartment the correct way.

Please click to register for this event

Call for more information 603-232-9195

Seacoast Real Estate Investment Association- Using Wholesale and Options as an Investor Tool

Seacoast Real Estate Investment Association- Using Wholesale and Options as an Investor Tool

When: 6:30 to 8:30pm, Thursday, Jan. 10

Where: Courtyard Marriott, Portsmouth

Cost: Members Free, Guest $20

Contact: Bert Cox, 603-225-8000, Bert@BertCox.com, www.seacoastreia.org

The Seacoast Real Estate Investors Association (REIA) is dedicated to networking, education, and promoting professionalism among real estate investors. Each month a different speaker outlines a unique aspect of real estate and investing. Topics cover a wide range of subjects and include land lording, quick turn real estate, renovation, finance, buying, selling, creative real estate techniques, foreclosures, short sales and more.

Guest speaker for January, we have Richard Dale-Mesaros. He has over 11 years of experience in buying and selling in various categories of real estate, licensed NH real estate agent. He will be discussing low risk transactions, finding the deals and using wholesaling and options.