Sunday, January 17, 2016

==Legislative Update, 2016 #02== Public hearings schedule. Major bills will be scheduled soon, please prepare & attend hearings.


Howdee everyone,
 
Important Updates:
HB1204, Eviction Workout
The short version, you might remember from last year’s updates, is that in 2015 the NH Supreme Court made a decision that essentially makes it so that the courts are not allowed to accept eviction work out agreements between landlords and tenants to recover lost rent and avoid lock out.
 
There will be a major amendment rewriting the bill that will be proposed at first hearing which we have been working diligently on with NHLA and believe we will be in agreement or very close.  So don’t spend time with the version presently on line.  We will give you a new version once it is complete.
 
This is a major bill this season that we initiated.  Please attend and support.
 
 
HB1370, 7 Days Eviction Notice
This bill was attempted last season and failed because we didn’t support it strong enough and because the tenant advocates objected too strongly to including unauthorized pets in the 7 day notice category.
 
This season we have resubmitted the bill without the pet category.
 
This version still is very important because it would allow 7 day eviction notice for 
1.     tenants not paying utilities they are required to pay
2.     unauthorized occupants
 
HB1656, Real Estate Transfer Tax Exception
We attended the public hearing this past week.  It seems that the bill is well received.  Also the Department of Revenue testified that they had no objection to the bill.
 
This bill would provide and exception so that estate planning and refinancing that requires moving an asset into or out of an LLC or trust would not trigger paying the full(buyer & seller side) of the transfer stamps.
It is obviously very important to us. Please write to the committee and ask them to support and pass the bill.
 
 
Action items this week:
If in communicating with a legislator you receive information bad or good that you thinks affects our cause please forward it to me.
 
HB1656, Real Estate Transfer Tax Exception
Please write to the committee and ask them to support and pass the bill.  
 
Link to Committee Info:
 
 
HB1204, Eviction Workout
This is one of 2 major bills.  It will be scheduled for public hearing soon.Compose some examples especially real life experiences that demonstrate how beneficial it is to both landlord and tenant to be able to work out a payment plan to avoid eviction but have a quick turn around for writ of possession if the tenant fails to meet the payment plan.  When the time comes (might be next week), submit those stories by attending the hearing or emailing and calling the committee.
 
HB1370, 7 Days Eviction Notice
This is one of 2 major bills.  It will be scheduled for public hearing soon.
 
Review the summary & talking points of the bill in the Full Details section below. Also review the bill text attached.
 
Compose some examples especially real life experiences that demonstrate how critical it is that you are able to remove an unauthorized tenant and/or be able to recover the apartment when the tenant is not paying the utilities they are required to pay.  When the time comes (might be next week), submit those stories by attending the hearing or emailing and calling the committee.
 
See more info in Summaries & Full Detail for each bill further below. (includes property owner position, contact info, Talking points, and more).
(to jump right to bill detail, use Control-F, Find).
 
 
Hearings this week:
01/19/2016 at 10:00 AM    LOB Room 302
HB1590, Apply Rooms & Meals Tax to Short Term Rental
Level of Response: You Decide
Property Owner Position: LimitedImpact
 
01/19/2016 at 10:30 AM    LOB Room 305
HB1298, OHRV, Pollution Triple Damages
Level of Response: Email legislators Call Legislators
Property Owner Position: Against unless amended
 
01/19/2016 at 11:00 AM    LOB Room 202
HB1538, Change Enterprise Tax To Flat Rate
Level of Response: You Decide
Property Owner Position: You Decide
 
01/21/2016 at 10:00 AM    LOB Room 306
HB1580, removing the real estate commission from the office of professional licensure and certification.
Level of Response: 
Property Owner Position: 
 
Hearings next week:
None scheduled so far
 
 
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
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.  It’s not terribly hard to get but not straight ahead either.
HB1656     
Title: relative to exceptions to the real estate transfer tax.
Property Owner Position: For
House Status: IN COMMITTEE
Senate Status: none
 
HB1590     
Title: relative to the regulation and taxation of short-term rental businesses.
Property Owner Position: LimitedImpact
House Status: IN COMMITTEE
Senate Status: none
 
HB1298     
Title: relative to damage to private property.
Property Owner Position: Against unless amended
House Status: IN COMMITTEE
Senate Status: none
 
HB1538     
Title: relative to revising the business enterprise tax as a business flat tax, reducing the rate of the interest and dividends tax, repealing certain taxes, and establishing a commission to recommend statutory changes for the implementation of this new tax structure.
Property Owner Position: You Decide
House Status: IN COMMITTEE
Senate Status: none
 
HB1204     
Title: relative to payment of rent pending the stay of an eviction proceeding.
Property Owner Position: 
House Status: IN COMMITTEE
Senate Status: none
 
HB1370     
Title: relative to termination of tenancy.
Property Owner Position: 
House Status: IN COMMITTEE
Senate Status: none
 
HB1580     
Title: removing the real estate commission from the office of professional licensure and certification.
Property Owner Position: LimitedImpact
House Status: IN COMMITTEE
Senate Status: none
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Full details on all bills above:
HB1656, Real Estate Transfer Tax Exception
01/12/2016 at 01:30 PM    LOB Room 202
Title: Title: relative to exceptions to the real estate transfer tax.
 
Summary: This bill would allow people to transfer real estate, without being subjected to the real estate transfer tax, between entities with the same ownership, and assets and liabilities.  
 
Property Owner Position: For
 
 
Email to Committee: 
To: 0
Subject: HB1656 
 
Analysis Stated in Bill: 
 
Talking Points:
This is important to us, as it would allow us to transfer assets into or out of LLC’s or trusts without the transfer taxes. Given some of the rules that the Federal Government has imposed in regard to refinancing, this bill is very helpful. Also, it is important for estate planning purposes and liability protection purposes.   Why should we be taxed just because we have decided to restructure our assets into LLC's or Trusts.
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HB1590, Apply Rooms & Meals Tax to Short Term Rental
01/19/2016 at 10:00 AM    LOB Room 302
Title: Title: relative to the regulation and taxation of short-term rental businesses.
 
Summary: Legislative service’s analysis is: This bill requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. The bill also expands the meals and rooms tax to apply to short-term rental businesses.
 
Property Owner Position: LimitedImpact
 
 
Email to Committee: 
Subject: HB1590 
 
Analysis Stated in Bill: 
 
Talking Points:
Simply, the purpose of the bill is to tax, under the room and meals taxes, the revenue that people and the rental services generate, from renting out rooms or the entire home on a short term basis.  This bill also requires short-term rental businesses to register as businesses with the secretary of state and meet certain posting and reporting requirements. 
 
Note that the position of one of our core team is "For" the bill with the thinking that the bill would "level the playing field" for NH hotels which are loosing revenue to short term rental services.
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HB1298, OHRV, Pollution Triple Damages
01/19/2016 at 10:30 AM    LOB Room 305
Title: Title: relative to damage to private property.
 
Summary: The bill creates a cause of action for a landowner whose land is damaged by pollution. This bill also creates a cause of action for a landowner whose land is damaged by OHRV, Off-Highway Recreational Vehicle, use.  There is also provision for triple damages and attorney's fees.
 
Property Owner Position: Against unless amended
 
 
Email to Committee: 
Subject: HB1298 
 
Analysis Stated in Bill: 
 
Talking Points:
This bill could be a two edge sword for anyone who owns land and has any material on the property that can be deemed hazardous if it leaked.  Heating might be included in this. It also gives a landowner the right to sue another for polluting that landowner’s property.  That right probably exists at this time, but the right does not include the right to seek triple damages based upon the recklessness of conduct and attorney’s fees which the bill would allow. It also allows an owner to seek injunctive relief to stop continuing pollution and to force the cleanup of the damage.
The bill also has a section allowing for triple damages to land from off road vehicles.
The bill can impose greater liability upon us.  Triple damages are always dangerous and ripe for abuse.  What if a tenant dumps oil on your property and it seeps onto a neighbor.  Will the neighbor be able to sue you for triple damages?
However, the bill also gives us more protection from polluters.
We would support the bill if amended from triple damages to actual damages.
We also would like to see something defined that a landlord would not be held liable for a tenant's action if the landlord was unaware of the tenant's action.
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HB1538, Change Enterprise Tax To Flat Rate
01/19/2016 at 11:00 AM    LOB Room 202
Title: Title: relative to revising the business enterprise tax as a business flat tax, reducing the rate of the interest and dividends tax, repealing certain taxes, and establishing a commission to recommend statutory changes for the implementation of this new tax structure.
 
Summary: Legislative service’s analysis is: This bill revises the business enterprise tax as a business flat tax at a rate of 2 percent and repeals the business profits tax and Medicaid enhancement tax. The bill reduces the rate of the interest and dividends tax to 2 percent. The bill also establishes a commission to recommend statutory changes for the implementation of this new tax structure.
 
Property Owner Position: You Decide
 
 
Email to Committee: 
To: 0
Subject: HB1538 
 
Analysis Stated in Bill: 
 
Talking Points:
Since many of us use LLC’s and are subject to the Business Enterprise Tax or the Business Profits Tax, this bill will impact us. Unfortunately, we do not have the tax expertise to be able to determine if the bill will help or hurt us. We need someone with the appropriate knowledge to help us with this bill. If you learn more or can help out please let us know.
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HB1204, Eviction Workout
Time not specified   
Title: Title: relative to payment of rent pending the stay of an eviction proceeding.
 
Summary: Provide statutory method for allowing eviction work out agreements which became disallowed in District Courts because of the NH Supreme Court Mountain View v. Robson decision in May of 2015.
 
Property Owner Position: 
 
 
Email to Committee: 
Subject: HB1204 
 
Analysis Stated in Bill: 
 
Talking Points:
Based upon RSA 540:13c, Landlords and Tenants have entered into agreements in eviction actions based upon non-payment of rent allowing Tenants to remain in possession of the leased premises so long as they makes payments that are written in the agreement. In many instances, the Landlord and Tenant agree to a schedule where the tenant pays rental arrearages, but is also required to pay future rent as it becomes due.
 
          These agreements are advantageous to both the Landlord and the Tenant. The Tenant has the opportunity to remain in their home and not be evicted. The Tenant can pay the rental arrears over a period of time that they have negotiated with the Landlord, while the Tenant does not fall further behind in rent. This is particularly helpful to a Tenant who fell behind in rent due to a sickness, injury or slowdown in work, who has subsequently overcome these problems.
 
          The Landlord gains the opportunity to be paid the arrears, and future rent, without the need to file a new eviction action should the Tenant not abide by the agreement.
 
          However, the Supreme Court of New Hampshire, in the case of Mountain View Park LLC v. Robson, decided August 11, 2015, ruled that agreements entered into between Landlords and Tenants in non-payment of rent cases, cannot contain provisions regarding the future payment of rent. Any agreement containing clauses requiring the Tenant to pay future rent submitted by the parties to an eviction action based upon non-payment of rent will have to be rejected by the Circuit Court. This decision takes away from both Landlords and Tenants an effective tool to resolve eviction cases to their mutual benefit. 
 
HB1204 revises the statute to specifically allow these type of agreements.
 
We have been negotiating with NHLA on the language for this bill & will have an amendment for you to review shortly that will replace the original bill.  So do not spend much time reviewing the original bill.
 
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HB1370, 7 Days Eviction Notice
Time not specified   
Title: Title: relative to termination of tenancy.
 
Summary: This bill reduces the eviction notice from 30 days to 7 days in the following instances:
Failure of tenant to put utilities in their name when required to do so.
Someone staying in the unit who is not on the lease for more than 14 days consecutive or 30 days in a calendar year.
 
Property Owner Position: 
 
 
Email to Committee: 
Subject: HB1370 
 
Analysis Stated in Bill: 
 
Talking Points:
Last session, 2015, we attempted putting this bill through with the addition of unauthorized pets.
There was a large push back about the 7 day notice for unauthorized pets.  This session we are submitting the bill with out the inclusion of unauthorized pets.  
 
This is one of the major bills this session and we still expect good sized push back and definitely need every one to show up at hearings and communicate to the committees and legislators to support this very important bill.
 
New Hampshire law allows a landlord in most residential tenancies to evict tenants by serving the tenants either a 7 days Eviction Notice or a 30 days eviction notice. Presently the 7 days eviction notice can only be used in certain limited circumstances.  Those circumstances are: (a) non-payment of rent  (b) substantial damages caused by the tenant, members of his family or guests (c) behavior by the tenant, members of  his family or guest that adversely affects the health, safety of the landlord or other tenants or failure to accept temporary alternative housing during lead paint abatement.  All other evictions require a 30 days Eviction Notice.
 
This bill has major advantages for landlords in dealing with the tenants who are purposely breaking the terms of a lease in the two circumstances outlined above, or do not have the financial means to abide by the terms of the lease.
 
HB1370, if enacted, would add two additional circumstances where a landlord could use a 7 days Eviction Notice.  These two are:
(1) Failure to establish utilities in the tenant’s or terminating utility service when the tenant is required to pay such under the terms of the lease. Please note, that each of the above categories has to be a breach of the lease. For those landlords who do not use leases, or do not prohibit these categories in their leases, they would not be able to use the provisions of this bill, if it became law.
(2) a person staying in the leased premises who is not a party to the lease, and does not have the consent of the landlord, for more than 14 consecutive days or more than 30 days in a calendar year 
 
If a tenant does not put utilities into his or her name, or terminates utilities or has utilities shut off on them, one of two things could happen.  The first is creating a risk of the building freezing during the winter. The longer the utilities are off, the greater the risk of damage to the building. The second is that the utilities are often transferred into the landlord’s name, and the landlord has to pay for services that the tenant agreed to pay for when the tenant signed the lease. Since a landlord may not terminate utilities on a tenant the landlord then remains stuck paying for a tenant’s utilities which the tenant should be paying per the lease agreement. Reducing the time that tenant had to use someone else’s services, would reduce the loss to the landlord. This is no different than a non-payment of rent, especially since rents are reduced when utilities, principally heat, is not included.
 
The bill would also allow the tenant to cure these lease violations and stop the eviction by having the utilities billed to the tenant and paying the landlord any costs the landlord incurred in the seven days.  The tenant can only cure this violation three times in the last 12 months, however.
 
Extra people who move into our apartments, especially if the landlord pays for heat and hot water, use these utilities solely at the expense of the landlord.  The additional people not only increase utility usage but also wear and tear of the apartment, again at the landlord’s expense. These people also are not parties to lease, many times do not know or care about the terms of the lease or the rules and regulations of the landlord, and have nothing to lose if they violate the terms of the lease. Since they are invited into the apartment by the tenant, the police are reluctant to issue a no trespass order. Basically, these extra people are living for free at the landlord’s expense. Some may even consider these people stealing our services.  And what about those cases where an invitee of a tenant takes over the apartment saying they are the tenant but have never signed or agreed to any terms of the lease.  People who are “crashing” at someone's apartment, can be a danger to the landlord and other tenants unless properly screened and approved.
 
The tenant can also cure the lease violation of an extra person living in the apartment by having the extra person permanently move from the apartment within the seven days. The tenant can only cure this lease violation once.
 
Landlords often get complaints from other tenants at the property about these issues.  This bill would help landlords to more quickly address the concerns of other tenants in the building & enforce the terms of the lease more efficiently.
 
This is our bill and we need to fully support its passage.
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HB1580, Admin of real estate commission
01/21/2016 at 10:00 AM    LOB Room 306
Title: Title: removing the real estate commission from the office of professional licensure and certification.
 
Summary: This bill removes the real estate commission from the office of professional licensure and certification and re-establishes the duties of the commission and the executive director.
 
Property Owner Position: LimitedImpact
 
 
Email to Committee: 
Subject: HB1580 
 
Analysis Stated in Bill: 
 
Talking Points:
We're basically just letting you know this bill is here incase you think it may impact you.  We are also not sure of the reason why this bill was introduced. If you learn more please let us know.
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