News

AANC strives to update members on issues that matter to them and to address the pressing problems and concerns of rental housing owners and professionals via a number of vehicles including this website, newsletters, reports, and bulletins. From construction to maintenance to evictions to utility rules to civil rights to land use, the AANC both advocates for, and reports on, issues that matter to the multi-family rental housing industry.

Evictions Fees Increased August 1, 2011

Filing fees for small claims actions in the State of NC did increase by TWENTY FIVE DOLLARS! The new costs will be $96 (instead of $71) and Sheriff's fees of $30 for service. That makes the new Court Costs for an eviction suit $126 for a single tenant and $156 for two tenants.

MEMO: http://www.nccourts.org/Courts/Trial/Documents/court_costs_memo-1Aug2011.pdf

LIST OF COSTS: http://www.nccourts.org/Courts/Trial/Documents/court_costs_chart-1Aug2011-civil.pdf

N.C. Legislature Ratifies Residential Building Inspections Bill; Goes to Governor for Signature

 In a major victory for North Carolina rental housing providers, the Apartment Association of North Carolina-initiated Bill - Residential Building Inspections - was ratified by the N.C. Legislature on June 18^th. Once signed by Governor Perdue, the bill became law immediately, and reins in advocacy-minded local units of government who have exceeded - or might want to exceed - their statutory limitations on housing inspections. The Bill:

• Requires units of government to have reasonable cause to believe that unsafe housing conditions exist in order to inspect private housing, via landlord history, reports, or actual knowledge by a unit of government. This provision allows resources to be used to focus on unsafe conditions, problem properties and irresponsible owners and landlords.
• Requires government housing inspection programs to be administered in a non-discriminatory way regarding housing type or ownership.
• Provides local governments the authority to make an exception to the reasonable cause test in order to conduct periodic inspections as part of a targeted effort to arrest blight within designated Community Development or similar zones.  
• Prohibits local governments from requiring permits as a condition of operating rental housing - unless a property has more than 3 violations in a twelve month period, or falls within the top 10% of local crime or disorder problems.
• Prohibits local governments from levying rental registration fees unless a dwelling unit has more than 2 violations in a twelve month period, or falls within the top 10% of local crime or disorder problems.

 Context: North Carolina cities have historically been concerned about housing conditions in their jurisdictions, especially in older, poorer neighborhoods, and have appropriately adopted ordinances calling for minimum housing quality codes. The administration of these codes are an important tool in helping North Carolina municipalities fight neighborhood decline while ensuring to housing consumers that minimal health, safety, and sanitation conditions are maintained in residential structures.

Unfortunately, some N.C. municipalities have substantially broadened these programs aimed at stemming blighted conditions and now apply them to all housing, or at least all rental housing, as part of mandatory inspection approaches. Sometimes these programs are tied into required permits and fees as a condition of operating rental property. Programs designed to systematically inspect all rental housing for the purpose of improving housing quality are bad public policy and waste needed resources that could be used to combat problematic housing.

Inspection programs in these environments amount to a "housing tax" with no public benefit. The core of current NC law gives units of government the authority to respond to housing conditions that are unsafe, dangerous, and unfit for human habitation. The new law ensures that units of government don't exceed their authority.

Landlord/Tenant Bedbug Liability Bill passes N.C. House; eligible for Senate consideration in 2012.

The AANC-initiated bill (H721) passed the N.C. House on June 9^th. The Bill would amend North Carolina Landlord-Tenant Law by providing clear housing provider (Landlord) and housing consumer (Tenant) duties regarding bedbugs in dwelling units. Current language:

• The Landlord would have to: not knowingly offer a dwelling that has bedbugs; consider a pre-leasing inspection and, if no bedbug evidence is found, be granted as complying with the statute; if no pre-leasing inspection is performed, grant the new Tenant 60 days to report bedbug evidence, with Landlord having subsequent duty to have the bedbugs exterminated; also if a notice of bedbugs is received from a Tenant in this 60-day window, the Landlord must inspect and treat neighboring units as appropriate.
• The Tenant would have to: not knowingly or recklessly introduce bedbugs; notify the Landlord within 5 days of suspecting bedbugs; be responsible for bedbug extermination if the Landlord obtained a pre-leasing inspection OR if at least 60 days have passed since taking possession; if so, contract and have the dwelling unit treated within 7 days. Tenant's failure could mean: Landlord contracts for treatment and sends a bill to the Tenant; Tenant's tenancy is terminated; and/or Tenant is sued for damages.

Landlord/Tenant Law Changes sails through N.C. House; eligible for 2012 Legislature Short Session

Another AANC initiated bill (H493) would amend the N.C. General Statutes for Landlord Tenant (Chapter 42) by addressing 7 field challenges that have materialized in recent years, from loopholes in eviction appeals to abandoned tenant personal property to partial rent payments to uses of the Tenant Security Deposit. Current language:

 House Bill 493 Landlord/Tenant Law Changes

 Landlord-Tenant relationships in North Carolina are governed by Chapter 42 of the N.C. General Statutes. At the core of Chapter 42 are defined, reasonable relationships and duties for both housing providers and housing consumers, as set forth by the N.C. General Assembly down through the years. The laws that govern these relationships are necessarily the General Assembly's best effort at balancing the interests of housing providers and housing consumers. A number of Landlord-Tenant Law challenges have materialized in the field in recent years and changes are needed to the law. Below we illustrate the problems and the changes that will help to refine current North Carolina law:

 Section 1 Problem:Loophole during appeals process allows tenant not to pay their agreed-upon rent.

SOLUTION: Modifies the Eviction Appeal Statute so that the appealing party has a duty to make timely rental payments during the appeal.

 Section 2 Problem: Eviction process can take 30-40 days and the longer the process, the longer it takes for the landlord to re-rent the unit. The costs of these delays are rarely recovered from the tenant and contribute to the high cost of rental housing. Tenants have 10 days after the Sheriff serves the writ of eviction to collect their belongings. Normally they are gone after the hearing but leave trash or unwanted items. Under the current law, the landlord must not remove (or store if removed) those items for 10 days unless they are worth less than $100.

SOLUTION: Increases the value of the property that may be donated to a non-profit to $750 and property considered abandoned up to $500 to allow landlords access to the rental unit when property has been abandoned by the tenant.

 Section 3 Problem: When landlords accept partial payments for rent or subsidies, they are not able to proceed with the eviction, even when the tenant has not paid the contractual amount in full.

SOLUTION: Makes it clear that partial (less than full) payment of rent may still be the basis for proceeding with an Eviction.

 Section 4 Problem: Permitted uses of a tenant security deposit are limited by law and are not clear.

SOLUTION: Allows the N.C. Security Deposit Law to be modified to allow unpaid Late Fees, damage to smoke and carbon monoxide alarms, and costs of re-renting the premises to be taken out of the security deposit.

 Sections 5-6 Problem: Currently landlords cannot charge separate cleaning fees for vacation rentals and the amount gets wrapped up in the rent.

SOLUTION: Allow vacation rental landlords to separate their cleaning costs and provide clearly to the consumer what they are being charged.

 Section 7 Problem: When a resident/tenant dies, there is a long delay to retain possession of the leased property and very little direction in allowing family members to receive the personal property.

SOLUTION: Requires the General Statutes Commission to study and recommend legislation to provide for the orderly and expeditious removal by a landlord of the personal property of the deceased tenant.

NC UTILITIES COMMISSION NEWS

David Drooz, an attorney with the North Carolina Utilities Commission - Public Staff, has issued an important and timely Advice Letter for N.C. Apartment Owners. It was written to provide guidance for apartment owners on how to avoid violation of utility law in North Carolina and is attached. We encourage you to disseminate this Advice Letter widely to your members throughout the state for the purpose of member education. Click here to view this letter.

In 2010, AANC (Apartment Association of North Carolina) leaders identified the need for more focused, state-level lobbying efforts on behalf of the Multifamily industry. As a result, the AANC PAC (Political Action Committee) was formed.

We are enthused about the AANC PAC, its goal of educating candidates for public office, and the potential benefits to the North Carolina apartment industry.

Chairperson of the AANC PAC Board of Trustees:
Meg Pisczek

TRUSTEES
Apartment Association of Western NC: Sandra Austin Carlton
Cumberland County Apartment Association: Jonathan Elliott
Greater Charlotte Apt. Association: Skip Huddleston, Jay Tillman
Greenville Area Property Managers Association: Amandy Lyall
Triad Apartment Association: Chris Dunbar, Frank Forde
Triangle Apartment Association: Cliff Webster, Will Brownlee
Wilmington Apartment Association: Jennifer Byrd

The role of the AANC PAC, as stated in the bylaws, is as follows:

"The purpose of this PAC is to evaluate and provide financial support and to influence and support the election of candidates for public office in the State of North Carolina, who, by their acts, writings and statements, have demonstrated an interest in good government, have shown an understanding of the Apartment and Rental Property industries, and have a willingness to cooperate and work with the Apartment and Rental Property industries to further public policy in the public interest. The PAC shall not give regard to party affiliation when considering candidates."

 The AANC PAC NEEDS YOU to help shape government in North Carolina.

• Landlord/Tenant Law
• Building Codes
• Forced Section 8
• Maintenance Licensing
• Impact Fees/Tax Policy
• Utility Regulations
• Inspections
• Swimming Pool Rules

 If the issues above are important to you and your business, please consider contributing to the AANC PAC today. By taking a proactive role in North Carolina government, we can help shape the legislature and protect our interests as multifamily professionals.

Become part of the solution by donating to the AANC PAC.
Click here for a contribution card and donation options  
*An online contribution option is not available at this time. Note: Contributions can only be accepted from personal (not business/corporate) checks or credit card accounts.

The AANC Political Action Committee supported the following candidates for the North Carolina General Assembly prior to the November 2010 election:

CANDIDATE, COUNTY(IES) REPRESENTED
Rep. Van Braxton- Greene, Lenoir, Wayne
Rep. Jim Crawford- Granville
Rep. Pryor Gibson- Anson, Union
Rep. Julia Howard- Davie, Iredll
Rep. Carolyn Justice- New Hanover, Pender
Rep. Ric Killian- Mecklenburg
Rep. Danny McComas- New Hanover
Rep. Bill Owens- Camden, Currituck, Pasquotank, Tyrell
Rep. Thom Tillis- Mecklenburg
Sen. Don Clodfelter- Mecklenburg
Sen. Phil Berger- Guilford, Rockingham
Sen. Margaret Dixon- Cumberland, Bladen
Sen. Fletcher Hartsell- Cabarrus, Iredell
Sen. Neal Hunt- Wake

Now is the time to let your voice be heard! Thanks in advance for your consideration.

The AANC PAC Board of Trustees