Big Regulatory and Legislative Happenings are Around the Corner!
Big Regulatory and Legislative Happenings
are Around the Corner!
By: Chris Loebsack, Loebsack & Brownlee, PLLC
For those who did not get a chance to attend 2024's AANC Connect Conference at the end of May, there were some big legislative proposals discussed that have been filed and will be considered in this year's "Short Session" of the NC Legislature. The first of these was the introduction of 2 new Bills that would each propose to tackle the rising problem of "squatters" in residential properties. In fact, AANC member and State Representative John Bradford's bill (HB 984) has already been scheduled for a hearing before the Judiciary 1 Committee on Wed. June 5th. These 2 bills would each create a brand-new remedy, outside of the Summary Ejectment process, that would permit landlords who find their rental property is being occupied by an unauthorized "squatter" to remove them without having to file a lawsuit to do so. These have received favorable receptions thus far, so stay tuned for future updates.
The second was the introduction (again by Rep. Bradford) of HB 1070, dealing with "Property Rights and Protections" for residential properties. This bill proposes to make changes to the existing Landlord-Tenant laws that would modernize some provisions and bring them into conformity with the realities of eFiling and electronic entry of Judgments (in the counties where it is operating currently and those still to come online later in 2024/2025); it would also provide an opportunity for a hearing on issues relating to tenants who appeal their eviction Judgments and claim indigent status; would clarify the timeframe that a Clerk has to disburse to the Landlord tenant's rent bond payments during an appeal to District Court; and prevent the fraudulent leasing or rental, or fraudulent advertisement for sale, of residential property by someone who is not the owner.
And finally, on the Federal side of things, there is the long-awaited (and still-unpublished) Final Rule on "Junk Fees" expected to be issued by the Federal Trade Commission any day now - the big questions are: after all the advocacy of the NAA and its constituent members during the Summer and Fall last year, how wide a net will the FTC cast when trying the reel in activities that are currently commonplace in the rental housing market? How will they define the difference between a prohibited "Junk Fee" and an acceptable/legitimate "business transaction fee"? What type of disclosures will be required to be given to applicants by Landlords, and at what point in the rental application process will they be required? And most importantly - what changes will be required to be made to form Lease contracts to account for these new requirements? Many have received notification last week that NAA and Blue Moon have prepared new language for their Lease and addenda forms, but those remain the subject of speculation for now, as they have not been released just yet, while we all await the publication of the Final Rule itself. Again - stay tuned here as NAA expects the rule to be released literally any day now, so as always: watch this space for all the new developments to come!
This is not legal advice and should not be relied on as such. You should contact your legal counsel with your specific facts if you seek legal advice.