[0:29] If folks are ready to [4:05] at least turn their [7:41] cameras on, you all [7:42] have to unmute it [7:43] once. So call to [7:45] order an introduction. [7:46] I guess to call to [7:47] order is that we're [7:48] here for our fees and [7:51] residential rental [7:52] agreements. Work [7:53] group meeting. This [7:54] is our third or [7:55] fourth or fifth, I [7:56] can't tell. They're [7:57] all starting to blur [7:58] together, but we are [7:59] moving towards [8:01] consensus. So I'm not [8:03] gonna have everybody [8:04] go around. We all [8:05] know who each other [8:06] are. I think for the [8:07] most part by now, [8:08] unless there's [8:09] anybody who's brand [8:09] new on the on the [8:11] zoom, I will say I am [8:12] here with Christy Ma. [8:13] That's why my name [8:14] shows as both. She's [8:15] got a meeting later, [8:16] so I figured we would [8:17] kick the kick this [8:19] meeting off together. [8:21] >> So Mister Chair. [8:23] >> Yep. PJ. [8:25] >> We do have [8:25] somebody new with us. [8:27] Our associate [8:29] legislative can't [8:29] call our council yet [8:30] because we're waiting [8:31] on the bar results. [8:32] But Katie Bortz has [8:33] joined our team, so [8:35] she is on the Zoom as [8:36] part of our [8:38] legislative soon to [8:39] be knock on Wood [8:40] Council pending those [8:41] bar results. But so [8:42] Katie is joining us. [8:43] >> Welcome, Katie. [8:45] October 9th is only [8:46] so many days away. [8:47] I'm sure you're [8:48] counting down. We've [8:48] got some associates [8:49] in our firm who are [8:50] are also looking [8:51] forward to that [8:52] October 9th date. [8:53] >> Very much. Yes. [8:55] >> All right. So with [8:56] that we're going to [8:58] kick it into SB 349. [9:04] I think what we were [9:05] trying to do, [9:06] Jessica's get a draft [9:07] that captured the [9:07] things that there [9:08] weren't any [9:09] disagreement on. And [9:09] then you also sent [9:10] out some materials [9:11] that sort of [9:12] highlight the areas [9:13] where there are is a [9:15] lack of consensus. [9:16] And then the realtors [9:17] sent us over another [9:18] note where some areas [9:19] we thought we had [9:20] consensus, but they [9:21] decided that we don't [9:22] anymore. I'm giving [9:22] them a hard time here. [9:24] So we'll look at [9:25] those sections as [9:27] well. I think my goal, [9:28] hopefully for this [9:29] meeting, is to get to [9:29] a point where at [9:31] least we know where [9:32] we're going to get [9:33] consensus, and we [9:33] also maybe know that [9:34] where we won't. And [9:35] so we have something [9:37] to present to the [9:37] full housing [9:38] Commission where we [9:39] can say, hey, you [9:40] know, a bill that [9:41] just did these things [9:42] would have [9:42] everybody's universal [9:44] support. And then [9:44] here are the areas of, [9:46] you know, potential [9:48] disagreement. And we [9:48] can decide what the [9:49] Housing Commission [9:50] wants to weigh in on [9:52] that or not weigh in [9:53] on those and leave [9:54] those for somebody [9:55] else's bill. So [9:56] that's sort of, I [9:56] think, what we're [9:57] trying to get. I [9:58] think we'd like to [9:59] get as much consensus [10:01] as we can, as always, [10:02] the goal. So with [10:03] that, Jessica, do we [10:03] have a starting place [10:05] that you wanted to go? [10:06] Or if I summed it up [10:07] pretty accurately. [10:08] >> I guess that was a [10:09] that was a great [10:10] summary. I can start [10:11] by sharing the bill [10:12] or sharing the [10:13] language [10:14] considerations. There [10:15] are some that I've [10:16] altered in response [10:17] to the realtors [10:18] comments that. Around [10:19] last night from [10:19] additional workgroup [10:20] members. So. However, [10:21] the group would like [10:22] to address. If you [10:23] want to go down piece [10:24] by piece and the [10:25] items of non [10:26] consensus and the [10:27] realtors comments, [10:27] then present [10:28] alternative language [10:28] from there. [10:30] >> Let's start. Let [10:31] me start actually [10:31] with. [10:34] >> 777 through 785. [10:35] The security deposit [10:36] language generally, [10:37] because I had that. [10:39] And if you want to go [10:40] ahead, Jessica, pull [10:41] up the bill and we'll [10:42] zoom in on those. [10:43] I've got it up on a [10:44] larger screen here [10:45] for myself, so I [10:46] don't have to lean in [10:48] too far and stare at [10:48] the at your screen. [10:50] But if folks have it [10:51] printed out or [10:52] whatever, you, [10:53] however you all [10:53] handle it. If you [10:54] want to go to mine, I [10:56] think line 777 is [10:57] still the right line, [10:58] which is on page 2030, [11:01] page 30 of this one. [11:02] That's why I didn't [11:03] print it. So we we [11:08] have, we use a [11:08] current language, I [11:09] guess we went around [11:10] with in a workgroup [11:11] is a current language. [11:13] So the consensus [11:14] language, right, that [11:14] we have here in the [11:16] draft is what we see [11:17] in front of us is [11:18] that. And that's just [11:19] is that new language [11:20] or is that pretty [11:21] close to what's in [11:22] the current statute? [11:23] Or is that. [11:24] >> This is the new as [11:25] of the what we what [11:27] was consensus draft? [11:28] So the, the 721 [11:30] version I sent around [11:31] yesterday. [11:33] >> Gotcha. And who's [11:34] on from who wants to [11:35] sort of explain what [11:36] they're suggesting? I [11:37] don't think I think [11:38] we're pretty close. I [11:39] think the realtors [11:40] also had some [11:40] thoughts about this [11:41] paragraph too, which [11:42] I want to just sort [11:43] of do this one, if we [11:44] can. But I think the [11:47] idea was that we were [11:48] trying to capture the [11:49] idea of [11:51] non-contracted for [11:52] repairs, right? So [11:52] the issue we had was, [11:53] hey, you've got to [11:54] provide receipts. And [11:55] I think that the [11:56] pushback we're [11:57] getting a little bit [11:58] from from the [11:59] realtors is what if [12:01] they do, you know, [12:02] what about DIY type [12:03] of fixes? How do we [12:04] address those if [12:05] there are no receipts [12:06] because you didn't [12:06] contract with [12:07] somebody for things? [12:08] I think that's the [12:09] basic problem we're [12:09] trying to solve. [12:10] Emily. [12:12] >> Thank you, Mister [12:13] Chair. Yeah, I can [12:14] speak to the intent. [12:15] This was language [12:16] that we put in. Of [12:17] course, there's the [12:18] first part of it [12:19] discussing the return [12:20] of the security [12:21] deposit, which in [12:22] code was originally [12:23] 45 days. Our office [12:25] proposed 30 days. We [12:26] came to this [12:28] compromise of 15 days. [12:29] If there are no [12:30] damages, 45 days. If [12:31] there. Our. The [12:33] second part of this [12:34] that we put in is [12:35] just ensuring that [12:37] any deductions from [12:38] the security deposit [12:39] are matching the [12:40] actual costs of [12:41] repairing physical [12:42] damages. And then we [12:44] added that language [12:45] related to invoices [12:46] and receipts. That [12:48] way there is [12:49] documentation showing [12:50] what that costs [12:51] invoices slightly [12:54] more forgiving if [12:54] you're performing it [12:56] yourself, or receipts [12:56] for professional [12:58] contractors. After [13:00] reviewing some of the [13:01] concerns from the [13:02] realtors, our office [13:04] spoke to Varma and [13:06] had additional kind [13:07] of recommendations as [13:08] to how we can [13:09] reformat this section [13:10] to make it more clear. [13:12] Happy to share that [13:13] now. And Patrick, if [13:14] you want to share [13:15] that, but if the [13:16] realtors wanted to [13:16] speak to their [13:17] concerns beforehand, [13:19] our intention is just [13:20] to make sure that [13:21] deductions match the [13:22] cost of repairs. And [13:23] they have that [13:24] documentation showing [13:24] what that cost is. [13:26] >> All right. So, [13:26] Emily, you and [13:27] Patrick have talked [13:28] about this language [13:28] that's before us, and [13:29] you guys are in [13:30] agreement about this. [13:31] >> Yes. Him and I [13:32] spoke this morning [13:33] and reformatted it. [13:34] And hopefully in a [13:35] way to make it more [13:37] clear. But Patrick, [13:38] if you wanted to [13:39] present this. [13:40] >> That I agreed with [13:41] some of the realtors [13:43] comments that it was [13:44] a little confusing [13:46] because it kind of [13:47] seemed to reference [13:48] Itemization in two [13:49] different ways and [13:51] deductions. So what I [13:53] suggested doing is [13:54] first part, break it [13:55] apart into two [13:56] paragraphs to make it [13:57] cleaner. Because look, [13:58] if there's no damage, [13:59] it's very simple. You [14:00] return the security [14:02] deposit, there's no [14:02] itemization, you just [14:03] return the deposit. [14:04] So paragraph B is now [14:06] all about no damage. [14:09] Paragraph C takes the [14:11] damaged section and [14:12] it kind of rewords it [14:14] in A or reorders it [14:15] in a fashion that I [14:17] think is a little [14:18] easier to understand [14:20] laying out. If you [14:21] find the damage, you [14:22] have 45 days and then [14:24] it says you have to [14:25] return the [14:27] itemization and then [14:28] it says how the [14:30] itemization shall be [14:31] structured. And what [14:32] we did is then moved [14:33] to the bottom, what [14:35] things the landlord [14:36] cannot do. So that's [14:38] in the very bottom of [14:39] the paragraph. So I [14:40] think it takes the [14:41] original paragraph [14:42] and just makes it a [14:43] lot easier to read [14:46] and follow from a [14:48] process. [14:48] >> So we broke that. [14:49] And then there'll be [14:50] a new D for I guess [14:52] for the as of the [14:53] termination date. [14:53] Correct. 793 but [14:54] that's fine. So you [14:55] guys decided to add a [14:56] new E? Well, we'll [14:57] just, we'll just keep [14:59] relocating the rest [15:01] of the way through. [15:03] Okay, so you guys [15:04] have said I like b, I [15:06] mean, right, this is [15:07] really clean, right? [15:08] And it's its own [15:10] paragraph. There's no [15:10] damage. You got 15 [15:11] days to give it back. [15:13] And then what we did [15:14] with C was, was just, [15:15] I'm just restating [15:16] what you said, just [15:18] go through. So I'll [15:19] let everybody who [15:20] hasn't seen this [15:21] before take a minute [15:22] to take a look at [15:23] that DJ or Katie, [15:25] does this address. I [15:27] suspect we're Aaron's [15:28] concerns or y'all's [15:29] concerns. [15:32] >> I know Aaron's [15:33] working on getting on [15:34] that. She just walked [15:35] in. So I know Aaron's [15:36] working on getting on [15:37] the call. The receipt [15:40] indicating that we've [15:41] had services done. [15:42] Aaron's flagging. Yes, [15:44] I saw your text. I [15:46] just I'm sorry guys. [15:52] >> Okay. [15:52] >> Aaron, Aaron said [15:53] receipt indicates [15:54] we've had services [15:54] done and paid. And [15:55] the only other thing [15:56] I would just flag is [15:58] we talked about 15 [15:59] business days versus [15:59] 15 days, realizing [16:02] there's no damage [16:02] done, but just [16:04] flagging that also. [16:06] >> Gotcha. [16:06] >> All right. [16:10] >> So but what [16:12] Patrick sorry, what [16:12] Patrick's done here [16:13] with the pulling out [16:14] that makes, I mean, [16:15] to the non-lawyer in [16:16] me, that makes sense. [16:17] >> So the itemization [16:18] has to include the [16:19] cost of services [16:20] provided to the cost [16:22] of materials used. [16:22] Three the number of [16:23] hours and the hourly [16:24] free labor charge to [16:25] the same. It doesn't [16:26] talk about receipt [16:28] anymore, it just [16:29] talks about [16:30] Itemization. [16:33] >> I guess I don't [16:34] understand the. So. [16:40] Is it is it [16:41] conflicting because C [16:43] one says you must [16:45] include the cost of [16:46] any professional [16:47] services performed by [16:47] a third party, and [16:49] then it says the [16:50] landlord shall not [16:51] apply the security [16:52] deposit to the cost [16:53] of professional [16:54] services. So I find [16:56] that a little bit [16:57] unclear. But again, [16:58] it's the first time [16:59] I'm seeing it. [17:00] >> It's it has the [17:02] less reasonable wear [17:03] and tear has been [17:04] moved to the very [17:05] bottom. So it allows [17:06] the exclusion based [17:07] upon the reasonable [17:08] wear and tear. [17:09] >> But I right, I see [17:12] the intent and I [17:13] don't disagree with [17:14] the intent. I just [17:15] think this is a [17:16] little bit confusing, [17:18] right. [17:18] >> And line I think [17:19] what we're talking [17:19] about Aaron on line [17:21] 789 receipt indicates [17:22] that the services [17:23] have been performed. [17:26] Not like here's [17:27] what's going to [17:28] charge to fix your [17:29] unit, like you know, [17:30] or fix the stove or [17:31] like, except like [17:32] receipt indicates, [17:33] like I have paid for [17:34] these, here's the, [17:35] here's the. [17:37] >> Emily, did you [17:38] want to weigh in. [17:39] >> On that? [17:39] >> I see what you're [17:41] saying. [17:41] >> Yeah. So, so [17:42] Kristi's point. So it [17:43] does. It does say [17:47] Itemization. And that [17:48] was this language [17:49] hasn't actually [17:50] changed in terms of [17:50] the content from the [17:52] pre from the [17:53] consensus draft. The [17:54] actual language [17:55] itself is the same. [17:56] We've just reordered [17:56] it. So that language [17:58] at the end, Christie [17:59] hopefully kind of [18:00] gets to your point of [18:01] it does say shall not [18:02] apply any portion of [18:03] the security deposit [18:04] toward essentially A [18:05] and B, but it does [18:06] state unless they are [18:07] reasonably necessary [18:08] to return it to the [18:09] same condition. So [18:10] there's that caveat [18:11] of you can it just [18:12] needs to be necessary. [18:14] >> Okay. All right. [18:16] >> I'm okay. So the [18:18] realtors point into [18:19] Jay's point. This is [18:20] something that you [18:20] would provide after [18:22] 45 days. And the [18:23] intention here is [18:24] just to ensure, you [18:25] know, already in code, [18:27] you have to return [18:28] the security deposit [18:29] within 45 days. I [18:30] think, you know, I [18:31] was speaking to [18:31] Patrick, there might [18:32] be that extra 15 days [18:33] if you have to hire a [18:35] contractor, but this [18:37] is if you're removing [18:39] if you're providing [18:40] the security deposit [18:41] back within 45 days. [18:43] From our [18:44] understanding, it [18:44] doesn't quite make [18:45] sense logically, that [18:46] you would only [18:47] provide an estimate [18:48] of what these costs [18:49] are. If you're if [18:51] you're returning the [18:52] security deposit, the [18:53] hope would be that [18:54] you're giving the [18:55] exact amount back [18:56] that you already know [18:57] what that cost is [18:58] because that service [18:59] was already performed [19:01] within that 45 days. [19:04] Whereas from our [19:05] understanding, [19:05] stating that you [19:06] would be giving them [19:07] an estimate is [19:07] implying that that [19:08] work has not been [19:09] done and that [19:10] therefore the amount [19:11] returned would not [19:12] necessarily actually [19:14] equal what is [19:15] necessary to perform [19:16] that service. And [19:17] that's our intent, is [19:17] to make sure that [19:18] they are getting back [19:19] what is actually used. [19:21] >> So the the. [19:22] >> Trade off is more [19:23] time, right? So we [19:23] could get it back to [19:25] them faster. If you [19:26] let us give them an [19:27] estimate or an [19:28] invoice, as opposed [19:29] to a receipt showing [19:30] it was already done. [19:31] You guys are saying [19:32] willing to sacrifice [19:33] the time for some [19:34] certainty that this [19:35] is the actual cost [19:36] that was actually [19:37] done. [19:38] >> And I think it's [19:39] important to note [19:40] that the code does [19:41] give an extra 15 days. [19:42] If you do have to use [19:43] a third party [19:45] contractor. All right. [19:46] So it changes that [19:47] from 45 to 60. [19:48] >> Aaron, you have [19:49] your hand up. [19:51] >> Yeah. Sorry. I [19:53] think it's absolutely [19:56] happens a lot that [19:58] they are not able to [19:59] get the contractor [20:01] out and get it done [20:03] and have a receipt in [20:05] time in 45 days. And [20:07] I would hate for a [20:09] landlord to be stuck [20:10] with that cost based [20:12] on a third party. So [20:15] I understand what [20:16] we're trying to get [20:17] at. And I wish we [20:18] were in a world where [20:19] we could knock all [20:20] that stuff off. We [20:21] run into it in the [20:22] courts all the time [20:25] with, you know, the [20:26] courts saying, you [20:27] don't have a receipt, [20:28] you can't, you know, [20:29] charge for this. And [20:30] and we can leave that [20:31] to the judge. But our [20:34] members have [20:36] consistently said [20:37] that they are having [20:39] issues with getting [20:40] contractors out there, [20:42] whether, you know, so [20:43] they get the [20:43] contractor out within [20:44] 10 or 15 days, but [20:46] then they need to get [20:48] additional work or [20:48] order a part. 45 days [20:51] just does not always [20:52] work. And, you know, [20:53] I would say an [20:54] estimate should be [20:55] just as good as long [20:56] as it's itemized with [20:58] all of these cost of [21:00] materials, labor and [21:01] all of that other [21:02] stuff, which is more [21:03] than the code calls [21:05] for now. [21:10] >> I think. [21:12] >> Mr. Chair. [21:13] >> Go ahead. Emily. [21:15] >> Yeah, I understand [21:16] that. And that is, [21:18] you know, to [21:19] Patrick's point, the [21:20] receipt is it's [21:22] exclusively for the [21:24] contract, like third [21:24] party contractors, [21:25] whereas for labor [21:26] perform themselves, [21:27] it's an invoice. I [21:29] guess I'm a little [21:30] confused as to how [21:31] that works [21:31] functionally right [21:32] now, because even in [21:33] code right now, you [21:34] have 45 days to [21:35] return the security [21:36] deposit. And so I [21:38] guess I'm wondering [21:39] if that work is not [21:40] being performed [21:41] within 45 days, but [21:42] there's currently the [21:43] requirement that the [21:44] deposit be returned [21:45] within 45 days. How [21:47] are those deductions [21:48] being calculated at [21:49] the moment? If that [21:51] work is not being [21:52] done? And, you know, [21:53] our intention is just [21:54] to ensure that [21:56] there's some [21:57] accountability and [21:57] that they are getting [21:58] back what is unused. [22:02] I you know, we were. [22:03] >> Hopeful to answer [22:04] your question. I [22:05] think what happens [22:06] usually this is not [22:06] for good or for bad. [22:08] What happens usually [22:09] is the estimate far [22:09] exceeds the amount of [22:10] the security deposit. [22:11] And they use that as [22:12] the as the reason to [22:14] keep the whole thing. [22:15] I mean, that's my [22:16] experience is you got [22:17] $2,500 security [22:17] deposit. They come up [22:18] with an estimate for [22:19] $3,000 worth of stuff. [22:20] And then they say, [22:21] you just, you don't [22:22] get any back because [22:23] it's going to cost us [22:24] more than your [22:25] deposit. [22:25] >> Right. But and. [22:26] >> I mean, I think [22:28] the way that it's [22:29] happening now is, for [22:30] better or for worse, [22:31] not all property [22:32] managers have an on [22:33] site maintenance team [22:34] or an on site [22:36] contractor, and so [22:36] they are forced to [22:38] hire a third party [22:40] and they're doing [22:41] their best to get it [22:42] done. But in the case [22:43] that they can't, [22:44] they're providing [22:45] what the code [22:46] currently requires, [22:47] which is an [22:49] Itemization the code [22:50] does not currently [22:52] require a receipt, [22:53] meaning that the word [22:54] work is done and paid [22:55] for. [22:56] >> Right. [22:56] >> Christy? Thank you, [22:58] Mr. Chairman. I think [22:59] there are two [22:59] separate issues. So, [23:00] Emily, and to your [23:02] point about does it [23:03] say 45 days now, [23:04] there is a provision [23:05] that I don't think [23:06] anyone is suggesting [23:08] that we change and [23:10] it's down in around [23:12] line 848 of the draft [23:15] that Jessica most [23:17] recently sent. And it [23:18] talks about, I guess [23:19] it's 852, but it [23:21] talks about, in [23:22] certain circumstances, [23:23] getting an additional [23:24] 15 days. So that's [23:26] there. I don't think [23:27] anyone's suggesting [23:27] we take it out. And I [23:29] think that should [23:30] address your concern. [23:32] Aaron and I, I would [23:34] just say there's to [23:35] me a big difference [23:36] between getting a [23:37] receipt for work [23:38] performed and an [23:39] estimate. And it's [23:40] not about ill intent. [23:42] Even the best [23:44] intended landlords [23:45] are going to get it [23:46] wrong sometimes. So [23:47] let's wait and see [23:48] what it actually [23:49] costs and then use [23:50] that. I just don't [23:51] see the need to to do [23:53] an estimate. [23:54] >> So let me make [23:55] sure I understand [23:56] where we are real [23:57] quick. So the two [23:58] friction points seem [23:59] to be if they're more, [24:01] let me know. And then [24:02] we can come back to [24:03] this particular one. [24:04] So we got 15 calendar [24:05] days versus business [24:07] days. And then we've [24:08] got the question of [24:11] receipts. Is there [24:11] anything else other [24:13] than receipts, Aaron, [24:15] that you have or [24:16] anybody has, or those [24:17] the two remaining [24:19] controversies. That [24:20] others. Aaron. Are [24:21] there others? And [24:21] with this with this [24:22] section. [24:22] >> Oh, with that [24:23] section. [24:24] >> Well, I mean, in [24:25] this particular [24:25] section, I don't I [24:26] sent that email [24:28] yesterday. So I don't [24:29] let me look. [24:40] >> Oh, this is our [24:41] main instead of a [24:42] shell somewhere that [24:43] you wanted to do or [24:44] is that in a [24:45] different part? [24:46] >> It's an under [24:47] security deposit. [24:49] >> That very small [24:50] changes usually [24:51] pretty significant [24:52] when we're doing that [24:53] particular one. [24:53] >> I did just really [24:55] just want to clarify [24:56] before we go on what [24:58] Christy was just [24:59] saying, because there [24:59] is that section that [25:00] allows 15 additional [25:02] days, but that's only [25:03] if you think the [25:05] damages are going to [25:06] exceed the security [25:08] deposit. That's the [25:09] only time you can do [25:10] that if it exceeds [25:11] the security deposit. [25:12] And if you need to [25:13] hire a third party [25:14] contractor. [25:16] >> If you think it's [25:17] going to be less, [25:18] there's still some [25:19] money. Here's an [25:19] estimate. We still [25:20] have some money [25:21] coming back to you. [25:22] Even if it's a dollar, [25:23] you don't get the [25:24] extra time. [25:25] >> Correct. [25:25] >> Okay. All right. [25:26] Back to so what? [25:27] You're what the beef [25:28] on 768. So this is [25:33] landlord should not [25:34] be deemed to receive [25:36] a security deposit. [25:36] However denominated [25:37] in any amount. This [25:38] is back in a. So did [25:40] we change. This is a. [25:41] Okay, so it's above [25:43] this part, but it's [25:43] still about the [25:44] security deposit. [25:52] Upon termination of [25:52] the tenancy or the [25:54] date that vacates [25:54] unit, whichever is [25:55] last security [25:56] deposits. [25:57] >> It's still higher [25:58] than that. [26:00] >> Keep going up. [26:01] >> There it is. All [26:03] right. Yeah. Okay. [26:04] >> No landlord may [26:04] demand to receive a [26:05] security deposit in [26:06] an amount in excess [26:07] of two months. [26:08] Periodic rent. [26:11] Security deposit. May [26:14] be applied by the [26:16] landlord solely to [26:17] instead of shall be [26:18] applied solely to. [26:19] >> And, Mr. Chair, [26:20] I'm happy to explain. [26:21] >> Why to versus [26:22] shall be applied. [26:23] Okay. [26:24] >> I'm happy to [26:25] explain. [26:25] >> Yeah. [26:27] >> This this is not [26:28] like a stakeholder [26:30] thing. This is just [26:30] good. This is just [26:31] good law writing. If [26:32] we say shall be [26:34] applied solely and [26:35] then we list three [26:37] romanists. That's the [26:38] only way you can do [26:39] it. And giving it [26:40] back to the tenant is [26:42] not included. I know [26:43] everyone thinks [26:44] that's silly, but [26:45] it's just it should [26:47] be May because they [26:48] can do one of those [26:50] things or they can [26:51] give it back to the [26:52] tenant. It's I don't [26:53] know why we're [26:54] changing it. I mean, [26:55] I know what we're [26:56] trying to get at, but [26:57] that's just. [26:58] >> Well, it's weird, [26:59] I get it. It's may [27:00] solely versus shall [27:01] or the two ways of [27:02] saying the same thing. [27:03] Jessica, you have [27:04] some thoughts. [27:04] >> Yes. I sent DLS [27:06] approved [27:07] clarification [27:08] language to you all [27:08] in August. That [27:10] provides two options. [27:11] We can sort of [27:12] clarify this section. [27:14] The first is adding [27:16] after in charges we [27:18] add together with any [27:20] amount still due to [27:21] the tenant after such [27:22] itemization. To be [27:24] clear on that. And [27:25] the second is we [27:26] could amend the [27:26] definition of [27:27] security deposit to [27:28] specify its return to [27:29] the tenant after [27:30] tenancy. But right [27:31] here. Damages and [27:35] charges adding [27:36] together with any [27:37] amount still due to [27:37] the tenant after such [27:39] itemization. That's [27:40] all in your inboxes [27:40] from a previous email [27:42] I sent as well. [27:43] >> Gotcha. So there [27:43] are a couple other we [27:45] could, we could, we [27:46] could, we could fix [27:47] it by adding more [27:48] words or we could fix [27:49] it by. I well, [27:51] personally, I prefer [27:52] Aaron's solution, [27:53] which is to just go [27:54] to, to say may only [27:55] instead of shall, [27:56] which I think means [27:57] the same thing with [27:58] fewer words. But go [27:59] ahead, Christy. And [28:00] then Emily. [28:00] >> And the what I [28:02] think we're trying to [28:03] get at here is to be [28:05] very clear that this [28:08] is what's going to [28:09] happen with the [28:10] security deposit and [28:12] as opposed to the May, [28:14] which is, I think, [28:16] sometimes interpreted [28:17] as well. We don't [28:18] have to apply it to [28:19] any of these things [28:20] because that's a may. [28:21] So we want to make it [28:22] clear, I think, that, [28:23] yes, if you've got [28:24] any of these charges, [28:26] you must apply the [28:27] security deposit to [28:28] those charges rather [28:30] than sue the tenant [28:33] right to Aaron's [28:36] point, which is a [28:37] good one. I think [28:38] there first of all, [28:39] I'd love to hear [28:40] Jessica or have [28:41] Jessica remind me of [28:42] the second option of [28:44] redefining security [28:45] deposit, because that [28:46] might solve it. Or. [28:49] Yeah, adding language [28:51] as either, as Jessica [28:52] just suggested, or [28:53] even in a final Roman [28:56] numeral or another [28:58] sentence that says [28:59] the balance after [29:00] such payment shall be [29:02] returned to the [29:03] tenant in accordance [29:04] with the following [29:06] paragraph. [29:08] >> Mr. [29:09] >> Emily yeah. [29:12] Building off of [29:12] Kristi's point, our [29:13] intention here was [29:14] just to ensure that [29:15] the security deposit [29:17] is only going to be [29:17] used for these things. [29:19] And to Erin's point, [29:20] there is language [29:20] already in this code [29:22] section explicitly [29:23] stating that the [29:24] security deposit [29:24] shall be returned to [29:26] the tenant. Any [29:28] unused portion that [29:29] is currently on line [29:30] 778 per Patrick's [29:32] message. [29:32] >> Totally agree. [29:33] >> That just [29:34] contradicts the shell [29:35] though. That's where [29:35] I'm getting stuck. [29:36] Again, not a [29:37] stakeholder issue. [29:38] It's a drafting issue. [29:40] >> All right. Okay. I, [29:45] I get where you guys [29:46] are saying I get the [29:47] folks that are saying [29:48] shell sounds stronger [29:49] and seems better. And [29:51] I, I appreciate that [29:52] concern. I, I, you [29:54] know, the lawyer in [29:55] me just feels like [29:56] may only and shall [29:57] mean the same thing, [29:58] but I don't want to [29:59] get hung up over it. [30:00] You know, if you guys [30:02] want to add another [30:03] sentence, like I [30:03] again for the third [30:04] time saying any [30:05] excess goes back to [30:06] the tenant, I guess [30:08] we could do that too. [30:10] >> I could do that. [30:11] Yeah. [30:11] >> I'd like to do [30:12] again, as long as [30:13] we're getting really [30:14] picky about the words, [30:15] I think part of [30:16] what's hanging us up [30:17] is just the awkward [30:18] phrasing of putting [30:19] solely way here. [30:20] After things we got [30:21] struck the word [30:22] solely and and put [30:24] after the word shall [30:25] only so strike solely [30:26] and only after shall [30:27] right. So it becomes [30:28] shall only be applied [30:29] by the landlord. Two [30:30] as opposed to be [30:31] applied by the solely [30:32] to does that. You [30:33] know what I mean? [30:34] >> Yeah, that makes [30:35] sense. And we're [30:36] happy if we need to [30:37] add another romanet [30:38] in addition to that, [30:39] that's totally fine. [30:40] >> And then did you [30:41] have you had another [30:42] Romanet, Jessica, to [30:43] add for, for the what [30:44] the, where the [30:45] balance could go? [30:47] >> Yeah. It together [30:48] with any amount still [30:49] due to the tenant [30:50] after such [30:51] itemization. [30:52] >> What would that. [30:53] >> Go. [30:54] >> After deductions, [30:55] damages and charges. [30:59] >> So be a new [31:01] Romanet for yeah. [31:05] We're comfortable [31:06] with that. Yeah. If [31:07] we're do shell only [31:08] and then add that [31:09] romanet that should [31:10] be fine for us. [31:12] >> All right. [31:15] >> The five we'll [31:16] we'll see it again at [31:17] the full. But I think [31:18] if we can get that [31:19] that takes care of [31:20] that particular issue [31:21] I think for now. All [31:23] right. So what else [31:24] do we have that's in [31:25] this section before [31:26] we come back to [31:28] figuring out how [31:29] we're going to deal [31:30] with a potential [31:31] minority reports. 768 [31:37] we talked about that. [31:38] 774 to 92 that's the [31:40] whole thing. [31:40] >> I think we're. [31:41] >> Good on this [31:42] section. [31:43] >> Okay. So now the [31:45] 15 days are business [31:46] days. Are you guys [31:48] going to hold up your [31:49] your support over the [31:50] word business days? [31:52] Make you be the bad [31:54] guys? [31:54] >> Or are you [31:55] indicating that's our [31:56] sole issue? [31:58] >> Well, if that one [31:59] left and then we've [31:59] got I mean, I know [32:01] you guys may want to [32:02] be a minority on the [32:03] whole thing. I'm [32:04] trying to, you know, [32:05] give you guys as much [32:06] as we can here. So [32:07] the two outstanding [32:08] issues are 15 whether [32:09] it's business or [32:10] calendar. I, I think [32:11] most everybody else's [32:12] comfortable with [32:13] calendar. And then [32:13] the other one is this [32:15] last issue that we're [32:16] talking about, which [32:17] was the word receipt [32:21] or not being receipt [32:23] versus receipt or [32:25] estimate, right. [32:26] Those are the two [32:27] issues that we have [32:28] left to deal with. [32:31] >> In this section. [32:34] Yes. [32:34] >> This section. [32:37] >> Okay. [32:38] >> I've got. [32:39] >> Mr. Chair. I've [32:40] got a question. Maybe [32:41] the moments coming [32:42] past or maybe I [32:42] missed it. So going [32:45] back to the proposed [32:46] language, I guess [32:48] it's on the one of [32:49] the attachments. 922 [32:50] language [32:51] considerations. The [32:51] first section blue. [32:53] So is the landlord [32:55] expected to come? [32:58] Solidate take all the [32:59] different invoices [33:00] and receipts. We'll [33:01] just set aside, [33:02] whether it's invoice [33:02] or receipt or [33:03] whatever, and prepare [33:04] their own itemization [33:06] that then is given to [33:07] landlord or is it [33:08] consolidated? So I [33:10] read this now is that [33:10] the landlord gets all [33:12] this stuff done and [33:14] has to provide the [33:15] itemized receipt that [33:18] shows the cost, [33:19] accompanied by [33:19] receipts for any [33:20] professional services [33:21] performed by third [33:22] party contractor, the [33:23] cost of the materials [33:25] used and the number [33:25] of labor hours and [33:26] hourly rates charge. [33:28] So is that a document [33:29] produced by the [33:30] landlord, or are [33:30] those documents that [33:31] you can. Basically, I [33:33] go to a cleaning [33:34] person. They say, hey, [33:35] I worked for five [33:36] hours. I cleaned it [33:37] and they flip it over. [33:39] I could read that [33:40] both ways. The second [33:42] thing, I was going to [33:43] flag a third party [33:44] contractor. Not all [33:45] these people are [33:46] going to be [33:46] contractors. I mean, [33:48] you know, cleaning [33:49] person is not [33:50] necessarily a [33:51] contractor. Some [33:52] other repairs aren't [33:53] going to be [33:54] considered contractor. [33:55] I hate to nitpick, [33:56] but like, I don't [33:57] know, I see Christy, [34:00] I see Christy as a [34:01] response. [34:03] >> On that issue. I [34:04] think contractor here [34:06] is not being used in [34:07] that very specific [34:09] sense that you're [34:10] thinking of. Andrew. [34:11] I think it's just [34:13] anyone who enters [34:13] into a contract with [34:15] the landlord to [34:16] perform a service. [34:17] >> So not a. [34:19] >> Word, not employee, [34:20] I think is what [34:21] you're targeting that [34:21] kind of contractor as [34:22] opposed to. [34:23] >> Okay. [34:23] >> Gotcha. Yes. [34:24] >> So I guess my, my [34:26] question there is, is [34:27] one, is it is it a [34:28] document generated or [34:29] produced by the [34:30] landlord based on the [34:32] receipts and invoices, [34:34] etc. that were [34:34] produced by the [34:35] people that were [34:36] hired? And then, you [34:39] know, some of the [34:41] services that [34:42] somebody, a landlord [34:42] could have brought in. [34:45] I'm trying to think [34:46] of a good example. [34:47] Like there seems like [34:49] that sentence could [34:50] benefit from a as [34:52] applicable, right? [34:52] Because a cleaning [34:53] person is not going [34:54] to charge you for [34:55] necessarily the cost [34:56] of materials or [34:56] number of that would [34:58] work cost of [34:59] materials. So there [35:01] needs to be some [35:02] flexibility to say [35:03] like right now it [35:04] reads, says landlord [35:06] produces all this, [35:07] and you got to give [35:08] all three of those [35:09] items, but some are [35:10] not always going to [35:11] apply depending on [35:13] the with the repairs [35:15] being done or the [35:18] work being done. [35:19] >> Gotcha. [35:19] >> Emily. [35:20] >> Yeah. So to that [35:22] question, aren't so [35:24] landlords, this new [35:26] section and you know, [35:26] the language that [35:27] Jessica pulls up the [35:28] such itemization [35:30] shall include. So [35:31] this is just [35:32] specifying what needs [35:33] to be in that [35:34] Itemization our [35:34] intention is to state, [35:36] if you are [35:37] contracting with a [35:37] third party to [35:38] provide or to repair [35:40] these damages, then [35:41] you must provide a [35:42] receipt as the [35:43] Itemization because [35:44] you should have [35:44] access to that. Like [35:45] if you're hiring, you [35:46] know, somebody to [35:49] replace the carpets, [35:49] you should have a [35:50] receipt reflecting [35:51] that if you, as the [35:52] landlord are doing [35:53] that work yourself, [35:54] then that is when you [35:55] would provide like an [35:56] invoice saying the [35:57] cost of materials [35:58] used and the number [35:59] of hours and hourly [36:00] rate, because it's [36:00] not a clear cut [36:01] receipt. This is a [36:02] little confusing. Our [36:03] intention original, [36:05] the original language [36:06] that we proposed to [36:07] the group or not, it [36:09] was maybe the [36:10] language that we [36:11] proposed to the group [36:12] was slightly more [36:13] kind of explicit in [36:16] that if you contract [36:17] with a third party, [36:18] you provide a receipt. [36:19] If you do it yourself, [36:20] you provide an [36:21] invoice with the [36:23] materials and hourly [36:24] rate. So that was [36:26] kind of the [36:27] distinction is the [36:29] Itemization is based [36:30] on the type of [36:31] services and who is [36:32] providing those [36:33] services. If we need [36:34] to make that more [36:35] clear, we can. But [36:36] that was the [36:37] intention is to [36:39] receipts. If it's [36:40] somebody who would [36:40] give you a receipt [36:41] invoice, if it's [36:42] something that you're [36:43] doing and there's not [36:44] the ability to get [36:45] like a clear cut [36:46] receipt, and we can [36:47] clarify that if that [36:48] would be helpful. [36:49] >> And I, I agree [36:50] with the, I agree [36:51] with the intent. I [36:52] was just saying from [36:53] like the, you know, [36:54] for the people out [36:55] there who all of a [36:56] sudden say, oh, we [36:57] got a new law I got [36:59] to comply with. And [37:00] they read it. This [37:01] could be it. [37:01] >> So yeah, I see [37:03] what you're saying by [37:04] saying like two, [37:04] three having it right [37:05] after receipt. Maybe [37:06] it's could be [37:07] interpreted as you [37:08] need to provide this [37:09] receipt. You need to [37:10] say how much [37:10] materials this third [37:11] party contractor used, [37:12] whatever that makes [37:13] sense. And I'm open [37:15] to making that more [37:17] explicit. If we need [37:18] to distinguish [37:18] between those two, if. [37:19] >> That would be. [37:20] >> Detained up for a [37:21] while. [37:21] >> Yeah. [37:22] >> It's going to say [37:24] I, I, I can see where [37:25] the confusion is. The [37:26] intent was this to be [37:27] like a services [37:28] invoice, where [37:29] typically in the [37:30] business world, if [37:32] you have out of [37:33] pocket expenses, you [37:34] have to put those on [37:35] the invoices, show [37:36] the receipt, and then [37:37] you would show your [37:38] internal hours and [37:39] then you would show [37:41] your internal [37:43] materials cost. So [37:44] it's basically three, [37:46] two and three are [37:47] kind of you do it [37:49] in-house. One is the [37:51] third party, but I [37:52] can, I can see where [37:53] that could [37:54] potentially be a [37:54] little confusing. [37:57] >> Okay. [37:58] >> So it sounds like, [37:59] Aaron, do you have [38:00] something else you [38:01] want to say on that? [38:02] >> Yeah, I was just [38:03] going to say I hadn't [38:04] actually thought [38:05] about that, but I [38:06] think Andrew is 100% [38:07] right the way that [38:08] that's written this, [38:09] and this is kind of [38:10] what you get into [38:11] when you try and [38:12] specify stuff more. [38:14] You get into a [38:15] position where things [38:16] are excluded, things [38:18] are included. This [38:20] absolutely says you [38:20] have to have a [38:22] receipt with the cost [38:23] of materials used and [38:24] the number of hours. [38:25] And in the case of, [38:26] say, a cleaning [38:28] company, which I know, [38:29] you know, this would [38:29] be over and above [38:31] wear and tear. [38:32] They're not going to [38:32] have materials used. [38:35] So a landlord is [38:36] going to read that as [38:39] now I can't submit. [38:41] Whereas the previous [38:42] language did say [38:44] itemization, I [38:46] understand, I guess [38:46] you guys are having [38:47] some problems with [38:48] some of the landlords [38:49] itemizing, but by [38:50] going this specific, [38:51] I think we're going [38:52] to run into some [38:54] unintentional [38:55] consequences. [38:55] >> Okay, Christy. [38:56] >> If I may, I think [38:58] there's a really [38:59] simple fix. I agree [39:00] with what's being [39:01] said. I think it [39:02] needs to be [39:03] distinguished. But if [39:04] we just said [39:05] something to the [39:07] effect of that, the, [39:10] you know, they [39:12] provide a in the [39:14] event of services [39:16] done pursuant to a [39:17] third party contract, [39:19] the landlord must [39:21] provide the receipt [39:23] and not saying it [39:23] well or if not, if a [39:26] third party contract [39:27] is not used, they [39:29] must provide two and [39:31] three. But but I [39:32] think that's what I [39:33] hear you saying. [39:33] That's what I hear [39:34] Andrew saying. [39:35] >> Well, 2 or 3 is as [39:37] applicable, right? I [39:37] mean, I think. [39:38] >> It's applicable, [39:39] yes. [39:39] >> But then the is [39:40] the as applicable, [39:41] the big exception [39:42] that you can drive a [39:43] hole through because. [39:44] Yeah. But yeah, I [39:45] mean, we don't want [39:46] cleaners saying, you [39:47] know, I use, you know, [39:48] four ounces of dish [39:49] soap and three ounces [39:50] of mop floor fluid [39:51] and whatnot. We want [39:52] them to just they [39:53] generally charge an [39:54] hourly rate, right? [39:54] Aaron. [39:56] >> Yeah. No, I think [39:57] we're we're confusing [39:59] the issue between [40:00] third party [40:01] contractor and not [40:03] and a receipt listing [40:05] materials and not [40:05] like I could have an [40:06] on site person that's [40:08] not a third party [40:09] contractor. And this [40:11] would still say, I [40:12] need to list the cost [40:14] of materials used. So [40:18] I don't think it's [40:19] the distinction [40:20] between third party [40:21] and non third party, [40:22] at least for me. It's [40:23] not I don't know if [40:24] it is for Andrew. [40:25] It's the not every [40:26] contractor is going [40:27] to be listing cost of [40:29] materials used. [40:31] >> Well some some [40:33] contractors it's not [40:34] going to be the cost [40:35] of materials [40:37] necessarily. I [40:37] dropped some language [40:38] in the chat. I don't [40:39] know, take this off. [40:40] I don't want to send [40:41] that in the wrong [40:42] direction. I agree [40:43] again, I'm going to [40:44] reiterate agree with [40:45] the intent. I'm just [40:46] trying to get some [40:47] cleaner language here. [40:48] So don't read into [40:50] anything that's maybe [40:52] off, but trying to [40:53] just make it, trying [40:55] to not give the [40:56] wiggle room, just [40:57] saying, you know, as [40:58] applicable, copies [41:04] invoices or receipts [41:05] for a third party [41:06] service. So somebody [41:07] that comes in, in a [41:08] number of labor hours, [41:09] their hourly rate for [41:10] work performed by [41:12] landlord or the [41:14] employee, the [41:14] landlord that [41:15] probably needs to get [41:16] switched to be a [41:17] third party, but I [41:19] don't know, just [41:20] something where the, [41:20] the average person [41:22] who's managing a [41:22] couple properties [41:23] knows, here's what I [41:24] gotta do. I gotta get [41:25] some. [41:26] >> If I may. I like [41:28] that language, Andrew. [41:29] What I'm concerned [41:31] about, and I know [41:32] this is key to it is [41:34] as applicable only [41:35] because I'm concerned [41:36] that the less [41:37] professional [41:38] landlords will say, [41:39] nah, none of it's [41:41] applicable. I don't [41:42] need to, you know, do [41:43] anything. And I [41:44] wonder if just adding [41:45] a sentence that, you [41:47] know, I don't know [41:48] how it would read, [41:49] but basically you [41:51] cannot keep the [41:53] security deposit or [41:54] charge extra without [41:56] sufficient [41:57] documentation. And [41:58] then it's still [42:00] flexible enough [42:01] because sufficient is [42:03] subjective, but it's [42:04] clear that some [42:05] documentation has to [42:06] be provided. And I [42:07] think that's a big [42:08] piece of what we want. [42:10] >> Patrick. [42:14] >> I was just going [42:15] to say operationally, [42:16] the way things [42:18] transact in the [42:18] rental housing [42:19] industry, at least a [42:20] lot of our members, I [42:22] may hire a third [42:23] party company to do [42:24] the carpet cleaning, [42:25] so I will have an [42:27] invoice for the [42:28] carpet cleaning. [42:29] However, my internal [42:30] maintenance staff [42:31] will go in and maybe [42:32] a light switch needs [42:33] to be replaced. So [42:34] there'll be a cost on [42:36] the light switch. And [42:37] there's certainly [42:37] time that I used. So [42:38] that's the [42:40] operational logistics [42:41] that's happening on [42:42] site. How I think [42:44] what we're trying to [42:45] do and what I hear [42:46] Christy trying to do, [42:47] I think, is to say, [42:49] okay, if we want to [42:50] see the copy of the [42:51] invoice for that [42:52] third party [42:52] contractor that you [42:54] had, and then also [42:55] what your internal [42:56] costs were, and the [42:57] tenant should be able [42:58] to see all of that. [43:00] Did I, did I state [43:01] that? Correct. [43:02] Christy. [43:03] >> Thank you. Patrick. [43:04] I think it's one or [43:05] the other. I think if [43:06] you are charging, if [43:07] you have if you're [43:08] charging the tenant [43:09] for something that a [43:10] third party [43:12] contractor did, like [43:14] replacing the carpet, [43:15] let's say, then I [43:16] think the receipt [43:17] showing what you [43:18] actually paid the [43:18] third party [43:19] contractor is [43:20] sufficient. It should [43:21] include everything. [43:22] If you're doing it in [43:23] house, then I think [43:24] it's other [43:25] documentation because [43:26] you're not going to [43:27] have a receipt. And, [43:28] and I, you know, I'm [43:29] somewhat flexible on [43:30] how we define that [43:32] other documentation. [43:33] As long as it's clear [43:34] that the [43:35] documentation is [43:36] required. [43:37] >> So I just. [43:39] >> Go ahead. Patrick. [43:40] >> I was just going [43:40] to say, I think from [43:42] a transparency point [43:42] of view, it makes a [43:44] whole lot easier for [43:45] the tenant to see all [43:46] that on one piece of [43:47] paper of what their [43:48] costs were. That's [43:49] kind of where I was [43:50] going with this is, I [43:51] think transparency is [43:52] key making just easy [43:53] to see. Okay, they [43:54] did that, that that [43:55] done. [43:55] >> No, I don't [43:56] disagree with that. [43:58] I'm just trying to [43:59] figure out how we. [44:00] >> Accommodate [44:01] concerns. [44:01] >> Yeah. So this was [44:02] something that came [44:03] up in the first [44:04] meeting. And we had a [44:05] similar conversation [44:06] because I think [44:07] initially we had [44:07] essentially just said [44:09] receipts and we [44:10] received similar [44:11] feedback. So Erin's [44:13] language that she put [44:14] in the chat is very [44:15] similar to the [44:16] language that we had [44:17] in the meeting. The [44:20] second version of the [44:21] workgroup draft. And [44:22] I can read out loud [44:23] what that says. If we [44:24] want to kind of [44:25] revisit that and [44:27] incorporate that or [44:28] tweak it to make it [44:29] more distinct. But [44:30] what that version of [44:31] the bill said, and [44:33] this was created for [44:34] the second workgroup [44:35] meeting, is at the [44:36] very on, and I can [44:37] send this to the [44:38] group, I can resend [44:39] it, but let's see, it [44:43] was line 851. I'm [44:44] sure most of you. But [44:45] it said the paragraph [44:47] started very [44:47] similarly where it [44:48] said, the landlord [44:49] shall not apply to [44:49] any portion of the [44:51] security or shall not [44:52] apply any portion of [44:52] the security deposit [44:54] toward the cost of [44:55] etc. and then it said, [44:58] unless such costs are [45:00] reasonably necessary, [45:01] etc. and be. The [45:03] landlord provides the [45:04] tenant either a [45:05] receipt reflecting [45:06] the costs of the [45:07] professional services [45:09] or an invoice with an [45:10] estimate of the cost [45:11] of materials used to [45:13] return the premises [45:13] to the same condition [45:15] as the condition of [45:16] the premises, less [45:17] reasonable wear and [45:18] tear and an [45:20] itemization of the [45:20] number of hours and [45:21] the hourly rate for [45:22] any labor performed [45:23] by the landlord or an [45:25] employee of the [45:25] landlord. So we did [45:27] this because, you [45:28] know, this feedback, [45:29] we received the same [45:30] feedback that it is [45:31] difficult to know how [45:32] much these materials [45:34] are. If you get using [45:35] half a gallon of [45:36] paint, you can just [45:37] use an estimate of [45:38] the cost of materials. [45:39] That was why we put [45:40] that in. And we did [45:41] explicitly state that [45:42] that invoice with the [45:44] cost of materials and [45:45] the hourly rate is [45:46] for landlords who did [45:48] that labor themselves. [45:49] So if we need to kind [45:50] of revisit that [45:51] language or tweak [45:52] this language to more [45:54] closely align with [45:55] that, we're fine with [45:56] that. I can resend [45:57] that language, but [45:57] that was already [45:58] something that we had [46:00] discussed and tweaked [46:01] in response to the [46:02] very first meeting. [46:04] >> Andrew. [46:04] >> Hey, to, to [46:05] address the Christy [46:07] raised a good point [46:08] as applicable. Kind [46:09] of leaves it wide [46:10] open. The language I [46:13] just dropped in there [46:14] maybe fixes that, [46:15] right? So it says an [46:16] itemized statement, [46:18] including for [46:19] services performed [46:20] the copy of that [46:21] receipt for materials, [46:22] purchased the cost of [46:23] those materials. So [46:24] you get some [46:25] discretion, right? [46:26] Like if you have [46:27] materials, then you [46:28] got to report them. [46:28] But if you don't have [46:30] materials, then you [46:31] don't have to report [46:31] them that that gives [46:32] it a little more [46:33] structure than the as [46:35] applicable, which is, [46:36] you know, going to be, [46:38] can be [46:40] unintentionally or [46:41] intentionally gained. [46:43] Okay. [46:43] >> All right. So I [46:44] know that we guys, we [46:45] all can't resist the, [46:46] the, we really can't [46:48] wordsmith this with [46:49] this whole committee [46:50] here. It just, it's, [46:51] we're never going to [46:51] get finished. I'm [46:53] sorry. I mean, my [46:54] impatience is showing. [46:54] But here it is. It's [46:56] 1040. We've been [46:57] working on it 40 [46:58] minutes working on [46:58] the same paragraph [46:59] and something I think [47:00] we all agree on. [47:01] Right. We just need [47:02] to figure out the [47:03] best way to do it. So [47:05] that's fine. We'll [47:05] work on whether it's [47:06] revisiting Emmeline's, [47:07] adding incorporating [47:08] some Andrew's, you [47:09] know, for materials. [47:10] I like that approach. [47:12] We'll have staff come [47:13] and come back to us [47:14] at the meeting with [47:15] something, and you [47:15] guys will inevitably [47:16] want to wordsmith [47:17] that some more. And [47:19] through the [47:19] legislative process, [47:20] I think the areas of, [47:21] of disagreement are [47:23] sort of where I want [47:24] to focus us a little [47:26] bit. Again, we can [47:27] wordsmith this stuff. [47:27] I think conceptually, [47:29] as far as we, we, we, [47:31] we like the idea that [47:32] we're of what we've [47:33] got as far as the [47:36] itemization piece, [47:37] the question, the two [47:38] question within that, [47:39] the one thing that we [47:40] don't have consensus [47:41] on is whether we need [47:42] a receipt first, and [47:43] then we don't have a [47:44] consensus on 15 days [47:45] being calendar or [47:47] business, am I am I [47:48] missing any other [47:49] areas of disagreement [47:51] that are not just [47:52] sort of wordsmithing? [47:55] >> Aaron. [47:56] >> Are we. [47:57] >> Still only talking [47:58] about this section. [47:59] >> For now for about [48:00] two more seconds and [48:01] I'm going to move on [48:02] to other sections. [48:03] Okay. [48:03] >> Yeah that's it. [48:04] >> There's only two. [48:05] All right. So I'm [48:06] prepared to to report [48:07] on the controversy on [48:08] the the. 15 business [48:09] and the we use the [48:10] word receipt when we [48:11] present it to the [48:12] full. And hopefully [48:13] we can get the rest [48:14] of those words sort [48:15] of worked out between [48:17] now and then. All [48:17] right. Now on to the [48:19] rest of the of the [48:20] bill. Aaron, where do [48:21] you want to start? [48:24] Numerical order. [48:27] >> Well, we started [48:28] at the bottom. [48:29] >> So the bottom of [48:31] the meat was. [48:32] >> Yeah. If you if [48:33] you want to do, since [48:35] we're already down in [48:35] that section is what [48:36] I was saying. [48:37] >> Gotcha. [48:38] >> Where do you. [48:39] >> Want to go? The [48:40] next one, the utility [48:41] the utility stuff. [48:42] The seven the line [48:45] 762763. I sent the [48:48] language over to Ray [48:50] and Terry Ellis. They [48:52] definitely have [48:54] concerns. Want to [48:55] hear back from their [48:56] folks. We talked [48:57] about this at the [48:57] last meeting that we [48:58] do not want to pull [49:00] utilities in, [49:00] specifically internet [49:01] providers. After last [49:02] year. This language [49:04] seems to pull them in [49:05] and they think it [49:06] does. [49:08] >> Okay, so we talked [49:09] just about utility. [49:10] So nothing this [49:11] distinction between [49:12] private owner manager, [49:13] operator from [49:14] including water, [49:14] sewer, electric, [49:15] natural gas or other [49:16] utilities as rent. [49:18] Chris, I know you you [49:20] wanted in here. [49:20] >> Go ahead. [49:21] >> Yes. I mean, I [49:22] think that perhaps [49:24] we're confusing two [49:25] different things [49:26] because my [49:27] understanding from [49:27] talking to Ray during [49:28] session was that [49:30] their concern was [49:31] about these bulk [49:32] deals that they [49:33] provide to large [49:35] multifamily complexes [49:36] that provide somewhat [49:38] of a discount, at [49:40] least to the owners [49:41] of that complex. And [49:43] we're not we're not [49:44] trying to get at that [49:45] because in that [49:47] circumstance, the [49:48] tenant is paying the [49:51] provider and it's a [49:54] fee that they haven't [49:55] negotiated. It is it [49:56] is its own problem. [49:57] And we do want to [49:58] address it at some [49:59] point. This doesn't [50:01] address that. This [50:02] just says you can't [50:03] double dip. You can't [50:05] charge as part of the [50:07] rent for utility [50:09] service that the [50:10] tenant is also paying [50:12] for directly to the [50:13] utility provider. So [50:15] I just think it's a [50:16] different thing, at [50:17] least than what Ray [50:18] and I talked about [50:19] during session, which [50:20] is much more [50:21] complicated. I agree [50:22] with you. This is not [50:23] that. [50:25] >> Jessica. [50:26] >> I just want to [50:27] clarify the [50:28] conversation about [50:29] utilities. Last [50:29] meeting was only [50:30] concerned with the [50:31] Schmidt bill, which [50:32] does veer off into [50:33] that direction. This [50:34] piece has never been [50:36] discussed or an issue [50:37] previously with this [50:38] bill. [50:38] >> Sorry. [50:39] >> So yeah, just to [50:41] separate the concepts [50:42] of these two bills [50:43] completely, as [50:44] Christy said, this is [50:45] an entirely different [50:46] intent, does not [50:47] intend to target [50:48] utility agreements [50:49] where the [50:49] relationship between [50:50] the tenant and [50:51] utility in that way [50:52] whatsoever. This is [50:54] just what it says [50:55] here, and I believe [50:56] it kind of mirrors a [50:58] different section in [50:58] the code as well, [50:59] where this language [51:00] was already in use. [51:01] And my understanding [51:02] is that the [51:03] definition of utility [51:03] in the Landlord [51:04] Tenant Act does not [51:05] include internet [51:06] service providers. So [51:06] I don't really [51:07] understand what the [51:09] concern is on that [51:10] front. And I've also [51:11] reached out to the [51:12] VTA and they can [51:13] provide comment at [51:14] any time. I just want [51:15] to clarify, these two [51:16] bills are entirely [51:17] different and they're [51:18] they're. [51:18] >> Different issues. [51:19] >> This language [51:20] seems pretty specific [51:20] to just not double. [51:21] You can't charge it [51:22] as rent. And then [51:23] also you can't charge [51:24] somebody water as [51:25] part of their rent if [51:26] they're also paying a [51:27] water bill directly. [51:28] >> That's awesome. [51:32] Aaron. Yeah. [51:33] >> The only reason I [51:35] flagged this was in [51:36] my very, very general [51:38] research on utilities [51:40] in the code. It did [51:41] include internet. And [51:44] so by adding that [51:45] extra sentence, I was [51:46] worried that we were [51:47] pulling in [51:49] stakeholders that [51:49] just weren't a part [51:50] of the conversation. [51:51] I do see that there [51:52] is a separate [51:54] definition of utility [51:57] under the VRLTA, [51:59] which does not appear [52:01] to include internet. [52:03] So this this wasn't [52:04] like a a, you know, a [52:05] stopping point for us. [52:07] I was just concerned [52:08] that maybe the right [52:09] stakeholders weren't [52:11] here that knew the [52:12] subject matter better [52:14] than, than I did. So [52:15] that was my only flag [52:16] on this. [52:16] >> All right. So [52:17] we'll leave that as [52:18] is. Let's go back up [52:20] to moving up. DJ do [52:25] you have the next one [52:27] or Aaron. [52:30] >> Miss the line 29. [52:32] >> For the out of [52:33] pocket expenses. Our [52:34] members have asked [52:36] and that's under [52:37] admin fees or I [52:39] believe it's under or [52:40] maybe it's [52:41] application fees. [52:45] >> 329. [52:49] >> So we deleted the [52:52] exclusive of actual [52:52] out of pocket [52:53] expenses. And my [52:54] members have just [52:55] asked to put it back [52:56] in. They're really [52:57] struggling with [52:57] fraudulent [52:58] applications. And [52:58] they're having to do [52:59] a lot of additional [53:01] verification checks [53:02] that are costing [53:03] additional money. And [53:05] it's potential for [53:06] that cost to go up. [53:07] And so they've just [53:08] asked that the actual [53:10] out of pocket [53:11] expenses paid that [53:12] language go back in. [53:14] >> We're going to. [53:15] >> Go ahead. Emily. [53:16] And then Christy and [53:17] then Victoria. [53:18] >> Yeah, we took that [53:20] out because as it [53:21] states right now in [53:22] code, this is saying [53:23] that you get [53:23] essentially like, and [53:24] I'm not saying that [53:25] this is what always [53:26] occurs, but you can [53:27] kind of take a [53:29] default $50 and then [53:30] also charge for [53:31] whatever your cost of [53:32] expenses are on top [53:33] of that. That's not [53:34] necessarily happening [53:35] in practice all the [53:36] time, but that's [53:37] something that would [53:37] be allowed under this [53:38] current language. We [53:40] would I spoke to [53:42] Patrick. If we want [53:42] to do an application [53:44] fee, shall not exceed [53:46] $50 or the actual out [53:47] of pocket expenses. [53:49] Patrick wrote some [53:49] language for [53:50] consideration this [53:51] morning related to [53:52] that. We can do that, [53:54] but we're not [53:55] comfortable saying [53:56] exclusive of any [53:57] actual out of pocket [53:58] expenses because [53:59] that's $50 then, plus [54:01] the out of pocket [54:02] expenses. If we want [54:03] to do either or, then [54:05] we can do that. But [54:05] right now it's 50 [54:07] plus and that's [54:08] something we're not [54:09] comfortable with. [54:10] >> Either or is fine [54:12] with me. [54:13] >> Okay. Do we have [54:14] language on how [54:15] either or works? [54:16] >> Patrick I think [54:17] wrote some if he [54:18] wanted to. Yep, it's [54:19] right there. Perfect. [54:21] >> So I see $50 or [54:23] the actual out of [54:24] pocket expenses paid [54:25] by the landlord to a [54:26] third party [54:27] performing background [54:28] credit. Okay. Got it. [54:28] Okay. Go ahead. [54:29] Christy. [54:30] >> I do have a [54:30] question about that [54:31] specifically for [54:32] Aaron and I may be [54:34] misremembering our [54:35] conversation, but I [54:36] thought we had a [54:37] conversation a couple [54:38] of sessions ago in [54:39] which we talked about [54:41] how, given the use of [54:43] third party tenant [54:45] screening companies, [54:46] many landlords are [54:47] contracting with [54:48] those third party [54:49] tenant screening [54:50] companies. So they [54:51] get services sort of [54:52] in bulk. Will that [54:54] make it hard to [54:56] determine what the [54:57] actual cost is? And [54:59] if so, they can just [55:00] charge the $50. And [55:02] that's certainly fine [55:02] with us. But I just [55:04] wanted to flag that [55:06] in in and see what [55:08] you thought about [55:09] that. Aaron. [55:10] >> Yeah, no, that's [55:11] absolutely valid. My, [55:12] my take on that is if [55:14] they feel like this [55:17] expense to further [55:19] verify applications [55:21] is so great, right, [55:22] that they're [55:23] purchasing this bulk [55:25] expense, then they're [55:27] going to have to try [55:28] and figure out, you [55:29] know, if I pay for [55:30] 100 applications and [55:32] then it is that cost [55:35] divided by 100, like [55:36] that's on them. I [55:37] just don't want to [55:38] keep it so that they [55:40] could never recoup [55:41] that cost as that [55:42] cost continues to [55:43] grow. So I'm fine [55:45] with that language. [55:46] >> All right. Just [55:46] one other point. And [55:48] this may be what [55:48] Victoria is going to [55:49] say to you. The only [55:51] other. [55:51] >> Thing happened a [55:52] couple of times, I [55:53] think you've talked [55:54] in Victoria has [55:54] turned her hand off. [55:55] >> But that the only [55:57] thing that really [55:58] other thing that [55:58] really concerns me is [55:59] then the lack of you [56:00] can call it [56:01] transparency. You can [56:02] call it [56:02] predictability for [56:03] the tenant. And I [56:04] don't know how we get [56:05] around. [56:06] >> Those fees have to [56:07] be disclosed up front [56:08] before they even hit [56:09] the button. So. [56:10] >> Okay, even if [56:11] they're even if [56:12] they're specific to [56:13] that screening, okay. [56:17] >> Victoria. [56:19] >> I mean, you're [56:20] right. I, you know, [56:21] Christy and I in many [56:23] ways think with one [56:24] mind, but I, I did [56:25] want to say the same [56:26] thing. I'm just [56:27] really concerned with [56:28] all the actual cost [56:29] things because it's [56:30] so hard for a tenant [56:31] to ever figure out [56:32] what that is. And, [56:34] you know, to Aaron's [56:35] point, there are a [56:36] couple other places [56:37] in the code or in [56:38] this draft and in [56:41] Delegate Bennett [56:42] Parker's bill that's [56:42] going to go into [56:43] effect in July, [56:44] requiring these fees [56:45] to be stated upfront. [56:46] And I wouldn't want [56:47] it to be a situation [56:48] where we turn around [56:49] in the landlords are [56:50] saying something like, [56:51] well, those fees are [56:52] variable, so we don't [56:53] have to disclose them [56:54] or something like [56:55] that. You know, [56:55] there's no way for [56:56] tenants to figure out [56:57] what those fees are. [56:58] It would be very hard [57:00] for them to get into [57:01] court. I'm a broken [57:02] record on the fact [57:03] that, like when [57:04] landlords violate [57:04] some of these and [57:05] overcharge tenants, [57:06] there are very few [57:07] remedies for them to [57:08] get their money back. [57:09] And also just some of [57:12] this cost is just the [57:13] cost of doing [57:14] business as a [57:15] landlord. I mean, for [57:16] tenants $50 already, [57:18] they, you know, [57:19] they're having to [57:20] apply to sometimes [57:21] dozens of apartments. [57:22] And for low income [57:23] tenants, this is a [57:24] huge barrier. For [57:25] example, someone with [57:26] a section eight [57:27] voucher has 60 days [57:28] to find a new [57:29] apartment. And if [57:30] they're having to [57:31] spend hundreds of [57:31] dollars on these [57:32] application fees, it [57:33] really starts to add [57:34] up. [57:36] >> Aaron. [57:37] >> Yeah. I just want [57:38] to clarify, this [57:39] should not be [57:40] variable. Our members [57:41] are taught [57:44] unequivocally. You [57:44] should be reviewing [57:45] every application the [57:47] exact same way. That [57:48] would be a massive [57:49] fair housing [57:51] violation. And so [57:52] whatever the expense [57:53] is, is the expense. [57:55] It's not variable [57:56] based on what the [57:57] application looks [57:57] like and based on the [57:59] rest of the code [58:00] would have to be [58:01] disclosed up front. [58:01] So whether they [58:02] choose to do that or [58:03] not, you know, out of [58:05] pocket or $50, they [58:06] would have to [58:06] disclose it upfront [58:07] before an applicant [58:08] hit submit. [58:09] >> Right. Christy. [58:10] >> I just and I know [58:12] this is a new issue [58:13] and you all aren't [58:14] going to be happy [58:15] with me, but I have [58:16] long thought that [58:18] charging people who [58:19] are using housing [58:20] choice vouchers and [58:23] application fee of of [58:25] $32, then plus out of [58:26] pocket expenses makes [58:28] it very difficult, if [58:30] not impossible, for [58:32] them to apply to the [58:35] places that they want [58:36] to apply to. $32 has [58:38] always seemed pretty [58:40] high to me, in light [58:41] of what their incomes [58:42] are relative to area [58:44] median income, [58:45] because we're talking [58:46] about folks who are, [58:47] I don't know, [58:48] Victoria, probably 40, [58:51] 30% ami most of the [58:52] time. I don't know if [58:54] we can address that [58:55] now or if that's a, [58:56] you know, talk to [58:57] someone about another [58:58] bill in 2028. But I [58:59] just wanted to raise [59:00] it. [59:01] >> Yeah. [59:01] >> I got you on the [59:03] enforceability [59:03] question. I just, for [59:04] what it's worth. I'll [59:06] briefly tell us where [59:07] I was at the Falls [59:08] Church Fall Festival, [59:09] and constituent [59:10] approached me and [59:11] said, when are you [59:11] guys going to do [59:12] something about the [59:13] these junk fees on [59:15] apartments? I'm like, [59:16] oh, that's timely. [59:17] And they're like, [59:18] yeah, we, we, we have [59:19] to pay online through [59:20] their portal. And it [59:21] cost us $15 [59:22] convenience fee. [59:22] Every time I'm like, [59:23] no, no, no, we [59:24] changed the law. [59:25] We're not allowed to [59:26] do that. They're like, [59:27] well, they're doing [59:28] it. What am I [59:29] supposed to do? I'm [59:30] like, I'll write them [59:31] a strongly worded [59:31] letter, but like, [59:32] you're not going to [59:33] go sue them over, you [59:34] know, 15 bucks. So [59:35] anyhow, I, I feel you [59:37] on that. And it's a [59:38] real problem. A real [59:39] constituent actually [59:39] out of the blue, you [59:41] know, approached me [59:41] about it. So it's not [59:43] theoretical. Emily. [59:44] >> Yeah. For [59:45] clarification from my [59:46] understanding of the [59:47] realtor's [59:47] recommendations, it [59:48] said line 329, which [59:50] applies only to the [59:51] section stating $50. [59:52] It did not highlight [59:54] the $32, which is [59:56] related to those who [59:57] might be receiving [59:58] Housing Choice [59:59] vouchers. So from my [1:00:00] understanding of the [1:00:00] recommendation, it [1:00:01] was not to change [1:00:03] that second portion [1:00:04] of the section to [1:00:05] state that it's $32 [1:00:07] exclusive actual of [1:00:08] actual out of pocket [1:00:10] costs. And Aaron, you [1:00:10] can correct me, but [1:00:11] my understanding was [1:00:12] you only wanted to [1:00:13] change the first part [1:00:15] related to $50, which [1:00:17] doesn't fully address [1:00:17] Christi's concerns [1:00:19] because it's still [1:00:20] $32. But this part, [1:00:21] we're not saying $32 [1:00:23] or the cost of [1:00:24] expenses. It would [1:00:25] still be a flat $32 [1:00:26] for those individuals. [1:00:29] >> Okay. All right. [1:00:30] That's good. Sounds [1:00:32] good. All right. [1:00:34] >> Moving on up. And [1:00:45] Patrick, I will take [1:00:46] you up. I will let [1:00:47] you know where they [1:00:48] because they were [1:00:49] going to get in touch [1:00:50] with me for writing a [1:00:51] letter. So I told her [1:00:53] I'd look into it. So [1:00:54] thank you for your [1:00:55] offer of help on that [1:00:56] with that constituent. [1:00:57] All right. What else [1:00:58] do we have? [1:00:59] >> As far as. [1:01:01] >> Line 304. [1:01:04] >> Or 3? I skipped [1:01:06] 310. [1:01:06] >> Yeah. We don't [1:01:07] want to skip 308 yep. [1:01:09] >> Sorry. [1:01:11] >> My concern with [1:01:12] this with the [1:01:12] application deposit [1:01:14] is it says if they [1:01:15] don't get the unit [1:01:17] that they reserved [1:01:18] with their [1:01:19] application deposit, [1:01:20] that the landlord [1:01:21] shall return the [1:01:22] application deposit. [1:01:23] I just wanted to take [1:01:24] into account that [1:01:25] there could be an [1:01:26] option. There could [1:01:27] be a situation where [1:01:29] the landlord says, [1:01:30] hey, I wasn't able to [1:01:31] keep your unit, but [1:01:34] this unit is [1:01:35] available if you want [1:01:36] this one. And then [1:01:37] the tenant says, okay. [1:01:38] And then that that [1:01:39] application deposit [1:01:39] could be under [1:01:41] current law, it would [1:01:42] be converted into a [1:01:43] security deposit. But [1:01:44] the way we've written [1:01:45] it, now, they have to [1:01:46] send it back and get [1:01:47] it back. [1:01:48] >> I. [1:01:48] >> I think as long as [1:01:50] there's the way it's [1:01:51] written and this, I [1:01:52] think is what you're [1:01:53] saying takes into [1:01:54] account that that the [1:01:55] tenant approves or [1:01:56] wants or, you know, I [1:01:57] think you're [1:01:58] absolutely right. If [1:01:59] there's, there's no [1:02:00] reason to preclude [1:02:03] saying, hey, here's [1:02:04] another comparable [1:02:05] unit that we just [1:02:06] painted. Yeah, I [1:02:08] think that's fine. [1:02:10] >> Okay. [1:02:11] >> Everybody happy [1:02:12] with that. Thank you. [1:02:13] I think that's good. [1:02:14] I was going to have [1:02:15] to exchange checks, [1:02:16] which seems like it [1:02:17] would have. [1:02:17] >> Been silly. Silly. [1:02:18] Yeah. [1:02:19] >> All right. So [1:02:20] we're going to skip [1:02:21] that one. It was an [1:02:22] easy one 304. [1:02:23] >> That's an easy one. [1:02:26] >> Prospective tenant. [1:02:27] Everybody agree with [1:02:28] that. [1:02:29] >> That's fine. [1:02:31] >> Mr. Chair. [1:02:32] >> Really quick Emily. [1:02:33] >> Can we go back to [1:02:34] 308. [1:02:35] >> No. [1:02:37] >> This will take [1:02:38] like one minute, I [1:02:39] think. So we're [1:02:40] comfortable with the [1:02:40] intent. I think what [1:02:42] I we're like, I think [1:02:44] we need to be more [1:02:46] clear that this [1:02:46] alternative unit [1:02:47] needs to be [1:02:48] comparable in terms [1:02:48] of square footage [1:02:49] price. Because I [1:02:50] think alternative [1:02:51] unit, I mean, I'm [1:02:52] just being really [1:02:52] nitpicky now, but. [1:02:54] >> That's right. [1:02:54] >> But it. [1:02:55] >> Has to agree. It's [1:02:56] up to the tenant. [1:02:57] >> Yeah. It's as much [1:02:59] the prospective [1:02:59] tenant agrees to an [1:03:00] alternate unit. [1:03:01] >> Right. Okay. I [1:03:02] mean we can yeah [1:03:03] that's fine. I think [1:03:04] there was just [1:03:04] concerns that if. [1:03:06] >> You're getting [1:03:07] sold all the time or [1:03:07] something like that. [1:03:08] >> I. [1:03:09] >> I agree with Emily [1:03:10] actually, I just [1:03:11] thought we, I [1:03:12] actually wrote in my [1:03:12] notes something about [1:03:13] add option of [1:03:14] providing another [1:03:16] comparable unit. Is [1:03:17] there a problem with [1:03:18] adding the word [1:03:19] comparable? I think [1:03:19] that's what's going [1:03:20] to happen anyway. [1:03:21] >> I mean, I think my [1:03:22] concern is not like a [1:03:24] bait and switch, [1:03:24] right? My concern is [1:03:25] I wasn't able to get [1:03:27] you the unit you [1:03:28] wanted, but I do have [1:03:29] this unit right here. [1:03:30] I don't know if it's [1:03:31] comparable. Maybe [1:03:32] it's not. But the [1:03:33] tenant still says I'm [1:03:34] 100% good. Switch my [1:03:36] application deposit [1:03:37] to a security deposit [1:03:38] rather than send it [1:03:39] back. Or the tenant [1:03:40] says, forget it. I [1:03:41] want my money back. [1:03:42] >> Yeah, no, I [1:03:43] totally understand [1:03:44] and appreciate your [1:03:44] intent. I am just [1:03:45] always thinking about [1:03:46] people who are not [1:03:47] your members, who are [1:03:48] not Patrick's members, [1:03:50] and who see [1:03:52] opportunity to rip [1:03:53] our clients off in [1:03:55] everything. And [1:03:55] that's what we're [1:03:56] trying to prevent. [1:03:57] >> I think if we add [1:03:58] the word. [1:03:59] >> Tenant agrees [1:04:00] change that. Can't [1:04:00] the tenant still just [1:04:01] say, no. [1:04:02] >> It's there. It's a [1:04:04] different situation [1:04:04] when maybe this is [1:04:05] the only place like [1:04:06] this is where you put [1:04:08] all your money. You [1:04:09] have no other money. [1:04:10] You can't really [1:04:11] afford to wait to get [1:04:12] that refundable [1:04:13] application deposit [1:04:14] back. I just, I think [1:04:16] it protects the [1:04:18] tenant and doesn't [1:04:18] really hurt the [1:04:19] landlord. To just [1:04:20] clarify that the unit [1:04:21] has to be comparable. [1:04:22] >> All right. And [1:04:24] then Patrick, whoever [1:04:25] heard from Bisma yet? [1:04:26] It's a new voice. [1:04:28] >> Christy, I [1:04:29] understand your point [1:04:30] about comparable. I [1:04:31] just think that, you [1:04:32] know what? If there [1:04:33] is no comparable unit, [1:04:35] do they you know, is [1:04:38] there no alternative [1:04:39] unit, then, you know, [1:04:40] so it doesn't really [1:04:42] work out in the [1:04:43] tenant's favor either, [1:04:44] you know, and just [1:04:45] going back to Erin's [1:04:47] point, you know, the [1:04:48] tenant does have the [1:04:49] option to accept or [1:04:51] deny, but this is [1:04:52] just another option [1:04:53] for them. [1:04:55] >> Victoria. [1:04:58] >> I think, I mean, I [1:04:59] think when we're [1:05:00] getting to the point [1:05:01] of though, that like, [1:05:02] you have to pay the [1:05:03] application deposit [1:05:04] to get like any unit [1:05:05] in the building, [1:05:06] we're kind of when we [1:05:07] initially talked [1:05:07] about application [1:05:08] deposits, it was a [1:05:09] circumstance where [1:05:09] you wanted some very [1:05:10] specific unit in a [1:05:12] building, and that [1:05:12] was the agreement [1:05:13] between the landlord [1:05:14] and the prospective [1:05:16] tenant. And I think [1:05:17] this is going back to [1:05:18] sort of a way for [1:05:19] landlords to just [1:05:20] charge an application [1:05:21] deposit to every [1:05:21] single tenant as like [1:05:22] an additional fee [1:05:23] that they're always [1:05:24] going to have to pay. [1:05:25] And that'll be my [1:05:26] concern with this. [1:05:27] >> My view is to go [1:05:28] ahead and throw in [1:05:29] the word comparable. [1:05:30] I don't I don't think [1:05:31] it's necessary, but I [1:05:32] don't think it's [1:05:33] harmful. I think it's [1:05:34] undefined. So I think [1:05:35] if it makes you guys [1:05:36] feel comfortable to [1:05:37] have the word [1:05:38] comparable in there [1:05:39] agrees to a [1:05:39] comparable [1:05:40] alternative unit. And [1:05:41] then let's just let's [1:05:43] do that and move on. [1:05:44] Again, I don't think [1:05:45] it I, I don't know [1:05:47] that it helps tenants, [1:05:48] but because I think [1:05:49] it may make landlords [1:05:50] a little more [1:05:52] conservative about [1:05:52] offering that option. [1:05:53] But if you guys want [1:05:54] it, we'll put it in [1:05:55] All right. So that [1:05:58] was the one minute [1:05:59] discussion of 308 [1:06:00] about seven minutes [1:06:01] ago. [1:06:03] >> It was a great one. [1:06:04] There was one minute [1:06:05] that we all seemed [1:06:06] and and just like. [1:06:08] >> Alright, so [1:06:09] prospective tenant, [1:06:10] we got on 304. That's [1:06:12] still that's still an [1:06:13] easy one, right? Yeah. [1:06:15] 300. [1:06:17] >> I'm fine. I think [1:06:18] we're fine with that. [1:06:20] We understand that [1:06:20] there's going to be [1:06:21] variance if this [1:06:22] language, if we need [1:06:23] to be more specific [1:06:24] about the language, [1:06:25] if people have issues [1:06:26] with the language. [1:06:27] But I think in [1:06:28] practice landlords [1:06:29] are already showing [1:06:30] kind of a scale right [1:06:31] now, just based on my [1:06:32] own rental search of [1:06:33] this is the kind of [1:06:34] baseline, but it [1:06:35] might change [1:06:36] depending on your [1:06:36] application and in [1:06:38] the intent. We are [1:06:39] fine with the [1:06:40] intention of this [1:06:41] change. [1:06:42] >> Okay, let's leave [1:06:43] it alone then. All [1:06:45] right. 206 we have a [1:06:48] whole hundred line. [1:06:54] All right. Page eight. [1:06:56] Security deposit. [1:06:57] Okay. [1:06:59] >> This is this was [1:07:01] brought up. We [1:07:01] brought this up in [1:07:02] the last meeting. [1:07:03] Just the specificity [1:07:04] of the terminology [1:07:05] that like if we were [1:07:06] saying at the time, [1:07:07] and just like Aaron [1:07:08] has agita over like [1:07:09] the best, like if [1:07:11] it's this, then like [1:07:13] if this is what we're [1:07:14] defining it as if [1:07:15] it's the day before, [1:07:16] day after, etc. like [1:07:17] it just, we don't [1:07:18] have to be specific. [1:07:19] Again, we're not held [1:07:20] up on the point. [1:07:21] That's what we're [1:07:22] offering alternatives [1:07:23] to it. It's just she [1:07:23] doesn't like the [1:07:25] specificity. [1:07:28] >> I. [1:07:29] >> You know, I think [1:07:30] that goes to the [1:07:30] heart of what we're [1:07:32] trying to do, though, [1:07:33] to make sure that [1:07:34] these are charged [1:07:35] only when there's an [1:07:37] actual legal [1:07:38] commitment to rent [1:07:39] that unit. So I do [1:07:41] have. [1:07:42] >> Right. [1:07:42] >> But I like it the [1:07:44] way it is, is what [1:07:45] I'm saying. [1:07:45] >> That's all like an [1:07:47] execution of rental [1:07:47] agreement is when the [1:07:48] tenant signs at that [1:07:49] point they're signing [1:07:50] the doc, right? So [1:07:51] but if, hey, are my [1:07:52] paychecks coming [1:07:53] tomorrow and I bring [1:07:54] the money tomorrow, [1:07:55] or if they give it to [1:07:56] us a day early, now [1:07:57] it's an application [1:07:58] fee. [1:07:58] >> Well, no, then [1:07:59] they can just sign [1:08:00] the lease a day [1:08:02] earlier or a day [1:08:02] later. [1:08:06] >> So execution is by [1:08:07] the by the buyer [1:08:10] because sometimes, [1:08:12] right. [1:08:12] >> It would be when [1:08:13] the tenant signs it [1:08:14] to. [1:08:14] >> It's when the [1:08:15] tenant signs it. [1:08:16] >> So execution, when [1:08:17] the tenant signs it, [1:08:19] it's effective when [1:08:20] the buyer sign, when [1:08:21] the when the landlord [1:08:22] signs it right, it's [1:08:23] usually getting. [1:08:24] >> And that is the [1:08:25] only time based on [1:08:27] the terminology at [1:08:28] the execution rental [1:08:29] agreement is the only [1:08:30] time they can accept [1:08:31] the security deposit [1:08:32] is in that moment [1:08:33] when they're both [1:08:33] signing. Not a day [1:08:34] before, not a day [1:08:36] after. [1:08:40] >> As opposed to, in [1:08:41] accordance with and [1:08:42] to secure the [1:08:42] performances in the [1:08:44] terms. All right. [1:08:46] Emily. [1:08:48] >> So I would just [1:08:49] like to state, the [1:08:50] reason we actually [1:08:51] put this in was after [1:08:52] the first meeting, [1:08:53] because Aaron had [1:08:54] raised concerns that [1:08:55] without the [1:08:55] application deposit, [1:08:57] landlords would have [1:08:57] to go to court in [1:09:00] order to recoup [1:09:01] damages. If somebody [1:09:02] backs out of a lease [1:09:03] agreement before they [1:09:04] move in, or if you [1:09:06] know they're holding [1:09:06] this, this house for [1:09:08] months on end, and [1:09:09] then they back out. [1:09:10] So we put this in in [1:09:11] order to clarify that [1:09:12] landlords can have [1:09:14] tenants sign a lease [1:09:15] months in advance and [1:09:16] can take that [1:09:17] security deposit at [1:09:18] the time of lease [1:09:19] signing so that they [1:09:20] can use it to recoup [1:09:21] those damages if [1:09:22] somebody backs out. [1:09:23] That was why we put [1:09:24] this language in the [1:09:25] definition to clarify [1:09:26] that that is an [1:09:26] option. There's [1:09:29] already other [1:09:29] language in the bill [1:09:30] stating that the [1:09:31] security deposit, the [1:09:33] security deposit is [1:09:34] taken at least [1:09:35] execution. So if we [1:09:35] want to take it out [1:09:36] of the definition, [1:09:38] I'm okay with it. It [1:09:39] doesn't actually [1:09:39] change the kind of [1:09:41] timeline of when fees [1:09:43] are taken, when [1:09:43] security deposits are [1:09:44] taken. Our intention [1:09:46] was just to clarify, [1:09:48] you can take the [1:09:49] security deposit at [1:09:50] lease lease execution, [1:09:52] because our [1:09:53] overarching intent [1:09:53] with this bill was to [1:09:55] clarify which fees [1:09:55] and deposits you can [1:09:56] take and at which [1:09:57] times we can take it [1:09:58] out of the definition. [1:10:00] And that's totally [1:10:00] fine with us because [1:10:02] we have that language [1:10:03] later on. Clarifying [1:10:04] what fees and [1:10:05] deposits can be taken, [1:10:05] at least execution. [1:10:07] But that was the [1:10:07] reason we put it in, [1:10:09] was to address those [1:10:10] concerns about [1:10:11] students. The college [1:10:12] students. Was the [1:10:13] example raised, right? [1:10:14] Who may want to hold [1:10:15] a unit for months on [1:10:17] advance so we can [1:10:18] take it out. It keeps [1:10:19] them in it. We [1:10:20] maintain the intent [1:10:21] later in the bill. So. [1:10:22] Okay. [1:10:22] >> So, Mr. Chair, [1:10:23] that. Sorry, Mr. [1:10:25] Chair, the I know the [1:10:26] ones underlined, but [1:10:27] Aaron has that as an [1:10:28] alternative. There's [1:10:29] a definition above it. [1:10:30] Security deposit [1:10:30] means any refundable [1:10:31] deposit of money [1:10:33] that's furnished to a [1:10:33] tenant, etc. like, I [1:10:35] mean, I think that's [1:10:36] Aaron's preferred [1:10:38] route. And again, if [1:10:39] we take that out, I [1:10:40] think. [1:10:42] >> Taking it out [1:10:43] altogether without [1:10:44] putting in accordance [1:10:45] with. [1:10:45] >> And yeah. See the. [1:10:47] Yeah. Yeah. What. [1:10:48] Yeah. What was just [1:10:49] highlighted like that [1:10:50] one. Like I think [1:10:51] that's Aaron's [1:10:51] preferred because, [1:10:52] but again, if y'all [1:10:54] are good with in [1:10:55] accordance to we're [1:10:56] not going to get held [1:10:57] up on that. [1:10:58] >> Okay. All right. [1:11:00] >> Cool. [1:11:01] >> Emily. I will take [1:11:02] Emily's yes for as a [1:11:03] yes. [1:11:04] >> Yeah, we can take [1:11:05] it out. We still [1:11:06] maintain the intent [1:11:06] of this language [1:11:07] later in the bill by [1:11:08] taking it out. So [1:11:09] we're fine with that, [1:11:10] Emily. [1:11:11] >> And say one more [1:11:12] minute, it'd be [1:11:13] really quick. Say one [1:11:14] more minute and this [1:11:15] will be really quick [1:11:16] and we'll see what [1:11:17] happens. [1:11:17] >> All right. [1:11:18] >> And so that was [1:11:19] that was it from the [1:11:20] realtors. Anybody [1:11:21] else have any issues [1:11:24] again. So I think the [1:11:27] Jessica's been taking [1:11:28] notes on the non [1:11:29] consensus items which [1:11:30] I'll just flag for [1:11:30] the commission. And [1:11:33] there's a little bit [1:11:34] of drafting I guess [1:11:35] left to be done. But [1:11:36] I think we're pretty [1:11:37] much there. All right. [1:11:38] I'm going to close [1:11:39] the turn the page on [1:11:40] this particular [1:11:41] section. We're going [1:11:42] to get this to the [1:11:43] full commission. [1:11:45] Hopefully we'll have [1:11:47] we'll be pretty close [1:11:48] to a full consensus. [1:11:49] We can let the full, [1:11:50] the full group either [1:11:52] decide to decide or [1:11:53] not to decide on some [1:11:54] of the. The areas of [1:11:55] friction. All right. [1:11:57] That brings us back [1:11:58] to HB 1409. [1:12:02] >> Mr. Chair. [1:12:04] >> Yes, Emily. [1:12:05] >> I believe that we [1:12:06] had one more thing to [1:12:08] discuss that we [1:12:08] didn't touch on [1:12:10] because we were [1:12:11] discussing the [1:12:11] realtors concerns, [1:12:12] but okay, we just had [1:12:13] I believe the last [1:12:14] thing to discuss was [1:12:15] the proposed language [1:12:16] as related to the [1:12:17] damage addendum. And [1:12:19] I think Jessica sent [1:12:20] that out both in [1:12:23] August and then [1:12:24] yesterday as well. [1:12:25] The proposed language [1:12:27] related to that [1:12:28] section. [1:12:30] >> So 55.11208 I see [1:12:33] something there. [1:12:34] >> Yep. [1:12:34] >> But what lines is [1:12:35] that in the bill we [1:12:36] have bill number [1:12:37] lines or is that. [1:12:38] >> Let me see. I can [1:12:39] try to pull up the [1:12:41] lines. [1:12:44] >> I can probably [1:12:45] find it too. If I'm [1:12:46] going at 12081204. [1:12:50] All right. Go ahead. [1:12:53] >> I can present the [1:12:54] language. Or if I [1:12:55] didn't know Jessica [1:12:56] wanted to do that. I [1:13:00] can present the [1:13:01] language. So after [1:13:02] the previous meeting, [1:13:03] spoke to Patrick and [1:13:05] we drafted some [1:13:06] language, a couple of [1:13:07] different language [1:13:08] options, which does [1:13:10] not flat out prohibit [1:13:12] the usage of damage [1:13:13] addendums. We [1:13:14] understand that some [1:13:15] landlords provide [1:13:16] these as a way to [1:13:17] give tenants an idea [1:13:18] of what charges they [1:13:19] may incur, should [1:13:20] they cause physical [1:13:21] damages. Rather, we [1:13:22] put in this language [1:13:23] essentially [1:13:24] prohibiting that kind [1:13:25] of language that was [1:13:26] in the damage [1:13:27] addendum saying, [1:13:27] you're going to [1:13:28] charge, you're going [1:13:30] to pay either what is [1:13:31] in this damage [1:13:32] addendum or the cost [1:13:33] of materials, [1:13:34] whatever is greater. [1:13:35] So that is the intent [1:13:36] with this language. [1:13:37] This would ultimately [1:13:38] fall, I believe, [1:13:40] probably around line [1:13:41] 570, which is right [1:13:42] after that move out [1:13:44] fee language. So the [1:13:48] two options presented. [1:13:50] >> In addition to [1:13:51] what's the current [1:13:53] number eight, we [1:13:55] would add a new [1:13:56] number nine. [1:13:58] >> Yes. [1:13:58] >> Because this is [1:13:59] that's that's all I [1:14:00] was trying. This is [1:14:01] new language. It's [1:14:02] not amending anything [1:14:03] that's already there. [1:14:03] This is a new [1:14:04] prohibited practice, [1:14:05] essentially. [1:14:05] >> Yes. Yeah. So [1:14:08] these are the two [1:14:09] options. I don't know [1:14:10] if members of this [1:14:11] workgroup had an [1:14:12] opportunity to review [1:14:13] those, but the [1:14:15] intention here is [1:14:16] just to essentially [1:14:17] restating what is [1:14:18] already in the bill. [1:14:19] And that was what [1:14:20] already was consensus, [1:14:21] which is your only [1:14:23] deducting what is [1:14:24] necessary to actually [1:14:25] make those repairs. [1:14:26] So this is [1:14:27] essentially just [1:14:28] restating that to [1:14:29] ensure that these [1:14:30] damage addendums are [1:14:31] not charging outside [1:14:33] of what is necessary. [1:14:36] >> I think option two [1:14:38] works. [1:14:42] >> Anybody have any [1:14:43] objections to number [1:14:44] two? [1:14:47] >> Aaron had to step [1:14:48] out for a meeting. We [1:14:49] didn't get a chance [1:14:50] to talk about this [1:14:51] damage on this [1:14:52] section. I know we [1:14:53] had a little bit of [1:14:55] concern when I was [1:14:56] presented at the last [1:14:57] meeting. So I don't [1:14:58] know that we're not [1:14:59] good with option two, [1:15:00] but she didn't tell [1:15:01] me explicitly we are [1:15:02] okay with it. So I [1:15:03] just kind of have to [1:15:04] reserve back on that. [1:15:05] >> Option two seems [1:15:06] to include a little [1:15:07] more stuff that you [1:15:08] can do. So yeah, and [1:15:11] this is those that [1:15:12] say, and I've seen [1:15:13] this in some leases [1:15:14] that say, if the [1:15:15] carpet's too dirty, [1:15:16] you're going to pay [1:15:17] 500 bucks for carpet [1:15:18] cleaning, like when [1:15:19] you sign the lease. [1:15:20] And if we determine [1:15:21] that there's floor, [1:15:22] you know, filling [1:15:25] picture holes on the [1:15:26] wall will be $25 per [1:15:27] picture hole or [1:15:28] something like that. [1:15:28] Right. You guys are [1:15:29] saying you can't do [1:15:30] that anymore. [1:15:31] >> Yes. We're saying [1:15:32] that you can provide [1:15:33] an estimate, but you [1:15:34] can't charge a fee [1:15:36] that is not matched [1:15:36] the cost of making [1:15:37] those repairs. [1:15:39] >> Gotcha. So [1:15:41] estimated but not I. [1:15:42] Gotcha. All right. [1:15:43] >> That's good. [1:15:44] >> Okay. All right. [1:15:48] Now I think we're [1:15:49] going to turn away [1:15:50] from this bill. I'm [1:15:51] looking for hands. I [1:15:52] don't see any. Hands [1:15:53] up. Alright. We got [1:15:55] about 20 minutes left [1:15:56] or so. I don't know [1:15:58] how much time you all [1:15:59] budgeted for this [1:16:00] meeting. Some of you [1:16:01] only are gone, so [1:16:02] some of you only did [1:16:03] an hour. The HB 1409. [1:16:05] Where, where did we [1:16:05] leave that? Is there [1:16:06] any chance of getting [1:16:07] to a consensus on [1:16:08] this bill? [1:16:10] >> Can I. [1:16:11] >> Go, Jessica? [1:16:11] >> Go ahead, go ahead. [1:16:13] >> Sorry. [1:16:13] >> We did not leave [1:16:15] really in any sort of [1:16:17] position in the last [1:16:17] couple of meetings. I [1:16:18] think that we're [1:16:19] still very far apart. [1:16:20] So staff didn't have [1:16:21] much to go on as far [1:16:22] as direction for this [1:16:24] one. So yeah, just to [1:16:26] set the conversation [1:16:27] there. [1:16:28] >> Christy, if I may, [1:16:29] the one thing that I [1:16:30] took away from our [1:16:32] last discussion of [1:16:33] this that Christy [1:16:34] Kelly put out there [1:16:36] that I thought was [1:16:37] really helpful, was [1:16:38] the distinction [1:16:39] between those [1:16:41] services and extra [1:16:42] fees a tenant would [1:16:44] opt into, because [1:16:45] they are not included [1:16:47] in the landlord's [1:16:48] general obligation to [1:16:50] maintain the unit in [1:16:51] a habitable condition [1:16:52] versus those that are [1:16:55] included in that [1:16:57] definition, which the [1:16:58] tenant could not be [1:16:59] charged extra for, [1:17:01] which are mandatory [1:17:03] already under the law. [1:17:04] I don't know if we [1:17:05] can there, but I [1:17:07] think that [1:17:08] distinction was [1:17:08] really helpful. [1:17:10] >> Right. I think we [1:17:11] also probably agreed [1:17:12] that ten was this [1:17:15] little moment of ten [1:17:15] was the one that [1:17:16] required some more [1:17:17] input from some other [1:17:18] stakeholders. All [1:17:19] right. Well, I don't [1:17:20] think we're going to [1:17:21] get there today. I'm [1:17:22] sorry. I wish we had [1:17:23] again, unless [1:17:24] anybody's come up [1:17:25] with a breakthrough [1:17:26] that gets everybody [1:17:26] on board and we may [1:17:28] have to just go back. [1:17:30] And I mean, we've [1:17:31] done a lot of time [1:17:32] and effort on fees [1:17:33] and junk fees here on [1:17:34] this particular bill [1:17:35] for SB 349, I think, [1:17:36] you know, given where [1:17:37] we are in the [1:17:38] calendar, you know, [1:17:39] we can continue it [1:17:40] again, you know, for [1:17:41] further conversations [1:17:43] next year. But I [1:17:44] think we're probably [1:17:44] in a position to [1:17:45] report. I just don't [1:17:46] think there's any [1:17:47] real value in us [1:17:48] going through and [1:17:49] trying to nitpick it, [1:17:50] because I think we're [1:17:51] probably too far [1:17:52] apart there. So [1:17:52] anybody have any [1:17:53] disagreement? I think [1:17:54] we're close enough to [1:17:55] make it worth a [1:17:56] longer discussion. [1:17:58] Alright. I think we [1:17:59] heard the answer [1:17:59] there or didn't hear [1:18:00] it. Right. So with [1:18:03] that is there, unless [1:18:05] there's any more [1:18:06] business to come [1:18:06] before the whatever [1:18:09] we are working group. [1:18:13] Jessica. [1:18:15] >> Apologies. Real [1:18:15] quick, I would love [1:18:17] potentially [1:18:17] volunteers for a [1:18:18] small group to [1:18:18] workshop that section [1:18:19] just on our Zoom [1:18:21] meeting virtual of [1:18:22] your time. So I'd [1:18:24] love to email all the [1:18:25] people who were [1:18:25] involved in that [1:18:26] conversation and set [1:18:27] up a, a separate [1:18:28] conversation from [1:18:28] here to wordsmith [1:18:29] that language. We can [1:18:30] all get to a point of [1:18:32] agreement, hopefully [1:18:32] to present to the [1:18:33] full commission in [1:18:34] November just to [1:18:35] speed up that process. [1:18:36] So we're not all [1:18:37] emailing back and [1:18:37] forth. [1:18:38] >> And when you guys [1:18:39] get to something that [1:18:40] you all feel like [1:18:41] within your smaller [1:18:42] group is, is a [1:18:43] consensus. If you get [1:18:44] it out to us again [1:18:45] just before the [1:18:46] presentation. So I [1:18:46] don't want anybody to [1:18:47] be looking at that [1:18:48] language for the [1:18:49] first time when I [1:18:50] present it to the [1:18:51] full commission. So [1:18:52] the idea would be to [1:18:53] be transparent about [1:18:54] it. Okay. Absolutely. [1:18:55] >> Yeah. [1:18:55] >> All right, all [1:18:56] right. Thank you [1:18:57] everybody. Thanks for [1:18:58] all your hard work. [1:18:59] And I hope I didn't [1:19:00] get too testy about [1:19:01] it. All right. We'll [1:19:03] talk