17 AAC 45.297 - Rental rate adjustment protest
(a) If a lessee,
permittee, or concessionaire believes an initial rental rate the department has
established under
17 AAC 45.127, or a rental rate
adjustment the department has implemented as to the lessee, permittee, or
concessionaire under
17 AAC 45.295, is not allowed
under this chapter or any other law, the lessee, permittee, or concessionaire
may protest the rental rate adjustment under this section. Unless the person
protesting the rental rate adjustment is an agency of the federal government,
the person must begin to pay the adjusted rental rate as of the effective date
stated in the department's rental rate adjustment notice and continue to pay
the adjusted rental rate throughout the protest process. Failure to pay the
adjusted rent on time while the protest is pending constitutes abandonment of
the protest.
(b) A rental rate
adjustment protest must be in writing and received by the department within 120
days after the date the department mails or delivers the notice of rental rate
adjustment to the lessee, permittee, or concessionaire under
17 AAC 45.295.
(c) The protester must
(1) show that the adjusted rental rate
exceeds fair market rent by submitting
(A) a
written appraisal of fair market rent by an appraiser certified under AS 08.87
as a general real estate appraiser; and
(B) the name, address, telephone number, and
qualifications of the appraiser who prepared the appraisal; or
(2) submit a written statement
describing the basis for any claim that the rental rate adjustment is not
allowed by the lease, permit, or concession, or by any provision of this
chapter or any other law.
(d) The protester's appraisal must be
prepared in compliance with the department's instructions and with generally
accepted appraisal industry practices. If the rental rate under protest
includes a rental rate reduction by the department under
17 AAC 45.127(d),
the appraiser must consider in the appraisal all of the conditions listed in
17 AAC 45.127(d)
that are applicable to the premises. The appraiser or the protester must submit
the appraiser's completed written appraisal to the department within 90 days
after the date that the department mails or delivers the department's appraisal
instructions to the protester, unless the department grants an extension of
time for good cause shown by the protester.
(e) The department will review the appraisal
for compliance with the appraisal instructions and either approve or disapprove
the appraisal. The department will also review and consider any claim stated in
the protest that the rental rate adjustment is not allowed by any other
provision of
17 AAC 45.295 or other law. The
department will prepare and mail or deliver a copy of the department's written
decision to the protester.
(f) If
the department approves the appraisal, the fair market rental rate stated in
the appraisal becomes the rental rate for the protester's lease, permit, or
concession, effective on the date of the rental rate adjustment. If the fair
market rental rate stated in the appraisal is less than the rental rate paid by
the protester after receiving the department's rental rate adjustment under
17 AAC 45.295 or other law, the
department will refund the amount of the overpayment or, at the option of the
lessee, permittee, or concessionaire, apply the overpayment as a credit toward
future rent.
(g) If for any reason
the department concludes that the adjusted rental rate does not conform to
17 AAC 45.295, the department will
readjust the rental rate as necessary to bring it into conformity with the
requirements of that section and refund to the protester the amount of any
overpayment or, at the option of the lessee, permittee, or concessionaire,
apply the overpayment as a credit toward future rent.
(h) If the department does not approve the
appraisal or other aspects of the protest, the department's written decision
constitutes a denial of the protest. The decision will state the reason the
department did not approve the appraisal or other claims.
(i) A protester may appeal the department's
decision denying the protest in accordance with
17 AAC 45.920. The protester's
obligation under (a) of this section to pay the adjusted rental rate continues
throughout the appeal process.
Notes
Authority:AS 02.15.020
AS 02.15.060
AS 02.15.070
AS 02.15.090
AS 02.15.200
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