Section 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.Eff. 3/28/2002, Register 161; am 3/22/2008, Register 185; am 4/23/2009, Register 190; am 3/20/2016, Register 217, April 2016Authority:AS 02.15.020
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