17 AAC 45.297. Rent adjustment protest

(a) If a lessee, permittee, or concessionaire believes a rent adjustment the department has implemented as to the lessee, permittee, or concessionaire is not allowed under 17 AAC 45.295 or any other law, the lessee, permittee, or concessionaire may protest the rent adjustment under this section. Unless the person protesting the rent adjustment is an agency of the federal government, the person must begin to pay the adjusted rent as of the effective date stated in the department's rent adjustment notice and continue to pay the adjusted rent throughout the protest process. Failure to pay the adjusted rent on time while the protest is pending will constitute abandonment of the protest.

(b) A rent adjustment protest must be in writing and received by the department within 60 days after the date the department mails or delivers the notice of rent adjustment to the lessee, permittee, or concessionaire under 17 AAC 45.295.

(c) The protester must submit a written appraisal of fair market rent to support a claim that the adjusted rent exceeds fair market rent and state the basis for any claim that the rent adjustment is not allowed by any other provision of 17 AAC 45.295 or other law. The protest must include the name, address, telephone number, and qualifications of the appraiser whose appraisal of the premises the protester intends to use. The appraiser must be certified under AS 08.87 as a general real estate appraiser.

(d) The protester's appraiser must carry out the appraisal in accordance with instructions prepared by the department and consistent with generally accepted appraisal industry practices. 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 conformity 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 rent 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 rent stated in the appraisal becomes the rent for the protester's lease, permit, or concession, effective on the date of the rent adjustment. If the fair market rent stated in the appraisal is less than the rent paid by the protester under the department's rent adjustment under 17 AAC 45.295 or other law, the department will refund the amount of the overpayment.

(g) If for any reason the department concludes that the adjusted rent does not conform to a provision of 17 AAC 45.295, the department will readjust the rent as necessary to bring it into conformity with the requirements of that section and refund to the protester the amount of any overpayment. However, if the lease, permit, or concession is for an auxiliary or nonaviation use and the original rent was established by competitive award, the rent may not be reduced below the rate established when the lease, permit, or concession was originally awarded.

(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 rent continues throughout the appeal process.

History: Eff. 3/28/2002, Register 161

Authority: AS 02.15.020

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