Any refunds authorized by this Article shall be offset by the cost of restoring damaged or lost or destroyed property, normal wear and tear excepted, and by the added cost of cleaning a housing facility that has not been left in a reasonably clean condition. Such offset shall be applied first to the security deposit, and should that deposit be insufficient, the offset will be applied to any prepaid license fee. Should both the security deposit and prepaid license fee be insufficient to cover these costs, the licensee shall promptly pay for the difference.

Prior to exercising an offset pursuant to this section the president shall notify the licensee of the basis for the proposed action and afford the licensee an opportunity to question the process.