MHCO Legal Counsel

Phil Querin Q&A: Home Damaged During Storm

Question.   Last week’s torrential rain caused significant riverbank erosion in our Park and has threatened a home.  What are the landlord’s rights and responsibilities in this situation?  The home will likely have to be moved.  Who pays and what are the timelines, responsibilities and liabilities? Should we accept rent during this time? What if the tenants walk away - abandonment apply under these circumstances?

Phil Querin Q&A: Conversion to Pass-Through Charges For Garbage Collection


Question. My first question deals with ORS 90.533 which provides:

90.533 Conversion of billing method for garbage collection and disposal. (1) A landlord may unilaterally amend a rental agreement to convert the method of billing a tenant for garbage collection and disposal from a method described in ORS 90.532 (1)(b) to a method in which the service provider:

(a) Supplies garbage receptacles;

(b) Collects and disposes of garbage; and

(c)(A) Bills the tenant directly; or

(B) Bills the landlord, who then bills the tenant based upon the number and size of the receptacles used by the tenant.

(2) A landlord shall give a tenant not less than 180 days' written notice before converting a billing method under subsection (1) of this section.

(3) If the cost of garbage service was included in the rent before the conversion of a billing method under subsection (1) of this section, the landlord shall reduce the tenant's rent upon the first billing of the tenant under the new billing method. The rent reduction may not be less than an amount reasonably comparable to the amount of rent previously allocated for garbage collection and disposal costs averaged over at least the preceding year. Before the conversion occurs, the landlord shall provide the tenant with written documentation from the service provider showing the landlord's cost for the garbage collection and disposal service provided to the facility during at least the preceding year.

(4) A landlord may not convert a billing method under subsection (1) of this section less than one year after giving notice of a rent increase, unless the rent increase is an automatic increase provided for in a fixed term rental agreement entered into one year or more before the conversion.

I do not understand Subsection (4). Does it mean we cannot give a 90-day rent increase after the 180-day notice of pass-through has taken affect? Or can I still give my 90-day notice of rent increase to bring the rent back up once the trash has been separated from the base rent?

Phil Querin Q&A: Utility or Service Charge Payments

Question. To assess a tenant for a utility or service charge for any billing period using the billing method described in ORS 90.532 (1)(b)(C)(ii) or (c) of this section, I understand that the landlord is to give the tenant a written notice stating the amount of the utility or service charge they are to pay and the due date for making the payment. According to the statute, the due date may not be less than 14 days from the date of service of the notice. The amount of the charge is determined according to ORS 90.534 or 90.536. If the rental agreement allows delivery of notice of a utility or service charge by electronic means, for purposes of this subsection, written notice includes a communication that is transmitted in a manner that is electronic, as defined in ORS 84.004.

Phil Querin Q&A: Accepting Rent From Non-Tenant Occupants

Question: When can a manager refuse payment by check? If the name on the check does not match the resident's name can (or should) the check be refused? Should there be a park rule to back this up? If the manager refuses payment because of the name on the check and asks for a money order or cash, does that have to be in the rules? All of this stems from the concern of unauthorized residents becoming tenants simply because a manager accepts a check for space rent when they are not an approved tenant.

 

MHCO Legislative Summary: Payment to Residents When Parks Close; Notices Upon Transfer; and Manufactured Dwelling Cooperatives

 

Payments to Residents Upon Park Closure. This bill amends ORS 90.645 (Closure of Manufactured Dwelling Park) by increasing the required amount payable to residents as follows:

 

 

  • From $5,000 to $6000 if the manufactured dwelling is a single-wide;
  • From $7,000 to $8,000 if the manufactured dwelling is a double-wide; and
  • From $9,000 to $10,000 if the manufactured dwelling is a triple-wide or larger;

 

 

The Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department is charged with establishing by administrative rule a process to annually recalculate these figures "to reflect inflation."

 

Comment: Without being involved with this legislation it is hard to know why a generally accepted and reliable index or set of indices was not identified. As the administrative rule takes place, we should watch to see what develops. All hearing and rulemaking notices are filed through the online filing system: http://sos.oregon.gov/archives/Pages/fileonline.aspx. To expedite the rulemaking process, agencies are encouraged to file a Notice of Proposed Rulemaking Hearing specifying the hearing date, time and location, and to submit their filings early in the submission period. All notices and rules must be filed by the 15th of the month to be included in the next month's Oregon Bulletin and OAR Compilation postings.

 

 

Phil Querin Article and Analysis - New Laws on Disrepair & Deterioration - New MHCO Form 55

 

 

Introduction. This bill is an attempt to deal with issues that had arisen between residents in some Oregon communities and their landlord regarding the physical condition of their homes. The result is a change to ORS 90.632 (disrepair and deterioration) which contains more detail than previously, but is nevertheless manageable.

 

 

 

By way of refresher, ORS 90.630 pertains to curable maintenance/appearance violations relating to residents' spaces. However, if the violation relates to the physical condition of the home's exterior, ORS 90.632 applies, to address repair and/or remediation that can take more time to cure, either due to the weather, the amount or complexity of the work, or availability of qualified workers.

 

 

As a result, SB 277A, which became law on June 14, 2017 ("Effective Date"), will apply: (a) To rental agreements for fixed term tenancies -- i.e. leases -- entered into or renewed on or after the Effective Date; and, (b) To rental agreements for periodic tenancies -- i.e. month-to-month tenancies -- in effect on or after the Effective Date.

 

 

MHCO has significantly changed its current form No. 55 to address the changes in the new law. The major issue going forward is for managers and landlords to be able to recognize when to use Form No. 55 to address disrepair and deterioration conditions, versus Form No. 43C, which is appropriate for violations relating to maintenance and appearance of the space.

 

Phil Querin Q&A - Death of Resident and an Uncooperative Estate

Question: A resident living alone passed away. It took some time for the estate to get underway because they had to search for heirs. An heir was located and was appointed as Administrator to act on behalf of the estate.

 

Shortly after the resident's passing, we began requesting that a Storage Agreement be signed but the estate was hesitant to do so until the Administrator was appointed. After the appointment the Administrator was initially cooperative, but unexpectedly changed his mind and is now threatening to bring all of the past due rent current, and then, out of spite, tear the home down while still on the space. Presumably, after doing so, we would expect the Administrator to cease all further space rental payments. How should we handle this?

 

 

 

 

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