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Answer A : First, the MHCO Lease cited above addresses this. Not fixing the leaks, which are their responsibility to do, is a violation. Secondly, ORS 90.740(f) requires that tenants "(u)se electrical, water, storm water drainage and sewage disposal systems in a reasonable manner and maintain the connections to those systems. The tenant is using the water system in an unreasonable manner when they refuse to fix the leaks.

ORS 90.630 (Termination by Landlord) provides, in relevant part, the following:

(1) Except as provided in subsection (4) of this section, the landlord may terminate a rental agreement that is a month-to-month or fixed term tenancy for space for a manufactured dwelling or floating home by giving to the tenant not less than 30 days' notice in writing before the date designated in the notice for termination if the tenant:

(a) Violates a law or ordinance related to the tenant's conduct as a tenant, including but not limited to a material noncompliance with ORS 90.740;

(b) Violates a rule or rental agreement provision related to the tenant's conduct as a tenant and imposed as a condition of occupancy, including but not limited to a material noncompliance with a rental agreement regarding a program of recovery in drug and alcohol free housing... .

ORS 90.630 goes on to explain that you may issue a 30-day written notice of termination, allowing the tenant to fix the leaks within 30 days and avoid termination. If they fail to do so, you may file for eviction. If they cure, but the problem occurs again within six months following the date of your earlier 30-day notice, you may terminate the tenancy within 20 days, and there is no opportunity to cure. MHCO has the necessary forms.

Be sure you have papered your file to support your contention that these are water leaks for which the tenant is responsible, and then specifically describe the violations (there are two of them, one under the Lease, and the other under the statute) in the Notice.

Answer B: This question is same as the prior one and the answer is the same (although the placement of the requirement may not be in the same location, depending on the date of your lease or rental agreement). Just make sure you have the evidence (e.g. plumber statement) before acting, and that you adequately identify the problem and solution in the Notice.

The short answer to your first question is "no," you do not have to give the long-time tenant the same 30-day notice as required for mobile home tenants. That notice under ORS 90.632 is only for mobile home tenants, not RVs. Since RVs are not "manufactured dwellings," you have some better options available.

Normally, I would recommend a 30-day, for-cause notice under ORS 90.392 requiring the tenant to repair his RV. Presumably your park has a rule requiring homes and RVs to be kept in good repair, which you would use as the basis for the notice. The 30-day notice would give the tenant 14 days to repair the RV or face termination of his tenancy at the end of the 30 days.

However, in this particular case it sounds like the travel trailer has been dilapidated for quite some time. Under ORS 90.412, you waived the right to evict the long-time tenant based on the condition of his RV by accepting rent for 3 or more months with knowledge of the condition of the RV. That is why I always recommend addressing problems with a notice as soon as the condition arises. (The rule is different for mobile homes - parks don't waive the right to evict even if the condition of the home has been longstanding).

Under the circumstances, your best option is to simply issue a 60-day, no-cause notice terminating the long-time tenancy. Presumably the tenant has been there for more than one year as a month to month tenant, which requires a 60-day notice.

The newer RV tenant with the messy space is a different story. If the condition of his space only became an issue recently, you could go with the 30-day, for-cause notice mentioned above. The basis of the notice would be your park rules requiring tenants to maintain their spaces, along with ORS 90.325 (1)(b) which requires tenants to keep their spaces "clean, sanitary and free from all accumulations" of debris and rubbish.

If the messy conditions have existed for 3 or more months, then you're only left with the no-cause eviction notice option. However, if the newer RV tenant has been there less than a year as a month to month tenant, the notice can be a 30-day, no-cause notice instead of a 60-day notice.

Answer. I'm confused. May I assume the grandmother or her sister are at least 55 years old? If so, they qualify both as to the requirement that there be at least one occupant 55+, and as to the second person requirement. That should be the end of the age issue.

As for the babysitting, this is not a for-profit enterprise, so presumably does not violate any rules you might have for such situations. So all it is is family visiting, which is permissible under the rules. So long as the children are not staying overnight, I do not understand there to be a 30-day limit on this. If they do stay overnight, it appears there is a 30-day cap. But you don't say whether the 30-days is consecutive or cumulative. Unless there is some reason to believe the grandmother is lying about the children staying overnight (and even then, there is the 30-day rule) I don't see anything that suggests a violation. I know of nothing under the 55+ housing law that places restrictions on family visitors under age 55. In fact, as you may know, 55+ parks are permitted to have up to 20% of their spaces rented to families (which is not something should consider for a variety of reasons). However, the point is that the presence of children in a 55+ park does not, per se' cause the park to lose its 55+ designation.

I believe this situation demands a practical approach. Is the babysitting situation causing a problem, e.g. noise, disruption, children in street, lack of supervision, etc? Are other residents complaining? If none of these consequences are occurring, I don't see a concern, or a need to start counting days, etc. If the situation is not being abused, I'd leave it alone. You may want to privately discuss this with the grandmother, just to make sure she understands that it is important that she monitor her grandchildrens' activity at all times, just to make sure other (less child-friendly) residents don't complain.

The take-away here is that while rules are important, so long as they are not being abused, the need to be concerned primarily arises when there are complaints from other residents. If no one is complaining and the rules are not being blatantly abused, it does not seem necessary to become concerned.

Answer. Welcome to the Nanny State! I agree this is a frustrating situation for landlords. I believe rule No. 1 is to pick your shots. By that I mean, you want to look at this in the same way a judge or jury would. Does it pass the "smell test"? - pun intended.

To me it does not. This sounds like a case in which you've got a pretty good paper trail. But someone has to blink. If you fold on this, bad precedent is set. Here she's asking for two extra service animals. By this rationale, the two pet policy means nothing, and she could gather another six animals and make the same claim. I believe you should consult your attorney to find out what he/she recommends.

From where I sit, I think you could take at least one more step, without this going nuclear. You may want to consider issuing a 30-day notice to vacate, citing the rule and what she needs to remedy it, i.e. remove two of the pets.

At that time, the issue will come to a head. Will she go to some advocacy attorney group who says they will fight you for free? Will she fold? Will she try to compromise? There is a Roman saying that if you want peace, prepare for war. In other words, if you show her you mean business, she may take a more realistic look at her position. Until there is a show of force, she has the upper hand. If she backs off, there may be an opportunity to find a solution, e.g. and agreement to re-home the pets with a relative. Any solution that is reached should be in writing, and you should have your attorney prepare it.

If she pushes back, and has some legal group threatening a fight, you can then decide whether to hold 'em or fold em'. Remember, litigation doesn'thappen overnight. You will, at worst, get a threatening letter or two, before something happens. If you don't want the fight, then walk away. Good luck! By the way, during this dispute, if you intend to issue a 30-day letter, you

There are several significant deadlines in the Oregon Legislature that start to willow down the life span of legislative proposals. The first of these deadlines was last Friday, April 7th. As of midnight on last Friday any bill in a committee in the chamber of origin (Senate bills in the Senate and House bills in the House) must be scheduled for a hearing and work session or the bill will not be considered any further during this legislative session. The exceptions to this rule are bills in Revenue Committees, Rules Committees and Ways and Means Committees which stay open the duration of the legislative session. The remaining bills will need to move out of committees by April 18th.

A number of bad legislative bills that MHCO has been fighting were stopped by last week's legislative deadline. However there are three bills that remain 'alive' that are of great concern:

HB 2004A: Prohibits landlord from terminating month-to-month tenancy without cause after first six months of occupancy except under certain circumstances with 90 days' written notice and payment of [relocation expenses] amount equal to one month's periodic rent. Provides exception for cer- tain tenancies for occupancy of dwelling unit in building or on property occupied by landlord as primary residence. Makes violation defense against action for possession by landlord. Requires fixed term tenancy to become month-to-month tenancy upon reaching specific ending date, unless tenant elects to renew or terminate tenancy. Requires landlord to make tenant offer to renew fixed term tenancy. [Repeals statewide prohibition on city and county ordinances controlling rents.] Permits city or county to implement rent stabilization program for rental of dwelling units. This bill passed the Oregon House and is now being considered in the Senate.

HB 2008: Requires landlord of manufactured dwelling park to pay tenant necessary relocation costs or applicable manufactured dwelling park closure penalty, as determined by Office of Manufactured Dwelling Park Community Relations, upon closure of park to convert to other use. Requires owner of manufactured dwelling park to give notice of final sale to office upon sale of park. Prohibits landlord from terminating without cause, unless under certain circumstances with 90 days' written notice, month-to-month tenancy consisting of rental of manufactured dwelling of float- ing home owned by landlord on space in facility. Requires fixed term tenancy consisting of rental of manufactured dwelling or floating home owned by landlord on space in facility to become month-to-month tenancy upon reaching specific end date, unless tenant elects to renew or terminate tenancy. Requires landlord to make tenant offer to renew fixed term tenancy. Requires office to produce materials to inform tenants of rights and adopt rules to require landlords to post materials in manufactured dwelling park public spaces. Directs office to establish and administer landlord-tenant dispute resolution program. Requires office to submit annual report on progress of program to interim committees of Legislative Assembly related to housing and human services for five years. Authorizes office to impose penalties for violations of landlord-tenant law against landlords of manufactured dwelling parks. Scheduled for a legislative work session on Thrusday.

HB 3331: Directs Office of Manufactured Dwelling Park Community Relations to establish and administer landlord-tenant dispute resolution program for disputes arising from notices of certain rent in- creases. Scheduled for legislative work session on Thursday.

We will be sending updates on the status of these three bills as they move through the legislative process. We are expecting significant amendments to HB 2008 but not enough to change MHCO's opposition. We are also expecting significant amendments in the Senate on HB 2004A. Again, the amendments will likely not change MHCO's opposition.

MHCO was successful in negotiating a landlord-tenant coalition bill (SB 277). This bill will be significantly amended on Wednesday in the Senate. We were also successful in exempting manufactured home communities from HB 2511. Obviously, all the bad bills left behind so far this session are a success - but we still have a lot work ahead. 

We have reached the halfway point of the 2017 Legislative Session. Unlike past legislative sessions this one looks to be a ugly and nasty fight to the end in July.    

A detailed list of bills currently being tracked by MHCO is attached - just click above the title.  

Answer: Your park is private property and you may legally prohibit the use of all marijuana based on federal law, which still makes marijuana illegal. In addition, Oregon's new marijuana law (Measure 91) specifically includes a provision prohibiting its application to any state or federal law pertaining to landlord-tenant matters.

This means that because marijuana production or use is illegal under federal law, landlords may continue to prohibit it on rented premises. The Oregon Supreme Court has held that since marijuana remains illegal under the federal Controlled Substances Act, that Act preempts Oregon's Medical Marijuana Act with regard to both employment practices and housing discrimination claims under state law.

The same reasoning would apply to Measure 91 - marijuana is illegal under federal law. Therefore, tenants would not have any cause of action for "discrimination" claims under state law, nor under federal law (since landlords do not have to "reasonably accommodate" illegal activity under the Fair Housing Act). Unless federal law changes, Oregon's Bureau of Labor and Industries (BOLI) will also undoubtedly adhere to its position that it will not investigate any housing claims of discrimination pertaining to the use of marijuana.

As a practical matter, you may therefore implement and enforce a park rule that prohibits growing, producing or using marijuana anywhere on park property. You should also include this prohibition in your rental agreements.

There are several caveats to mention:

1. Consult with a knowledgeable attorney if you are implementing a new rule to ensure that you follow the proper legal steps to make it enforceable.

1. Do not deny a tenancy application solely because the applicant has a medical marijuana card (which could lead to a discrimination claim). However, even with a medical marijuana card, you can still prohibit the use of marijuana in the park by anyone, including the applicant.

1. It is still possible that an aggressive tenant with an aggressive attorney could sue the park for discrimination (i.e., anyone can sue anyone), but their case would not likely succeed based on current law.

As always, talk to an attorney concerning your specific park issues.

1. Installation of the Home. Both the home and any accessory buildings, such as sheds, and other structures, such as fences and decks, must be installed in compliance with all applicable laws, such as local ordinances and state building codes.
2. Disposing of Debris. All ashes, garbage, rubbish and other waste must be disposed of in a clean, safe and legal manner. With regard to needles, syringes and other infectious waste, the tenant may not dispose of these items by placing them in garbage receptacles or in any other place or manner except as authorized by state and local governmental agencies.
3. Conduct. Both the tenant and other persons in the home or on the space must behave in compliance with any laws or ordinances that relate to the tenant's behavior as a tenant.
4. Use of the Space and Common Areas. The tenant may not misuse or unreasonably use the space or common areas, taking into consideration the purposes for which they were designed and intended.
5. Debris. The tenant must keep the rented space in every part free from all accumulations of debris, filth, rubbish, garbage, rodents and vermin as the condition of the rented space permits and to the extent that the tenant is responsible for causing the problem. The tenant must reasonably cooperate in assisting the landlord in any reasonable effort to remedy the problem. For example, if the space becomes infested with vermin due to the unkempt nature of the space, the tenant must do those things necessary to accommodate the landlord's extermination efforts.
6. Hazards of Fire. The home and the rented space must be kept safe from the hazards of fire. This means that any conduct or conditions occurring inside or outside of the home must be corrected by the tenant if it poses a fire hazard.
7. Smoke Alarms. The tenant is required to install and maintain a smoke alarm approved under applicable law.
8. Storm Water Drains. The tenant is required to install and maintain storm water drains on the roof of the home and connect the drains to the drainage system, if any.
9. Use of Systems. The tenant is required to use all electrical, water, storm water drainage and sewage disposal systems in a reasonable manner and maintain the connections to those systems.
10. Destruction of Property. The tenant may not deliberately or negligently destroy, deface, damage, impair or remove any community property, other than the tenant's own home - nor may he or she knowingly permit any other person to do so.
11. Landscape Maintenance. Unless the rules or rental agreement provide otherwise, tenants are required to maintain, water and mow or prune any trees, shrubbery or grass on the rented space.
12. Peaceful Enjoyment. The tenant is required to behave, and require his or her guests to behave in a manner that does not disturb the peaceful enjoyment of the premises by neighbors. This is an all-too-frequently overlooked provision of the law. Many times a tenant's offending conduct, while not specifically prohibited in the park documents, is nevertheless bothering to other tenants. Landlords would be well-advised to remember this provision of ORS 90.740 in those difficult cases in which the activities, such as voyeurism or stalking, cause undue concern to the neighbors.

What happens if the tenant violates any of these statutory provisions? Is there a remedy? Assuming that the tenant will not comply with the landlord's requests for voluntary compliance, and there are no other reasonable alternatives, enforcement action is available in the same manner as a violation of the rental agreement or rules, i.e. issuance of a 30-day notice of termination. Under ORS 90.630, this means that the landlord must issue a written notice to the tenant advising that the tenancy will terminate in 30 days if the violation is not cured. The law provides that a second violation occurring within six months of the date of the preceding 30-day notice will entitle the landlord to issue a written non-curable notice terminating the tenancy in 20 days. As with all such notices, members are advised to use the MHCO forms, making sure that they are complete in all respects before delivering or mailing them to the tenant.

[Update: The Multnomah County Board of Commissioners has passed Ordinance 1296, which changed the 60-day window to 90-days for the Pause on Notices and Evictions, as described below. This Ordinance became effective on July 9, 2021 and only applies to tenants residing in Multnomah County. Timeframes are updated below.]

In mid-June, the Oregon Legislature passed another bill, SB 278 which accomplishes three things:

1) It provides a 60-day window in which a tenant seeking rental assistance may not be evicted for nonpayment of current (i.e., non-moratorium related) rents, charges and fees;

2) It provides a method for landlords impacted by the 60-day delay (discussed below) to recoup lost rents, charges and fees if the tenant does not qualify for rental assistance; and

3) It directs the Landlord Compensation Fund to pay the full 100% rent loss on applications to the program.

The Multnomah County Board of Commissioners recently passed Ordinance 1296. It made the following change to SB 278 for tenants residing in Multnomah County only: It extended the timeline following Landlord’s receipt of documentation of Tenant’s application for rent assistance from 60 to 90 days before which service of a 10-day Notice of Nonpayment of Rent or filing of an Eviction is permitted.

Notices and Evictions: 60-Day Pause (or 90 days if in Multnomah County)

Application. SB 278’s 60-day delay, and Ordinance 1296’s 90-day delay (for Multnomah County), for eviction proceedings only applies to notices of termination for nonpayment given on or after July 1, 2021.

My Definitions.

“Moratorium Debts” are any unpaid rents, charges, and fees that have accrued between April 1, 2020, and June 30, 2021. (This is my term; it is not in the bill. Many of the Legislature’s Bills refer to “nonpayment” but with different meanings.)

“Current Rent” includes any rents, charges and fees, described as a “Nonpayment” that come due on or after July 1, 2021. (This is also my term to avoid confusion. It is not in the bill.)

SB 278 Definitions.

“Nonpayment” refers to the nonpayment of sums due to the landlord, including payment of rent, late charges, utility or service charges or any other charge or fee described in the rental agreement, including the following statutory sums:

ORS 90.140 (Types of payments landlord may require or accept),
ORS 90.302 (Fees allowed for certain landlord expenses or tenant non-compliance), ORS 90.315 (utility or service payments),

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ORS 90.392 (termination of tenancy for cause),
ORS 90.394 (termination of tenancy for failure to pay rent),
ORS 90.560 to 90.584 (provisions for various utilities and service charges); or ORS 90.630 (termination by landlord: manufactured dwelling or floating home).

“Documentation” includes electronic mail, a screenshot or other written or electronic Document- ation from a rent assistance provider.1 The definition of “documentation” above is straight from the Bill and relates to the procedure whereby the tenant applies for rental assistance and receives a receipt which is provided to the landlord.

60-Day Termination Pause (or 90 days if in Multnomah County). A tenant who is falling behind (or is in danger of falling behind) in paying their Current Rent may apply for rental assistance and provide the appropriate Documentation to their landlord. Tenant need only demonstrate that he/she applied for rental assistance in order to receive the 60-day pause (or 90 days if in Multnomah County). Upon receipt of the Documentation the landlord may not, for the next 60 days (or 90 days if in Multnomah County):

• Deliver a termination notice for nonpayment, or
• Initiate or continue an action for possession (i.e., an FED) based upon a termination

notice for nonpayment.

Eviction Protection Notice. This is a new statutory notice regarding eviction protection that is required to be delivered with:

• Any notice of termination for nonpayment of rent; and
• Any summons for a complaint seeking possession based on nonpayment of any sums

due to the landlord which are classified under the term “nonpayment” as defined above.

The court system will translate the notice into Spanish, Korean, Russian, Vietnamese and Chinese. The translated notices will be available on their main webpage www.courts.oregon.gov. The court clerk is also required to mail these notices with any summons and complaint mailed to a tenant from the Court.

Tenant Delivery of Documentation. The tenant may deliver the Documentation (including but not limited to, copies, photographs, screen shots, etc.) by email, text message, or any other “method reasonably calculated to achieve receipt by the landlord.”

Timing of Documentation.

• If the tenant provides the appropriate Documentation prior to the Landlord issuing a

  notice of termination for nonpayment, the landlord must wait 60 days (or 90 days if in Multnomah County) after receipt of the Documentation to issue any notice of termination for nonpayment.

• If the tenant provides the appropriate Documentation after the issuance of a notice of termination for nonpayment the landlord may not act upon that notice of termination or initiate an FED action based on the nonpayment. In order to terminate a tenancy after

  1 The Housing and Community Services Department is funneling federal, state, and local funds to many different “rent assistance providers,” including public bodies, local governments, and subgrantees (i.e., agencies and non-profits). They will provide a receipt to verify the submission of an application for rental assistance.

  PAGE - 2

expiration of the 60-day period (or 90 days if in Multnomah County), the landlord must issue a new notice of termination
o If 60 days (or 90 days if in Multnomah County) elapsed since the landlord received

Documentation, the landlord need not provide a new Eviction Protection Notice.

(TIP: If in doubt about whether the new Notice was included the first time, include

it after expiration of the 60 or 90-day pause; there is no risk in doing so.)2
• If the Tenant provides Documentation to the landlord or the Court after the eviction proceedings have already begun, the court will stay the proceeding, and reschedule a first appearance for a date following the 60-day period (or 90-day period if in

Multnomah County). Trial may occur promptly thereafter.

Dismissal of Eviction for Nonpayment. The court shall dismiss an FED action based upon a notice of termination for nonpayment if:

• The landlord failed to provide the new Eviction Protection Notice;
• The landlord “substantially caused” the tenant’s nonpayment by refusing to

“reasonably participate with a rental assistance program”;
o Note: Landlord is not required to apply for the Landlord Compensation Fund, so

the failure to do so cannot be used to claim the landlord “caused” the tenant’s

nonpayment.
• The landlord receives rental assistance covering the rent owed under the notice; or
• The tenant had provided the Documentation before the FED (or action for

possession)was filed.

Penalties for Landlord Violation. A violation of SB 278 will result in the tenant being able to pursue injunctive relief to recover possession or address any other landlord violations and will give the tenant a defense in an action for possession.

Tenant Not Entitled to Costs, Attorney Fees, or Prevailing Party Fees. Actions dismissed under these rules will not result in a tenant recovering costs and fees if:

• The landlord delivered all required notices (i.e., the new Eviction Protection Notice)
• The landlord did not know, or have reason to know at the time of commencing the

action, that the tenant had already provided the required Documentation; and
• The landlord promptly dismissed the action upon becoming aware of the

Documentation (Note: All three must occur.)

Dated Receipts of Application for Rental Assistance. SB 278 also directs that all programs providing rental assistance will promptly provide a dated receipt for the tenant’s application.

Repeal. These SB 278 and Ordinance 1296 rules will automatically be repealed on March 1, 2022.

2 Note: The Eviction Protection Notice is called “new” because the previous Bill, HB 4401, also required a Notice of Eviction Protection (along with the Declaration of Hardship). However, this is not the same form, although the caption of the form also says, “THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS TO PROTECTION AGAINST EVICTION FOR NONPAYMENT.” Essentially, SB 278 created a similar, but completely new form, that I have called the Eviction Protection Notice to avoid confusion.

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Landlord Compensation

Funding for the 60-Day Pause. SB 278 directs the Housing and Community Services Department to make funds available to a third-party provider (yet to be determined) to compensate landlords for their potential 60-day loss of revenue. To receive the compensation a landlord must demonstrate that:

• The tenant’s rental assistance application was denied; or
• Sixty (60) days have elapsed since the tenant provided their Documentation to the

landlord, and that the landlord has not received assistance.

[Note: Though Ordinance 1296 changes the 60-day window to a 90-day window for notices of termination and evictions for nonpayment in Multnomah County only, it does not make any changes to the portion of SB 278 that addresses landlord funding for the 60-day pause. It is unclear at this time how, or whether, the state will address Multnomah County’s rule in awarding funding for landlords whose tenants have not received assistance.]

Repeal of 60-Day Delay Compensation. Funding for landlords experiencing losses during 60-day pause will be automatically repealed on March 1, 2023.

Landlord Compensation Fund for Moratorium Debts. Originally HB 4401 provided that landlords could receive compensation for 80% of their tenant’s outstanding Moratorium Debts (rents, charges, and fees incurred between April 1, 2020, and the date of a landlord’s application to the fund – or June 30, 2021, at the latest). The last date to apply to the Landlord Compensation Fund (the “Fund”) was June 23, 2021.

To receive consideration for funding under HB 4401, the landlord had to agree to forgive 20% of the tenant’s debt. SB 278 now directs the Fund to pay 100% of the past-due rent due from qualified tenants that the landlord has not collected after April 1, 2020, and on or before the earlier of June 30, 2021, or the date of the application.

• Under SB 278 landlords are no longer required to agree to forgive 20% of their tenant’s Moratorium Debts.

• Landlords must still repay the Fund for any repayment of Moratorium Debts they receive from, or on behalf of, a qualifying tenant.

  Retroactive Application of 100% Coverage. The new rule requiring the Fund to pay 100% of past due Moratorium Debt applies to all applications approved on, before, or after the effective date of SB 278, which as an “emergency bill”, became effective on June 25, 2021, the date of the Governor’s signature.

  Furthermore, it directs the Fund to pay the remaining 20% of any applications for compensation already made under HB 4401 that were already approved prior to the passage of SB 278, without the need for an additional application.

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[1] The Housing and Community Services Department is funneling federal, state, and local funds to many different “rent assistance providers,” including public bodies, local governments, and subgrantees (i.e., agencies and non-profits). They will provide a receipt to verify the submission of an application for rental assistance.

[2] Note: The Eviction Protection Notice is called “new” because the previous Bill, HB 4401, also required a Notice of Eviction Protection (along with the Declaration of Hardship). However, this is not the same form, although the caption of the form also says, “THIS IS AN IMPORTANT NOTICE ABOUT YOUR RIGHTS TO PROTECTION AGAINST EVICTION FOR NONPAYMENT.” Essentially, SB 278 created a similar, but completely new form, that I have called the Eviction Protection Notice to avoid confusion.

The SAFE Act has received a lot of attention lately by park owners, but did you know that it’s really only one law of many state and federal lending regulations you are required to comply with when selling homes on contract?

The SAFE Act requires you, the park owner, to either use a licensed Mortgage Loan Originator such as Blackhawk Capital Group or obtain your own origination licensing in order to sell your park homes on installment contracts. However, the greater issue is that obtaining those licenses for most companies is really a small step towards being fully compliant when acting as a creditor. Below are just a few of the other regulations that you need to follow as a creditor.

1) The Dodd–Frank Wall Street Reform and Consumer Protection Act (DFA) established the Consumer Financial Protection Bureau (CFPB) as an independent entity housed within the Federal Reserve Board (FRB). The newly created CFPB is the primary regulator for non-depository lenders with the broad authority to write rules to protect consumers, a.k.a. “borrowers”, from unfair or deceptive financial products, acts or practices. The CFPB will be collecting, investigating and responding to borrower complaints which can be easily submitted from the comfort of a resident’s home via the CFPB’s website.

The CFPB will be in charge of the major consumer protection laws including RESPA, TILA, HOEPA, HMDA, SAFE, Fair Credit, Interstate Land Sales Full Disclosure Act; Telemarketing and Consumer Fraud and Abuse Prevention Act; Inspector General Act; Privacy Act; Alternative Mortgage Transaction Parity Act (AMTPA); Electronic Fund Transfer Act (EFTA); Equal Credit Opportunity Act (ECOA); Expedited Funds Availability Act; Fair Credit Billing Act; Fair Credit Reporting Act (FCRA); Fair Debt Collection Practices Act; Federal Deposit Insurance Act (FDIA); Federal Financial Institutions Examination Council Act; Federal Trade Commission Act; Gramm-Leach Bliley Act (GLB) and more.

This would naturally imply that if you’re investigated because of a consumer’s complaint stemming from a denial of credit or foreclosure, the CFPB could easily extend the investigation to include an examination of all your lending practices.

2) The Mortgage Disclosure Improvement Act (MDIA) requires creditors to wait 7 business days after the delivery of the initial Truth in Lending Disclosure Statement before you can close the loan. In addition, if the APR changes by more than a specified tolerance from initial disclosure you’ll need to allow the borrower 3 additional business days. However, waiting periods can be shortened or waived if the extension of credit is necessary to meet a personal financial emergency. To shorten the waiver period, borrowers must prepare a signed and dated written statement, signed by all borrowers involved, detailing the specific emergency and requesting a waiver of the waiting period.

3) The Fair Credit Reporting Act (FCRA) places disclosure obligations on users of consumer reports and to ensure fair, timely, and accurate reporting of credit information. This means that you are required to notify the borrower when an adverse action is taken on the basis of such reports, such as if you deny someone a loan or offer them a smaller loan than what they applied for. In addition, you must identify the company that provided the report, so that the accuracy and completeness of the report may be verified or contested by the borrower. We recommend that you provide separate notices to each borrower to protect yourself from violating their privacy. There are additional criteria for those of you that furnish information to credit agencies that will land on a borrower’s credit report.

4) The Truth in Lending Act (TILA) applies to each individual or business that offers or extends credit more than 5 times for transactions secured by a dwelling in the preceding calendar year. There are many applicable areas within TILA depending on how your loans are structured so we’ll discuss the act in a few general areas only.

• TILA limits the amount of fees that can be charged on certain transactions without additional requirements and it limits when those fees can be charged for all transactions.

• TILA mandates early disclosure of a creditor’s identity, amount financed, itemization of amount financed, APR, finance charges, total of payments, payment schedule, prepayment penalties and late payment fees.

• Creditors are liable for violation of the disclosure requirements, regardless of whether the borrower was harmed by the nondisclosure.

5) Equal Credit Opportunity Act (ECOA) prohibits discrimination of race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Park owners may consider a borrower’s immigration status in order to ensure the borrower will be in the country long enough to repay the loan. You may not ask borrowers if they receive child support or alimony payments unless you notify them that they need only to provide this information if it will be used in determining their ability to repay. We encourage park owners to create written loan guidelines with clear underwriting standards to avoid violating fair credit laws. If you make an exception to your loan guidelines, be sure to properly document the reason for the exception and add it to the borrower’s file.

6) The Red Flags Rule requires creditors to implement a written Identity Theft Prevention Program to detect the warning signs of identity theft. There are four major components necessary to be compliant with the Red Flags Rule.

• First - be able to identify patterns, practices, and activity that signal identity theft.

• Second - incorporate business practices that will detect identity theft, “Red Flags”. Park owners using our loan processing service can rest assured knowing all borrowers are run through a red flag checklist which is provided after the completion of our underwriting process.

• Third - detailed response for any red flags detected by red flags.

• Fourth - your program must be updated periodically to reflect any changes or additional information you’ve discovered that will help reduce identity theft.

As you may have heard, Blackhawk Capital Group has developed a comprehensive, customizable loan processing solution to meet the needs of manufactured housing community professionals selling homes on retail installment contracts. Our goal is to provide you with a full compliance solution so that you can continue doing what you do best without having to learn all of the lending laws. You continue to be the lender and after the loan closes, you also continue to service your own notes. We simply facilitate the part of the transaction that requires a licensed mortgage loan originator. We facilitate the delivery of every form and disclosure that you will need to ensure you are compliant with the lending laws in your state. Currently, we are providing loan processing services in 11 states including Oregon, Washington, California, Utah, Idaho, Nevada, Arizona, Florida, Colorado, Maryland and New Mexico.

Our standard fee per loan is $895; however, we are proud to offer MHCO member communities a discounted rate of $800. To take advantage of this discount please email kmonte@bhcapitalgroup.com and be sure to include in your email that you’re a member of MHCO.

Answer:  It you review the Oregon Revised Statutes in Chapter 90, the landlord-tenant section of the law, you will find no clear answer.[1]  The general rule is that landlords may pass through a utility provider’s charges[2] to the resident. The resident may verify the pass-through by examining the provider’s bill and may challenge it if the pass-through exceeds that amount charged to the landlord.

While the law does not require the landlord to do more than pass the increased charge through, good public relations suggest an explanation be given to each resident when the increase occurs.

As to the second issue about dealing with an increase after having already sent a monthly invoice for the lower amount. The best practice is to include the “catch-up” amount in the next immediate month’s utility bill with an explanation. And always remember to post the provider’s bill as required by ORS 90.582.

[Special thanks to John Van Landingham and Bill Miner on this issue. The absence of a law or rule in Oregon’s highly regulated landlord-tenant law always makes me check twice. John and Bill confirmed my research.]

[1] Remember that there are two sections dealing with utilities in residential tenancies:  ORS 90.315 for non-MHP tenancies and 90.560 to 90.584 for MHP tenancies. Also, remember that manufactured homes outside of MHPs and all recreational vehicles regardless of location are not treated as MHs and are therefore regulated exclusively by ORS 90.315.

[2] But nothing more than the amount charged by the provider.