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Industry experts on the panel noted that retaining people who are effective with coworkers and the public is an ongoing process. Periodic employment reviews and training programs are generally well received. Most people want to know how well they are doing and what needs to improve. Coaching by regional managers and outside consultants is critical to recognizing employment and operational issues and correcting them before they cause other problems.

Second "tip" is also simple and can be summarized in one word: Documentation. It is critical that your community have well prepared written rental agreements whether for a long-term or month-to-month tenancy. There are, of course, pros and cons to both forms of tenancy. Certainly, in a rent control jurisdiction, long-term leases are preferred. However, it is well understood that obtaining an economically viable long-term lease can be difficult in rent controlled communities because of the legislative constraints on tenant negotiations. To the extent a local jurisdiction has vacancy control it is critical to pay attention to those opportunities to offer suitable long-term lease agreements so that future rent increases are known by both the resident and the park.

Another form of documentation to consider is arbitration agreements. There are intense debates among lawyers, and even within the industry, about whether or not arbitration is a desirable means of conflict resolution. If arbitration is going to be pursued, however, it is critical that the arbitration agreements reference and be drafted in accordance with the Federal Arbitration Act. While the State of California has an arbitration statute, it is effectively useless in compelling arbitration in most circumstances in a mobilehome park context. Numerous appellate State court decisions, when deciding whether or not arbitration can be compelled under the state arbitration law, are uniform in declining to enforce landlord/tenant arbitration agreements.

Documentation also means due consideration of park rules. Park rules are the functional equivalent of covenants, conditions and restrictions created for residential developments such as condominiums and planned unit developments. California law requires that park/community rules be reasonable and that, of course, is key to any judicial enforcement. Park owners differ as to whether they prefer general rules or more detailed rules. Again, there are pros and cons to each. However, when it comes to enforcement, it is this writer's experience that more particular detailed rules are typically easier to enforce than a more vaguely worded general rule where "reasonable" discretion by the park's resident manager might be seen by a judge as being less objective or personal. The courts in California tend to err on the side of tenants and thus making sure documentation (Rules) are objectively reasonable can greatly aid in their enforcement.

Tip three is getting to know your customer/market. Understanding who wants to live in your park and why it is important to properly serve that segment of the public and the larger "neighborhood community".

Consistent with knowing your market and customer, is knowing your competition. A park's competition might be other manufactured housing communities or, possibly, nearby apartment complexes, duplexes and triplexes in the area. Knowing who is renting and at what price is critical to knowing if your park is offering all that it can at a competitive price.

A fourth issue noted by regional park managers is the need to conduct a thorough park assessment. Many of the larger owners in the industry have an annual reassessment of each community including what potential capital expenses and improvements might be required. An annual or semiannual assessment can be done in conjunction with a documented risk assessment and analysis. Reviewing a community's streets, curbs, gutters and any recreational amenities can help a community be prepared for accidents; weather cause events and the ever present potential for litigation. A proactive system of having maintenance logs and keeping records of what has been repaired, when, and by whom is critical in the event of a simple slip and fall accident or, more significantly, if a "failure to maintain" lawsuit is threatened. In California failure to maintain allegations are routinely made against many communities that, from all objective criteria, are well-maintained and are highly desirable places to live.

Capital improvement and risk analysis assessments also lead to insight as to how a community is evolving. Is there a plan for replacing or improving the current housing stock? To the extent the park has the ability to help renovate or replace older functionally obsolete housing is a plan being considered. In some areas of California, the options of potential closure or conversion to a resident owned community are worthy of discussion. In rent controlled communities it might be prudent to have park owned homes so as realize appropriate revenue from the park.

One final tip: manage your revenue properly. Successful park operations need to follow and have a well-defined timeframe and process for rent collections. How rents are collected, managed and deposited is critical to cash flow. An annual review of the community to understand whether reserved parking or storage facilities should be provided, for a fee, should be considered. A number of communities have added solar panels to parking areas that generate revenue and help offset electricity costs in the park. Whether or not the park accepts electronic payments and how it processes resident checks can be critical to cash management. Knowing when and where funds are spent is ultimately the reason that the investment is either successful or not.

Thanks to Mindy Parish from Hometown America and Tom Pacelli from J&H Management for their participation and insight as to how operations for community owners can be managed proactively and efficiently.

Bill Dahlin is a partner with the Southern California law firm of Hart King and a leader in the firm's Manufactured Housing Industry Practice Group. He can be reached at 714-432-8700, 714-619-7084 (direct dial) or bdahlin@hartkinglaw.com.

Below is a short summary of the ordinance. It should not be relied upon to the exclusion of consulting legal counsel or reading the ordinance yourself.

Termination of Tenancy in Park-Owned Homes.A Landlord may terminate a Rental Agreement without cause orfor a “qualifying landlord reason”[1]only by delivering a written notice of termination (the “Termination Notice”) to the tenant of:

• Not less than 90 days before the termination date designated in that notice as calculated under the Act; or
• The time period designated in the rental agreement, whichever is longer. 
• Not less than 45 days prior to the termination date provided in the Termination Notice, the landlord shall pay to the tenant, as “Relocation Assistance” a payment as follows: 
  • $2,900 for a studio or single room occupancy (“SRO”) Dwelling unit;
  • $3,300 for a one-bedroom dwelling unit;
  • $4,200 for a two-bedroom dwelling unit; and
  • $4,500 for a three-bedroom or larger dwelling unit. 
• (A landlord that declines to renew or replace an expiring lease or rental agreement is subject to the above provisions. These payments are intended to apply per dwelling unit, not per individual tenant.) 

Rent Increase Limitations For Park-Owned Homes. A landlord may not increase a tenant's rent or “Associated Housing Costs”[2]by 5 percent or more over a rolling 12-month period unless the landlord gives notice in writing to each affected tenant: 

• At least 90 days prior to the effective date of the Rent increase; or 
• The time period designated in the rental agreement, whichever is longer. 

The Increase Notice must specify:

• The amount of the increase;
• The amount of the new rent or Associated Housing Costs; and
• The date when the increase becomes effective.  

If, within 45 calendar days after a tenant receives an Increase Notice indicating a rent increase of 10 percent or more within a rolling 12-month period anda tenant provides written notice to the landlord of the tenant’s request for Relocation Assistance (the “Tenant’s Notice”), then:

• Within 31 calendar days of receiving the Tenant’s Notice, the Landlord shall pay to Relocation Assistance to the tenant in the amount that follows: 
• $2,900 for a studio or SRO Dwelling unit;
• $3,300 for a one-bedroom Dwelling unit;
• $4,200 for a two-bedroom Dwelling unit; and
• $4,500 for a three-bedroom or larger Dwelling unit.  

After the tenant receives the Relocation Assistance from the landlord, the tenant shall have 6 months from the effective date of the rent increase (the “Relocation Period”) to either:

• Pay back the Relocation Assistance and remain in the dwelling unit and shall be obligated to pay the increased Rent in accordance with the Increase Notice for the duration of the tenant’s occupancy; or
• Provide the landlord with a notice to terminate the rental agreement in accordance with ORS Chapter 90 (the Oregon Landlord-Tenant Act).  
• In the event that the tenant has not repaid the Relocation Assistance or provided the landlord with the tenant’s Termination Notice on or before the expiration of the Relocation Period, the tenant shall be in violation of this ordinance. 
• A landlord that conditions the renewal or replacement of an expiring lease or rental agreement on the tenant’s agreement to pay a rent increase of 10 percent or more within a rolling 12-month period is subject to the above provisions.  
• A landlord that declines to renew or replace an expiring lease or rental agreement on substantially the same terms except for the amount of rent or Associated Housing Costs is also subject to the above provisions. 
• (The above requirements are intended to apply per dwelling unit, not per individual tenant, and a tenant may only receive and retain Relocation Assistance once per tenancy per dwelling unit.)

MHCO Form 5E. For all park owners who are renting or leasing park-owned homes to tenants, the Portland ordinance requires that they include a description of a tenant’s rights and obligations and the eligible amount of Relocation Assistance for any of the following events:

• Issuance of a Termination Notice;
• Issuance of a Rent Increase Notice; and
• Payment of Relocation Assistance.

A copy of Form 5E on line at MHCO.ORG. It summarizes the litany or rights and duties imposed by the ordinance and should be delivered to the tenant in any of the above three events.

Exceptions. The Portland Ordinance 30.10.085 provides that Relocation Assistance does not apply to the following:

1.  Rental agreements for week-to-week tenancies;

2.  Tenants that occupy the same dwelling unit as the Landlord;

3.  Tenants that occupy one dwelling unit in a duplex where the landlord’s principal residence is the second Dwelling unit in the same Duplex;

4.  Tenants that occupy an Accessory Dwelling unit that is subject to the Oregon landlord-tenant law in the City of Portland so long as the owner of the Accessory Dwelling unit lives on the site;

5.  A landlord that temporarily rents out the Landlord's principal residence during the landlord's absence of not more than 3 years;

6.  A landlord that temporarily rents out the landlord’s principal residence during the landlord’s absence due to active duty military service;

7.  A dwelling unit where the landlord is terminating the rental agreement in order for an immediate family member to occupy the dwelling unit;

8.  A dwelling unit regulated as affordable housing by a federal, state or local government for a period of at least 60 years;

9.  A dwelling unit that is subject to and in compliance with the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;

10. A dwelling unit rendered uninhabitable not due to the action or inaction of a landlord or tenant;

11.  A dwelling unit rented for less than 6 months with appropriate verification of the submission of a demolition permit prior to the tenant renting the dwelling unit.

12.  A dwelling unit where the landlord has provided a fixed term tenancy and notified the tenant prior to occupancy, of the landlord’s intent to sell or permanently convert the dwelling unit to another use.

A landlord that fails to comply with any of the above requirements may be liable to the tenant for an amount up to 3 times the monthly rent as well as actual damages, Relocation Assistance, reasonable attorney fees and costs.

An Idle Thought For Park-Owned Homes. Why not sell them to a deserving, but cash-poor tenant? I’ll discuss issues with park owners doing exactly that and carrying back the security documents in a later article.

Once sold, many of these byzantine landlord-tenant ordinances and laws disappear, and the landlord is still protected in the event of the tenant’s default in space rent by using a cross-default provision in the security documents

Financing Your Community  

By:  J. DiMarco and Gerard D. DiMarco

Almost every community owner at some point in time will experience the need for financing of some kind. There have been many ups, downs, and complexities of the financial markets over the past 25 years, and the impact these fluctuations have had on available loans has been huge. In this article we will address some of the important issues that community owners may face during the lending process.

Lenders are back after the credit crunch of a few years ago

Since the financial crisis that began around 2007, the capital markets began to slowly re-emerge in late 2010 and early 201 for manufactured home community lending on a wide scale. Today's lending market, combined with historically low interest rates, is the strongest it has been in years. Lenders are eager to provide long term fixed rate, non-recourse loans with 30 year amortizations on manufactured home communities. We are currently helping a customer refinance a five year commercial mortgage-backed security (CMBS) loan that closed in March 2010 (our records indicate it was one of the nation's first CMBS loan post financial crisis) with a ten year fixed rate loan at less than 4.25%. The existing loan the borrower is paying off had a rate of 6.5%.

A few other real world examples include recently helping a client lock a ten year fixed rate loan at 3.51%! Additionally, another client just secured a 4.2% long term fixed rate, replacing a rate of 6.5% from the previous note. The market has improved dramatically!

There are currently numerous lending platforms and options available for community owners including conduit lenders (CMBS), life insurance companies, Fannie Mae, Freddie Mac, credit unions, and traditional bank loans. There are also a wide range of product options and features available in today's financial market including bridge lending, short term floating rate debt, interest only, mezzanine debt, and flexible prepayment options. With so many options available, finding loan that suits your specific needs as a manufactured community owner is possible.

How to obtain a mortgage

There are two major components that lenders review when analyzing a loan request; the guarantor, and the property itself. On the guarantor side, most lenders look for an individual to have a credit score of at least 600 and a sufficient net worth. Even though most of the loans we offer are non-recourse, our lenders still look for those minimum requirements. On the property side, as a general rule, our lenders require a minimum loan amount of $500,000, a minimum debt service coverage ratio of 1.25x, and paved roads. There are also numerous aspects to manufactured home communities that make them unique compared to other asset classes.

Every community can qualify for a loan!

We have financed deals with low occupancies, private utilities, and low populations. However, having a better understanding of what lenders prefer can be helpful in assessing your property, or a potential acquisition, in preparation for a new loan. The type of loan and benefits of the mortgage depend on the checklist" of items a lender reviews. Some of the key components that determine the rate and terms of a loan include:

• Community quality
• Borrower experience and equity
• Loan-to-value (LTV)
• Financial and occupancy trends of the property
• Infrastructure quality - roads

Financing Your Community

Feature Article: Anthony J. DiMarco and Gerard D. DiMarco

Almost every community owner at some point in time will experience the need for financing of some kind. There have been many ups, downs, and complexities of the financial markets over the past 25 years, and the impact these fluctuations have had on available loans has been huge. In this article we will address some of the important issues that community owners may face during the lending process.

Lenders are back after the credit crunch of a few years ago

Since the financial crisis that began around 2007, the capital markets began to slowly re-emerge in late 2010 and early 201 for manufactured home community lending on a wide scale. Today's lending market, combined with historically low interest rates, is the strongest it has been in years. Lenders are eager to provide long term fixed rate, non-recourse loans with 30 year amortizations on manufactured home communities. We are currently helping a customer refinance a five year commercial mortgage-backed security (CMBS) loan that closed in March 2010 (our records indicate it was one of the nation's first CMBS loan post financial crisis) with a ten year fixed rate loan at less than 4.25%. The existing loan the borrower is paying off had a rate of 6.5%.

A few other real world examples include recently helping a client lock a ten year fixed rate loan at 3.51%! Additionally, another client just secured a 4.2% long term fixed rate, replacing a rate of 6.5% from the previous note. The market has improved dramatically!

There are currently numerous lending platforms and options available for community owners including conduit lenders (CMBS), life insurance companies, Fannie Mae, Freddie Mac, credit unions, and traditional bank loans. There are also a wide range of product options and features available in today's financial market including bridge lending, short term floating rate debt, interest only, mezzanine debt, and flexible prepayment options. With so many options available, finding loan that suits your specific needs as a manufactured community owner is possible.

How to obtain a mortgage

There are two major components that lenders review when analyzing a loan request; the guarantor, and the property itself. On the guarantor side, most lenders look for an individual to have a credit score of at least 600 and a sufficient net worth. Even though most of the loans we offer are non-recourse, our lenders still look for those minimum requirements. On the property side, as a general rule, our lenders require a minimum loan amount of $500,000, a minimum debt service coverage ratio of 1.25x, and paved roads. There are also numerous aspects to manufactured home communities that make them unique compared to other asset classes.

Every community can qualify for a loan!

We have financed deals with low occupancies, private utilities, and low populations. However, having a better understanding of what lenders prefer can be helpful in assessing your property, or a potential acquisition, in preparation for a new loan. The type of loan and benefits of the mortgage depend on the checklist" of items a lender reviews. Some of the key components that determine the rate and terms of a loan include:

• Community quality
• Borrower experience and equity
• Loan-to-value (LTV)
• Financial and occupancy trends of the property
• Infrastructure quality - roads

Financing Your Community

Feature Article: Anthony J. DiMarco and Gerard D. DiMarco

Almost every community owner at some point in time will experience the need for financing of some kind. There have been many ups, downs, and complexities of the financial markets over the past 25 years, and the impact these fluctuations have had on available loans has been huge. In this article we will address some of the important issues that community owners may face during the lending process.

Lenders are back after the credit crunch of a few years ago

Since the financial crisis that began around 2007, the capital markets began to slowly re-emerge in late 2010 and early 201 for manufactured home community lending on a wide scale. Today's lending market, combined with historically low interest rates, is the strongest it has been in years. Lenders are eager to provide long term fixed rate, non-recourse loans with 30 year amortizations on manufactured home communities. We are currently helping a customer refinance a five year commercial mortgage-backed security (CMBS) loan that closed in March 2010 (our records indicate it was one of the nation's first CMBS loan post financial crisis) with a ten year fixed rate loan at less than 4.25%. The existing loan the borrower is paying off had a rate of 6.5%.

A few other real world examples include recently helping a client lock a ten year fixed rate loan at 3.51%! Additionally, another client just secured a 4.2% long term fixed rate, replacing a rate of 6.5% from the previous note. The market has improved dramatically!

There are currently numerous lending platforms and options available for community owners including conduit lenders (CMBS), life insurance companies, Fannie Mae, Freddie Mac, credit unions, and traditional bank loans. There are also a wide range of product options and features available in today's financial market including bridge lending, short term floating rate debt, interest only, mezzanine debt, and flexible prepayment options. With so many options available, finding loan that suits your specific needs as a manufactured community owner is possible.

How to obtain a mortgage

There are two major components that lenders review when analyzing a loan request; the guarantor, and the property itself. On the guarantor side, most lenders look for an individual to have a credit score of at least 600 and a sufficient net worth. Even though most of the loans we offer are non-recourse, our lenders still look for those minimum requirements. On the property side, as a general rule, our lenders require a minimum loan amount of $500,000, a minimum debt service coverage ratio of 1.25x, and paved roads. There are also numerous aspects to manufactured home communities that make them unique compared to other asset classes.

Every community can qualify for a loan!

We have financed deals with low occupancies, private utilities, and low populations. However, having a better understanding of what lenders prefer can be helpful in assessing your property, or a potential acquisition, in preparation for a new loan. The type of loan and benefits of the mortgage depend on the checklist" of items a lender reviews. Some of the key components that determine the rate and terms of a loan include:

• Community quality
• Borrower experience and equity
• Loan-to-value (LTV)
• Financial and occupancy trends of the property
• Infrastructure quality - roads

This article is general in nature and is not intended as legal advice for any specific issue that might arise, since every situation is different. Always consult a knowledgeable landlord attorney with your specific legal issues.

The Chief Justice of the Oregon Supreme Court issued a statewide Order yesterday significantly restricting court operations in all counties beginning no later than March 19, 2020. All eviction case 1st appearance hearings and all eviction trials will be automatically postponed and rescheduled by the court through at least March 27, 2020, although subject to extension even beyond that date depending on conditions at the time. For postponed trials, landlords may file a motion with the court requesting that the tenant pay rent into court pending trial, although the court will have discretion on whether to grant any such motion.

The Chief Justice’s Order does not prohibit landlords from issuing eviction notices or filing eviction cases during this period (BUT SEE Multnomah County restrictions below). However, any new eviction cases filed during this time will not be set for a 1st appearance hearing until after March 27, 2020, and likely much longer after that date.

The Order allows each county court to decide for itself which in-person services it must continue to provide to the public. This means that each court has some discretion on whether to allow in-person filings, or to continue issuing Notices of Restitution and Writs of Execution to complete the eviction process on existing eviction cases. Landlords should check with their local circuit court to see if these eviction services will be offered during the shutdown (and check with the county sheriff’s office as well).

Multnomah County today issued a temporary moratorium on all residential evictions based on the nonpayment of rent due to wage loss resulting from COVID-19. To be eligible, an affected tenant must be able to demonstrate with documentation or other objectively verifiable means a “substantial loss of income” resulting from the pandemic and/or government restrictions. The tenant must notify the landlord with this information on or before the day that rent is due to be eligible for rent deferment. The tenant is not relieved from paying rent, but must pay accrued rent to the landlord within six months after expiration of this emergency (and landlords cannot assess late fees).

The Multnomah County moratorium does NOT prohibit landlords from issuing or filing eviction cases on for-cause eviction notices or other lawful (non-rent related) notices during this period. However, all court hearings on eviction proceedings will be suspended until April 30th or later, and the moratorium prohibits the Multnomah County Sheriff’s Office from executing on a currently-pending eviction judgments for nonpayment of rent if it would cause a person to be without housing. The Multnomah County Attorney will be drafting an ordinance that will impose retroactive fines and penalties for violation of the moratorium measures. SINCE THIS IS A FLUID SITUATION, LANDLORDS SHOULD CHECK WITH YOUR LOCAL CIRCUIT COURT AND/OR ATTORNEY BEFORE PROCEEDING ON ANY EVICTION ACTION.

The House Financial Services Committee Passes Bipartisan Legislation to Protect the Availability of Financing for Manufactured Homes (Editor's Note: As mentioned in the earlier article with the passage of similar legislation pending in the US Senate, MHCO is working with the Oregon Congressional delegation to ensure passage of this critical legislation.)

Washington, DC - The U.S. House Financial Services Committee today passed the bipartisan Preserving Access to Manufactured Housing Act (H.R. 1779) to protect the ability of manufactured home customers to buy, sell and refinance affordable manufactured homes, the largest form of unsubsidized affordable housing in the nation. Specifically, the bill would amend the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) to address the criteria by which home loans are classified "high-cost" while keeping in place strong consumer protections. Sponsored by Representatives Stephen Fincher (R-TN), Bennie Thompson (D-MS), and Gary Miller (R-CA), the bill is also supported and cosponsored by an additional 110 House Members on both sides of the aisle.

"The ability to access affordable manufactured homes is vital to millions of low- and moderate-income Americans, and our industry is also an important economic driver and job creator in many communities across the country," said Nathan Smith, Chairman of the Manufactured Housing Institute. "This legislation would ensure that manufactured housing remains a viable affordable housing option, particularly in rural, distressed and underserved areas. We urge the full House of Representative to move swiftly to consider this important legislation." The Consumer Financial Protection Bureau (CFPB), through a rulemaking process required under Dodd-Frank, deemed that all purchase loans-including mortgages on manufactured homes considered personal property-be covered by the Home Ownership and Equity Protection Act (HOEPA). Under these guidelines, many small-balance loans used for the purchase of affordable manufactured housing are now unfairly classified as predatory and high-cost. Unfortunately, the CFPB failed to recognize the uniqueness of manufactured home loans compared to the rest of the housing industry.

While the cost of originating and servicing a $250,000 loan and a $25,000 loan are the same in terms of real dollars, the cost as a percentage of each loan's size is significantly different. This difference causes the smaller-sized manufactured home loan to potentially exceed the new thresholds and be categorized as a HOEPA high-cost loan.

Due to the increased lender liabilities associated with making a HOEPA high-cost loan, it is unlikely that these loans will be offered to homebuyers, denying access to necessary credit for new and existing manufactured homes. In fact, industry lenders have already stopped originating loans of less than $20,000 as a result of the new rule. According to the American Housing Survey, roughly half of the nation's 8.5 million manufactured homes have a purchase price of less than $30,000.

Manufactured home loans perform just as well, if not better, than loans on site-built counterparts and are serviced in a responsible and consumer-friendly manner. This is evidenced by delinquency rates among manufactured housing lenders that are half of what is reported in the larger mortgage market.

Eliminating this important source of financing would unfairly penalize low and moderate-income homebuyers who do not qualify for traditional mortgage financing needed for single family home ownership; do not have access to limited government-insured and GSE secondary market programs; or live in rural areas where affordable rental housing is scarce or non-existent. Additionally, millions of families could see the equity they have diligently built up in their manufactured homes wiped out because lenders would be unwilling to provide the financing needed for resale.

"Homeowners who purchased safe, energy efficient homes that they can afford rather than taking out a loan they could not pay back should not be punished, and we are thankful so many lawmakers have backed this effort to protect the more than 22 million Americans living in manufactured homes," added Smith.

The bipartisan legislation would also clarify that manufactured home retailers and salespersons would not be considered loan originators unless they receive compensation from a lender, mortgage broker or loan originator. The new CFPB definition of a loan originator is based on traditional mortgage market roles that do not equate with the business model of the manufactured housing industry, including lending and retail sales practices.

A similar bipartisan bill has been introduced in the Senate, the Preserving Access to Manufactured Housing Act of 2013 (S. 1828), by Senators Joe Donnelly (D-IN) and Tom Coburn (R-OK).

Answer: Under ORS 90.675(20), death of a resident living alone triggers the abandonment procotols.

1. First you need to determine if there is a personal representative ("PR") named in a will or appointed by a court to act for the deceased tenant. If not, is there a person designated in writing by the tenant to be contacted in the event of their death. (Of course, the best practice is to have this information, in advance, for all residents living alone.)
2. If you do not have any contact information, you may have to do some research, which means checking the decedent's rental application, or checking with neighbors. My experience is that when an older person passes away, relatives and others come out of the woodwork. Eventually you will need to identify some person who is willing to assume responsibility for the decedent's property.
3. There is such a thing as a Small Estate Probate, and most counties have the available forms. That would be the best approach for the responsible person to go through.
4. However, note that as a landlord/manager, your job is to get the space re-rented, either by a sale of the home to an approved resident, or removal of the home and re-siting of another.
5. The 45-day abandonment letter must be sent by first class mail to the deceased tenant at the premises, and personally delivered or sent by first class mail to the PR or designated person, if actually known to you. (Note: The 45-day letter must refer to the personal representative or designated person, instead of the deceased tenant.)
6. If the PR or designated person, or other person entitled to possession of the property, such as an heir, responds to you by actual notice (E.g. verbal contact, phone call, email, fax, etc.) within the 45-day period set forth in the 45-day letter, and requests to enter into a written Storage Agreement, you must do so.
7. The written Storage Agreement should provide that the home and personal property may not be sold or disposed of for up to 90 days, or until the conclusion of any probate proceedings, whichever is later.
8. The written Storage Agreement entitles the PR or designated person to store the personal property on the space during the term of the agreement, but does not entitle anyone to occupy the home. You should secure it, even if it means changing the current locks. You duty commences the moment you send the 45-day letter.
9. If a written Storage Agreement is signed by yourself and the responsible party, you may not enter into another such agreement with the lienholder until the signed until the agreement with the personal representative or designated person ends.
10. During the term of the Storage Agreement, the PR or designated person has the right to remove or sell the home and personal property (including a sale to a purchaser, or a transfer to an heir who wishes to leave it on the rented space and become a tenant - subject to the approval of background information that you have as a landlord or manager under ORS 90.680).
11. You may condition approval for occupancy of any purchaser or heir upon payment of all unpaid storage charges and maintenance costs.
12. If the PR or designated person violates the signed Storage Agreement, you may terminate it by giving at least 30 days written notice stating facts sufficient to notify him/her of the reason for the termination. Unless the PR or designated person corrects the violation within the 30-day period, the Storage Agreement will be terminated, and you may sell or dispose of the home and property without further notice to them.
13. Upon the failure of a PR or designated person to enter into a written Storage Agreement, or upon termination of the Storage Agreement, you may sell or dispose of the property pursuant to the statute (ORS 90.675) without further notice to them (unless the parties otherwise agree, or the PR or designated has already sold or removed the property).

Answer. Oregon law requires that unless exempted, an individual must use a "mortgage loan originator" ("MLO") [e.g. mortgage bankers or mortgage brokers] license if he/she:

• Takes a residential mortgage loan application; or
• Negotiates the terms or conditions of a residential mortgage loan.

It is the second of these two requirements that affect you as a park owner re-selling formerly abandoned homes. You must either use a MLO or be covered by an exemption. However, as you will see under the Oregon MLO laws below, the statute is not limited only to "abandoned homes" - just "previously owned homes."

The Safe Act. The federal Secure and Fair Enforcement for Mortgage Lending Act ("S.A.F.E. Act") of 2008 requires that MLOs register with the Oregon Department of Business and Consumer Services ("DCBS"). As required by the S.A.F.E. Act, all states must adopt their own set of laws governing MLOs. Oregon's version is found at ORS 86A.200 to 86A.239. The Consumer Finance Protection Bureau (CFPB"), a Dodd- Frank created mega-agency, and DCBS have taken the position that the S.A.F.E. Act applies not only to third-party loans, but also to seller-carried transactions, including manufactured homes both inside and outside of parks.

Oregon MLO Laws. An individual may not engage in business as a mortgage loan originator in Oregon without first:

• Obtaining and maintaining a MLO license; and
• Obtaining a unique identifier from the Nationwide Mortgage Licensing System and Registry ("NMLS").

Oregon Exemptions to MLO Laws:

• A registered MLO acting within the scope of their employment;
• One who offers or negotiates terms of a residential mortgage loan with or on behalf of the individual's spouse, child, sibling, parent, grandparent, grandchild or a relative in a similar relationship with the individual that is created by law, marriage or adoption;
• One who offers or negotiates terms of a residential mortgage loan that is secured by a dwelling that served as the individual's residence;
• An Oregon-licensed attorney [subject to limitations]:
• An individual licensed as a manufactured structure dealer under ORS 446.691 and who:
  • Offers or negotiates terms of a residential mortgage loan related to a sale for occupancy of a previously owned manufactured dwelling in a manufactured dwelling park three (3) or fewer times in any 12- month period; and
  • Uses a written sale agreement form with the purchaser that: (a) complies with the requirements of ORS 646A.050, 646A.052 and 646A.054; (b) with any applicable administrative rules; and (c) any other applicable requirements for residential mortgages for manufactured dwellings.
  • Note: This exemption does not permit the individual to hold more than eight (8) residential mortgage loans at any one time.
• An individual who is licensed as a limited manufactured structure dealer, and who:
  • Has an ownership interest in a manufactured dwelling park;
  • Offers or negotiates terms of a residential mortgage loan related to a sale for occupancy of a previously owned manufactured dwelling in any manufactured dwelling park in which the individual has an ownership interest, five (5) or fewer times in any 12-month period; and
  • Uses a written sale agreement form with the purchaser that: (a) complies with the requirements of ORS 646A.050, 646A.052 and 646A.054, (b) with any applicable administrative rules, and (c) with any other applicable requirements for residential mortgages for manufactured dwellings.
  • This exemption does not permit the individual to hold more than twelve (12) residential mortgage loans at any one time.
• An employee of a licensed manufactured structure dealer is not subject to the MLO licensing requirements if the employee:
  • Performs only administrative or clerical tasks; and
  • Receives only a salary or commission that is customary among dealers and employees of dealers.
• An employee of a dealer may become subject to the licensing provisions if the CFPB determines, in a guideline, rule, regulation or interpretive letter that this exemption granted is inconsistent with requirements set forth in 12 U.S.C. 5101 et. seq. (S.A.F.E. Act)

Answer: Does the former tenant have issues other than his lack of fiscal responsibility? You could prevent him from being a temporary occupancy based upon prior conduct, etc., but not regarding his failure to pay rent, since "in theory" a temporary occupant is not one who is sharing rent, etc. The statute (ORS 90.275) does not permit you to vet a person's financial/employment status if they want to be a temporary occupant. If the guy has other negative issues, you can decline to put him on a temporary occupancy agreement if they are substantial and material.

The following is a summary of a recent conversation I had with the Fair Housing Council of Oregon on the issue of whether landlords can put "caregivers" on Temporary Occupancy Agreements, rather than putting them on a Rental Agreement (or not putting them on any written agreement - which leaves in doubt their legal status if the Landlord wants them removed from the Community).

1. If the assistance provider doesn'tqualify based on the background check[1] then you don't have to accept them into the Community;
2. If they violate rules of the community when they are already in the Community you can require they leave. (Of course if they are not on an Occupancy Agreement, this could mean removing the tenant if the caregiver refuses to leave, and the tenant doesn'tforce them to do so);

• You can pre-qualify the current tenant as to their need for a care provider, i.e. require a letter or similar proof from a doctor or someone, saying the tenant needs someone 24/7;
• If they can't provide that proof, then you don't have to allow them into the Community as a care provider (although I can't imagine it would be very hard to obtain such proof);
• You have to give the current tenant a choice (assuming the person qualifies under the background check), i.e. they can be on an Occupancy Agreement or go onto a Rental Agreement. You can't automatically say, "OK, you must go on an Occupancy Agreement."
• It is believed that if the tenant understands the risk of allowing the caregiver to be a tenant (i.e. if the caregiver is disruptive, the current tenant may have to leave also), that they will voluntarily opt to put the person on the Occupancy Agreement. (Note: This doesn'taddress the problem where the person doesn'tfinancially qualify to be on the Rental Agreement, but I suspect FHCO would say it's a "reasonable accommodation" by the landlord to waive that financial requirement.) This approach may be slightly unrealistic in those cases in which the tenant wants the caregiver there, and defers to what the caregiver says.

Your alternatives seem to be the following:

• If the current tenant wants them to be a care provider, can he/she establish its legitimacy? If not, you can say no.
• If the current tenant wants them as a temporary occupant, and they have been a problem in the park you can say no; I believe this is so, even though they try to go the care provider route.
• If the current tenant wants them as a "tenant" you can say no because they do not have the financial capacity to pay rent (remember, you couldn'tsay that if they were to be a temporary occupant).
• If you do agree to make them a temporary occupant, have everyone sign the Temporary Occupancy Agreement and put him on a 3 or 6 month term, to see how it goes. You are under no obligation to renew - but if they are serving as a care provider on a Temporary Occupancy Agreement, you'd probably have difficulty not renewing unless there was a specific problem. (But if there was a specific problem, you likely would have already removed them. Getting temporary occupants must be "for cause" e.g. a rules violation, but there is no 30-day right to cure.)

[1] Remember, you cannot require financial capacity if they are to be a temporary occupant, but you can if they are to be a tenant.