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Phil Querin Q&A: RVs in RV Park Under the New Rent Control Law

Phil Querin

Answer: RVs are not treated the same as manufactured homes. They are subject to the general landlord-tenant law (as opposed to the manufactured housing side of that law). This means that if an RV tenant is renting the space on a month-to-month basis, you cannot increase the rent during the first year, and after that only with the issuance of a 90-day written notice. Also, after the first year, you cannot terminate without cause.

Phil Querin Q&A: Resident Refuses to Pay Rent Increase for Last 6 Months

Phil Querin

Answer: The answer lies squarely in ORS 90.394 (Termination of rental agreement for failure to pay rent.) In summary, the statute provides as follows:


  • You deliver to the resident 72 hours' written notice of nonpayment. You would use MHCO Form 42.
  • You serve or mail the notice no sooner than the eighth day of the month (assuming rent is due on the first of the month).
  • The Notice would specify the amount of rent that must be paid, i.e. the six months' unpaid rent increase sum, which, at $20/month, equals $120.
  • You would specify the date and time by which the resident must pay the rent to cure the nonpayment of rent default.
  • Payment by a tenant who has received a notice under this section is timely if mailed to the landlord within the period of the Notice.
    • If the Notice is to be personally served on the resident, payment is timely if made within at least 72 consecutive clock hours immediately following service, as provided in ORS 90.155 (1)(a);
    • If the notice is sent by first class mail and attachment, payment is timely if made by 11:59 PM, 72 hours or 144 hours, as the case may be, after the time started to run at 11:59 on the date the Notice was both attached and mailed, as provided in ORS 90.155 (1)(c);
    • If the Notice is mailed via regular first class mail, payment is timely if made within by 11:59 PM on the sixth calendar day following the date of mailing the Notice (i.e. 72 hours plus three additional days for mailing) as provided by ORS 90.155 and ORS 90.160.
  • If the resident does not pay the $120 after proper service of the 72-hour notice, your only alternative is to file for eviction under ORS 105.105 et seq. I imagine if it comes to that, the matter will be settled in the hallway at the first appearance when the resident comes to understand you mean business.

Phil Querin Q&A: Two Questions on Children in Parks

Phil Querin

Answer 1: Generally, no. However, this isn'ta license to be rude to them. Let's start with the basics: If you are a legal 55+ community, you are not required to admit as residents, persons with children, i.e. those under the age of 18. If there are children in the community (perhaps before the facility converted to 55+, or simply because less than 20% of all spaces are occupied by persons with children), the park may do things that it could not do if it was a family park, such as prohibit children's Big Wheels and bicycles in the street. Generally, however, the best approach is to strive for 100% compliance with the 55+ laws in terms of occupancy. If you want to be a "safe" 55+ community, you will have rules that expressly say so; a rental/lease agreement that expressly says so; application and tenant home sale provisions that limit spaces to at least one occupant 55+; and generally hold yourself out in all advertising as a 55+ community. Of course, seniors are permitted to bring children (e.g. grandchildren, etc.) into the community, but the rules may place limits on the amount of time they may remain there.

Answer 2: You need to go through the formal rule change process described in the statute. A rule that is not legally enacted, isn'treally an enforceable rule. However, you should immediately issue a written notice to all residents that based upon legal advice, those rules (identifying them) that appear to be discriminatory against children, will not be enforced. If you own a family park and are concerned that your rules may appear to "target" children, you should consult with your attorney for advice on how to proceed. Note that even if your rules don't appear to target children, if they, in fact, affect the activities of children more heavily than adults, they could still be deemed to be discriminatory (e.g. occupancy limits). And if you are a family park, but you have over 80% of the spaces occupied by at least one person age 55 or over, you should ask your attorney about "converting" to become a legal 55+ community. Until you do, even though 99% of the community's spaces are occupied by seniors, you're still a family park, and subject to the anti-discrimination laws protecting children.

 

Phil Querin Q&A: Meth User and Eviction

Phil Querin

Answer: You are correct that ORS 90.630 may only be used to give residents notice of a violation and an opportunity to cure. This is not so say you couldn'tuse a 30-day notice in this case, but the "cure" would be for the resident to stop possessing the meth, which would be highly difficult to verify. Moreover, in many cases, the possession of meth can be accompanied by other activities that can pose health, safety, welfare, and peaceable enjoyment, issues to the other residents of your community.


ORS 90.396(1) provides in relevant part:


Except as provided in subsection (2) of this section, after at least 24 hours written notice specifying the acts and omissions constituting the cause and specifying the date and time of the termination, the landlord may terminate the rental agreement and take possession as provided in ORS 105.105 (Entry to be lawful and peaceable only) to 105.168 (Minor as party in proceedings pertaining to residential dwellings), if:

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(f) The tenant, someone in the tenants control or the tenants pet commits any act that is outrageous in the extreme, on the premises or in the immediate vicinity of the premises. For purposes of this paragraph, an act is outrageous in the extreme if the act is not described in paragraphs (a) to (e) of this subsection [i.e. committing serious injury to persons and property in the community, etc. - PCQ], but is similar in degree and is one that a reasonable person in that community would consider to be so offensive as to warrant termination of the tenancy within 24 hours, considering the seriousness of the act or the risk to others. An act that is outrageous in the extreme is more extreme or serious than an act that warrants a 30-day termination under ORS 90.392 (Termination of rental agreement by landlord for cause). Acts that are outrageous in the extreme include, but are not limited to, the following acts by a person:

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(B) Manufacture, delivery or possession of a controlled substance, as described in ORS 475.005 (Definitions for ORS 475.005 to 475.285 and 475.752 to 475.980), but not including [Oregon marijuana exceptions - PCQ]... .(Underscore mine.)






Note that ORS 90.396(1)(f)(B) expressly says that the manufacture, delivery, or possession of a controlled substance constitutes an act that is "outrageous in the extreme." Accordingly, it is not proscribed conduct that is open to debate about whether it may be "cured" within thirty days. Illegal drug possession is considered an automatic violation of the law.


Accordingly, the use of a 24-hour notice (MHCO form # ), would be appropriate in this case. However, just because the statute and form refer to "24-hours" does not mean you must require the resident to vacate within that time. It just means you cannot give less than 24-hours' notice.


This answer assumes that the resident's possession occurred '_on the premises (i.e. the space) or in the immediate vicinity of the premises." If not, that is, while he was arrested inside the community, the possession occurred outside of the community, your reliance ORS 90.396(1)(f)(B) would be inappropriate and would likely fail.


Additionally, based on your question, I cannot tell if the resident is causing any other problems in the community. Nor can I tell if he is - or will shortly be - in jail. Assuming that he is released and comes back into the community, you could give him the 24-hour notice, but provide the time period for compliance to be a few days, which would perhaps allow him the ability to relocate, rather than be out on the street. Based upon the urgency of having him out - assuming he returns - this call is up to you.

Legislative Update November 2014 - Unpaid Taxes Abandoned Homes and More ...

The Manufactured Housing Landlord Tenant Coalition met earlier this week to continue negotiations on a variety of issues.  Here is a summary of what is moving, what is not and what still needs to be discussed as we prepare for the 2015 Oregon Legislative Session.

Abandoned Manufactured Home and Back Taxes

The coalition further discussed the abandoned home back tax" issue that MHCO negotiated with the Oregon Tax Assessors earlier last month.  The Oregon Department of Revenue expressed concerns about the agreement specifically as it impacts tax revenue from the Oregon Senior Deferral program.  The Oregon Department of Revenue typically has liens on 40 abandoned homes a year.  Moving forward the coalition will need to identify back taxes that are owed to the State of Oregon and back taxes owed to Oregon Counties.  We hope to have proposed language addressing this issue ready next month. 

One additional concern expressed by a MHCO Board Member was clarification of when the community owner acquires the title of the abandoned home.  Community owners will be reluctant to make the necessary improvements in an abandoned home if there is any question regarding the transfer of title.  The general consensus is that this needs to happen early in the process and be defined in statute.

Overall we are pleased that all parties remain committed to eliminating the community owner's responsibility to pay back taxes on an abandoned home. 

Changes to Annual Special Assessment on Park Residents and Community Registration Fee

As we have mentioned in earlier Legislative Updates

Rent Control Hearing Monday, Februay 4th at 3 PM Hearing Room 'B'

  The Oregon Legislature has scheduled a public hearing on SB 608 (Rent Control - Elimination of No Cause Eviction) for Monday, February 4, 2019 at 3 PM at the Oregon State Capitol, Hearing Room 'B', Oregon Senate Committee on Housing.This is an "all hands on deck" for owners of manufactured housing communities.  This legislative proposal has the potential to make grave changes to Oregon Landlord/Tenant law and is by far the most serious threat we have faced in the last two decades. SB 608 limits rent increases to an annual 7% +CPI and it would also eliminate 'no cause evictions'.We need manufactured home community owners to be involved - either by attending or testifying and sending written testimony to the Senate Committee members.  Please plan on attending even if you are not testifying.  No one else is going to stand up for YOUR rights and YOUR livelihood.  Testimony will be limited to 2 minutes.  There will be a sign up sheet in Hearing Room 'B'.  Chuck will be either in the Hearing Room or hallway outside the hearing room and will be happy to point you in the right direction.  Erica will be at the Capitol Information Kiosk between the Capitol rotunda and hearing rooms.  She will have tags for you to wear to indciate you are an opponent of the bill.Written Testimony:  Over the years we have found the most effective testimony against bad legislation is to simply tell your story - the sacrifice and challenges you face in providing affordable housing.  Please send emails to the Senators listed below and to the committee public record (the last e-mail listed below).  Finally, be sure to include "SB 608 - Oppose" in the title of your email.Senate Members of the Senate Housing Committee:Senator Shemia Fagan - Chair 
Democrat - District 24 - Portland
Email: Sen.ShemiaFagan@oregonlegislature.govSenator Fred Girod - Vice Chair
Republican - District 9 - Stayton
Email: Sen.FredGirod@oregonlegislature.govSenator Jeff Golden
Democrat - District 3 - Ashland
Email: Sen.JeffGolden@oregonlegislature.gov

Senator Tim Knopp
Republican - District 27 - Bend
Email: Sen.TimKnopp@oregonlegislature.gov

Senator Laurie Monnes Anderson
Democrat - District 25 - Gresham
Email: Sen.LaurieMonnesAnderson@oregonlegislature.gov

To submit your testimony or exhibits for the public record (strongly recommended) please send to:  shous.exhibits@oregonlegislature.gov   Note: Please use discretion with your personal information in written testimony (i.e., do not add personal information you do not want the public to see). All meeting materials, including your name and any personal information contained in the submitted documents, are posted to the Oregon Legislative Information System (OLIS) and are accessible to all major search engines, including Google, Bing, and Yahoo. If you have any questions or concerns please contact the MHCO Office at 503-391-4496.

Refusing Housing Vouchers Is Source of Income Discrimination

Manufactured Housing Communities of Oregon

On the national level, while landlords won roughly two of every three cases in 2023, the most significant fair housing case of the year was a landlord loss. It involved what is rapidly becoming a major source of fair housing litigation, namely, source of income discrimination, which occurs when a landlord excludes an applicant or tenant who has the money to pay rent because of where that money comes from.

      Although source of income isn’t a protected class under the FHA, the contention is that excluding recipients of child support, Section 8 vouchers, unemployment benefits, veterans benefits, etc., has a disparate and discriminatory impact on the disabled and people of certain races, national origins, etc., who disproportionately rely on these sources of income. Source of income is also a protected class under the fair housing laws of over 80 cities and 20 states.

      Situation: A nonprofit housing group brought a massive lawsuit accusing real estate agents, brokerage firms, management companies, and landlords of violating New York City and State source of income discrimination laws. Based on the use of testers, the group claimed that the defendants refused to accept City vouchers that enable prospective tenants with income at or below 200 percent of the federal poverty level to rent apartments. The defendants denied the allegations and challenged the group’s “standing”—that is, legal status to bring the case.

      You Make the Call: Did the group have a valid claim for source of income discrimination?

      Answer: Yes

      Ruling: The New York court denied the defendants’ motion for summary judgment, concluding that there was ample evidence supporting the group's claims, including the alleged remarks of a leasing agent that the landlord was looking for an “excellent applicant” for a rent-stabilized apartment and wouldn’t accept City vouchers for the unit [Housing Rights Initiative, Inc. v. Elliman, Index No. 154472/2022, 2023 NY Slip Op 31496(U)(Sup. Ct. NY; 5/2/23)].

      Takeaway: You have every right to establish income criteria and screen prospects to ensure they meet them. If they’re not financially qualified, you may reject them. What you may not do is reject those who do meet your income criteria because of the kind of income they have. More specifically, you can’t exclude qualified prospects simply because they’re unemployed, hold housing vouchers, or receive other forms of financial assistance other than wages. Avoiding source of income discrimination means being prepared to accept not just wages but any and all forms of legal income.

      The Elliman case also exposed potential blind spots in fair housing compliance training. There was evidence that real estate brokers turned away callers who indicated that they would be using vouchers to pay rent because they were seeking units in luxury buildings. You can’t afford to live in this property and should seek an apartment in a building where vouchers are accepted, the brokers allegedly said. These remarks violated fair housing laws banning statements indicating a preference or exclusion of persons from housing based on a protected class. You need to ensure that your own leasing agents don’t say or believe such things. 

      DEEP DIVE

      States that Have Banned Source of Income Discrimination

      States that have adopted laws banning source of income discrimination in housing include:

      • California
      • Connecticut
      • Colorado
      • Delaware
      • District of Columbia
      • Hawaii
      • Maryland
      • Massachusetts
      • Minnesota
      • New Jersey
      • New York
      • North Dakota
      • Oklahoma
      • Oregon
      • Rhode Island
      • Texas (covers homeowners associations only)
      • Utah
      • Vermont
      • Virginia
      • Washington
      • Wisconsin (doesn’t cover housing vouchers)

        Rental Application Process (Part 2 of 6): Documents to Provide Prospective Residents; Screening Criteria

        Documents Provided To Prospective ResidentsIn addition to the Statement of Policy which includes copies of the rules and rental agreement, you should provide the applicant the following:o Criminal check authorization o Resident applicant screening fee should be acquired prior to accepting the individual as a resident. Application Screening Fee and Receipt" form is to be signed by a manager when applicant's fees are accepted.o The landlord must give written notice of what the tenant screening or consumer credit report entails

        Phil Querin Q&A: Landlord Liability For Non-Residential Structures Located On Space

        Phil Querin

        Answer. There is no such form. Perhaps there should be. But first, let's address some threshold issues, such as:

        • Who owns the structure?
        • Who has the duty to maintain it?
        • What happens to it when the tenant vacates the space?
        • Who would likely be held liable for injuries to persons/property using the structure?

        If the structure was there when the resident first rented or leased the space, there isn'tmuch question but that the landlord "owns" it, if it remains there when the space is re-rented or re-leased. Although most rental/lease agreements and rules require the resident to "maintain" the space, in most instances, the text of these provision generally apply to landscaping-type activities. If the structure is expressly identified in the park documents, and allocates maintenance responsibility to the resident, then the issue is clearer. But it is my opinion that if the documents are silent about park-owned structures on the space, the duty to maintain, paint, etc., lies with the landlord. Why? Because the landlord drafted or selected the documents for the resident to sign, and accordingly, could have delegated the responsibility in whatever manner he/she saw fit. Having failed to do so, means that the agreement or rule will most likely be construed most strictly "against the drafter" - i.e. to the landlord.


        Clearly, if the structure was on the space at the inception of the tenancy (therefor presumptively belonging to the landlord), when the resident departs, it would remain there. Similarly, if some liability occurred, it would fall on the landlord, unless it was from an event caused by the resident.


        For example, say there is a storage shed located on the space at the start of the tenancy, and nothing is said in the park documents about maintenance responsibility. The resident uses the shed to store family items, including old photos and collectibles. Unbeknownst to the resident, the shed is not completely water resistant, and over the course of the winter, they are destroyed. Unless there is some evidence the resident knew about the leakage and did nothing to protect their belongings, this is likely a landlord liability.


        Is this an instance in which the landlord could protect themselves by having a release of liability agreement saying that the resident assumes all responsibility for destruction or loss of any valuables stored in the shed? Possibly, but not absolutely. In other words, the more specific the agreement was, the better the chances are it would be enforced to the benefit of the landlord. But a simple statement saying that the resident assumes all responsibility for the contents stored in the shed, might not go far enough. Remember, absent the resident's duty to maintain the shed, if the landlord has the maintenance responsibility, management is arguably somewhat responsible for making sure that the shed is watertight - at least that's the argument the resident's attorney would make. So how can the landlord, who has the duty to maintain the shed, abdicate responsibility for not maintaining it in a secure manner?


        Accordingly, to have a more enforceable release agreement, I submit that landlords should also have an agreement providing that: (a) landlord does not have a duty to maintain, inspect, or secure it; (b) landlord does not warrant or guarantee that the shed is waterproof, or free from mold and mildew; (c) before use, the resident should assure himself/herself that it is suitable for storage of the specific contents intended to be stored there; and (d) that the resident covenants and agrees to maintain the exterior and interior of the shed for the duration of the tenancy. Only then can you expect a full release and hold harmless clause to be effective, since by signing, the resident is now making an informed decision about the scope of responsibilities under the agreement going forward.


        So the take-away here is that if you have not addressed these issues for park-owned structures in the lease, rental agreement and/or rules, you should do so upon turnover of the space. Until then, it would likely be difficult to shift responsibility onto a resident, when it was not expressly bargained for at the inception of the tenancy.


        Similarly, even though a resident builds the structure, you may want to address these issues in a separate written agreement before the structure is built. In addition, you want to make sure that the construction of a tenant-built structure conforms to all applicable building codes and ordinances, including, where applicable, the taking out of one or more building permits. And if the resident hires a contractor, you will want to use MHCO Form No. 52.


        And importantly, you will want to address whether the resident has a duty to remove it upon sale of the home. Alternatively, you can provide that the landlord reserves the right to make that decision if/when the resident who built it gives notice of intent to sell or remove the home. And if it stays, you'll want to have an agreement with the new resident, addressing the issues described above.


        Lastly, if the structure is something built for children to play on, e.g. swing sets, ladders, slides, etc., I strongly recommend that you require the resident who built it, take it with them. Under no circumstances do you want to lease or rent space to another resident with this apparatus there. It creates too much liability for management, and even if it remained after a resident left, I would remove it before permitting possession by new residents with small children.

        Statement of Policy - Complying with the Truth in Renting Act

        As of July 1, 1992, all manufactured home communities renting space for manufactured dwellings have been required to provide prospective and existing tenants with a Statement of Policy. The applicants must receive their Statement of Policy before signing the rental agreement. Existing tenants who have not previously received a copy of the Statement of Policy and are on month-to-month rental agreements must receive their copy at the time the next 90-day rent increases notice is issued (ORS 90.510(3)(b). All other existing tenants shall receive a copy of the statement of policy upon expiration of their current rental agreement and before signing a new agreement.

        While a Statement of Policy is not technically a contract, it is an important document. A tenant or rental applicant who makes their decisions or changes their position in reliance upon the policies set forth in the statement may be entitled to hold the landlord to those written policies. As proof of delivery of the Statement of Policy to tenants or applicants, it is advised to get a signed receipt.

        A landlord who intentionally and deliberately fails to provide a Statement of Policy as required by ORS 90.510, or delivers a legally defective one, may be subject to a lawsuit.

        The Statement of Policy is required to include the following information in summary form:

        1. The location and approximate size of the space to be rented.
        2. The federal fair housing age classification and present zoning that affect the use of the rented space.
        3. The facility policy regarding rent adjustment and a rent history for the space to be rented. The rent history must, at a minimum, show the rent amounts on January 1 of each of the five preceding calendar years or during the length of the landlord's ownership, leasing or subleasing of the facility, whichever period is shorter.
        4. All personal property, services and facilities to be provided by the landlord.
        5. All installation charges imposed by the landlord and installation fees imposed by government agencies.
        6. The facility policy regarding rental agreement termination including but not limited to closure of the facility.
        7. The facility policy regarding facility sale.
        8. The facility policy regarding informal dispute resolution.
        9. Utilities and services available, the person furnishing them and the person responsible for payment.
        10. If a tenants' association exists for the facility, a one-page summary about the tenants' association that shall be provided to the landlord by the tenants' association and shall be attached to the statement of policy.
        11. Any facility policy regarding the removal of a manufactured dwelling, including a statement that removal may impact the market value of a dwelling.