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A True Opportunity to Purchase - A Landlord's Overt Offer to Tenants and CASA of Oregon

By Dale Strom

Dale Strom is a second generation Manufactured Home Community landlord. He is a Board Member, past President and current Treasurer of MHCO.

This is a multiple part series on a private owner of a Manufactured Home Community willingly attempting to sell that Community to an Association of tenants within that Community. Riverbend MHP is a 39 space community located within the city limits of Clatskanie, OR. In the first part of this series, the motivation of the owner is revealed on why he wanted to work with CASA of Oregon exclusively rather than offering this Community for sale to all interested parties.

There came that time when I knew it is time to get out. This has also occurred several times in my life about situations and commitments that I was in. This is the time that I want to consider getting out of one of my communities. For good. No, I don't want to look at the Federal IRS code 1031 where I can exchange a real estate property for another like kind property. I mean for good!

In the years that MHCO has been involved with the Landlord Tenant Coalition, many aspects of the relationship that Landlords have with Tenants have been discussed. Differences of opinion and understandings have been hashed out. And laws in the Oregon Revised Statutes have been created or at the very least... have been revised.

At the beginning of this decade, a Statewide group going by the name of CASA of Oregon thought that they could start a program where tenants of manufactured home communities could organize, research (with due diligence), negotiate with a seller, close and finally operate a facility. (Would love to see how an organized park owned group will handle a late rent check, dog poop in a common area that can be traced back to the dog and its owner, or God forbid, an abandonment).

State law currently requires a potential seller (which is me in this case) to contact the tenants in the community to state the sellers intentions, and gives those tenants an opportunity to form an Association for the purposes of acquiring that community.

The interesting point of this is I want out. No more looking for other properties. No more looking at Cap Rates. No more P&L's. No more due diligence. No more 1031's. Out, for good! Realize now that when sold, the tax collector will come knocking asking for their cut. The IRS will. But what about the Oregon Department of Revenue?

According to John VanLandingham, an attorney at Lane County Legal Aid and the Oregon Law Center The capital gains breaks are found in the Oregon Revised Statutes following ORS 317.401 (for corporate taxes) and ORS 316.792 (for personal taxes).The specific language

Phil Querin Q&A: Good Resident - Bad Family

Phil Querin

Answer: My first question is, are these guests showing up at the invitation of your resident? Secondly, are they creating any disruption, or bothering the neighbors? Have neighbors complained, either to the resident or management?

Having visitors viewed as undesirable by management, or even by other residents, but causing no disruption, is a difficult issue to correct, assuming their presence is with the acquiescence of the existing resident.

To put this in a legal perspective, since for a lawyer, that is the litmus test, what is the violation? Is drug dealing in the neighborhood suspected? Do these visitors have outstanding arrest warrants? Do they have criminal records, and if so, do they relate to violent crimes, sex offences, etc? If you suspect illegal activity, I would contact the sheriff's office to see if they can help identifying the visitors to determine criminal backgrounds. Certainly, if they are dangerous ex-felons, or actual drug dealers, for example, you should want to know sooner than later.

However, remember, since these folks are just visitors, and not permitted tenants or occupants of the space, any violation would have to issue to your (formerly) good tenant. If this is a question of the visitors' conduct being disruptive to current residents (e.g. under the peaceful enjoyment statute, ORS 90.740(4)(j)), you would have a basis for issuing a 30-day notice under ORS 90.630(1).

But before doing so, I would suggest that you contact the resident and have a private and frank conversation. It may be that the resident is just as uneasy about the visitors' presence as you, and would welcome your request that they not visit with the frequency they are.

Last week's article addressed issuing a Trespass Notice. If your resident is prepared to ask his relatives to discontinue their visits, then you would be within your rights to issue a Trespass Notice, should the visits continue.

Generic Community Rules and Regulations

Please Note: This form is general in nature, and some provision may not be necessary or appropriate for your community. MHCO recommends that you and your legalcounsel determine which provisions may be appropriate. User acknowledges that MHCO, it's officers, directors, and legal counsel are not providing this form as legal advice. All users should have their own legal counsel review each form used in their community.RULES AND REGULATIONSTABLE OF CONTENTSSUBJECT SECTIONGENERAL 1MANUFACTURED HOME SET UP 2MANUFACTURED HOME STANDARDS 3 MANUFACTURED HOME AND LOT MAINTENANCE 4 HOMEOWNERS AND GUESTS 5SUBLETTING 6 SALE OF MANUFACTURED HOMES 7UTILITIES 8 PETS 9COMMON AREAS 10RECREATION FACILITIES 11VEHICLES 12FIREARMS AND FIREWORKS 13 TERMINATION OF LEASE/RENTAL AGREEMENT 14REMOVAL OF MANUFACTURED HOME 15ENFORCEMENT AND DISPUTE RESOLUTION 16MEDIATION/ARBITRATION 17PARTIAL INVALIDITY 18AMENDMENT OF RULES 19IMPORTANT: Violation of the Rules and Regulations can result in the termination of your tenancy. Section 1 GENERAL1.1 These rules and regulations apply to the manufactured housing COMMUNITY known as _____________, which is referred to in these rules and regulations as "COMMUNITY".1.2 The owner and operator for COMMUNITY will be referred to in these rules and regulations as "OWNER".1.3 The owner of an individual manufactured home or dwelling who is also a park resident or tenant and who rents or leases a lot in the COMMUNITY from OWNER will be referred to in these rules and regulations as "HOMEOWNER" or "HOMEOWNERS".1.4 The manufactured homes or manufactured housing structures which HOMEOWNERS place on lots they lease/rent from OWNER in COMMUNITY will be referred to in these rules and regulations as "manufactured homes" (or singularly).1.5 The individual manufactured home spaces in COMMUNITY leased to HOMEOWNERS by OWNER will be referred to in these rules and regulations as "lots".1.6 The site/lot rental agreement entered into between OWNER and HOMEOWNER, of which these rules and regulations form an integral part, is referred to in these rules and regulations as "lot rental agreement" or "agreement".1.7 Any action required to be taken by OWNER pursuant to these rules and regulations may, unless otherwise specified, be taken by the property manager appointed by OWNER to act as its representative in connection with COMMUNITY.1.8 Any approval, consent, or waiver which these rules and regulations require to be obtained from OWNER or COMMUNITY must be obtained in writing, signed by an authorized representative of OWNER or COMMUNITY, and obtained prior to doing the act for which approval, consent, or waiver is to be obtained, particularly prior to the initiation of any construction.1.9 Any actions with which these rules and regulations deal must be taken in accordance with federal and state law and regulations, and in accordance with local ordinances, in addition to meeting the requirements of these rules and regulations.1.10 Any alterations to HOMEOWNER'S manufactured home or improvements (including fencing, painting, color scheme changes, name signs and the like) constructed on HOMEOWNER'S lot must have the prior written approval of OWNER, whether those alterations or improvements are required by the lot rental agreement or these rules and regulations or whether they are voluntarily proposed by HOMEOWNER. Improvements or alterations will usually be required to be made with factory-manufactured material.1.11 OWNER may waive one or more requirements of these rules and regulations on a showing by HOMEOWNER that special circumstances exist which distinguish its situation from that of other HOMEOWNERS. Any HOMEOWNER'S request for a waiver must be in writing and addressed to the property manager appointed by OWNER for COMMUNITY. All decisions to waive any such requirements shall be in OWNER'S sole discretion, and agreement to waive a requirement shall not constitute a waiver of OWNER'S later decision not to waive a requirement for the same or a different HOMEOWNER. OWNER may condition any waiver on HOMEOWNER'S payment of an amount to offset expenses associated with the waiver or may impose other reasonable conditions.1.12 If HOMEOWNER fails to complete improvements, do maintenance, or otherwise take some action required by these rules and regulations, OWNER has the option of taking that action for HOMEOWNER. If HOMEOWNER takes some action not in compliance with these rules and regulations (such as constructing an improvement without approval), OWNER has the option of undoing what HOMEOWNER has done. If OWNER exercises this option, HOMEOWNER shall be responsible to OWNER for OWNER'S expenses in doing the work, together with a supervisions/management fee of an additional twenty percent (20%).1.13 OWNER will not discriminate on the basis of race, color, sex, marital status, familial status, religion, national origin, or handicap in violation of any city, state, or federal law. In determining how to meet this promise, OWNER will follow precedent under appropriate city, state, and federal statutes.1.14 COMMUNITY OWNER does not provide a security patrol or security systems. Residents are encouraged to exercise reasonable diligence and caution in securing their homes and personal property at all times. Residents observing any suspicious or illegal acts are requested to notify the police department and/or the COMMUNITY manager.1.15 Failure of COMMUNITY at any time to require performance of any Rule or Regulation contained herein shall not limit the right of COMMUNITY to enforce the Rule or Regulation, nor shall any waiver of any breach of any Rule or Regulation be a waiver of any succeeding breach of that Rule or Regulation or a waiver of that Rule or Regulation itself or any other Rule or Regulation.Section 2 MANUFACTURED HOME SET-UP2.1 OWNER is not responsible for top soil, lot preparation, foundation stability, final grading, settling, drainage, gravel or relocation of any utilities unless agreed to in writing by OWNER.2.2 HOMEOWNER agrees that HOMEOWNER has examined the condition of the lot and is aware of its condition and accepts said lot "as is" and "with all faults". HOMEOWNER further states that HOMEOWNER has not relied on OWNER/COMMUNITY for advice concerning the installation of the manufactured home and has relied and discussed such installation with a manufactured home dealer or contractor and is relying on the skill, experience and judgement of the manufactured home dealer or contractor.2.3 HOMEOWNER will give OWNER 72 hours notice before bringing their manufactured home into COMMUNITY for set-up. On arrival, OWNER will instruct HOMEOWNER and HOMEOWNER'S driver on where to park the manufactured home pending set-up.2.4 Prior to siting any manufactured home in COMMUNITY, the HOMEOWNER shall be responsible for coordinating with the COMMUNITY manager to specifically locate the position of the manufactured home on the lot. Corner stakes will be set on the lot to locate the proper position of the home relative to the street and lot corners. The HOMEOWNER will be responsible for coordinating with the manufactured home dealer and/or transportation company that moves the manufactured home to ensure that the manufactured home is properly positioned on the lot. All HOMEOWNERS with mortgaged, manufactured homes who are purchasing their home on a contract shall furnish to the Manager, the name and address of the lienholder or mortgagee prior to moving the home into the Community.2.5 On arrival at COMMUNITY for set-up, HOMEOWNER will register with OWNER the license number of the vehicle which is towing their manufactured home and the license number of the manufactured home, if required to be licensed. If the manufactured home is not required to be licensed, HOMEOWNER will register with OWNER the manufactured home's color, make, model and dimensions.2.6 All aspects of manufactured home siting and set-up, including electrical, gas, telephone, sewer, water, and cable television hook-ups, as well as provision of required foundation or footings, and any other necessary blocking, are the sole responsibility of HOMEOWNER.2.7 As a part of hooking-up to COMMUNITY'S water system, HOMEOWNER will install a back flow device at HOMEOWNER'S expense.2.8 HOMEOWNER is responsible for any damage caused to their lot, other lots, streets, or any portion of COMMUNITY during the siting or removal of their manufactured home and shall reimburse OWNER or other HOMEOWNERS, as appropriate, for any loss suffered.2.9 HOMEOWNER is responsible for connecting the manufactured home to the sewer line with rigid pipe. The manufactured home must be placed on the lot so as to cover or enclose sewer and water connections, as required by law.2.10 HOMEOWNER must remove any towing hitch within thirty (30) days after the manufactured home is placed on the lot.2.11 Temporary steps must be removed within thirty (30) days of set-up and replaced with permanent steps.2.12 HOMEOWNER will not be entitled to move into their manufactured home until siting and set-up have been approved by OWNER.Section 3 MANUFACTURED HOME STANDARD3.1 Prior to siting any manufactured home in COMMUNITY, the HOMEOWNER shall be responsible for providing the manager and/or OWNER a copy of the manufactured home purchase agreement (if the home is new) or accurate description of the manufactured home that confirms that the purchase agreement includes all required improvements as set forth in Section 3 of the COMMUNITY rules and regulations. Specifically including skirting, decking, awnings, and storage building. In those cases where a HOMEOWNER is moving a qualifying manufactured home into COMMUNITY that is not a new purchase, the HOMEOWNER shall be responsible for providing a photograph together with complete descriptive information identifying the size and materials of all improvements including storage structures that will be sited in the COMMUNITY. All home roofs must have composition asphalt shingles or the equivalent with a gable profile.3.2 No permanent alterations are to be made to the manufactured home, or manufactured home lot without the prior written permission of OWNER (including fencing, painting, color scheme changes, etc.). The OWNER reserves the right to approve any exterior accessory or structure added to the manufactured home or placed on the manufactured home lot prior to its installation. All structures must be of factory-manufactured material or specifically approved in writing by the OWNER prior to construction and/or installation. The OWNER reserves the right to request that all permanent structures erected by a HOMEOWNER be removed at the HOMEOWNER'S expense when the HOMEOWNER moves from the COMMUNITY.3.3 All homes, accessories, and/or alterations/additions shall comply with applicable federal, state and local statutes and ordinances as to their construction, installation and maintenance.3.4 No manufactured home, accessory structure or addition, including awnings, decks, etc., may be placed closer than permitted by county/city set back requirements to any lot boundary line. No manufactured home, accessory structure and/or addition to include decks, awnings, porches, etc., may be placed closer than 8' from any electrical transformer.3.5 All homes must have a window of not less than 12 square feet on the side of the home facing the street; example: 3'6" wide by 3'6" high. A smaller window may be allowed with the prior written approval of OWNER on the condition that the HOMEOWNER install landscaping acceptable to OWNER across the front of the home to visually compensate for the lack of a window(s). The window(s) facing the street must have wood trim painted a complementary color.3.6 Homes moving into COMMUNITY must be a minimum of 24' wide (unless a lesser width is approved by OWNER pursuant to paragraph 1.11), and must be approved by COMMUNITY management prior to move-in. A home will normally not be accepted if it is more than five years old as of the date of move-in. Management reserves the right to refuse admission to any home that does not meet COMMUNITY standards or the condition and/or appearance of the manufactured home is misrepresented.3.7 All homes are required to have wood, vinyl or aluminum lap siding. Skirting must be of a similar material as the siding on the home and painted/stained to match the siding or trim color. Wood skirting must have a 2" X 6" pressure treated base plate adjacent to the ground and be made of pre-treated/weatherized material that is compatible in design to the exterior of the home. Brick, rock or ornamental skirting is also acceptable. Skirting must be continuous; any noticeable cracks or seams between the skirting panels must be caulked within thirty (30) days following set-up. Corrugated metal or fiberglass skirting is NOT allowed. All skirting must have an access panel (minimum dimensions 18' X 24") that does not require tools for opening or closing and is located so that fuel, electric and water and sewer connections are readily accessible for inspection and repair.3.8 Within thirty (30) days of set-up, each HOMEOWNER shall be responsible for installing the lot number of their home on the front side of the home approximately 5' above ground level.3.9 HOMEOWNER is responsible for installing or constructing the following within thirty (30) days of set-up of its manufactured home:a) Pre-treated wood skirting compatible with the manufactured home and painted to match it, or some other suitable siding approved by OWNER pursuant to paragraph 1.11. b) Pre-painted continuous aluminum or galvanized metal gutters and down spouts connected by underground 3" rigid or corrugated pipe to the curb, gutters must be of continuous metal fabrication;c) Two above ground hosebibs, one on each side of the manufactured home;d) A storage building which:1) is not smaller than 6' X 8' or larger than 15' X 10';2) is constructed as part of the carport using wood or pre-treated wood siding (whether or not prefabricated) painted to match the manufactured home; and3) is roofed with asphalt shingles compatible with the color and style of the manufactured home; 4) pre-fabricated wood or metal storage sheds are allowed subject to prior written authorization from COMMUNITY management.3.10 All manufactured homes must have awnings and decks not smaller than specified below unless otherwise approved by OWNER. Exceptions to minimum size requirements may be approved by OWNER if HOMEOWNER'S lot will not accommodate structures of the stated dimensions. All plans for decks and awnings must be approved by OWNER prior to installation and construction. OWNER may agree to elimination of the front door awning, but such agreement must be in writing at the time of move-in. Any deck area shall total no more than 500 square feet. Minimum deck sizes shall be as follows:* Patio Side: Deck - 4' X 6' or 24 square feet of continuous deck.* Awning - 4' X 6' or 24 square feet of continuous aluminum factory/manufactured or wood frame awning.* Carport Side: Deck 3' X 6' (including steps)Awning - 12' X 26' or 312 square feet of wood or wood frame carport. Homes within COMMUNITY that have installed a deck and/or awning prior to the issuance of these Rules and Regulations shall be exempt from this requirement. Corrugated metal or fiberglass awnings are not allowed.3.11 Decks and porches must be skirted with either manufactured skirting of a similar style and color as the skirting used to skirt the manufactured home or fully enclosed with pre-treated wood so as to be compatible with the design of the porch and deck. All skirting must be continuous and have an access panel (with minimum dimensions of 18" by 24"), and the access panel shall not require tools for opening or closing. All decks, porches and steps must have hand rails. Vertical slats/railings made of 2" X 2" material on 4" centers must be installed between the top of the railing and the deck and step treads. Decks must be constructed of 2" X 4" or 2" X 6" pressure treated/weatherized wood.Awnings and decks must be installed within thirty (30) days following set-up of the manufactured home unless other arrangements have been made in writing with OWNER.Any wood frame patio awning or carport awning must have a composition roof, be designed and painted to match the manufactured home and be approved by OWNER in writing prior to its construction. The carport awning must be a minimum of 12 feet wide unless the terrain or the lot size or shape limit the awning size to a narrower width. Garages may be constructed in lieu of a carport but must be the same color as and compatible with the manufactured home and shall be constructed only with OWNER'S prior written approval.3.12 All above-ground piping must be protected from freezing with adequate heat tape and wrapped with insulation. All above-ground plumbing must be connected to an underground shut off/gate valve that is accessible and maintained in good working order at all times. HOMEOWNERS are responsible for bleeding outside water lines prior to subfreezing weather conditions. Any damage or expense caused by freezing pipes will be borne by the HOMEOWNER.3.13 Each HOMEOWNER shall receive a Lot LANDSCAPING WORKSHEET at the time HOMEOWNER makes application for residency. The worksheet will outline a general landscaping plan which shall be used as a model for preparing the HOMEOWNER'S landscape plan. Prior to siting of the manufactured home, HOMEOWNER must submit a lot landscaping plan to OWNER for review and approval. No home will be allowed to move into COMMUNITY until the lot landscaping plan has been approved by OWNER. Not later than ninety (90) days following move-in, each new HOMEOWNER shall be required to install sufficient landscaping so as to meet the minimum landscape standards set forth below.A. Landscape Plan with Front Yard Lawn: If the HOMEOWNER elects to install a lawn in the front, side or rear yard areas of their lot, the lawn must be mowed regularly and kept weed free. In those cases where a HOMEOWNER elects to install a front yard lawn, a minimum 24" wide planting bed must be installed across the front of the HOMEOWNER'S home. A minimum of ten evergreen shrubs, measuring 18"-21" or alternately, in 3 gallon containers must be installed in the front yard planting bed.B. Landscape Plan without Front Yard Lawn: If a HOMEOWNER elects not to install a lawn in their front yard, acceptable alternatives include weed barrier fabric covered with decorative rock or bark mulch together with a minimum of not less than ten evergreen shrubs, measuring either 18"-20" in size or in 3-5 gallon containers plus not less than five additional shrubs or plants of a size not smaller than 1-gallon in size. All yard areas that are covered with decorative rock or bark must be kept weed free at all times.C. All HOMEOWNERS are required to landscape and maintain the yard area next to their driveway that lies within the boundary of their lot. HOMEOWNERS are encouraged to install landscaping on their neighbor's lot or may make arrangements with their neighbor to allow the neighbor to improve and/or maintain the landscaping in this area if both parties agree.3.14 Prior to moving into COMMUNITY and as a deposit to insure HOMEOWNER'S landscaping is completed, HOMEOWNER shall provide to OWNER a signed promissory note, payable to OWNER, in the amount of $1,000.00. OWNER shall have the right to recover from the promissory note, such sums expended by OWNER in correcting and/or completing HOMEOWNER'S landscaping. The promissory note (or any funds remaining if landscaping was done by OWNER) shall be returned to HOMEOWNER on completion of all required landscaping work.3.15 HOMEOWNER shall install an in-ground sprinkler system with an automatic timer within ninety (90) days of siting the home. HOMEOWNER is required to repair and maintain the system in good working order at all times. 3.16 OWNER reserves the right to make reasonable modifications to the manufactured home standards identified herein to accommodate special circumstances which may be dictated herein by the terrain of the COMMUNITY or individual lots.3.17 No excavation of any kind shall take place until and unless the park has been notified due to the existence of underground utilities.Section 4 MANUFACTURED HOME AND LOT MAINTENANCE4.1 HOMEOWNER is responsible for maintaining and keeping clean and in good repair the exterior of their manufactured home, as well as all appurtenant structures such as decks, steps, storage building(s) and fences at all times. All wooden structures such as decks, hand railings, storage buildings, etc., shall be painted or stained as necessary to prevent their visual and/or physical deterioration. The exterior finish of the home must be maintained to the satisfaction of the Owner/Community, which may require painting as needed with a color pre-approved by Owner.4.2 HOMEOWNER is responsible for maintaining all lawn areas, flowers, shrubbery and trees within the boundaries of their lot. Lawns must be mowed on a regular basis during the spring/summer/fall growing season, edged, kept free of weeds and watered as necessary. All slopes must be planted with erosion deterrent plants.If the landscaping is not properly maintained, OWNER may, but is not required to, perform or have performed whatever landscape maintenance may be required and charge the HOMEOWNER directly. If the HOMEOWNER consistently fails to maintain the space, OWNER reserves the right to evict the HOMEOWNER. If HOMEOWNER wastes water and allows water to run into the street, OWNER may impose a charge each time the HOMEOWNER wastes water. 4.3 All landscaping improvements made to the manufactured home lot as provided by this Agreement shall, upon termination of tenancy, by either the HOMEOWNER or COMMUNITY management/ owner become the property of OWNER except as provided herein below. The HOMEOWNER may remove and those landscape improvements that OWNER AND HOMEOWNER have agreed upon in writing and signed by all parties.4.4 HOMEOWNERS absent for an extended period of time - two weeks or more (14 consecutive days) shall be responsible for arranging for the care and maintenance of their lot during their absence.4.5 Fences over 48" high are not permitted. Chain link fences and cedar fences are allowed and may be installed only in the rear yard area of the manufactured home lot. Chain link fences require metal fence posts set in concrete and stretched fencing fabric. All cedar fences shall be 36" in height with a 12" lattice top rail and be constructed as per applicable building code regulations. All fences, including color of paint or stain, must be approved in writing by OWNER prior to installation. HOMEOWNER is responsible for maintaining any fence located on HOMEOWNER'S property.4.6 If HOMEOWNER constructs a rear yard fence, as outlined in paragraph 4.5, HOMEOWNER will be responsible for a twelve inch mowing strip along the outside of the fence, whether or not that strip is HOMEOWNER'S lot or COMMUNITY property.4.7 Common areas, driveways, streets and HOMEOWNER'S lots, including porches and decks, are to be kept clean and free from trash and litter at all times. Personal property of HOMEOWNER'S or HOMEOWNER'S guests shall not be permitted to be left in the streets, other HOMEOWNER'S lots, or the common areas. Garbage cans, gardening tools and equipment, etc., must be stored inside the HOMEOWNER'S storage shed.4.8 Furniture left outside a home shall be limited to items commonly accepted as outdoor or patio furniture. Storage of any type beneath the mobile home including material of explosive nature is prohibited (Oregon State Law). Standard patio furniture and a park approved storage cabinet will be permitted to present a clean and neat external appearance. Any household appliance, exercise equipment or upholstered furniture cannot be placed outside the mobile home. Boats, travel trailers, unmounted campers or unsightly objects are not to be stored on HOMEOWNER lots or parking areas. Special storage problems should be coordinated with Management in advance.4.9 Stacking or storage of firewood is limited to one cord. Firewood must be stored behind the manufactured home or in an approved storage shed. All wood and pellet burning stoves that do not contain a seal of certification by the Oregon DEQ or federal VA are not allowed in COMMUNITY, and must be removed upon sale of the home. Any tarps used to cover firewood must blend with the surroundings and/or be compatible in color 4.10 Clothes lines or clothes line poles are not allowed. Clothing, linens, rugs, etc., are not to be draped over deck or porch railings or otherwise left outside the HOMEOWNER'S manufactured home.4.11 HOMEOWNER may erect play/exercise equipment in HOMEOWNER?S backyard with OWNER'S prior written permission. All play/exercise equipment must be located behind the manufactured home and within the designated boundaries of the HOMEOWNER'S yard. HOMEOWNER assumes responsibility for maintaining all such equipment in serviceable condition and agrees to remove the equipment when the tenancy is terminated. Permission to have play/exercise equipment on the lot is subject to revocation at any time if OWNER determines that the equipment is dangerous, inherently unsafe, being used by HOMEOWNER or HOMEOWNER'S guests in an inappropriate, abusive or disruptive or noisy manner or in need of repair. As a condition to granting consent to install such play/exercise equipment, OWNER shall have the right to require the HOMEOWNER provides proof of liability insurance of not less than $250,000 naming the OWNER and COMMUNITY as co-insureds. All such decisions by OWNER shall be in OWNER'S sole discretion and shall be final. Above ground pools (wading pools, hot tubs/spas, etc.) are permitted only with written permission from OWNER. HOMEOWNER agrees to defend and hold the OWNER and OWNER'S Agents harmless from any and all claims, suits, damages and actions resulting from play/exercise equipment and/or above ground pools (wading pools, hot tubs/spas, etc.). Wading pools are to be emptied after each use and hot tubs/spas are to be covered after each use.4.12 HOMEOWNERS must remove (take down) any holiday decorations from their manufactured home, yard and/or space within thirty (30) days after the celebrated holiday.4.13 Backboards may not be installed on carports, awnings, or other structures located on the HOMEOWNER'S lot. Portable backboards/stands are allowed with the prior written approval of OWNER.4.14 HOMEOWNER is responsible for installing, maintaining, and keeping clean and in good repair approved window coverings which may include curtains, drapes, shutters or blinds, etc., in all windows of the home. Unapproved window coverings include, but are not limited to, sheets, blankets, table cloths, and plastics, etc.4.15 Exterior window blinds are allowed with the prior written permission of OWNER. Bamboo or reed exterior blinds are NOT allowed. Exterior blinds must be of a color that matches the exterior siding or trim color and must be maintained by the HOMEOWNER in a serviceable condition at all times.4.16 Signs, Posters, Decals, Prints, Pictures, etc., are not to be displayed in windows or on the home at any time. Political yard signs are permitted during an election campaign however must be removed within forty eight hours after Election Day. No sign shall be larger than 18" X 24" or 432 square inches. Section 5 HOMEOWNERS AND GUESTS5.1 The tenancy agreed on in the rental agreement is based on occupancy of the manufactured home by the persons identified in the agreement. Any additional occupants must be approved by OWNER prior to move-in.5.2 In accordance with Oregon law, the total number of permanent residents in any manufactured home shall not be greater than two per bedroom in the manufactured home.5.3 HOMEOWNER is responsible for the actions of other occupants of manufactured home, guests, licensees and invitees. No trespassing by HOMEOWNER or HOMEOWNER'S' guests on other spaces is allowed. 5.4 No commercial trade or business nor gratuitous baby-sitting may be conducted out of HOMEOWNER'S manufactured home or on its lot in COMMUNITY.5.5 No one will carry on any obnoxious or offensive activity which OWNER believes is or may become a danger or annoyance or nuisance to COMMUNITY or other HOMEOWNERS.5.6 Guests of HOMEOWNER may not remain in COMMUNITY for more than fourteen (14) days in any year (whether consecutively or cumulatively) unless written authorization is received from OWNER. HOMEOWNERS are responsible for their guest's actions. Guests desiring to become residents of the manufactured home, must apply for residency, and shall be subject to Owner's approval. Such application shall be made during the fourteen (14) period. Requests for residency by HOMEOWNER'S guests that are submitted after expiration of the fourteen (14) day period are discouraged and may not be approved due to the late submission. Under such circumstances, the criteria used by Owner for screening the guest's application for tenancy are as follows: 1) prior rental references, 2) credit references, 3) employment status, 4) ability to pay rent and other expenses arising under the rental agreement with the park, 5) criminal records (including indictments and convictions), 6) the availability of information required under the parks application for tenancy, 7) the guest's willingness to enter into a rental agreement with the park, and the timeliness (i.e.. during the fourteen (14) day period).5.7 HOMEOWNER, will respect the peace of COMMUNITY and see that guests do the same. Neither HOMEOWNER nor guests shall cause unreasonably loud or disturbing noise through parties, radios, televisions, stereo equipment, musical instruments, chain saws, motorcycles, automobiles, pets, etc. There is a noise abatement curfew from 10:00 p.m. until 7:00 a.m.5.8 HOMEOWNER will provide OWNER with the name of a person to be contacted in the event of HOMEOWNER'S death.5.9 HOMEOWNER will provide OWNER with proof of ownership for the manufactured home occupied by HOMEOWNER consisting of a) copy of the bill of sale for manufactured home prior to move-in and/or occupancy, and b) copy of the title and vehicle I.D. information from Oregon Building Codes Division within sixty (60) days after move-in.5.10 HOMEOWNER will, upon request of OWNER, provide OWNER with proof of insurance and proof of good standing with the county showing that the personal property taxes have been paid for the manufactured home for the current personal property tax year.5.11 HOMEOWNER is responsible for registering the manufactured home registration plate (X-plate) with Owner prior to move-in and/or occupancy.5.12 Two annual COMMUNITY garage sales will be permitted for all HOMEOWNERS in the COMMUNITY on two predetermined weekends in the spring and fall. HOMEOWNERS are responsible for coordinating which two weekends each year the garage sales will take place. Each garage sale is not to last more than one weekend (three days). Prior approval must be obtained from OWNER as to which weekends and times each COMMUNITY garage sale is scheduled to prevent interference with other COMMUNITY projects. NO INDIVIDUAL GARAGE SALES ARE ALLOWED.5.13 Tampering with mail addressed to others is a federal offense and is a basis for eviction.Section 6 SUBLETTING6.1 No rental or subletting of a manufactured home is permitted. Manufactured homes must be owner-occupied.6.2 Any person occupying a manufactured home to care for it (i.e., a "house-sitter") during an absence by HOMEOWNER in excess of 30 days must be approved by OWNER prior to occupying the manufactured home. OWNER reserves the right to require the same background check for such person as for an occupant requesting residency at Section 5.6 above.6.3 Under exceptional circumstances, the OWNER and/or COMMUNITY Manager may approve the use of a manufactured home by other than the owner; however, prior written permission must be obtained in advance from OWNER.Section 7 SALE OF MANUFACTURED HOMES7.1 Prospective purchasers of a manufa

Legislative Update: Senate Action on Coalition Bill and a PROPOSED Rent Control Amendment

This morning the Oregon State Senate passed the 2015 Landlord-Tenant Coalition Bill on a vote of 29-0 with one Senator absent.  The bill now moves on to Governor Kate Brown's desk for signature. 

 

MHCO is THRILLED that a long standing legislative goal - the ELIMINATION of the requirement that landlords pay the back taxes on an abandoned home in their community when the landlord purchases the abandoned home is well on it's way to becoming Oregon law.  This portion of the legislation will become effective January 1, 2016.  MHCO along with Phil Querin have already created initial drafts of the forms necessary to comply with the new law.  Those forms will be reviewed and available to members on-line later this year.  We will also have an extensive article by Phil Querin available for the MHCO membership later this year as well.  Other issues contained in this legislation will be addressed at the annual MHCO Conference at the end of October.  Stay tuned for details!

 

This is a major win for Oregon community owners and will impact every community owner in the state.  Special thanks to Dale Strom, Adam Cook and Phil Taylor who dedicated an enormous amount of time negotiating on behalf of community owners in the landlord tenant coalition.   MHCO also thanks Diane Belt with the Oregon Tax Assessors Association for her expertise and willingness to resolve this issue. 

 

There have also been some less than satisfactory developments in Salem this week.

 

Yesterday the Oregon Senate Committee on Human Services and Early Childhood held a public hearing on HB 2564.  This is the inclusionary zoning" bill that passed the Oregon House earlier this session.  It is also the bill that Representatives in the House alluded to the as needing a rent control amendment during the floor debate in the Oregon House last month.

 

At yesterday's public hearing an amendment (the dash 5 amendment) was introduced that would chip away at the statewide preemption on rent control.  

 

Here is Phil Querin's analysis of the proposed amendment:

 

"When the bill attempts to exclude the application of ORS 91.225 (which prohibits rent control)

Newly Emerging Protected Classes: Undocumented Immigrants

MHCO

 

Legal Risk: People who are in this country illegally can’t sue for discrimination under the FHA if that’s the sole reason they experience discrimination. Explanation: In January 2003, HUD issued a memo clarifying that the FHA “does not prohibit discrimination based solely on a person’s citizenship status”; nor, the memo adds, does the law bar discrimination based on “immigration status or resident alien” status. However, undocumented aliens and non-U.S. citizens who get excluded may have valid grounds to sue for other forms of discrimination, including religion, race, and especially national origin. Rule: FHA protections extend to every person in the U.S., regardless of their immigration or citizenship status. Stated differently, a person doesn’t have to be a U.S. citizen to sue for discrimination.

Solution: There are five steps you can take to minimize discrimination risks when dealing with undocumented aliens: 

  1. Don’t make U.S. citizenship or immigration status a qualifying criterion for renting unless you have a legitimate, nondiscriminatory, and documented business justification for doing so—for example, because state or municipal law requires it;
  2. Be consistent in applying whatever screening policy you do adopt;
  3. Ask for the right form of verification of citizenship and/or immigration status (discussed below);
  4. Apply your normal screening standards to immigrants; and
  5. Don’t use an applicant or tenant’s immigration status as a bargaining chip.

How to Verify Immigration/Citizenship Status. Acceptable proof depends on whether you’re seeking to verify an applicant’s status as a citizen, immigrant, or nonimmigrant:

  • Citizenship: Acceptable proof of U.S. citizenship includes a valid current U.S. passport, birth certificate, or certificate of naturalization;
  • Legal immigrant: Proof of legal immigrant status, i.e., noncitizens who have the right to permanently remain in the U.S., include a Permanent Resident Card (a.k.a., “Green Card”) and an official Social Security number;
  • Legal nonimmigrants: Legal nonimmigrants are persons allowed to be in the U.S. on a temporary basis for specific reasons. Such applicants should have a non-U.S. passport from their native country along with a Form I-94, a.k.a., Arrival Departure Record or Entry Permit listing when they entered the U.S. and how long they have a right to stay. They also need a visa, such as an F-1 visa for students, unless they’re from one of the countries that has signed a visa waiver agreement with the U.S.

You Make the Call

Which of the following would be a legitimate reason to reject applicants who aren’t U.S. citizens?

a.         Being a U.S. citizen is required for leasing property under HUD program rules and/or state or local law 

b.         A non-U.S. citizen is generally less likely to pay rent on time each month

c.          Non-U.S. citizens are totally judgment proof

Answer:

a. The fact that HUD program rules and/or state or local laws require landlords to verify that applicants are U.S. citizens before accepting them is a legitimate, nondiscriminatory justification.

Wrong answers explained:

b.         The assumption that noncitizens are less likely to pay rent is just that—an assumption, and one based on stereotypes. Consequently, it’s not justification for requiring applicants to be U.S. citizens.

c.          The reason c. is wrong is that it’s overstated. While evicting or suing a noncitizen for lease violations poses challenges, it’s not accurate to characterize immigrants as “judgment-proof.” In fact, persons in the U.S. illegally are likely to be far more amenable to threats of litigation.

Phil Querin Q&A: Sub Lease Occupant and Eviction

Phil Querin

Answer: This fact pattern should be a cautionary tale for all park owners and managers about the risk of letting too much time elapse between the violation and legal action. In order to fully answer the question, I need to assume certain facts. First, I assume that the rules clearly do not permit one to occupy a home without management approval. Secondly, I assume that some form of permitted subleasing is OK, so long as the subtenant is approved by management. Third, I assume that someone - presumably the father - has been paying the rent.


If rent has been accepted with knowledge of this violation, it would be deemed to have been waived after the second acceptance of rent - regardless of who paid it. Clearly, if the rules prohibit this, as does the rental agreement and law, action should have been taken the moment she refused to cooperate.


The best solution may be for the father to proceed with the eviction, since he is a "landlord" under the non-manufactured housing side of the Landlord-Tenant law. Clearly, he can work it out with her and/or the court, better than management working with the recalcitrant occupant, who has already established her unwillingness to cooperate. Besides, why should the park absorb this expense, when it is really between the father as a "landlord" and his daughter as the "tenant." (I don't know why the judge sent them home, but suspect it was to try to resolve it as a family matter rather than a court matter.)


As for whether to accept the rent, it's already pretty late to be worried about "waiver" since that has long since been confirmed to have occurred. Nevertheless, I would NOT accept the rent until this matter is resolved.


The problem with park management doing the eviction based upon an "unauthorized occupant," violation, is that it's too late to enforce, in my opinion. However, your question about a "No-cause" eviction suggests that you believe this might be a viable alternative - i.e. the legal basis for eviction arises under the non-manufactured housing side of the statutes. I don't think so. First, because the manufactured housing side of the law still applies vis a vis the father, and regardless, rent has been accepted, making the waiver argument a real possibility.

Property Management - Tips and Traps

Phil Querin
  1. Make sure that the rental agreement really applies to your situation.  The MHCO rental agreement comes in two flavors: (a) The month-to-month (or “periodic”) rental agreement, and (b) the lease (or fixed term) agreement.  The difference is that the month-to-month agreement runs for 30 days at a time.  In the absence of termination, the periodic tenancy just “rolls over” month to month.  Regardless of which agreement is used, landlords renting or leasing spaces to residents in mobile home parks may generally not terminate them without cause.  However, a lease for at least two years carries a distinct advantage in that the park documents, i.e. the lease agreement and the park rules, may be automatically updated at the end of each lease term.  While there are certain limitations upon the landlord’s right to impose new park documents on the resident, it is clearly much easier to do under a lease than a monthly rental agreement. [2]  Also, landlords using a

fixed term lease agreement must expressly incorporate any rent increase provisions into the written agreement.  The rent increase statute, ORS 90.600, applies only to periodic (e.g. month-to-month) tenancies and not fixed term tenancies.  If the home located upon the space is a recreational vehicle rather than a manufactured home, landlords should not use the standard mobile home space rental agreement.  The reason is that the mobile home park section of the landlord-tenant law does not apply to recreational vehicles.[3]  When renting space for a recreational vehicle, landlords should use an appropriate RV rental form.

 

  1. Make sure that the rental agreement is signed by all adult tenants who will occupy the space.  This not only financially obligates them under the agreement, but it makes it easier to enforce violations against rules offenders.  Do not permit occupancy of a home until the rental agreement has been fully signed by everyone.  Trying to get signatures after-the-fact can be difficult, if not impossible.

 

  1. Make sure that the Statement of Policy, Rules, and Rental Agreement are given to the resident and properly receipted for.  Occasionally, residents deny receiving one or more of these documents.  However, the signed receipt by the resident is legal evidence of delivery of these documents.  ORS 90.510(9) provides that a signed receipt is a defense to a claim against the landlord for nondelivery of these documents.

 

  1. Similarly, landlords should make sure that the rights they summarize in the Statement of Policy accurately reflect their rental agreement and rules.  When using the MHCO forms this is not a problem.  It could be, however, when different forms from different sources are used, and the Statement of Policy provides that the resident has (or does not have) certain rights that are not consistent with those found in the rental agreement or rules. The Statement of Policy is not intended to be a binding legal document.  It is supposed to merely summarize the rights and duties of the resident which are found in the rental agreement or rules.

 

  1. Understand the rights given you under the rental agreement form.  Not knowing your rights can result in not enforcing violations, which can lead to a waiver of those rights.[4]

 

  1. One of the more important provisions of the rental agreement form is the one which prohibits assignment, subletting or transfer of possession of the agreement or space without the landlord’s prior written consent.  Landlords should make sure that when a resident vacates, leaving a guest or visitor at the space, immediate action is taken to either terminate the tenancy or require that the occupant promptly apply for tenancy by filling out all required documentation.  Do not accept rent from the occupant, the ex-tenant, or on the occupant’s behalf, until the issue has been thoroughly resolved.

 

  1. Be aware that the fire insurance provision does not apply unless it is specifically checked:  It requires that the resident must maintain a homeowner's policy of insurance that includes coverage for fire in an amount sufficient to replace the home, and permits the landlord to request a current copy of the policy.

 

  1. Similarly, landlords should be sure to have the resident initial those portions of the rental agreement which require them to do so.  There are several such places found in the sections dealing with (a) sale of the home and (b) the resident’s legal obligations under the tenancy.  When these sections are not properly initialed, there remains an argument that it is not binding.  Although such an argument would not likely carry the day, it can be avoided entirely by simply making sure that when the agreement is signed, all internal provisions are properly completed, checked and initialed where appropriate.

 

  1. The landlord’s rights upon a resident’s resale are very important and need to be fully understood by both parties.  One such section of the resale portion of the rental agreement provides that in the event the resident (or their predecessors) has/have made any improvements or alterations to the interior or exterior of the home which did not conform to all applicable local, state and federal building codes or ordinances in existence at the time the work was performed, the landlord has the right to require, as a condition of consent to the sale, that such improvement or alteration be brought up to all applicable local, state and federal building and construction standards in existence at the time of the sale.  When homes have been substantially remodeled, especially where electrical or plumbing systems are involved, this provision may be useful for the landlord to enforce in order to make sure that the proper building codes are followed.

 

  1. Disputes are an inevitable part of being a landlord.  MHCO believes that assigning fault is less important that securing a workable resolution.  Landlords should be aware that Oregon law requires them to have a informal dispute resolution process in their rental agreement.[5]   The MHCO form provides that in the event of any dispute regarding the interpretation or enforcement of the rental agreement or the rules and regulations, either party shall have the right to have the matter handled through the alternative dispute resolution (“ADR”) process set forth in the attached MHCO Addendum, which is incorporated into the agreement.  If a resident request some form of informal dispute resolution, landlords should promptly respond in doing so.

 

[1] ORS 90.610(2).

 

[1] ORS 90.245 Provides prohibits the following provisions in a rental agreement: (a) Agreement to waive or forgo rights or remedies under the landlord-tenant law; (b) Agreements authorizing any person to confess judgment on a claim arising out of the rental agreement; or (c) Agreements relieving or limiting a landlord’s liability arising as a result of his or her willful misconduct or negligence or agreements requiring the tenant to indemnify the landlord for that liability or any costs connected therewith.  Any provision prohibited in ORS 90.245 is unenforceable. If a landlord deliberately uses a rental agreement containing provisions known by the landlord to be prohibited and attempts to enforce such provisions, the tenant may recover, in addition to the actual damages, an amount up to three months’ rent.

ORS 90.135 provides that “(1)f the court, as a matter of law, finds (a) A rental agreement or any provision thereof was unconscionable when made, the court may refuse to enforce the agreement, enforce the remainder of the agreement without the unconscionable provision, or limit the application of any unconscionable provision to avoid an unconscionable result****”

 

[2] See, ORS 90.540, 90.545, and 90.610(3) – (8).

[3] See, ORS 90.505 and 90.100(23).

[4] See, ORS 90.415.

 

Phil Querin Q&A: Sub Leasing and Eviction

Phil Querin

Answer: This fact patter should be a cautionary tale for all park owners and managers about the risk of letting too much time elapse between the violation and legal action. In order to fully answer the question, I need to assume certain facts. First, I assume that the rules clearly do not permit one to occupy a home without management approval. Secondly, I assume that some form of permitted subleasing is OK, so long as the subtenant is approved by management. Third, I assume that someone - presumably the father - has been paying the rent.

If rent has been accepted with knowledge of this violation, it would be deemed to have been waived after the second acceptance of rent - regardless of who paid it. Clearly, if the rules prohibit this, as does the rental agreement and law, action should have been taken the moment she refused to cooperate.

The best solution may be for the father to proceed with the eviction, since he is a "landlord" under the non-manufactured housing side of the Landlord-Tenant law. Clearly, he can work it out with her and/or the court, better than management working with the recalcitrant occupant, who has already established her unwillingness to cooperate. Besides, why should the park absorb this expense, when it is really between the father as a "landlord" and his daughter as the "tenant." (I don't know why the judge sent them home, but suspect it was to try to resolve it as a family matter rather than a court matter.)

As for whether to accept the rent, it's already pretty late to be worried about "waiver" since that has long since been confirmed to have occurred. Nevertheless, I would NOT accept the rent until this matter is resolved.

The problem with park management doing the eviction based upon an "unauthorized occupant," violation, is that it's too late to enforce, in my opinion. However, your question about a "No-cause" eviction suggests that you believe this might be a viable alternative - i.e. the legal basis for eviction arises under the non-manufactured housing side of the statutes. I don't think so. First, because the manufactured housing side of the law still applies vis a vis the father, and regardless, rent has been accepted, making the waiver argument a real possibility.

Rent Increases Before New Rent Control Legislation Becomes Law

Phil Querin

Question:  All indications are that the 2023 legislature is going to revisit the rent increase formula currently in effect, and once passed it would likely become law immediately upon the Governor’s signature. How can landlords deal with having already issued a September 2022 90-day rent increase notice if the 2023 rent cap is legislatively reduced before the landlord’s previously-issued September 2022 increase goes into effect?

 

Answer: Currently, ORS 90.600(2)(b) limits rent increases to 7% plus CPI (“Cap”) for any 12-month period. For 2023 that resulted in a Cap of 14.6%.[1] This amount surprised some, and we can fully expect the Oregon Legislature to pass a new law that could effectively reduce the Cap.

 

Note, that I do not read the law to limit rent increase after the first year of a month-to-month tenancy to only once per year – so long as the annual Cap is not exceeded in total. However, I believe that rent increase are generally limit to one-a-year by most Oregon MHP landlords.

 

Note also, that since ORS 90.600 only applies to periodic tenancies, i.e., month-to-month, the Cap does not apply to rent formulas in leases, i.e., fixed term tenancies. However, it has been my understanding that this was a legislative oversight in 2019; if so, the 2023 Legislature may change that, as well.

 

Currently, the text of ORS 90.600 provides that the landlord may not increase the rent (a) without giving each affected tenant notice in writing at least 90 days prior to the effective dateof the rent increase; and (b) during any 12-month period, in an amount greater than seven percent plus the consumer price index above the existing rent.

 

My reading of this is that so long as the rent does not exceed the Cap during a particular year – there is no limit on when the notice of 90-day increase may be issued. To put it another way, “increasing the rent” is not the same as “giving notice” of an increase in rent. There is no restriction against the frequency of the notices, just increases that exceed the applicable Cap.

 

For example, say word was out that the 2023 Legislature was going to dramatically reduce the Cap going forward. In my opinion, a landlord having already issued a 90-day rent increase notice in September 2022, effective January 1, 2023 (or later) would have two choices:

  1. Rescind the 2022 notice before it becomes effective, and re-issue a new 90-day notice for a different rent effective in 2023, so long as it was done before the effective date of the new legislation and did not exceed the 2023 Cap establish in 2022.

 

  1. Don’t rescind the earlier 2022 notice but issue a second rent increase notice that does not, in total, exceed the 14.6% Cap - so long as it is issued before the new 2023 legislation becomes effective.[2] Caveat: The 2-notice approach needs to make sure that the rental agreement or other park docs don’t limit increases to one per year.

 

Note that for both Nos. 1 and 2 above, the rent increase notice cannot be sent to any tenants who still have rent payments due on their first year of tenancy (including occupancy that may have preceded the signed rental agreement).

 

SB 608, the 2019 law amending ORS 90.600 and creating the Cap, applied to “rent increase notices delivered on or after the effective date of this 2019 Act.” In other words, the Legislature did not attempt to retroactively (and likely illegally) interfere with a rent increase that had already been issued before SB 608 went into effect.

 

Following that logic, should a landlord wish to rescind a 2022 90-day rent increase for 2023 and reissue a different one, it should be entirely legal so long as it is issued before the effective date of the legislation creating a new Cap.

 

Caveat: Landlords should check with their own legal counsel before rescinding any 2022 90-day notices or reissuing a second 90-day notice for 2023 rents under the 14.6% Cap.

 

 

[1] https://www.multifamilynw.org/news/2023-oregon-maximum-rent-increase-is-146

[2] For example, a 5.00% increase notice issued in September 2022 and a second notice for something less than 9.6% issued before the 2023 legislation becomes effective.

Phil Querin Q&A: Rent Increases With Legislative Action Pending (90-Day Rent Increase Notices Sent Before 2023 Legislation Becomes Law)

Phil Querin

90-Day Rent Increase Notices Sent Before 2023 Legislation Becomes Law

 

Question:  All indications are that the 2023 legislature is going to revisit the rent increase formula currently in effect, and once passed it would likely become law immediately upon the Governor’s signature. How can landlords deal with having already issued a September 2022 90-day rent increase notice if the 2023 rent cap is legislatively reduced before the landlord’s previously-issued September 2022 increase goes into effect?

 

Answer: Currently, ORS 90.600(2)(b) limits rent increases to 7% plus CPI (“Cap”) for any 12-month period. For 2023 that resulted in a Cap of 14.6%.[1] This amount surprised some, and we can fully expect the Oregon Legislature to pass a new law that could effectively reduce the Cap.

 

Note, that I do not read the law to limit rent increase after the first year of a month-to-month tenancy to only once per year – so long as the annual Cap is not exceeded in total. However, I believe that rent increase are generally limit to one-a-year by most Oregon MHP landlords.

 

Note also, that since ORS 90.600 only applies to periodic tenancies, i.e., month-to-month, the Cap does not apply to rent formulas in leases, i.e., fixed term tenancies. However, it has been my understanding that this was a legislative oversight in 2019; if so, the 2023 Legislature may change that, as well.

 

Currently, the text of ORS 90.600 provides that the landlord may not increase the rent (a) without giving each affected tenant notice in writing at least 90 days prior to the effective dateof the rent increase; and (b) during any 12-month period, in an amount greater than seven percent plus the consumer price index above the existing rent.

 

My reading of this is that so long as the rent does not exceed the Cap during a particular year – there is no limit on when the notice of 90-day increase may be issued. To put it another way, “increasing the rent” is not the same as “giving notice” of an increase in rent. There is no restriction against the frequency of the notices, just increases that exceed the applicable Cap.

 

For example, say word was out that the 2023 Legislature was going to dramatically reduce the Cap going forward. In my opinion, a landlord having already issued a 90-day rent increase notice in September 2022, effective January 1, 2023 (or later) would have two choices:

  1. Rescind the 2022 notice before it becomes effective, and re-issue a new 90-day notice for a different rent effective in 2023, so long as it was done before the effective date of the new legislation and did not exceed the 2023 Cap establish in 2022.

 

  1. Don’t rescind the earlier 2022 notice but issue a second rent increase notice that does not, in total, exceed the 14.6% Cap - so long as it is issued before the new 2023 legislation becomes effective.[2] Caveat: The 2-notice approach needs to make sure that the rental agreement or other park docs don’t limit increases to one per year.

 

Note that for both Nos. 1 and 2 above, the rent increase notice cannot be sent to any tenants who still have rent payments due on their first year of tenancy (including occupancy that may have preceded the signed rental agreement).

 

SB 608, the 2019 law amending ORS 90.600 and creating the Cap, applied to “rent increase notices delivered on or after the effective date of this 2019 Act.” In other words, the Legislature did not attempt to retroactively (and likely illegally) interfere with a rent increase that had already been issued before SB 608 went into effect.

 

Following that logic, should a landlord wish to rescind a 2022 90-day rent increase for 2023 and reissue a different one, it should be entirely legal so long as it is issued before the effective date of the legislation creating a new Cap.

 

Caveat: Landlords should check with their own legal counsel before rescinding any 2022 90-day notices or reissuing a second 90-day notice for 2023 rents under the 14.6% Cap.

 

 

[1] https://www.multifamilynw.org/news/2023-oregon-maximum-rent-increase-is-146

[2] For example, a 5.00% increase notice issued in September 2022 and a second notice for something less than 9.6% issued before the 2023 legislation becomes effective.