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New MHCO Forms and New Abandonment Law - Effective January 1st

MHCO

New Oregon Law. No. 4 above has been stricken,2 and the following rules (found at ORS 90.675(14)(d) and (e) and (15) of HB 3016,) will apply. On January 1, 2016, if the landlord follows these new laws, the tax collector and Department of Revenue (collectively "tax collector") will be required to cancel unpaid taxes in the following additional circumstances:

1. The landlord sells the home to a buyer who intends to occupy it in the community in which it is currently located, after:

a. Purchasing it at the abandonment sale; or
b. Acquiring it as a result of a written agreement with the tenant or tenant's

personal representative, etc. in accordance with ORS 90.675(23)(a) [currently (22)(a)].

1 If there are remaining funds after that, the balance is paid in the following order to any lienholder to the extent of any unpaid balance owed on the lien and the remainder to the tenant, together with an itemized accounting.
2 Currently in ORS 90.675(d)(A), (B), and (C). Note that HB 3016 also added the following text to No. 2: "...and the landlord disposes of the property."

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2. The following additional conditions must be met:

  1. There is a lien on the home for unpaid property taxes and special assessments owed to a county or to the Department of Revenue;

  2. The landlord must prepare and sign and affidavit or declaration (hereinafter "Affidavit of Compliance") in the form set forth on MHCO Form 31A, with the county tax collector or the Department of Revenue (hereinafter, "tax collector"). Upon filing this Affidavit of Compliance, the county tax collector will provide title to the home for the landlord to give to a buyer at the time of the sale.

  3. After the sale, the landlord must file a second Affidavit of Compliance in the form set forth on MHCO Form 31B, with the tax collector. It must be accompanied by:

    i. Payment of the amount remaining from the sale proceeds after the deduction of the landlord's claims and costs, up to the amount of the unpaid taxes or tax lien. The landlord may retain the amount of the sale proceeds that exceed the amount of the unpaid taxes or tax lien;

    1. Payment of any county warrant fees; and

    2. A third Affidavit of Compliance, this time from the buyer, in the form set

      forth on MHCO Form 31C, stating his/her intent to occupy the property in the community. Thereupon, the tax collector shall cancel all any remaining unpaid taxes or tax liens on the property.

Effect of New Law. The new law will permit landlords to sell abandoned homes with unpaid property taxes to persons who will reside in them at the community in which they are currently located. To the extent that the net sale proceeds (after deduction of the landlord's statutory claims and costs) are insufficient to pay the former resident's unpaid property taxes, the shortfall will be waived by the tax collector. If the sale proceeds cover more than the landlord's statutory claims and costs, and all of the unpaid taxes, the landlord may retain any excess.

Documents Provided To Prospective Residents

When the prospective resident returns a complete and accurate written rental application, you should provide the applicant the following:

  • A copy of the rules and regulations (if not provided earlier)
  • Rental agreement form
  • Statement of policy (if not provided earlier)
  • Rent history of the space
  • Criminal check authorization
  • 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.
  • The landlord must give written notice of what the tenant screening or consumer credit report entails, the landlord's charge for the screening, and the applicant's right to dispute the screening service or credit reporting agency's information if the application is denied based on the credit report.
  • Minimum Criteria Standards

At this point the above documents are to be provided to the prospective applicant. However, only the application, the criminal check authorization and the applicant screening fee notice and receipt should be signed by the tenant. The other documents are not to be signed until the application and background checks are completed and the applicant is approved. The additional documents that are provided when the applicant returns the rental application are provided to the prospective tenant for their information so that they may be aware of the facts and make the housing choice that is right for them. 

MH Abandonment in Progress - Home Is Sold to Non-Resident Just Before 60 Day Letter Expires

Question - A landlord is near the end of an abandonment notice. The former resident and owner of the home without notice to the landlord sells the "abandoned" home to another person. Does the landlord have to send a new abandonment notice to the new owner and restart the 60 day clock? Answer: [Note: This answer presumes that the landlord has legally declared the abandonment, and following the statute regarding issuance of the 45-day letter. It also presumes that there are no liens on the home, since they would have prior right to determine what happens.] Interestingly, I find nothing in the abandonment statute [ORS 90.675] that prohibits the tenant from selling the home during the 45-day period following the landlord's issuance of the 45-day letter. In fact, I believe that possibility was contemplated when the statute was drafted and/or amended. [My answer might be different if the tenant sold the home after expiration of the 45-day letter, since the statute says that under that circumstance the home is conclusively presumed" to be abandoned. To me this means that the tenant had nothing to convey. But we'll deal with that issue another time.]So the real issue is not with the abandonment statute

New MHCO Forms and New Abandonment Law - Effective January 1st

MHCO

New Oregon Law. No. 4 above has been stricken,2 and the following rules (found at ORS 90.675(14)(d) and (e) and (15) of HB 3016,) will apply. On January 1, 2016, if the landlord follows these new laws, the tax collector and Department of Revenue (collectively "tax collector") will be required to cancel unpaid taxes in the following additional circumstances:

1. The landlord sells the home to a buyer who intends to occupy it in the community in which it is currently located, after:

a. Purchasing it at the abandonment sale; or
b. Acquiring it as a result of a written agreement with the tenant or tenant's

personal representative, etc. in accordance with ORS 90.675(23)(a) [currently (22)(a)].

1 If there are remaining funds after that, the balance is paid in the following order to any lienholder to the extent of any unpaid balance owed on the lien and the remainder to the tenant, together with an itemized accounting.
2 Currently in ORS 90.675(d)(A), (B), and (C). Note that HB 3016 also added the following text to No. 2: "...and the landlord disposes of the property."

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2. The following additional conditions must be met:

  1. There is a lien on the home for unpaid property taxes and special assessments owed to a county or to the Department of Revenue;

  2. The landlord must prepare and sign and affidavit or declaration (hereinafter "Affidavit of Compliance") in the form set forth on MHCO Form 31A, with the county tax collector or the Department of Revenue (hereinafter, "tax collector"). Upon filing this Affidavit of Compliance, the county tax collector will provide title to the home for the landlord to give to a buyer at the time of the sale.

  3. After the sale, the landlord must file a second Affidavit of Compliance in the form set forth on MHCO Form 31B, with the tax collector. It must be accompanied by:

    i. Payment of the amount remaining from the sale proceeds after the deduction of the landlord's claims and costs, up to the amount of the unpaid taxes or tax lien. The landlord may retain the amount of the sale proceeds that exceed the amount of the unpaid taxes or tax lien;

    1. Payment of any county warrant fees; and

    2. A third Affidavit of Compliance, this time from the buyer, in the form set

      forth on MHCO Form 31C, stating his/her intent to occupy the property in the community. Thereupon, the tax collector shall cancel all any remaining unpaid taxes or tax liens on the property.

Effect of New Law. The new law will permit landlords to sell abandoned homes with unpaid property taxes to persons who will reside in them at the community in which they are currently located. To the extent that the net sale proceeds (after deduction of the landlord's statutory claims and costs) are insufficient to pay the former resident's unpaid property taxes, the shortfall will be waived by the tax collector. If the sale proceeds cover more than the landlord's statutory claims and costs, and all of the unpaid taxes, the landlord may retain any excess.

Phil Querin Q&A: Resale Compliance - Fact and Fiction

Phil Querin

Answer. Yes and no. ORS 90.510(4) provides that all rental agreements must contain certain provisions, and that unless the law allows otherwise, they may not be unilaterally amended without the consent of both parties. Subsection 90.510(5) sets forth the contents of the rental agreement, and subsection (5)(i) provides that it must describe:


"(a)ny conditions the landlord applies in approving a purchaser of a manufactured dwelling or floating home as a tenant in the event the tenant elects to sell the home. Those conditions must be in conformance with state and federal law and may include, but are not limited to, conditions as to pets, number of occupants and screening or admission criteria... ." (Emphasis added.)


ORS 90.680(10)(a) provides that if a landlord receives an application for tenancy from a prospective purchaser "


The landlord shall accept or reject the prospective purchaser's application within seven days following the day the landlord receives a complete and accurate written application. An application is not complete until the prospective purchaser pays any required applicant screening charge and provides the landlord with all information and documentation, including any financial data and references, required by the landlord pursuant to ORS 90.510 (5)(i). (Emphasis added.)


ORS 90.680(10)(c provides that if a landlord receives an application for tenancy from a prospective purchaser:


(c) The landlord may not unreasonably reject a prospective purchaser as a tenant. Reasonable cause for rejection includes, but is not limited to, failure of the prospective purchaser to meet the landlord's conditions for approval as provided in ORS 90.510 (5)(i) or failure of the prospective purchaser's references to respond to the landlord's timely request for verification within the time allowed for acceptance or rejection under paragraph (a) of this subsection. (Emphasis added.)


ORS 90.10(40) defines "Screening or admission criteria" to mean:


'_a written statement of any factors a landlord considers in deciding whether to accept or reject an applicant and any qualifications required for acceptance. "Screening or admission criteria" includes, but is not limited to, the rental history, character references, public records, criminal records, credit reports, credit references and incomes or resources of the applicant."


Based upon the above, I believe that since the rental agreement may not be unilaterally modified, you are safer having all of your screening criteria in that document, than putting them elsewhere.


If there are other issues, e.g. with the condition of the home, when you learn that it is going to be sold on-site, you can issue a repair notice under ORS 90.620. That statute is quite useful in these situations. It provides that you can give the resident a 30-day notice of termination based upon repair or deterioration issues. Depending on the degree of repair work necessary, the resident can request additional time.


While it is probably true that the resident may not want to do the work, if and when a purchaser is found, you may give that notice to the purchaser. Putting the home up for sale will not extend the compliance period. Thus, in giving the notice to the prospective purchaser, the issue becomes one of negotiation between seller and buyer. If they reach agreement (which will likely include some price concessions), if the work cannot be completed before the pending transaction closes, you can include completion deadline in the new rental agreement. The new purchaser cannot take possession without first signing the rental agreement and committing to a completion date.


Does all this mean that you cannot or should not develop a resale compliance form for your community? No. But to be forewarned is to be forearmed. In other words, an existing resident could push back if they did not like the provisions, and they might win that argument. The work-around, is that you should make sure your rental agreement contains a good set of screening criteria. MHCO's is very complete. And if the home is in need of repair, you can always issue a 90.632 notice, and secure compliance either from the existing resident, or their prospective purchaser. Since you can make this a condition of acceptance of the prospective purchaser, and it will be written into the new rental agreement, I submit that you will be holding the better hand.

Common Fair Housing Pit Falls: Not Exempting Assistance Animal from No-Pets Policy

MHCO
Fair Housing Pitfall: Not Exempting Assistance Animal from No-Pets Policy

Failure to make reasonable accommodations for a rental applicant or tenant with a disability is, perennially, the most common type of fair housing complaint, accounting for nearly 60 percent of all cases, according to HUD. Many, if not most of these complaints, involve assistance animals. So, that’s where we’ll start our analysis.

Spot the Discrimination Mistake

A landlord threatens to evict a tenant with disabilities for keeping a stray cat in her apartment in violation of the community’s no-pets policy. The tenant says the cat helps her cope with mental anxieties and asks for an exemption. The landlord says no because the cat has no special training or certification in assisting the disabled.

Pitfall: HUD and the U.S. Department of Justice (DOJ) interpret the federal Fair Housing Act (FHA) duty to make reasonable accommodations as requiring exemptions to no-pet policies necessary to enable individuals with disabilities to keep “assistance animals” that directly assist with a disability-related need. “Assistance animals” include dogs or other common domestic household animals that do work, perform tasks, provide assistance, and/or provide therapeutic emotional support for individuals with disabilities. Significantly, assistance animals need not have any specific certification or training. By contrast, under the Americans with

Disabilities Act (ADA) duty to accommodate applies onlyto “service animals” trained to do work or perform tasks for the benefit of an individual with a disability.

Thus, while the refusal of the landlord in our scenario to accommodate the stray cat might have been okay under the ADA, it violated the FHA.

Example: A Pennsylvania federal court ruled that the DOJ had a legally valid claim against a landlord that took the same position as the landlord in our scenario, and allowed the case to go to trial [United States v. Perry Homes, Inc., 2022 U.S. Dist. LEXIS 87064, 2022 WL 3021040].

Solution: Keep in mind that neither assistance animals nor service animals count as pets and that, unless the ADA applies, you must accommodate both to the point of undue hardship. You may, however, ask for information about the relationship or connection between the disability and need for the assistance animal to the extent the disability is non-observable and/or the animal provides therapeutic emotional support. In addition, you don’t have to accept an assistance or service animal that would create an unreasonable risk of harm, injury, or damage to property.

Phil Querin Q&A: When to Use 30 Day Notice of Eviction vs. 24 Hour Notice of Eviction

Phil Querin

Answer: The statute governing the issuance of a 24-hour notice is ORS 90.396 [Acts or omissions justifying termination 24 hours after notice.] Subsection (1)(f) states that a 24-hour notice may be appropriate in the following circumstances:

The tenant, someone in the tenant’s control or the tenant’s 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, 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. [Emphasis mine.]

Unfortunately, in close cases, what is “outrageous” is frequently in the eyes of the beholder. The question is was this truly an isolated incident for which you could give a 30-day notice that he could cure by simply not repeated within the following 30 days? If he repeated it thereafter [i.e. within 6 months following the date of the 30-day notice] you could terminate with a 20-day, non-curable, notice.

In making a decision whether to do a 24-hour notice, which is non-curable, or a 30-day notice which is, you should consider the following factors:

1. Has this ever occurred before?

2. How long has the resident been in the park?

3. Is there a reason to believe the conduct will be repeated?

4. Does the resident have a drinking/emotional problem on a regular basis?

5. Did the conduct pose any immediate threat to health or safety?

6. Was actual violence involved?

If you genuinely believe that a 30-day notice would work, it will still provide you with the opportunity to issue a 20-day non-curable notice if he fell off the wagon again - either within the 30 days or within 180 days following the date of issuance of the 30 day notice. Remember that the 24-hour notice is final, whereas the 30-day notice is not, because it can be “cured.” This may be a case where you should issue the 30-day notice, and make it clear to him that the next time will be final. In any event, the conduct should not be ignored – a notice should issue.

Mark Busch Q&A: To Tow or Not to Tow

Mark L. Busch

Answer: ORS 90.485 specifically allows landlords to have a vehicle towed if it: (a) Blocks or prevents access by emergency vehicles; (b) Blocks or prevents entry to the premises; (c) Violates a prominently posted parking prohibition; (d) Blocks or is unlawfully parked in a space reserved for persons with disabilities; (e) Is parked in an area not intended for motor vehicles including, but not limited to, sidewalks, lawns and landscaping; (f) Is parked in a space reserved for tenants but is not assigned to a tenant and does not display a parking tag or other device; or, (g) Is parked in a specific space assigned to a tenant (but only with the tenant's agreement at the time of the tow).

First and foremost, you should ensure that you have the proper signage in your park specifying whether and/or when parking is allowed in certain areas (i.e., "No Overnight Street Parking"). Also contact a local towing company to have them post towing company signs around the park.

When you have an illegally parked vehicle towed, the towing company is responsible for taking a photo of the vehicle and reporting to the police that it has been towed. After the car is removed, the towing company takes responsibility for the vehicle and returning it to the owner (after paying the tow fees, of course).

I would also suggest a rule allowing the park to assess parking violation charges of $50 per violation. As required by ORS 90.302 (3), the rule should specify that the first violation would result in a written warning, with subsequent violations within one year being assessed the $50 charge. ORS 90.302 (3) specifies the language that must be included in the written warning, which you should consult with an attorney to draft.

There are certain technical nuances to these statutes, so as usual consult with an experienced attorney before implementing a parking enforcement plan. But the bottom line is that you do have tools at your disposal to cut down on parking problems.

Phil Querin Q&A: Failure To Put Agreement In Writing - Failure to Qualify Resident

Phil Querin

A: The landlord did several things wrong:

(a) he/she failed to reduce the agreement to writing, saying, for example, that the niece had to comply with all of the rules and regulations, that she was responsible for the rent, and generally fully memorializing the arrangement.

(b) the landlord failed to fully qualify the niece and failed to have her sign a rental agreement (or occupancy agreement) before taking possession. However, none of this means that the landlord is not without a remedy.

The original resident is still the tenant under the rental agreement and still responsible for the rent. It is quite possible that the niece is also a "tenant" in a legal sense. The landlord could and should be sending out 72-hour notices to the space naming both the resident and the niece. If the landlord has the phone number of the original resident, he/she should let them know what is going on. Under 90.630 if three or more 72-hour notices are sent with any 12 month period, the landlord may then issue a 30-day non-curable notice of termination. I suggest at least 4 such notices, just to be on the safe side. A more risky (and untested) approach, is to simply issue a 30-day notice of termination under the general (i.e. non-manufactured housing section of the law) landlord tenant law. It is my opinion that the landlord would be within their right to do so, since the occupant is not the owner of the home and the owner of the home is not the occupant. The manufactured housing section of the law - which requires that all notices be "for cause" does not technically apply here because of this distinction. However, before proceeding down this path, the landlord should obtain legal advice.

Phil Querin Q&A: More Questions on Water Sub-Metering

Phil Querin

Answer: ORS 90.532 (3) provides as follows: Except as allowed by subsection (2) of this section for rental agreements entered into on or after January 1, 2010, a landlord and tenant may not amend a rental agreement to convert water or sewer utility and service billing from a method described in subsection (1)(b)(C)(i) [i.e. where the charge is included in the base rent] *** to a method described in subsection (1)(b)(C)(ii) [i.e. where the charge is billed separately from base rent and apportioned among the tenants on a pro rata basis as measured by a master meter]. The exception covered in subsection ORS 90.532(2) provides as follows: A landlord may not use a separately charged pro rata apportionment billing method: (a) For water service, if the rental agreement for the dwelling unit was entered into on or after January 1, 2010, unless the landlord was using a separately charged pro rata apportionment billing method for all tenants in the facility immediately before January 1, 2010. (b) For sewer service, if it is measured by consumption of water and the rental agreement was entered into on or after January 1, 2010, unless the landlord was using a separately charged pro rata apportionment billing method for all tenants in the facility immediately before January 1, 2010. Translating this to plain English, here is my take: - For rental agreements entered into on or after January 1, 2010 you may not convert water or sewer charges from an in-rent method to a pro rata billing method except as follows: _ Water service: If the rental agreement was entered into on or after January 1, 2010, unless you were using a separately charged pro rata apportionment billing method for all 180 spaces immediately before January 1, 2010. _ Sewer Service: If sewer service is measured by consumption of water and the rental agreement was entered into on or after January 1, 2010, you may not convert from an in-rent method to a pro rata method, unless you were already using a separately charged pro rata apportionment billing method for all 180 spaces immediately before January 1, 2010. - Garbage service: You may not convert from an in-rent method to a pro rata billing method unless the pro rata apportionment is based upon the number and size of the garbage receptacles used by the tenant. There does not appear to be any time frame limitation on this rule Pursuant to ORS 90.534 [Allocated charges for utility or service provided directly to space or common area], if a written rental agreement so provides, you may use a pro rata billing method with a master meter and require tenants to pay you a utility or service charges (e.g. electrical and natural gas) that has been billed to you or provided directly to the tenant's space or to a common area. However, you may not unilaterally amend an existing rental agreement to convert utility and service billing from an in-rent billing method to a pro rata billing method. It appears you could use the pro rata billing method (other than sewer and water) per above rules, only on a going forward basis with new residents. Conclusion. This is the best I can tell you. It is not legal advice, and based only upon my interpretation of the statutes which are quite complex. It appears that yours is a difficult situation in which water/sewer submetering will not actually help. With the exception of garbage service, there is no easy answer. However, upon closer evaluation by your attorney, perhaps you may be able to figure out a work-around solution. Good luck!