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Phil Querin Q&A: Selling New Manufactured Home for Community Sales

Phil Querin

Answer: The following answers should not be regarded as "legal advice" since this column is intended to be purely educational and for general information purposes. You need to consult your own attorney for a legal opinion. - You are correct about the law; the limited dealer's license is just for park owners with abandoned homes. There is no provision for dealers with a limited license to sell new homes. According to the law, you need a regular dealer's license. See, ORS 446.696, 446.701 and 446.706. - I am troubled that the DFCS said they thought it was OK for you to sell new homes under a limited license, since limited licenses are for abandoned homes which are (presumably) pre-owned. Having said that, if you wanted to proceed on the DFCS's advice, I suspect that if some official later objected, they would have a hard time taking any punitive measures you're your noncompliance. Of course, you never know. The IRS gives out information all the time, and following their advice is no defense to a violation. Why don't you ask if they will put their verbal statement in writing? - I agree that the law says a dealer under a regular license (as opposed to a limited license) may sell new and used homes (so long as he/she discloses that they will sell used homes in the application). - Note that you do not need a MLO license to sell homes. You may use a real estate broker to list and sell your new homes. The fact that they are sited at your park and later sold does not make them "resales." However, to offer or negotiate the financing terms of a purchase money loan, you would need the services of an Oregon licensed MLO (i.e. a mortgage broker or mortgage banker). The real estate brokers can handle the transaction, write it up, etc., but cannot advertise or negotiate specific financial terms were you to carry the paper. - However, if you are going to require that the buyers secure their own financing (i.e. you are not going to "carry the paper"), I see no reason that you need to worry about MLOs, since you will be selling for cash. You will not be taking payments over time. It will be the buyer's lender who will be acting as the MLO (i.e. the mortgage broker or mortgage banker), and negotiating the terms of the purchase money loan to the buyer. - My reading of Oregon administrative rule 441-446-0203 prohibits dealers from acquiring an ownership interest in a park only appears to apply if you are going to offer or negotiate the terms of a residential mortgage loan, i.e. engage in MLO activities or are doing so under an exemption under the MLO laws. Since buyer financing is going to occur via third-party lenders, I do not believe you are prohibited as a "dealer" from owning an interest in a manufactured housing community. - From my perspective, you would be much safer to have someone with a full dealer's license handle the sales program. The real estate licensee can list the homes, find the buyers, write up the transactions (making them subject to third-party financing, etc.). The dealer can handle the transaction from there. Footnotes: Footnote 1: 446.696 Renewal of dealer license. A manufactured structure dealer license is valid for three years, but the Director of the Department of Consumer and Business Services may adjust the term of an initial license for the purpose of establishing uniform expiration dates. A dealer may renew a license as provided by the director. The director may renew a license only if the dealer: (1) Delivers to the director a bond or letter of credit that meets the requirements under ORS 446.726. (2) Provides evidence acceptable to the director that the dealer obtained a corporate surety bond as provided in ORS 86A.227 if the dealer employs or intends to employ a mortgage loan originator, as defined in ORS 86A.200, or is otherwise subject to ORS 86A.200 to 86A.239. (3) Certifies to the director in a form and manner the director specifies by rule that the dealer has independently verified that every individual the dealer hired or intends to hire as a mortgage loan originator meets the requirements set forth in ORS 86A.200 to 86A.239 and in ORS 86A.186. (4) Pays the fee specified in ORS 446.721 for renewal of a manufactured structure dealer license. (5) Submits a completed application for renewal in a form approved by the director that includes: (a) The name and residence address of the dealer. If the dealer is a firm or partnership, the application must include the names and addresses of the members of the firm or partnership. If the dealer is a corporation, the application must include the names and addresses of the principal officers of the corporation and the name of the state in which the corporation is incorporated. (b) The name under which the business will be conducted. (c) The street address, including city and county in Oregon, where the business will be conducted. (d) If the location of the dealership is being changed at the time of renewal: (A) For a business that will be conducted in a residential zone, a statement by the dealer that all manufactured structures sold or displayed at that address will meet any architectural and aesthetic standards regulating the placement of manufactured structures in that residential zone. (B) For a business that will offer for sale new manufactured structures that are recreational vehicles greater than eight and one-half feet in width, a certificate from the applicant stating that the applicant will maintain a recreational vehicle service facility for those recreational vehicles at a street address provided in the application. (e) Information the director requires to efficiently regulate manufactured structure dealers and dealerships or other relevant information the director requires. [2003 c.655 _29; 2009 c.863 _30] Footnote 2: 446.701 Issuance of temporary manufactured structure dealer license. (1) If a licensed manufactured structure dealer dies or becomes incapacitated, the Department of Consumer and Business Services may issue a temporary manufactured structure dealer license to the executor, administrator or personal representative of the estate of the dealer or to an agent of the dealer approved by the department. A temporary license issued under this subsection expires after six months, but the department may extend the license for good cause. The department may not extend a temporary license if the license has been suspended or the licensee placed on probation by the department. (2) A person issued a temporary manufactured structure dealer license must deliver to the department a bond or letter of credit that meets the requirements under ORS 446.726. A bond or letter of credit covering a license term of less than one year must be for the sum otherwise required for each year a license is valid and must be renewed if the term is extended. The temporary manufactured structure dealer is responsible for ensuring that, during the term of the temporary license, the dealership and its employees comply with ORS 446.661 to 446.756. and rules adopted thereunder. This subsection does not relieve a manufactured structure dealer licensed under ORS 446.691 or 446.696 from liability for a violation arising out of actions or omissions by the dealer. (3) Notwithstanding ORS 446.731: (a) Issuance of a temporary manufactured structure dealer license does not, by itself, affect the rights or interests of any creditors of the dealer in dealership assets or inventory. (b) Issuance or expiration of a temporary license is not a transfer of interest for purposes of ORS 446.736. (4) A person obtaining a temporary manufactured structure dealer license must pay the applicable fee specified in ORS 446.721 for issuance of a temporary manufactured structure dealer license. [2003 c.655 _29a] Footnote 3: 446.706 Limited manufactured structure dealer; licensing. (1) A person who holds a limited manufactured structure dealer license issued under this section may sell during a calendar year up to 10 manufactured dwellings located at a manufactured dwelling park identified in the license. The manufactured dwellings sold under a limited manufactured structure dealer license must be dwellings that: (a) Have been abandoned as described in ORS 90.675 at any manufactured dwelling park. If the manufactured dwelling is not subject to sale by the limited manufactured structure dealer under ORS 90.675 (10), the dealer must have the certificate of title or registration for the dwelling transferred to the dealer prior to offering the dwelling for sale; or (b) Have been purchased by the park owner from a person holding title, and at the time of purchase by the park owner, were sited in the manufactured dwelling park identified in the license. (2) Notwithstanding ORS 90.525, if a limited manufactured structure dealer sells a manufactured dwelling that was abandoned at a manufactured dwelling park other than the park where the dwelling is being sold, the sale terms for the manufactured dwelling must require that the dwelling is to be sited under a rental agreement at the park where sold for at least 12 months following the sale. (3) Except as provided in ORS 446.741, the Director of the Department of Consumer and Business Services shall issue a limited manufactured structure dealer license to a person if the person: (a) Owns or operates a manufactured dwelling park as defined in ORS 446.003; (b) Submits a completed application for a limited manufactured structure dealer license in a form approved by the director; (c) Delivers to the director a bond or letter of credit that meets the requirements under ORS 446.726, except that the bond or letter of credit must be in the sum of $15,000 for each year that the license is valid; (d) Delivers to the director a corporate surety bond that meets the requirements specified in ORS 86A.227 if the person employs or intends to employ a mortgage loan originator, as defined in ORS 86A.200, or is otherwise subject to ORS 86A.200 to 86A.239; (e) Certifies to the director in a form and manner the director specifies by rule that the person has independently verified that every individual the person hired or intends to hire as a mortgage loan originator meets the requirements set forth in ORS 86A.200 to 86A.239 and in ORS 86A.186; (f) Is 18 years of age or older or is legally emancipated; and (g) Pays the fee specified in ORS 446.721 for issuance of a limited manufactured structure dealer license. (4) If the person is a firm or partnership, the application for a limited manufactured structure dealer license must include the names and residence addresses of the members of the firm or partnership. If the person is a corporation, the application must include the names of the principal officers of the corporation and residence addresses of the officers and the name of the state under whose laws the corporation is organized. If the person is the owner of a manufactured dwelling park, the person may submit a joint application on behalf of the person and a named park operator employed by the person. If the person is the operator of a manufactured dwelling park, the application must include the name and signature of the park owner. (5) A limited manufactured structure dealer license is valid for use at a single manufactured dwelling park. The manufactured dwelling park location must be specified in the license application. A limited manufactured structure dealer may not employ a salesperson. (6) A limited manufactured structure dealer license is valid for two years, but the director may adjust the term of an initial license for the purpose of establishing uniform expiration dates. (7) Notwithstanding subsection (6) of this section, the limited manufactured structure dealer license for the person expires immediately if the person ceases to be an operator or owner of the manufactured dwelling park at which the license may be used. The owner of a manufactured dwelling park shall immediately notify the director if a person licensed under this section ceases to be an owner or operator of a manufactured dwelling park at which the license may be used. (8) Notwithstanding subsections (6) and (7) of this section, if a licensed person ceases to be an operator of the manufactured dwelling park, the park owner may apply to have a corrected license issued to a new operator employed by the owner. A corrected license issued under this subsection is valid for the unexpired portion of the original license term. The director shall charge the fee specified in ORS 446.721 for issuing a corrected license. (9) A limited manufactured structure dealer may renew a license as provided by the director. The director shall renew a license only if the dealer: (a) Submits a completed application for renewal in a form approved by the director; (b) Delivers to the department a bond or letter of credit that meets the requirements described in subsection (3) of this section; and (c) Pays the fee specified in ORS 446.721 for renewal of a limited manufactured structure dealer license. [2003

Current Lending Climate for Manufactured Home Communities

MHCO

Answer: Oregon landlord tenant law allows service of notices three ways: first class mail, personal delivery and "nail and mail." ORS 90.155.

We always advise our clients to deliver notices by first class mail. Not certified, not UPS, not FedEx, but good old fashioned first class mail with a stamp. They still make those. You can always get a certificate of mailing showing that you sent the notice on the day you say you did.

First class mail is not always an option; therefore, you can serve personally. When we say "personal delivery" it does not mean taping the notice to the door, or placing it under a windshield wiper (I've seen both cases), it means physically handing it to the person you are trying to give the notice to. Make a note of the time you sent it and if you can, bring a witness.

Phil Querin: New MHCO Form 5E - For  Park-Owned - Resident Owned - SubLeasing (PortlandOnly)

Phil Querin

 

 

Portland Housing Code 30.01.085 (Portland Renter Additional Protections), here, became effective on November 1, 2019.  For manufactured housing parks located in the City of Portland, the ordinance DOES NOT apply to rental spaces in which the tenant owns their home; it only applies to rental spaces in which the tenant is renting a park-owned home or subleasing a home from the owner. For purposes of this article, only park-owned homes will be addressed. However, in the event a tenant wishes to sublease a home – and it is permitted by the rules or rental agreement – park owners may discuss with the tenant his or her legal obligations under the Portland ordinances – not because there is a legal obligation to educate the tenant, but because of the financial consequences that can flow from ignoring the law.   


 

 

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

 

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

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

 

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

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

 

The Increase Notice must specify:

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

 

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

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

 

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

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

 

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

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

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

 

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

 

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

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

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

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

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

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

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

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

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

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

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

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

 

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

 

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

 

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

 

[1]Pursuant to Oregon Senate Bill 608 (2019), a “qualifying landlord reason” to terminate a tenancy without cause consists of the following events: The landlord intends to demolish the dwelling unit within a reasonabletime; The landlordintendsconvertit to a non-residential use withinareasonabletime; Thelandlordintendstoundertakerepairsor renovationstoit withina reasonable timeandit is currently unsafe or unfit for occupancy;or thedwellingwillbeunsafeorunfitforduringtherepairsor renovations;or the landlordhas acceptedanoffertosellit and thebuyerintendsingoodfaithtooccupyit as a primary residenceandwithin120daysafteracceptingtheoffer,thelandlordprovidesthetenant with a written notice of termination with a specific termination date together with written evidence of the offer of purchase; The landlordintends to, or amemberofhis/her immediatefamily,tooccupythedwelling as a primary residence  andthelandlorddoesnotthen ownaunitinthesamebuildingthatisavailableforoccupancy.

 

[2]According to Portland Housing Ordinance 30.01.030 (Definitions) “Associated Housing Costs” “(i)include, but are not limited to, fees or utility or service charges, means the compensation or fees paid or charged, usually periodically, for the use of any property, land, buildings, or equipment. For purposes of this Chapter, housing costs include the basic rent charge and any periodic or monthly fees for other services paid to the Landlord by the Tenant, but do not include utility charges that are based on usage and that the Tenant has agreed in the Rental Agreement to pay, unless the obligation to pay those charges is itself a change in the terms of the Rental Agreement.”

Application of payments and 72 Hour Notices in Manufactured Home Communities

By: Bradley Kraus - Attorney at Law - Warren Allen LLP

 

Bradley Kraus is an attorney at Warren Allen LLP, where he is a member of the firm's landlords' rights team. A graduate of the University of Minnesota, Mr. Kraus also graduated cum laude from Lewis and Clark Law School. He currently represents many of the Pacific Northwest's premier management companies and ownership entities and assists clients in various litigation matters, including business, property and contract disputes.

 

A landlord recently approached me after I watched his eviction trial. He was pro se, and lost to a well-known tenants' attorney due to, among other things, a failure to follow the statutes and requirements set out in the statutes which govern eviction actions in Oregon. Among his questions about what just happened, he exclaimed, [t]his is so straightforward; they owe me rent! That should be all that matters! Doesn't the judge care?!" 

 

Phil Querin Q&A: Section 8 Housing: Can It Require Landlord Repairs To The Home?

Phil Querin

Answer. Admittedly, this area of Oregon landlord-tenant law is not my strong suit. But here is what I understand. For more detail, go to this excellent article by Sybil Hebb, of the Oregon Law Center, here.


The Housing Choice Act of 2013 (HB 2639) went into effect on July 1, 2014. While the law says that landlords are not required to accept Section 8 tenants, landlords may not refuse to rent because their source of income is a Section 8 voucher, or any other local, state, or federal housing assistance program. However, an applicant's (a) past conduct or (b) inability to pay rent, may be taken into consideration, so long as the landlord's screening protocols are consistent with local, state and federal laws. Landlords must include the value of the applicant's housing assistance when evaluating their ability to pay rent. See, ORS 659A.421(2)(a)


The Section 8 voucher program is a federally program available throughout Oregon. According to Sybil's article above:


'_the program is not achieving its goals: too many tenants struggle to find places where their vouchers will be accepted, and fear of administrative issues causes landlord reluctance to participate. As a result, families have fewer choices and face barriers to success. When vouchers are not accepted, the important public purpose of the housing assistance program is undermined, and the stability of low-income families is threatened. HB 2639 is intended to balance and meet the needs of vulnerable tenants and communities, landlords, and housing authorities."


According to the Fair Housing Counsel of Oregon, '_low-income Oregonians may apply to their local public housing authority or agency for a Section 8 voucher." The local housing authority does perform an inspection of the residence.


As for any required repairs, Sybil's above article includes the following discussion by Jim Straub, Legislative Director for Oregon Rental Housing Association:


"Do you have the right to refuse to make repairs without running afoul of the new law? Clearly we are not talking about minor repairs here. If Section 8 requires you to change a broken light bulb or replace a broken switch cover, no reasonable person would see that as a reason to refuse to move forward with the tenancy. Likewise, this isn'tyour opportunity to object to the entire law and simply decide ahead of time you aren'tgoing to make any repairs, then refuse to rent to the otherwise-qualified applicant after the Section 8 inspection. If you did that, the applicant could sue you under the law and, frankly, most any judge will see that as a transparent attempt to use your refusal as a tool for non-participation in the Section 8 process. I'm thinking more of a landlord who, based on Section 8's exterior paint standards, is asked to repaint their entire property prior to renting to the Section 8 applicant. For some landlords on a budget, especially if we're talking about pre-1978 paint that requires lead-based paint remediation methods, this Section 8 requirement could be entirely cost prohibitive. What happens then? That's a good question, and no one really knows the answer right now. What I will say is that if you have an otherwise-qualified Section 8 applicant who you decide NOT to rent to based on a refusal to comply with Section 8's inspection requirements, be sure you have valid reasons for not making the repairs and moving forward with the tenancy. If you are sued, you will stand in front of a judge and have to justify your decision. If you choose this route, make sure you can defend your reasons for refusing to make the repairs. "I didn'tthink I should have to" is probably not going to


Probably the biggest thing you want to look for when Section 8 makes inspection repair requirements is whether the recommendation is a habitability issue.[1] You, of course, don't ever want to refuse to repair a problem that is a habitability concern. Worse, however, would be to have a habitability problem "on the record" for your property that you refuse to repair and then proceed to rent the property to someone else. If injury or damage is caused to those new tenants by the habitability problem, they will be able to make the case that you knew of the problem and rented the property anyway. I can't think of a faster way to lose a lawsuit than this."


Conclusion. Here is the take=away from my perspective: It does not appear that the local Section 8 housing authority will require you to perform repairs that would not otherwise be imposed upon you by Oregon's habitability requirements. That appears to be the litmus test, according to Mr. Straub.


[1] Note that Oregon landlord-tenant law specifically identifies specific habitability requirements at ORS 90.320. ~PCQ

Phil Querin Q&A: Abandonment and Senior Tax Deferral

Phil Querin

Answer: The Department of Revenue ("DOR") is treated like any other lienholder. It is critical that before the 45-day letter is sent, the park check with the Oregon Department of Consumer and Business Services ("DCBS") to determine if there are any lienholders on title. We understand that DOR is now showing up on the DCBS records. Remember, if they show up on the record and you fail to give them notice, they could come back against the park for failing to notify them.


If they show up on the DCBS records, they should be copied on the 45-day letter, and given all of the same rights as other lienholders, e.g. entering into a one year storage agreement, paying the storage fees, selling the home, etc. Currently, it is our understanding the DOR does not sign and returned storage agreements.


If there is a purchase money lien on the property, it will be superior to the DOR and then it [the DOR] will only get payment if there is any equity from the sale. Since the property is worth more than $8,000, if there is no sale, it would go to auction. [Caveat: Even if the DOR doesn'trespond to the 45-day letter, they still must be notified of the upcoming auction, per the statute. Again, there could be liability to the DOR if they have a valid lien, got the 45-day letter, but weren'tinformed of the date and time of the auction.]


As a lienholder, the DOR is behind the park, in terms of payment of cost, and then the county tax collector [which presumably is current - thanks to the DOR]. Next, as a lienholder, the DOR would receive some payment. If there are any further proceeds, they would go to the tenant, and if the tenant cannot be located, then to the county fund.


If the landlord follows these procedures, there is no remaining liability to the DOR for and of the taxes paid under the program.

Rental Application Process (Part 1 of 6): Overview - Rental Application Process - The Rental Application Form

Rental Application Procedures -Overview -Rental Application Process -The Rental Application FormOverviewAs a community manager, you will normally be charged with accepting or rejecting prospective residents. This is one of the most important functions that you will perform as a manager of a manufactured home community. Done properly and effectively, the rental application and screening process will minimize potential problems in landlord - resident relations. If the process is done incorrectly the seeds of future problems will be sown. Every prospective resident should be given sufficient information to make an informed decision about living in a manufactured home community. When an individual stops by the manufactured home community office inquiring on the possibility of becoming a resident, always give them an application packet. Anyone who is interested in applying should be given the application packet - inconsistency in giving out application packets could lead to claims by the resident selling the home, or a fair housing violation. If yours is a family park, i.e. accepting all ages, avoid becoming engaged in discussions about the suitability of the community for children. Questions such as Is the park 'child friendly' or similar inquiries

Legislative Update: HB3054 (Rent Control & Vacancy Control) Amended - Vacancy Control Removed - New Rent Increase Limits and Exemptions

Later this week, the Oregon House Committee on Housing and Homelessness will introduce an amendment to HB3054 (Rent Control & Vacancy Control). The committee is expected to adopt this amendment later in April. MHCO has been negotiating with Rep Marsh (Committee Chair), but no agreement was reached as negotiations ended several weeks ago. 

The amendment to be introduced removes ‘vacancy control’ and increases the rent cap to 6% (the original bill limited rent increases to CPI). The new amendment also exempts communities/marinas with 30 or less units. MHCO is waiting to review the actual amendment and will provide further analysis once the actual language is available.

In the meantime, here is a summary of the amendment:

  1. Applies only to the tenancies of the homeowners of manufactured dwellings and floating homes who rent a space in parks and marinas, known collectively as facilities.

 

 

2.      Lowers the maximum allowed annual rent increase to 6 percent from the current level of 7 percent plus CPI capped at 10 percent (SB 608 (2019)). 

a.       Parks and marinas with 30 or fewer spaces are exempted from this lower maximum and continue to be covered by the current level.

 

3.      Exception: Landlords of facilities with more than 30 spaces may increase the rent once every five years to 12 percent to address a significant infrastructure repair, upgrade, or addition cost, with the approval of the homeowners of at least 51 percent of the occupied spaces. 

a.       The bill describes requirements for this written vote including a written proposal with estimated costs and time frame, and with a recapture penalty if the improvement is not completed.

 

4.      Clarifies that a landlord may not require a selling tenant or a purchasing tenant to make aesthetic or cosmetic improvements to the home as a condition of approving a sale.  

 

a.       Note that an example of an aesthetic improvement would be a change in the paint color of the exterior of the home; peeling or faded paint is already defined as “deterioration,” and the law allows a landlord to require correction during a tenancy or as a condition of a sale. 

 

5.      Prohibits landlords from requiring selling tenants or purchasers to consent to or obtain an inspection of the interior of the home. 

a.       Note that current law requires a tenant to keep the home “safe from the hazards of fire,” which would include the exterior and the interior of the home. 

 

MHCO remains opposed to the amendment.

Phil Querin Q and A - Resident Demands to Plant Marijuana in Space For Medical Marijuana Business

Phil Querin

Answer. ORS 90.630(1) provides as follows:

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

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

The exception found at subsection (4) says:


The tenant may avoid termination of the tenancy by correcting the violation within the 30-day period specified in subsection (1) of this section. However, if substantially the same act or omission that constituted a prior violation of which notice was given recurs within six months after the date of the notice, the landlord may terminate the tenancy upon at least 20 days written notice specifying the violation and the date of termination of the tenancy.

The rules prohibit running a business inside the community. I suspect that the local zoning ordinances do as well. So if the resident intends to run the same type of business as in town, in her home, it would likely violate both the park rules and the local land use ordinances. I also suspect that by whatever name she describes it, she is in the business of selling marijuana from her home.


The fact that she may hold a medical marijuana card permitting this activity does not persuade me that it is a ticket to place her grow site operation in a location that violates the park rules or the local land use rules.


On the State of Oregon website describing the Medical Marijuana Dispensary Program, here, it provides that:


The law requires the Oregon Health Authority to develop and implement a process to register medical marijuana facilities, which must be located on property zoned for commercial, industrial, mixed use or agriculture uses only. The issue of whether a local government believes a certain type of business should operate within one of these zones is a local government decision.


On March 19, 2014, Senate Bill 1531 was signed into law. SB 1531 gives local governments the ability to impose certain regulations and restrictions on the operation of medical marijuana dispensaries, including the ability to impose a moratorium for a period of time up until May 1, 2015. The law also authorizes the Oregon Health Authority to issue refunds upon request to dispensary applicants whose facilities are located in an area that falls under a moratorium.

Update:

Read the list of cities and counties that have enacted a moratorium on medical marijuana dispensaries. The Medical Marijuana Dispensary Program was last notified by a city or county of changes to this list on 5/21/14. This list includes only cities and counties that have submitted documentation of a moratorium to the Medical Marijuana Dispensary Program, consistent with the rules implementing SB 1531. The Oregon Health Authority is only authorized to offer a full refund to applicants and licensees whose dispensaries are located in an area named on this list.


Before going into battle with this resident, I suggest that you ask that she describe for you, in writing, exactly what she proposes to do, so that you can better understand and evaluate it. Once you fully understand the business model, you will be in a much better position to know whether her plans will constitute a violation that you may enforce. But remember, your remedy under ORS 90.630(1) and (4) is to give her a 30-day notice and opportunity to cure.

Based upon the state requirement that the grow site operation be consistent with local zoning laws, I do not view this as a fair housing issue. And based upon my prior MHCO articles on this subject, I do not believe the Oregon Bureau of Labor and Industries (the state's fair housing enforcement arm) would pursue your denial of the resident's request for a reasonable accommodation (i.e. permitting you to "bend" the rules, and ignore the land use laws).