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A True Opportunity to Purchase A Landlord's overt offer to Tenants and CASA of Oregon (Part 5)

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 and owns two manufactured home communities in Oregon.

This is the fifth of 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.

The fourth part of this series covered a period of time immediately after the tenants met with representatives from CASA to early October where both parties were anticipating to sign a purchase agreement on November 1. This period of time of will encompass almost 5 months.

The author is called by both CASA's Executive Director and the Development Manager. Obviously, there is something that isn't going according to schedule. Obviously, November 1 will come and go without the completion of the sale.

Before we get back to the phone call from CASA, a few details that occurred after September 1 were not mentioned in thefourth part of this series.

THE PAPERWORK PROCESS - The Cooperative requested an appraisal on Riverbend for the purpose of financing. An application for Capital Needs Assessment was required to fund the appraisal. Although this process was a few days late, this shouldn't delay the sale, if any, at all. The request for the appraisal was made on or around September 17. The completed appraisal was submitted to the State on October 16.

The appraisal, once completed, is the last and remaining document for the application process. The application then activates the underwriting process. When the State grants its approval of the underwritten application, it is then forwarded to the Oregon Housing Stability Council (HSC) for the final approval. So, who then gives the financing approval?

Grant agreements are then drafted and agreed to by CASA, the Cooperative and the Department of Justice for comments and approval of the funds needed to finance this purchase agreement. Once the agreement has gone through the many approvals and those signatures have been secured, the sale then gets the go ahead. The closing is all that remains. 

PARK OPERATIONS - Always in the back of my mind in the 4thquarter of each year is budgeting and my assessment for a need to increase the rent. Scheduled rent increases that I have asked of the tenants usually takes place on January 1. If the sale does not go through as expected, I will need to start in late September on implementing the increase.

All Oregon MHP landlords know that when they feel that they must increase their rents, that landlord will immediately turn to their Oregon Revised Statutes and go directly go to ORS 90.600. Those landlords will then be reminded that all tenants will need to be given a 90 day notification upon a landlords need for such an increase. In this case, I needed to get my notifications in the mail by September 26 to insure that the tenants did get their notices by September 30 in time for the January 1 implementation. (In Oregon, a tenant needs to be properly served via first class mail so that the notices are in their possession for the full 90 days before the rent is due).

My tenants were now aware that if I was still the owner of the community on January, their rents were now to be increased from $370 to $380 per month for the New Year. (Yes, that is the going rate of MHP rents in the small city). The request for the rent increase at the beginning of the year would become prophetic in more than one way.

Now we have an appraisal, capital needs assessment, an application, a submittal to the State for underwriting, approval by HSC for final approval, financing and finally approval by the Department of Justice, CASA and the Cooperative. And then we are ready for a closing on November 1. What could possibly go wrong???

Receiving the phone call from the Executive Director and Development Manager of CASA, they informed me that the events of their due diligence, application and approval process leading to a final sale was running behind their timeline. Their request was that we agree to and move back the closing date to March 1.

If you remember from the first part of this series, I wanted to sell this community for several reasons. I thought that the possible sale to the tenants would work for me because I was not going to exercise my 1031 option and I wanted to sell but didn't need to sell. The exemption of the State Capital Gains was another huge benefit that does not go ignored. I could wait when the purchasing party was ready.

I also mentioned in the first part of the series that my terms on selling would increase the Ernest Money by $10,000 per month for 2 months for any delay by the buyer for this sale.

CASA did want to delay the sale of the park back to March 1 because of delays of the process that the buyer needs to achieve in this process. It appears that the delay could possibly be with the Department of Justice. It has been suggested to me that the DOJ accomplishes its work on its timeline and doesn't have any kind of fast track program for this type of case. Whatever the delays were, the Ernest Money was increased by $20,000.

Then there is the case of my onsite manager. She has been there the entire 12 _ years that I have owned the community. She has spoken to me over the past 2 or more years about retirement and spending more time for herself and family. She does not want the responsibility of park management anymore. My agreement with my manager when I signed the Purchase Agreement was that she would work for me until November 1. This was extended another month, when the extension by CASA was requested. My manager still resides in the park and will continue to live there as a tenant. 

During this time, I have also been in frequent contact with the Coop board President and the Treasurer about the status of the park. This can lead to problems of a conflict of interest here although the best interest of the Community is most important to both parties. I continue to speak with the onsite manager regarding the status of the park. When it is necessary to speak with the 2 board members, usually the conversation will swerve into the current status of the park and how some issues need immediate attention. With all that has occurred since the formation of the board for the Cooperative, I can honestly say that I have had a great working relationship with both the President and the Treasurer. Also adding that they, in no way, have acted in my behalf to take care of any issues that I have a need to accomplish. I have seen this as phasing out my current manager and bring in the new ownership.

I do look forward to closing this deal in that we have been working on this sale for almost 5 months. Now I look at this delay from another standpoint. We are getting late in 2018. Pushing this sale back into 2019 will make tax planning much easier in that I have more time to do that planning. In addition, the rent increase will be implemented on schedule on January 1. It became prophetic in that the $380 rent is the amount that the Cooperative will start asking its members upon closing.

It remains to be seen if this rent in the long run can be sustained by the Cooperative or if an adjustment of the rent will need to be made.

Now that we are targeting the close sometime in the first quarter of 2019, I can now anticipate enjoying the Thanksgiving and Christmas holidays. But I also need to find the proper way to sell" the 2 park owned homes to the "occupants" (not a complete legal description of the habitants) of those homes.

Recently

Recovering After a Disaster

Last in a series of articles on disaster preparedness  and how to safeguard your community, save lives and minimize damage.

When manufactured home community residents return to their homes after a disaster, they must be careful to go about it in a safe way.  The Federal Emergency Management Agency recommends the following checklist:

 

BEFORE RETURNING TO YOUR HOME …

 

Walk around the house and look for obvious damage., loose electric lines, gas leaks and flooding.  If there is water around or in the home or if you have any doubts about whether it’s safe to enter, don’t go in.  Wait for a professional to inspect the house.

 

Use a battery-powered flashlight; don’t use lanterns, matches, candles, torches or other open flames that could ignite leaking gases.  For the same reason, don’t smoke.

 

Don’t turn on appliances, lights or other household equipment until you’re sure they are safe to use.

 

Watch out for animals, especially snakes.  Wear heavy boots and gloves if you are sorting through debris.

 

Check for gas leaks at the meter and at each piece of equipment.  If you hear a hissing sound or if you smell gas, leave the area immediately and call the gas company from another phone.  Don’t try to turn the gas back on yourself – have a trained technician from your gas company check your equipment and your pipes before the gas is turned back on.

 

Check the electric system.  If you see sparks or loose wire, or if you smell anything smoky, turn off the electricity at the main fuse or circuit box, even if the power is off in your neighborhood.  If there is water in the house, don’t touch anything electrical – leave the house and call for help.

 

Check appliances and heating systems.  If they are wet, turn off the power and unplug them.  Have a professional check them before you use them.

 

Check the water and sewer systems.  If pipes are leaking or cracked, turn off the main water supply valve.  Make sure that the water is safe before using any for drinking or cooking.

 

Clean up spills that could be dangerous, such as bleach or gasoline.

 

Be careful when opening cupboards – items may have shifted and could fall when the doors are opened.

 

Look for family valuables like jewelry and photos, and take steps to protect them from further damage.

 

Clean and disinfect everything that got wet.

 

Throw out any food that may be spoiled or damaged by water or loss of refrigeration.

 

Call your insurance agent.  Take pictures of the damage, and keep good records of your repair and cleaning expenses.

Mark Busch Q&A: RVs: Clean It Up!

Mark L. Busch

The short answer to your first question is "no," you do not have to give the long-time tenant the same 30-day notice as required for mobile home tenants. That notice under ORS 90.632 is only for mobile home tenants, not RVs. Since RVs are not "manufactured dwellings," you have some better options available.

Normally, I would recommend a 30-day, for-cause notice under ORS 90.392 requiring the tenant to repair his RV. Presumably your park has a rule requiring homes and RVs to be kept in good repair, which you would use as the basis for the notice. The 30-day notice would give the tenant 14 days to repair the RV or face termination of his tenancy at the end of the 30 days.

However, in this particular case it sounds like the travel trailer has been dilapidated for quite some time. Under ORS 90.412, you waived the right to evict the long-time tenant based on the condition of his RV by accepting rent for 3 or more months with knowledge of the condition of the RV. That is why I always recommend addressing problems with a notice as soon as the condition arises. (The rule is different for mobile homes - parks don't waive the right to evict even if the condition of the home has been longstanding).

Under the circumstances, your best option is to simply issue a 60-day, no-cause notice terminating the long-time tenancy. Presumably the tenant has been there for more than one year as a month to month tenant, which requires a 60-day notice.

The newer RV tenant with the messy space is a different story. If the condition of his space only became an issue recently, you could go with the 30-day, for-cause notice mentioned above. The basis of the notice would be your park rules requiring tenants to maintain their spaces, along with ORS 90.325 (1)(b) which requires tenants to keep their spaces "clean, sanitary and free from all accumulations" of debris and rubbish.

If the messy conditions have existed for 3 or more months, then you're only left with the no-cause eviction notice option. However, if the newer RV tenant has been there less than a year as a month to month tenant, the notice can be a 30-day, no-cause notice instead of a 60-day notice.

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.

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.

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."

page1image23760page1image23920

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.

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: Security Deposits and Prepaid Rent

Phil Querin

Answer. Here is a summary of what you can and cannot do. The statute is found at ORS 90.300.

  • A "security deposit" includes any last month's rent deposit;
  • You must provide the tenant with a receipt for any security deposit the tenant pays;
  • If you sell the park you need to turn over all deposits to the new owner, since he/she then has the responsibility to return the deposit at the end of the tenancy;
  • The rental agreement must identify the deposit(s) and amounts;
  • You may not increase a security deposit during the first year of the tenancy (if it's increased after the first year, the tenant must be given three months to pay);
  • However, if you and the tenant agree to modify the rental agreement, say for a pet, then you may increase the deposit;
  • You may claim from the security deposit only the amount reasonably necessary:
    • To remedy the tenant's defaults in the performance of the rental agreement including, but not limited to, unpaid rent; and
    • To repair damages to the premises caused by the tenant, not including ordinary wear and tear.
  • You are landlord not required to repair damage caused by the tenant in order to claim the deposit for the cost to make the repair. Any labor costs assessed for cleaning or repairs must be based on a reasonable hourly rate. You may charge a reasonable hourly rate for you own time if you do the cleaning or repair work;
  • The type of defaults and damages for which you charge the security deposit include (but are not limited to):
    • Carpet cleaning, other than the use of a common vacuum cleaner, if the cleaning is performed by use of a machine specifically designed for cleaning or shampooing carpets;
    • There are several other carpet cleaning provisions (check the statute);
    • Loss of use of the dwelling unit during the performance of necessary cleaning or repairs for which the tenant is responsible if the cleaning or repairs are performed in a timely manner.
  • You may not require a tenant to pay or forfeit a security deposit or prepaid rent for the tenant's failure to maintain a tenancy for a minimum number of months in a month-to-month tenancy;
  • You must apply any last month's rent deposit to the rent due for the last month of the tenancy:
    • When you or the tenant gives to the other a notice of termination, other than a notice of termination under ORS 90.394 (failure to pay rent);
    • When you and the tenant agree to terminate the tenancy; or
    • When the tenancy terminates in accordance with the provisions of a written rental agreement for a fixed term tenancy.
  • You must account for and refund any portion of a last month's rent deposit;
  • Unless you and the tenant agree otherwise, the tenant may not require you to apply a last month's rent deposit to rent due for any period other than the last month of the tenancy;
  • In order to claim all or part of any prepaid rent or security deposit, within 31 days after the tenancy terminates and the tenant returns possession you must give the tenant a written accounting that states specifically the basis of the claim(s) against the deposit;
  • You must give a separate accounting for security deposits and for prepaid rent;
  • You must return the unclaimed deposit or prepaid rent not later than 31 days after the tenancy terminates and the tenant returns possession to you;
  • The written accounting and refund of unused deposit or prepaid rent to be by personal delivery or by first class mail;
  • For situations in parks where the tenant has abandoned the home (or floating homes in marinas), the 31-day accounting and return period commences on the earliest of:
    • Waiver of the abandoned property process;
    • Removal of the manufactured dwelling (or floating home) from the rented space;
    • Destruction or other disposition of the manufactured dwelling or floating home; or
    • Sale of the manufactured dwelling or floating home.
  • If you fail to comply with the accounting and return provisions of the statute or it is in bad faith (e.g. improper charges, etc.), the tenant may recover the money due in an amount equal to twice the amount:
    • Withheld without a written accounting; or
    • Withheld in bad faith.
  • Claims arising under the security deposit statute do not preclude you or the tenant from recovering other damages under the Landlord Tenant Act.

Mark Busch Q&A - RV Abandonment

Mark L. Busch

Answer: So long as the park reasonably believes under all the circumstances that the tenant has left behind the RV with no intention of asserting any further claim to it, the park does not need to file an eviction action. Instead, the park can treat the RV as abandoned property and issue an abandoned property notice.

The abandonment process for RVs is similar to that for abandoned mobile homes. Under ORS 90.425, the park must issue an abandonment notice for the RV. The notice must state that: (a) The RV and any other property left behind is considered abandoned; (b) The tenant or any lienholder or owner must contact the landlord within 45 days to arrange for the removal of the RV; (c) The RV is stored at a place of safekeeping; (d) The tenant or any lienholder or owner may arrange for removal of the RV by contacting the landlord at a described telephone number or address on or before the specified date; (e) The landlord will make the RV available for removal by appointment at reasonable times; (f) The landlord may require payment of removal and storage charges; (g) If the tenant or any lienholder or owner fails to contact the landlord by the specified date, or after that contact, fails to remove the RV within 30 days, the landlord may sell or dispose of the RV; and, (h) If there is a lienholder or other owner of the RV, they have a right to claim it.


The park must send the notice to the tenant's park address and any other known address for the tenant. The park must also conduct a title search on the RV and send the notice to any listed lienholder or other owners. The notice must be sent by regular first class mail, except that lienholders must also be sent the notice by certified mail.


The good news is that after the park issues the abandonment notice, the RV itself can be removed from the rented space to open it up for a new RV tenant. The abandoned RV simply has to be stored in a "place of safekeeping," such as an on-site storage lot.


Finally, if the RV remains unclaimed after the 45-day period, the park can either throw away or give away the RV if the park estimates that the current fair market value is $1,000 or less, or so low that the cost of storage and conducting an auction probably exceeds the amount that could be realized from a sale. If the estimated value is more than $1,000, the park must hold an abandonment auction using the procedures described by the abandonment statute. (As usual, retain experienced legal counsel if unfamiliar with the abandonment process and procedures.)

Mark Busch Q&A: Abandoned RVs

Mark L. Busch

Answer: So long as the park reasonably believes under all the circumstances that the tenant has left behind the RV with no intention of asserting any further claim to it, the park does not need to file an eviction action. Instead, the park can treat the RV as abandoned property and issue an abandoned property notice.

The abandonment process for RVs is similar to that for abandoned mobile homes. Under ORS 90.425, the park must issue an abandonment notice for the RV. The notice must state that: (a) The RV and any other property left behind is considered abandoned; (b) The tenant or any lienholder or owner must contact the landlord within 45 days to arrange for the removal of the RV; (c) The RV is stored at a place of safekeeping; (d) The tenant or any lienholder or owner may arrange for removal of the RV by contacting the landlord at a described telephone number or address on or before the specified date; (e) The landlord will make the RV available for removal by appointment at reasonable times; (f) The landlord may require payment of removal and storage charges; (g) If the tenant or any lienholder or owner fails to contact the landlord by the specified date, or after that contact, fails to remove the RV within 30 days, the landlord may sell or dispose of the RV; and, (h) If there is a lienholder or other owner of the RV, they have a right to claim it.

The park must send the notice to the tenant's park address and any other known address for the tenant. The park must also conduct a title search on the RV and send the notice to any listed lienholder or other owners. The notice must be sent by regular first class mail, except that lienholders must also be sent the notice by certified mail.

The good news is that after the park issues the abandonment notice, the RV itself can be removed from the rented space to open it up for a new RV tenant. The abandoned RV simply has to be stored in a "place of safekeeping," such as an on-site storage lot.

Finally, if the RV remains unclaimed after the 45-day period, the park can either throw away or give away the RV if the park estimates that the current fair market value is $1,000 or less, or so low that the cost of storage and conducting an auction probably exceeds the amount that could be realized from a sale. If the estimated value is more than $1,000, the park must hold an abandonment auction using the procedures described by the abandonment statute. (As usual, retain experienced legal counsel if unfamiliar with the abandonment process and procedures.)

Mark L. Busch, P.C.
Attorney at Law
Cornell West, Suite 200
1500 NW Bethany Blvd.
Beaverton, Oregon 97006

Ph: 503-597-1309
Fax: 503-430-7593
Web: www.marklbusch.com
Email: mark@marklbusch.com