Search

Answer: The answer is found in ORS 90.302 (Fees allowed for certain landlord expenses). What follows is a brief summary: (1) A landlord may not charge a fee at the beginning of the tenancy for an anticipated expense (i.e. one that has not actually occurred). (2) A landlord may not require the payment of any fee except as provided in this statute. (3) The specific fee must be described in a written rental agreement. (4) The following list are the fees a landlord may charge: a. A late rent payment, pursuant to ORS 90.260. b. A dishonored check, pursuant to ORS 30.701 (5). [Note that the amount of the fee may not exceed the amount described in ORS 30.701 (5) plus any amount that a bank has charged the landlord for processing the dishonored check.] c. Removal or tampering with a properly functioning smoke alarm, smoke detector or carbon monoxide alarm, as provided in ORS 90.325 (2). d. The violation of a written pet agreement or rule relating to pets in a facility, pursuant to ORS 90.530. e. The abandonment or relinquishment of a home during a fixed term tenancy without cause. [Note that the fee may not exceed one and one-half times the monthly rent. A landlord may not assess a fee under this section if the abandonment or relinquishment is pursuant to ORS 90.453 (2) (Termination of tenant who is victim of domestic violence), ORS 90.472 (Termination of tenant who is called to active state service) or ORS 90.475. (Termination of tenant sue to service with Armed Forces)] f. If the landlord assesses a fee under (e) above: i. The landlord may not recover unpaid rent for any period of the fixed term tenancy beyond the date that the landlord knew or reasonably should have known of the abandonment or relinquishment; ii. The landlord may not recover damages related to the cost of renting the dwelling unit to a new tenant; and iii. ORS 90.410 (3) (Effect of tenant failure to give notice of absence) does not apply to the abandonment or relinquishment. (5) Noncompliance with written rules or policies. [Note that the fee may not exceed $50.] (6) A fee may be assessed under paragraph (5), above, only for the following types of noncompliance: a. The late payment of a utility or service charge that the tenant owes the landlord as described in ORS 90.315. b. Failure to clean up pet waste from the tenant’s space other than the home itself. c. Failure to clean up garbage, rubbish and other waste from the tenant’s space other than the home itself. d. Parking violations. e. The improper use of vehicles within the premises. (7) A landlord is not required to account to a tenant for, or return to, the tenant any fee. (8) Except where the tenant abandons or relinquishes the space during a fixed term tenancy [see (4) e above], a landlord may not charge a tenant any form of liquidated damages, however designated. (9) Nonpayment of a fee is not grounds for termination of a rental agreement for nonpayment of rent - but is grounds for termination of a rental agreement for cause. (10) The above laws regarding fines do not apply to: a. Attorney fees; b. Applicant screening charges; or c. Charges for improvements or other actions that are requested by the tenant and are not required of the landlord by the rental agreement or by law.

Q: If I am thinking of selling my park, when do I have to send notice to my tenants?
 

A: ORS 90.842 requires an owner to give written notice of the owner's interest in selling the park before an owner markets a park for sale or when the owner receives an offer to purchase that the owner intends to consider, whichever occurs first. If possible, I advise my clients to send the notice before entering into a listing agreement and certainly before actively listing the property. 

This requirement has been in place since 2015 and HB 2364 did not modify it. In the last few years, my experience has been that the statute is triggered mostly when an owner receives an offer to purchase that it intends to consider.

Q: Does the notice need to be sent to each tenant individually versus all tenants (e.g. "Dear Mr. Johnson" vs. "Dear Tenant")?

A: The plain language of the law states "all tenants," but the 2014 Summary of Legislation states that the purpose of the bill is to require park owners to notify "individual park residents" if the owner is interested in selling the park. Because it appears that the original intent was to notify everyone, the safer course is to send the notice to each tenant individually.

If a tenants committee has been formed, and the purpose of the committee is (in part) to purchase the park, and you have met with the committee in the previous 12 months, you can send a notice to the tenants' committee in lieu of all tenants. Also note that you must send a copy of the notice to the Housing and Community Services Department. 

My practice, since 2015 has been to still send the notice to all tenants, even if an owner is aware of a tenants’ committee. This requirement was not changed with HB 2364. The statute did add that the requirement to send the notice to the Housing and Community Services Department must be done “in the manner prescribed by the department by rule.”  At the time of publication, I do not believe this rule has been promulgated; however, at this time, I would send a copy of the notice to the Manufactured Communities Resource Center.

Q: What does the notice have to include?

A: (1) The owner is selling the park; (2) The tenants, through a tenants committee, have an opportunity to purchase the park; (3) In order to compete to purchase the park, within 15 days after delivery of the notice, the tenants must form (or identify) a single tenants committee for the purpose of purchasing the park and notify the owner in writing of: (a) the tenants' interest in competing to purchase the park; and (b) the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase; (4) The representative of the tenants committee may request financial information described in section 2(2) of the statute within the 15 day period; and (5) information about purchasing a park is available from the Housing and Community Services Department.

HB 2364 increased the time from 10 days to 15 days to allow the tenants to respond.

Q: Does 15 days really mean 15 days?

A: The law discusses "delivery of the notice." I advise my clients that all notices should be sent by first class mail and 3 days should be allowed for mailing just as if you were sending a 30-day notice or a 72-hour notice. Certificates of Mailing (Not certified mail!!) for each notice are strongly encouraged. By way of example, if you send the notice on June 1, then the "15 days" would run on June 18.

Q: What do the tenants have to do after I send them the notice?

A: If the tenants are interested in competing to purchase the park, within the 15 days, the tenants must notify the owner in writing of their interest in competing to purchase the park, the formation or identification of a single tenants committee formed for the purpose of purchasing the park and the name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.

In practice, a non-profit entity, like CASA of Oregon, will notify you or your legal counsel of the tenants’ interest in competing to purchase your park. I have found CASA of Oregon to be professional and reasonable with both the manner of delivery of notices and information (electronic mail is preferred). In most cases, you (or your legal counsel) will not be dealing with the tenants’ committee but will be primarily communicating with CASA and their professional advisors.

Q: Do I have to give the tenants my tax returns, SSN and Mother’s Maiden Name?

A: No. But, during the 15 days of delivery of the notice, and in order to perform a due diligence evaluation of the opportunity to compete to purchase, your tenants (through CASA or another non-profit), may request specific financial information which may include: the asking price, if any (this provision contemplates that you may not yet know your asking price when you send your notice); the total income collected from the park and related profit centers, including storage and laundry, in the calendar year before delivery of the notice; the total operating expenses for the facility paid by the owner or landlord in the calendar year before delivery of the notice; the cost of all utilities for the park that were paid by the owner in calendar year before delivery of the notice; the annual cost of all insurance policies paid by the owner as shown by the most recent premium; the number of homes in the park owned by the owner; and the number of vacant spaces and homes in the park. Please note that I have seen requests that ask for additional information; providing information outside of what is outlined above is discretionary. The owner has 14 days to deliver the information to the tenants.

The changes above are three-fold: First, the owner has been given an additional 7 days to pull this information together. In practice, a well-organized owner should have this information all pulled together prior to sending the initial notice so there is no delay.  Second, the statute used to call for the information in the 12 months prior to sending the notice, now it is the calendar year. Figuring out this information across calendar years can be challenging. In practice, an owner may want to give information from the previous calendar year together with a year-to-date snapshot of the income and expenses. CASA may ask for 2-3 years’ worth of information; you are not required to give it, but there is nothing stopping you. Finally, “total operating expenses” were added. My practice has been to provide a P&L or pro forma that you would give to any other seller. Such information would likely exceed your obligations. 

Q:  Is the information protected from disclosure?

A: Yes. The statute allows an owner to designate all, or part of the financial information, as confidential. If the owner designates the financial information as confidential, the parties may establish a list of who can see the information and with whom the information can be shared. In practice, CASA has modified their confidentiality agreement to only allow members of CASA (and their legal and accounting professionals) to see the confidential information. If the confidentiality agreement is breached by the tenants, the owner may recover actual damages from the tenant or tenants.

What happens after I disclose the financial information?

A: Within 45 days after delivery of the financial information (or 45 days after the end of the 15 day period in the unlikely event the tenants do not request financial information), and if the tenants choose to compete to purchase the park, the tenants must: (1) form a corporate entity that is legally capable of purchasing property or associate with a nonprofit corporation or housing authority that is legally capable of purchasing real property or that is advising the tenants about purchasing the park in which the tenants reside; and (2) submit a written offer to purchase the park, in the form of a proposed purchase and sale agreement, and either a copy of the articles of incorporation of the newly formed entity .

The increase to 45 days is a substantial change to the statute. It used to be 15 days. While a bit more onerous, it is less than what was originally being proposed. 

Q: Do I have to accept the offer?

A: No. You may accept, reject, or submit a counteroffer. You should view the tenants (and negotiate with them) as you would any potential third-party purchaser. If the offer is far off or not commercially reasonable, you can reject the offer outright. While not required, I usually advise my clients to explain why it's not doable (e.g., unreasonable financing terms, not enough cash, long closing date, too much many contingencies). If the offer is close to the mark, you may want to counter with terms. In my opinion, the key is to deal with the tenants committee as you would any bona fide purchaser. don't treat them differently just because they are tenants.

Nothing in HB 2364 changed this, although a “good faith and fair dealing” requirement was added in the consideration and negotiation with the tenants group.  (See below).

Q: What if I just don’t want to sell to my tenants because they’re tenants?

A: In my opinion, this was the behavior that the Legislature was trying to address by adding in the “good faith and fair dealing” requirement. One of the problems with “good faith and fair dealing” is that it is not a specific action that can be measured, but an action that a future judge or jury will likely “know it when they see it.” There is no doubt that if an owner decided not to give a group of tenants an opportunity to compete to purchase or decided not to sell to the tenants when the terms were otherwise commercially reasonable (and better than other offers), just because they are tenants, that behavior would violate the statute. The penalty is severe. The owner could be facing a judgment equal to 10% of the purchase price of the facility plus attorney fees.

As you can imagine, as MHCO was attempting to understand what this would mean for owners, we wanted to understand what the intent of the language was. We were able to work with Chair Julie Fahey (now Majority Leader Fahey) to place some helpful language in the legislative record that would assist future owners (and their attorneys) in understanding what was (and was not) “good faith”. 

Chair Fahey’s comments, together with the examples of what is good faith will help any future owner navigate an offer from their tenants.
 

During consideration in the Committee, Chair Fahey was clear in stating that the purpose of the good faith language was not intended to give the tenants a “right of first refusal” nor to give tenants any special advantage over another third-party purchaser in negotiation; rather, the purpose is to strengthen the requirement that facility owners give a fair chance to their tenants to compete to purchase a facility. 

Furthermore, Chair Fahey stated that, “good faith on the part of the parties, both the tenants and any facility owner, is presumed.” A tenant or group of tenants would have to prove that that a facility owner was unwilling to consider an offer from tenants, to negotiate with tenants, or to sell to tenants solely because they are tenants (and no other commercially reasonable factors exists), would violate the statute, as amended.

Additionally, Chair Fahey shared some specific examples of what was acting or negotiating in good faith:

1. After giving the notice required by ORS 90.842, the facility owner enters into a non-binding letter of intent with a separate third-party potential purchaser. That non-binding letter of intent references the facility owner’s duty to consider, in good faith, any offer the tenants may make (this is a common practice, and one I advise my clients on as it allows an owner to move on two tracks). It is very important that the third-party purchaser be aware of and respect an owner’s obligation to consider the tenants’ offer;

2. After receiving an offer from the tenants, the landlord rejects the offer because the material terms of the offer are outside of what the facility owner would consider.  Material terms could include (but are not limited to): price; date of closing, amounts and timing of earnest money deposits; dates of due diligence and contingences and possible effect on date of closing; and whether earnest money is “hard”, or whether the earnest money will go hard; details of contingencies (including financing contingencies);

3. After receiving an offer from the tenants, the landlord rejects the offer because of other extenuating circumstances. Other extenuating circumstances could include (but are not limited to): the potential sale of a facility that would include other consideration besides cash (i.e. stock or property trades);
4. A landlord rejects an offer from the tenants and the landlord provides a rationale for the rejection that is true (please note that the rationale is not necessary, but providing a truthful rationale, is in of itself good faith); and

5. After receiving an offer from the tenants, the landlord makes a counteroffer that is commercially reasonable.

This is not an exhaustive list but provides good guidance on how an owner should consider any potential offer. Again, you should work with your legal professional as you navigate this issue.

Q: What happens if the tenants don't respond within the 15 days or don't respond within the 45 days of me providing financial information?

A: You have no further duties under the statute.

Q: What do I do if I think this process is only being invoked to harass me?

A: Call your lawyer. The parties (including the tenants) are required to act in a commercially reasonable manner. Depending on the conduct (and the ability to establish the conduct and motive) your attorney should be able to develop a strategy to combat poor behavior.

Q: I've entered into a purchase and sale agreement with a separate buyer, and I haven't followed the process. What should I do?

A: Call your lawyer – today.  It may be fixable but failing to follow this process allows affected tenants to obtain injunctive relief to prevent a sale to a third-party purchaser (which could cause you to be in breach with that third party purchaser) and to recover significant penalties. Bottom line is to be aware of your responsibilities and follow the statute.
 

Q: What do I do after I've completed the process?

A: You must file an affidavit certifying that you've complied with the process and that you have not entered a contract for the sale or transfer of the park to an entity formed by or associated with the tenants. The purpose of this affidavit is to preserve the marketability of title to parks. Additionally, there is a requirement that you notify the Housing and Community Services Department who the new owner is.

Q:  Are there exceptions to this statute?

A: Yes. The exceptions are listed in ORS 90.848. The most common exception is any sale or transfer in which the facility satisfies the purchaser’s requirement to make a like-kind exchange under section 1031 of the Internal Revenue Code. In other words, if you receive an unsolicited offer from a potential purchaser who is attempting to satisfy a 1031 exchange you are not required to give your tenants an opportunity to compete to purchase.

Bill Miner is currently Partner in Charge of the Portland office of Davis Wright Tremaine. DWT is a full-service law firm with 500 attorneys on both coasts and in Shanghai, China. The Portland office consists of approximately 80 attorneys and over 80 staff. He works with clients to resolve their legal problems through pre-litigation counseling, litigation, and mediation. He tries cases in state and federal courts and through private arbitration. His experience includes defending and prosecuting business torts; breach of contract claims; disputes between and among members of limited liability companies; residential and commercial real estate matters, including landlord-tenant, title, lien, and timber trespass disputes; and probate and trust cases. He is a frequent and popular speaker at MHCO seminars and conferences. You can reach Bill at: http://www.dwt.com/people/WilliamDMiner/

Answer. This is not an issue under ORS 90.632, which relates to damage and deterioration of the home. In fact, this statute indirectly validates the right of the structures to be on the space, which you are contesting, since portions were built without permission, in violation of local ordinances, and contrary to the terms of the rental agreement. Moreover, ORS 90.632 does not allow the landlord to require removal - just repair.

This is a violation for which you would normally use a 30-day curable notice of termination. ORS 90.630(1)(a) (Termination by landlord; causes; notice; cure; repeated nonpayment of rent), which provides for the issuance of a 30-day termination notice if the resident:

• Violates a law or ordinance related to the tenant's conduct as a tenant;
• Violates a rule or rental agreement provision related to the tenant's conduct as a tenant and imposed as a condition of occupancy.

Subsection (4) provides that:

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.

However, in this particular case, the issue is whether you (and your predecessor) waived the right to terminate the tenancy because you accepted rent after you had knowledge of the violation. In summary, a landlord waives the right to terminate a rental agreement for a particular violation of the rental agreement or of law if the landlord:

• During three or more separate rental periods, accepts rent with knowledge of the violation by the tenant; or
• Accepts performance by a tenant that varies from the terms of the rental agreement.[1]
• A landlord does not waive the right to terminate a rental agreement for a violation under any of the following circumstances:
  • The landlord and tenant agree otherwise after the violation has occurred.
  • The violation concerns the tenant's conduct and, following the violation but prior to acceptance of rent for three rental periods or performance, the landlord gives a written warning notice to the tenant regarding the violation that:
    • Describes specifically the conduct that constitutes the violation, either as a separate and distinct violation, a series or group of violations or a continuous or ongoing violation;
    • States that the tenant is required to discontinue the conduct or correct the violation; and
    • States that a reoccurrence of the conduct that constitutes a violation may result in a termination of the tenancy pursuant to ORS 90.392 (termination of non-MHP tenancies), 90.398 (termination for drug/alcohol violations), 90.405 (unpermitted pets), 90.630 (termination of MHP tenancy by landlord).
  • The tenancy consists of rented space for a manufactured dwelling or floating home, and the violation concerns:
    • Disrepair or deterioration of the manufactured dwelling or floating home;
    • A failure to maintain the rented space;
    • The termination is under ORS 90.396 [24-hour notices].

I do not believe any of the above exclusions apply to your situation, and on its face, there is an argument that by accepting the rent you permitted the structures to be there. See, ORS 90.412 and ORS 90.414.

However, permitting the structures, and permitting their violation of the building codes, etc., are two different things. You don't have the power to permit the law violations. I view the violations of the building codes as something that is a "continuing violation", and something you can likely still treat as a violation. For a continuous or ongoing violation, the landlord's written warning notice remains effective for 12 months and may be renewed with a new warning notice before the end of the 12 months.

You should issue a warning notice, identifying the various code violation, (e.g. work done without permits and work done not to code). Then give the tenant a fixed period to go obtain the necessary permits and provide proof that the work was done to code. The "proof" would be through the building department who would inspect and pass.

Note: you have to be careful that whoever the resident uses (they should be CCB licensed and bonded) knows that you are not responsible for payment of any construction liens for unpaid work.

If you cannot get compliance with the warning notice, then give him a 30-day curable notice under ORS 90.630, identifying the violations relating to the failure to get the work permitted and not complying with the building code. Give him a fixed period to complete, e.g. 30 - 45 days, during which time you should not accept any rent. If he does not comply, then you could file your eviction.

Alternatively, if you can do so, you may consider speaking with the resident about voluntarily removing the structures. However, if push came to shove, they were approved long ago, so I think it would be a difficult argument to now use the existence of the structures as the basis of a 30-day notice of termination under ORS 90.630. If you can reach agreement, fine. If not, the continuing violation of the code violations are your best bet under ORS 90.630. Be sure to confer with your own legal counsel before proceeding, however.

[1] However, a landlord has not "accepted rent" if within 10 days after receipt, the landlord refunds the rent, or the rent payment is made in the form of a check that is dishonored.

By Zach Koucos

Director, Holliday, Fenoglio, Fowler (HFF)

The second half of 2016 and early 2017 signaled a great amount of uncertainty regarding the future of fiscal and regulatory policy in the United States. While everyone is trying to figure out what the impacts of policy changes by the Trump administration will be on the economy, the stock market has surged and interest rates have climbed. Both of these occurrences reflect a positive reaction to the election in the financial marketplace, however the effect on real estate and income property values remains a concern for owners.

Higher interest rates certainly impact the feasibility of borrowing money, which in turn affects the purchasing power for real estate acquisitions as well as property values. Most fixed rate lenders price their loans based on US Treasury yields. Many borrowers have been focusing on rising benchmark interest rates, however the good news is that US Treasury yields today are still far lower than their long term averages. As of March 7, 2017, the 10 year US Treasury yield stood at 2.51%, compared to 1.83% on November 7, 2016, the day before the election. The 10 year US Treasury yield began 2016 at 2.24%, and 2015 at 2.12%. To provide some perspective, below is the average yield on the 10 Year US Treasury during the last 5 decades, and so far in the 2010's:

1961 - 1969:  4.73%

1970 - 1979:  7.50%

1980 - 1989: 10.59%

1990 - 1999:  6.67%

2000 - 2009:  4.46%

2010 - 2016:  2.38%

We have definitely enjoyed some very low interest rates over the last few years, which has benefitted borrowers and helped to support increasing property values. Most economists are predicting that ultimately Treasury yields have to return closer to these long term averages shown above, citing the Trump administration's mix of reflationary policy initiatives. Rates can always go down in the short term, however if the United States is successful at growing nominal gross domestic product (GDP) over the next few years, Treasury yields could likely follow. Given this outlook, today's still historically-low interest rate environment offers an extraordinary opportunity to evaluate your near and long term financing objectives.

Notwithstanding recent volatility due to the political climate and rising interest rates, the marketplace for income property financing remains very healthy, with no shortage of capital. Lenders remain optimistic for 2017, and most are planning to equal or exceed their loan origination volume from 2016. This includes lending for manufactured home communities (MHC's), an asset class of ever-increasing interest to capital providers. Volatility forces commercial lenders to gravitate towards lower risk, stable, income-producing real estate. Manufactured home communities are increasingly high on their lists, since the cash flow is consistent and demand for affordable housing is strong.

Numerous institutional and private owners of manufactured home communities and other commercial real estate have taken advantage by locking in historically low fixed rate loans. In several cases, refinancing existing loans with prepayment penalties still made economic sense given the savings realized with today's low interest rate financing. If you've been considering a refinance to lower expenses, access additional capital to fund overdue projects, or facilitate additional acquisitions, it's still a great time to take a look at the programs available in today's market.   

The pool of varying capital sources deepened even further in 2016. Lender demand for existing, stabilized real estate transactions remains strong, despite escalated regulatory practices imposed on the industry. Over $1 Billion in commercial real estate loans will be maturing daily through the end of 2018, and the necessary lender appetite is present to service this need. Owners of manufactured home communities will benefit from this activity, as the capital marketplace for MHC's continues to expand and lenders are seeking to deploy capital on lower risk housing assets.

An overview of community financing options for 2017:

As a result of Dodd-Frank Wall Street reform policies and Basel III regulations imposed on banks, construction and high risk" lending is tightening. Thus

Answer. Many manufactured housing communities in Oregon have large trees. While Oregon law has imposed the duty of general tree maintenance on the residents, there is little question but that most do not have the expertise, skill or financial means to provide the type of maintenance that may be required for large older trees. With this in mind, the MHCO encouraged the Landlord-Tenant Coalition to craft a bill that fairly and clearly allocated the responsibility for tree maintenance in a realistic manner. Landlords are in a better position than residents to obtain and afford good liability insurance, since it is a standard cost of doing business. Moreover, there was concern that under the existing law, some park owners might not regard the issue of tree maintenance as their problem. In reality, however, it is. Injury or death resulting from falling limb or tree that should have been trimmed or removed is surely going to result in potential liability to the park owner. Accordingly, the statute allocates the risk in a more realistic and practical manner: Normal maintenance for trees on a resident's space remains with the resident. However, if the tree has certain features that make it a "hazard tree" then responsibility shifts to the landlord - unless the resident planted the tree. This delineation should help both landlords and residents understand their respective responsibilities. Here is a summary of the current law: 1. Definitions. - "DBH" means the diameter at breast height, which is measured as the width of a standing tree at four and one-half feet above the ground on the uphill side. - "Hazard tree" means a tree that: _ Is located on a rented space in a manufactured dwelling park; _ Measures at least eight inches DBH; and _ Is considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture, to pose an unreasonable risk of causing serious physical harm or damage to individuals or property in the near future. 2. Habitability. A rented space is considered uninhabitable if the landlord does not maintain a hazard tree required by the 2013 Act. 3. Resident Duties re Trees Located on Space. A resident shall maintain and water trees, including cleanup and removal of fallen branches and leaves, on the rented space for a manufactured dwelling except for hazard trees. - "Maintaining a tree" means removing or trimming a tree for the purpose of eliminating features of the tree that cause the tree to be hazardous, or that may cause the tree to become hazardous in the near future. - "Removing a tree" includes: _ Felling and removing the tree; and _ Grinding or removing the stump of the tree. 4. Landlord Duties re Hazard Trees. - Landlord shall maintain a hazard tree that was not planted by the current resident if the landlord knows or should know that the tree is a hazard tree; - Landlord may maintain a tree on the rented space to prevent the tree from becoming a hazard tree; _ Must provide residents with reasonable written notice and reasonable opportunity to maintain the tree themselves. - Landlord has discretion to decide whether the appropriate maintenance of a hazard tree is removal or trimming. - Landlord is not responsible for: _ Maintaining a tree that is not a hazard tree; or _ Maintaining any tree for aesthetic purposes. - A landlord must comply with the access provisions of ORS 90.725 before entering a resident's space to inspect or maintain a tree. [Generally, 24-hour notice. - PCQ] - Subject to the preceding, a resident is responsible for maintaining the non-hazard trees on the resident's space at the resident's expense. _ The resident may retain an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture to inspect a tree on the resident's space at the resident's expense; _ If the arborist determines that the tree is a hazard, the resident may: - Require the landlord to maintain the tree as a hazard tree; or - Maintain the tree at the resident's expense, after providing the landlord with reasonable written notice of the proposed maintenance and a copy of the arborist's report. 5. Tree Obstructing Removal of Home From Space. If a manufactured home cannot be removed from a space without first removing or trimming a tree on the space, the owner of the home may remove or trim the tree at the owner's expense, after giving reasonable written notice to the landlord, for the purpose of removing the home. 6. Use of Landscape Professional. The landlord or resident that is responsible for maintaining a tree must engage a landscape construction professional with a valid landscape license issued pursuant to ORS 671.560 to maintain any tree with a DBH of eight inches or more. 7. Access to Resident's Space [ORS 90.725]. - An "emergency" includes but is not limited to: _ A repair problem that, unless remedied immediately, is likely to cause serious physical harm or damage to individuals or property; _ The presence of a hazard tree on a rented space in a manufactured dwelling park. - An "unreasonable time" refers to a time of day, day of the week or particular time that conflicts with the resident's reasonable and specific plans to use the space. - "Yard maintenance, equipment servicing or grounds keeping" includes, but is not limited to, servicing individual septic tank systems or water pumps, weeding, mowing grass and pruning trees and shrubs. - A landlord or a landlord's agent may enter onto a rented space to: _ Inspect or maintain trees; _ A landlord or the landlord's agent may enter a rented space solely to inspect a tree despite a denial of consent by the resident if the landlord or the landlord's agent has given at least 24 hours' actual notice of the intent to enter to inspect the tree and the entry occurs at a reasonable time. _ If a landlord has a report from an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture that a tree on the rented space is a hazard tree that must be maintained by the landlord under this Act, the landlord is not liable for any damage or injury as a result of the hazard tree if the landlord is unable to gain entry after making a good faith effort to do so. - If the resident refuses to allow lawful access, the landlord may obtain injunctive relief to compel access or may terminate the rental agreement pursuant to ORS 90.630 (1) and take possession in accordance with the Oregon eviction statutes. In addition, the landlord may recover actual damages. 8. Statement of Policy. It shall include the facility policy regarding the planting of trees on the resident's rented space. [See ORS 90.510] Conclusion. It sounds as if your solution was a good one and everyone was satisfied with the outcome. Your question did not specify whether the tree was a "hazard tree." If it was, then my question to you would have been: Did you develop a tree policy for your park? By the fact that you're asking this question, I assume you have none. Even if you did, it would be hard to apply it retroactively. With the recent snow storms of February, perhaps community owners will become more mindful of these issues. The first order of business is to take a survey of the hazard trees, and then develop a program for safety maintenance. Lastly, of course, park owners should always have a good policy of liability insurance for $1,000,000 or more that covers this type of situation. Fortunately, no one was injured in your situation, but if so, the solution might not have been so easy.

Those of us that have been associated with this housing form for a length of time have watched and embraced the evolution from trailer to mobilehome to manufactured housing. We are sometimes less passionate about recognizing the evolution from trailer park to today's communities. The key word is community. Whether we describe the housing type as a trailer, mobilehome, or manufactured home is less important than the fact we are talking about homes and communities.

Having inspected and consulted thousands of such communities over the years I have come to the conclusion it is not possible to manage a community. You can maintain the infrastructure such as the water and sewer system, the gas and electrical system and of course the streets, lighting, and drainage to mention the basic components. When you add people, management becomes impossible and leadership becomes a necessity.

So what is the difference between management and leadership? Let's start with the definitions. Management is defined as "The act of managing, supervising or controlling". I don't believe you can control or supervise your residents. Leadership is defined as "The art of leading others to deliberately create a result that would not have happened other- wise".

Rear Admiral Grace Murry Hopper stated it simply "you manage things; you lead people"

When we realize that many of our communities are home to more residents than some small cities in California it becomes clear that management becomes difficult and leadership becomes necessary.

Few of our communities have the staff and resources of our small municipalities. There is no police department, street department, public works, building, or fire departments, yet the needs are still there.

To be successful we need to value our property and our community. Good leadership draws on the community to assist in maintaining the property. A community has a vested interest in well maintained facilities and systems. A good leader will illuminate and celebrate that shared interest.

How do you lead a community?

Have a vision

What do you want your community to be? Communicate the vision at every opportunity. Be certain the community rules are clear and support the vision. One of the challenges of a leader is to communicate to their followers the direction and destination of the journey. Remember when you ask something of anyone, the eternal question is why.

Become more knowledgeable

There are an overwhelming number of laws and regulations that impact our communities. The community leaders need to be experts in this area. We have all heard that knowledge is power. That is very true. People seek out those with information. "The road to leadership is through knowledge".

Value your residents

Without residents or customers your community may be more peaceful, but will not survive. A successful community must value the residents. This sense of value must be clear and evident in every action you undertake. If you are able to convince all your residents that you value and care for their well-being you probably would have to do little more than rou- tine repairs. Unfortunately, it is not that easy to do, it takes commitment and hard work.

Be positive

Emphasize the great things about the community, first in your own mind and then with the residents. The positive conditions or actions include what is great now and what great plans are in the future. A word of caution on the future plans: don't ever promise what you cannot deliver.

Be proactive

Investigate and anticipate prob- lems or issues. There is a differ- ence between maintenance and damage control. Residents appre- ciate a quick concerned response to problems, but much prefer peace of mind. don't be shy about publicizing the actions you take to prevent problems or your efforts may go unnoticed. This is especially important if your cor- rective actions or improvements are disruptive. Let the residents know how your efforts are good for them, and that you care about their health and safety.

Be fair and consistent

This is sometimes a challenge. A demanding resident with a neg- ative attitude can often require more time and effort than their pleasant congenial neighbor. A good leader recognizes the obligation to lead all their followers. While residents come in all shapes, sizes and demeanors they must all be valued.

Be honest

Few failures are more damaging to a leader than the loss of credibility. don't promise what you can't or don't plan on delivering.

People will accept that you don't know the answer, but expect your answer if given to be accurate.

Communicate, communicate and then communicate

Neither the leader or follower is a mind reader. Some of the most difficult issues to resolve are those that are imagined. Make the com- munity rules and expectations clear.

Is it really possible to create or improve a sense of community? It is and it does not require large homes or a large number of homes. There are parks that contain singlewide homes that were built in the early 1960's and there are communities that contain al- most exclusively multi-wide manufactured homes on large lots. I have inspected both types of communities for compliance to the applicable health and safety standards. I have talked to residents in both types of communities. Some communities were not where most of us would want to live, but others that were not materially different had a sense of community pride that felt like home.

Where community leadership is missing I have heard resident comments such as "the management does not care", where you have community leadership I have heard comments such as "this is a great place to live and all my friends wish they lived here".

Begin your journey to a better community today. It will take work but as Coach John Wooden stated "Do not let what you can- not do interfere with what you can do."

This article was recently published in WMA's February 2016 "Reporter". MHCO would like to express our deep appreciation to WMA for allowing MHCO to upload this article to MHCO.ORG.

Jack Kerin is the owner of Kerin Construction and Code Consulting and serves as a well respected consultant to the manufactured housing community. He maybe contacted at 11749 Walmort Court, Wilton, CA 95693; 916.687.7224 Phone; and email: jkerin@frontiernet.net

The Tenant Relocation Assistance amounts are as follows:  $2,900 for a studio or Single Room Occupancy 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.  

Previously, a rent increase of 10% or more, as measured over a rolling 12-month period, gave option a tenant the ability to request Relocation Assistance from their landlord.  Now, all rent increases are frozen for nonexempt tenancies between September 16, 2020 and March 31, 2021. Two major exemptions: (a) Renter shares the dwelling unit with the landlord or (b) The tenancy is week-to-week. For a complete list go to: Administrative Rules.

Rent Increase Notices Issued After September 16. If the landlord issued the rent increase notice after September 16, and represents in good faith that they were not aware of the new ordinance, he or she may provide written notice to the tenant that rescindsthe rent increase. Doing so relieves the landlord of the potential relocation assistance obligation. However, the tenant must receive the rescission notice from the landlord within 30 calendar days from the delivery of the original rent increase notice.

Rent Increase Notices Issued Before September 16. If the landlord has already given notice of a rent increase that becomes effective between September 16, 2020 and March 31, 2021, thus triggering the potential Relocation Assistance payment, the tenant has 45 calendar days after receiving the rent increase notice or until September 30, 2020, whichever is longer, to provide written request for Relocation Assistance to the landlord. 

However, the landlord may provide written notice to the tenant that rescinds the rent increase notice and refunds any increased rent paid by the tenant, thus relieving the landlord of the potential obligation.  The tenant must receive the landlord’s notice and refund of increased rents paid no later than 30 calendar days after receiving the tenant’s written notice requesting Relocation Assistance. 

Portland City Limits.The Relocation Assistance rules only apply to “residential rental units” within Portland city limits, which can be managed by an owner, a sublessor, or property management company. They can be either month-to-month rental agreements or fixed-term tenancies (i.e. leases). 

Does This Apply To Manufactured Housing Communities? In my opinion “No”, but others may disagree, and should secure their own opinion. I say this because although PCC 30.01.085does refer to “Dwelling Units” as defined in the Oregon Landlord Tenant Act[1](and that law says that if it is in a manufactured housing community, they are referring to the space and not the structure). But how can relocation assistance be categorized for a community space as being one-bedroom, two-bedroom or three-bedroom, or larger?  If manufactured housing spaces were ever intended to be included in this ordinance, the drafters would have had to include the structure in order to determine the amount of the relocation assistance. They did not do so. 

Secondly, for some reason PCC 30.01.085lists several exemptions to the relocation assistance rules, but notes that: “For purposes of the exemptions provided in this Subsection, “Dwelling Unit” is defined by PCC 33.910, and not by ORS 90.100.” But Portland City Code 33.910 defines a “Dwelling Unit” based upon “Residential Structure Types” such as Accessory Dwelling Units, Duplexes, or a “dwelling unit located on its own lot”. It also defines a “Dwelling Unit” as a “building or portion of a building….”  

So, once again, manufactured housing appears to be the inadvertent beneficiary of drafting oversight, which in this case, is a good thing. 

Caveat: The above is not to be relied upon as legal advice. Readers are encouraged to secure their own legal opinion.

City of Portland Rental Housing Hoops

In 2018, the City of Portland enacted a Residential Rental Registration Program, Ordinance No. 189086. Its goal was to create an inventory of rental housing in a single location. Manufactured housing communities paid little attention, since it applied to “rental housing units”. At the time there were no specifics about funding the Program.

In 2019, the City implemented a $60 annual fee per rental unit to fund the Program. In December I contacted the Portland Housing Bureau to see if somehow it would be interpreted as applying to manufactured housing communities inside the City of Portland.[1]

On February 4, 2020 I had a conversation with two representatives of the Bureau. The agreed that the $60 fee would not apply to manufactured housing spaces in the City of Portland. However, they did say that it would apply to community owned homes – which does make sense, since they are also subject to the non-manufactured housing section of the Oregon Residential Landlord-Tenant Act, ORS Chapter 90.

Although most park owners are aware of the hoops, following are links to the applicable requirements when located within the City of Portland:

• Under the Ordinance, park owners will have to register with the City. See: https://www.portlandoregon.gov/revenue/59484

• And since the City views housing rental as a business, a business license will be required. See: https://www.portlandoregon.gov/revenue/59484

• Also, the Portland Business Tax applies. See: https://www.portlandoregon.gov/revenue/29320See the following link for exeptions: https://www.portlandoregon.gov/revenue/59568

• And with the new $60 fee, landlords will have to complete Form R (here), to include with their business tax filing.

The 2019 tax is due on April 15, 2020for calendar year taxpayers. For further information, owners should check with their own legal counsel and/or CPA.

[1]I stated: “My reading of the ordinance, which was passed almost 1 ½ years ago, is that it does not apply to rental spaces in mobile home parks. Section 7.02.890 A provides: “For purposes of this section, except where defined by administrative rule in accordance with Section 7.02.210, "residentialrentalunit"meansanyresidentialpropertyrented or offered for rent for a period of more than 30 consecutive days. If a property contains more than one residential living quarter, the term residential rental unit refers to each separate livingquarter.”  (Italics mine.) Mobile home spaces do not contain “more than one residential living quarter” so it seems fairly clear that the drafters did not intend (or believe) that mobile home park spaces constituted ‘residential living units.’”

Answer: There seems to be some confusion on what facts determine giving the 30-day notices and which are appropriate for three strikes. Here is a brief primer:

Three Strikes: Pursuant to ORS 90.630(8), a landlord may terminate a space rental agreement for a manufactured dwelling or floating home if:

• The tenant has not paid the monthly rent prior to the eighth day of the month assuming rent is due on the first day of each month, and,
• A 72-hour notice is issued[1] in at least three of the preceding 12 months; and
• The landlord warns the tenant of the risk of a 30-day notice for termination with no right to correct the cause, upon the occurrence of a third nonpayment of rent termination notice within a 12-month period. This warning must be contained in at least two 72-hour notices that precede the third notice within the 12-month period (or in separate written notices that are given concurrently with, or a reasonable time after, each of the two preceding 72-hour notices); and
• The 30-day notice of termination must state facts sufficient to notify the tenant of the cause for termination of the tenancy which is given to the tenant concurrent with, or after the third or a subsequent nonpayment of rent termination notice.[2]

Take-Aways.

• The MHCO 72-hour Notice (Form No. 42) already contains the warning about a non-curable 30-day notice for three strikes, i.e. issuance of three 72-hour notices within the preceding twelve months. No separate warning needs to be given. All management needs to do is complete the form and identify whether it is the first, second, or third such notice.
• Note: The purpose of the 3-strikes statute is to discourage serial late-paying. The violation is not "cured" by paying the rent late after issuance of a 72-hour notice - in other words, it still counts toward issuance of a three strikes notice.
• The 30-day Notice for a 3-Strikes Violation (Form No. 43A) should be given together with the third 72-hour notice; if it is mailed it can be in the same envelope or another one simultaneously sent. Always get a Certificate of Mailing when mailing the letter. Do not wait in sending out the 30-day notice!
• The 30-day 3-strikes notices is not "cured" by payment of the late rent.
• Since there could potentially be a waiver argument if the landlord attempted to terminate for issuance of more than three 72-hour notices, it is recommended that if the tenant was issued more than three such notices within twelve months, the landlord select just three.
• Caveat: Each 72-hour notice must have been properly prepared. If one of them has been defectively prepared (e.g. wrong date, time, etc.) or incorrectly served (e.g. improper posting and mailing, etc.) it will not count towards the three strikes. For this reason, it is suggested that legal counsel closely review each 72-hour notice that is intended to become the basis of a 3-strikes eviction.

Thirty-Day Notices: Pursuant to ORS 90.630(1) - (7), a landlord may terminate a space rental agreement for a manufactured dwelling or floating home if a tenant:

• Violates a law or ordinance related to the tenant's conduct as a tenant, including but not limited to a material noncompliance with ORS 90.740 (Tenant Obligations);
• Violates a rule or rental agreement provision related to the tenant's conduct as a tenant and imposed as a condition of occupancy, including but not limited to a material noncompliance with a rental agreement regarding a program of recovery in drug and alcohol free housing;
• Is classified as a level three sex offender under ORS 163A.100 (3); Note that this violation is not curable, and the 30-day notice must so state; or
• Fails to pay a (i) Late charge pursuant to ORS 90.260; (ii) Fee pursuant to ORS 90.302; or (iii) Utility or service charge pursuant to ORS 90.534 or 90.536.
• Note that for violation regarding the physical condition of the home, a 30-day notice does not arise under ORS 90.630; rather ORS 90.632 applies. Do not get the two types of events confused. Use MHCO Form No. 55 is to be used for repair and deterioration issues under ORS 90.632, and Form No. 43 is to be used for all other curable 30 day notices arising under ORS 90.630.
• The 30-day notice must state facts sufficient to notify the tenant of the reasons for termination of the tenancy and state that the tenant may avoid termination by correcting the violation within the 30-day period.
• If substantially the same act or omission that constituted the prior violation 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.
• Note that notwithstanding issuance of a 30-day notice, management may issue a notice for nonpayment of rent under ORS 90.394. Caution: If the last day of a 30-day notice of termination is on, say the 15th of the month, the landlord's 72-hour notice issued on the 8th day of that month should only demand rent up through the 15th. If the 72-hour notice demands rent covering the period after the 15th, it could invalidate the 30-day notice since it demands that the tenant pay rent for a period of time beyond the official end of the tenancy. There is also a risk of incorrectly calculating the number of days in the 72-hoour notice. For these reasons, I do not recommend issuance of a 72-hour notice while a 30-day notice is pending. And if the tenant voluntarily pays the rent while the notice is pending, I recommend immediately returning it, saying that the resident must first timely cure the default identified in the 30-day notice (assuming the default is curable).

[1] Or the fifth day of the rental period is a 144-day notice is used.

[2] I do not recommend waiting to issue the 30-day notice. It should be sent or delivered concurrently with the 3rd strike, i.e. the 3rd 72-hour notice.

As was reported by Chuck Carpenter during the Legislative session, the goal from MHCO’s perspective, was to use the coalition to get the best possible result considering the political landscape in the Legislature. Bluntly, some of the original ideas proposed by the tenants in the coalition were quite onerous. The end result, however, is a true compromise that is favorable to MHCO landlords, all things considered.

If you would like to learn more about these issues and/or you have particular questions, please join me for my presentation at the 2019 Annual Conference in October. In the meantime here are 16 questions and answers that will get you started.

1. What does mediation mean? Mediation is an alternative dispute resolution process that is different from going to court and having a judge (or jury) pick a winner and loser by determining the facts and applying the law to the facts. Mediation is also different from arbitration. At an arbitration, the parties typically pick a person (usually an attorney) to act like a judge and determine the facts and apply law. At an arbitration there is also a winner and a loser. 

In mediation, the parties typically pick a third party neutral who will meet with the parties to help them find a solution to resolve a dispute. Because mediation requires the agreement of the parties to come to a resolution, it is not always successful. Mediation does not limit a party’s ability to file a lawsuit or arbitration.

In my experience, the cases that resolve at mediation are where bothparties come with an open mind, are willing to listen and can consider compromise in order to avoid the cost and hassle of litigation. 

In my experience, the cases that don’t resolve are usually because one of the parties has unrealistic expectations or opinion of their case, or that the matter should move forward based on “principle.” 

2.   When is mediation required? Mediation is required for any non-exempt issues (see question 3) involving compliance with the rental agreement or non-exempt conduct of a landlord or a tenant within the facility. Please note that a facility is a manufactured home park or a floating home marina. Mediation can be initiated regarding a non-exempt dispute between a landlord and a tenant or between two or more tenants. Note that if the dispute is between two or more tenants, mediation must be initiated by the landlord. 

3.   What types of disputes are exempt (i.e. not subject to mediation)? The following disputes are not subject to mediation:

(a) Facility closures consistent with ORS 90.645 or 90.671; 

(b) Facility sales consistent with ORS 90.842 to 90.850; 

(c) Rent payments or amounts owed, including increases in rent consistent with ORS 90.600;

(d) Termination of tenancy pursuant to ORS 90.394 (failure to pay rent), 90.396 (24 hour notices), or 90.630(8) (three strike provision); 

(e) A dispute brought by a tenant who is alleged to be a perpetrator of domestic violence, sexual assault or stalking under ORS 90.445 when the dispute involves either the allegation or the victim of domestic violence, sexual assault or stalking; 

(g) A dispute involving a person not authorized to possess a dwelling unit as described in ORS 90.403; or 

(h) A dispute raised by the landlord or tenant after the tenancy has terminated and possession has been returned to the landlord (including ORS 90.675 (abandonments). 

4.   How is mediation initiated? Mediation maybe initiated by a tenant or a landlord. If a tenant or landlord initiates the mediation process, then the parties are required to participate (but see questions 7 and 8 below). If there is a dispute between or among tenants, a landlord mustinitiate mediation.  

5.   What if mediation is not currently included in my rental agreement? A landlord and/or tenant is required to mediate regardless of whether a rental agreement currently provides for mediation. If a rental agreement does not currently have such a process, SB 586 requires a landlord to unilaterally amend the rental agreement to include mediation. Specifically, ORS 90.510 (5) (what is required to be included in rental agreements) is amended to include in a rental agreement a section for mandatory mediation of disputes that states: “that the tenant or the landlord may request mandatory mediation of a dispute that may arise concerning the rental agreement or the application of this chapter, and the process by which a party may request mediation, including a link to the web site for the Manufactured and Marina Communities Resource Center with additional information about mandatory mediation of disputes.”

 6.  Who facilitates a mediation? Mediation may be requested through either: (1) Manufactured and Marina Communities Resource Center (“MMCRC”); or (2) a local Community Dispute Resolution Center (“CDRC”); or (3) a mutually agreed-upon and qualified mediator. Each party must cooperate with the CDRC or designated mediator in scheduling a mediation session at a mutually agreeable day and time, within 30 days of the initiation of mediation. Each party must attend at least one mediation session. 

7.   Who has to participate in the mediation (i.e. does it have to be the owner)?  A landlord can designate a representative to participate in the mediation on the Landlord’s behalf (including a non attorney). The representative, however, must have the authority to resolve the dispute in the mediation.  Note that a tenant can also designate a representative.

8.   Do I have to reach an agreement in the mediation?  No.Neither party is required to reach an agreement in a mediation. Each party must attempt to mediate the dispute in “good faith.”  The law specifically says that the parties are not required to: (1) reach an agreement on all or any issues in the mediation; (2) participate in more than one mediation session; (3) participate for an unreasonable length of time in a mediation session; or (4) participate if the other party is using the mediation to harass the party or is otherwise abusing the duty to meditate.

9.   What would happen if a party failed to meditate in good faith? If a party fails to meditate in good faith by abusing the right to require mediation or uses mediation to harass the other party, the aggrieved party may recover an amount equal to one month’s rent from the violating party. Please note that this is a two way street. In addition, the other party has a defense to any claim brought by the violating party over the dispute involved in the mediation request, and may have the claim dismissed.

10.Can I use an admission in mediation at a subsequent trial? Conversely, can something I say be used against me? No. Mediation, and what is said during mediation, is confidential. Any statement made in a mediation is inadmissible. The purpose is to have an honest dialogue in order to encourage a settlement. Additionally, a mediator cannot be called as a witness.

11.Can a tenant request a mediation after I send them a termination of tenancy notice?

Mediation can be requested after a notice terminating tenancy has been sent to a tenant, but only if the request is made to MMCRC or a designated mediator and a written confirmation of that request is delivered to you (the landlord) beforethe landlord files an action for possession under ORS 105.110. If the tenant delivers a notice requesting mediation before a landlord files an eviction action, the landlord may not file such action until after the mediation process concludes. If a landlord delivers a notice requesting mediation before a tenant files an action regarding a dispute, the tenant may not file such action until after the mediation process ends. 

12. Can I still accept rent during the mediation process?  Yes. Notwithstanding ORS 90.412, acceptance of rent or performance by a landlord after either party requests mediation and during the mediation process does not constitute waiver of the landlord’s right to terminate a tenancy following the mediation. Acceptance of rent or performance after the mediation process ends may constitute waiver. Additionally, all statutes of limitations are suspended during the mediation process. 

13.What happens after the mediation? If a mediation is successful, the parties should come to an agreement that resolves the dispute. The question is how enforceable is the agreement. Enforceability will depend upon the issues involved, the terms and how the agreement is drafted. I would encourage you to discuss with your legal counsel strategies on how to make the most of a mediation.For example, if an eviction action has already commenced, you may want to attempt to make the agreement a part of the ORS 105.148 mediation/agreement process. Another example is setting up an enforcement mechanism within the agreement itself.  

The CDRC or the designated mediator shall notify MMCRC of the successful or unsuccessful outcome of the mediation. The parties and the CDRC or mediator are not required to give a copy of any mediation agreement to MMCRC.

If a mediation is not successful, the parties may continue on the path they were on before the mediation. 

14.This sounds expensive, who is paying for it?Mediations will be performed by the existing network of CDRC mediators, funded by the existing annual assessment already paid by tenants ($10, collected with property tax assessments).  If the parties choose a private mediator, then the parties will have to determine how that mediator is paid. Additionally, the current annual fee paid by park landlords ($25 for parks of 20 spaces or fewer, $50 for larger parks) is doubled.

15. Very interesting (as always), Bill, but what’s this about $100,000 annual grant to the Oregon Law Center?As you may be aware, some states have allocated substantial funding to their state’s Justice Department or to create a team of private attorneys general to assist with enforcement of tenant rights. Similar systems were originally proposed by the tenants during coalition meetings and were strongly opposed by the landlord group. The ultimate compromise was a limited $100,000 per year grant to be given to the Oregon Law Centerto employ oneattorney to provide direct legal services to statewide park and marina residents on matters arising under the Oregon Residential Landlord Tenant Act.

16.Is mandatory mediation and the $100,000 per year in perpetuity? No. Both elements have a four-year sunset. An advisory committee has been created to monitor both elements, consisting of equal numbers of landlord and tenant representatives to present a report on the status of both elements to the 2021 and 2023 Legislatures to determine whether they should be renewed.

17. When does all of this go into effect? The effective date of SB 586 is January 1, 2010.