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 Two states away, Kimberly, a park owner, and her park manager were driving through her park, Maple Creek, and pulled over to stop and pick up a coke can. It was unusual to have to stop and do this. But that was due to the consistent actions of residents being held accountable for keeping their homesites and home exteriors clean and in good repair. It had taken over two years to get the 400 residents onboard, but now the community swelled with pride of ownership.

            What do Eleanor’s Whispering Maples and Kimberly’s Maple Creek communities have in common? Maples! No, that’s not it. One key common thread is good resident relations. Another common trait is the owners’ and managers’ mission of having the cleanest communities and best residents in the market. What does this have to do with profitability? The answer is pretty much everything. 

            How did the owners and managers get to a high level of compliance in rent collections and home appearance? Eleanor and Kimberly understood that to attract and retain the best residents, they needed to start with their websites. For prospective residents, the pictures, testimonials, and ease of finding information made these parks stack up well against other housing options. Prospective residents want to feel good about telling friends, family and co-workers, about where they will be living. Existing tenants liked the resident section of the website where they could find answers to their questions, copies of the leases and rules, and even a payment portal. They also like the compliments about their community they received from family and friends looking at pictures from the website. 

            The secret of the website was the number of prospects that came from and were directed from ads on Facebook and other social media, as well as, print media that directed prospects to the website for more information and online applications. These ads increased traffic to the website which increased the number of applicants. This increased applicant pool allowed the managers to pick the best possible tenants from the ever-increasing pool of prospects, thus making the best rental decisions possible. You can guess (and accurately, too) that making the best possible rental decisions helped fill vacant sites and vacant homes quickly, and with quality tenants. It was a win/win. 

            The mindset of these owners is that of abundance; there are plenty of credit worthy, conscientious, pride-of-home-appearance-having prospects (whether it’s a home buyer or renter). It is essential, though, to increase the applicant pool. How did they do this? One tactic was lots of quality community pictures of the homes (ones actually in the park, not just stock images), the signage, landscaping, and even the residents. They realized most people are visual. More pictures, not less, especially of the homes, is key.

            A tactic of Julio Jaramillo, founder and CEO of Evergreen Communities with 4,000 sites in 8 states, is for every community manager to talk to three park residents every day. Because Julio’s managers are compensated for home sales and home rentals, this practice makes the residents feel acknowledged and listened to. As a result, Julio’s managers sell and lease more homes. The managers are also very aware of any issues in the community and can get ahead of issues before something even becomes a problem – such as moving tenants.

            Successful community owners and managers find it helpful to have a vision. Helen Keller was asked, “Can you think of anything worse than being blind?” “Yes” she said, “Being able to see but having no vision.”

 Getting Real:

            There probably are some community owners and managers that are just naturally happy people. They wake up in the morning and can’t wait to get to the community. Statistically, this number might be as high as 20%. Like Warren Buffet, they tap dance into work each day.  For most people, it takes some concentration, mental gymnastics, and a pot of coffee, to keep their eyes on the prize. 

Building a Resident Relations Vision:

1. Owners and managers need to have an ‘abundance’ mindset. Today, because apartment rents and house prices have appreciated so much, many prospective community residents and current residents don’t qualify to buy a site-built house or rent a newly built apartment. The MH Community business has plenty of people that want what your park has to offer.

2. Current residents that consistently pay late, or have to be filed on, may have to find other housing. In our communities, we offer a free listing service. It’s available to all but it is meant to help the residents, who won’t comply with timely rent or home & lot rules, relocate as painlessly as possible. Al, an owner of 2,000 sites, offers a cash for keys program for residents that won’t comply. The last thing anyone wants or needs is an eviction on their record.

Arty is a park manager at Green Meadows, a medium sized park. He felt exhausted and annoyed with the park residents and their homes. “And it’s only 11 am on Monday” he laments. A whole week lay in front of Arty, of grinding it out – collecting rents, confronting non-payers, “Noticing” ungovernable residents, mowing and trimming their homes, since “they wouldn’t just do it”. Arty wondered if he should quit and look for another job, maybe a greeter at Wally World.

The Benefits of Resident Relations:

• Resident Relations keeps managers and owners energized, focused on achieving initiatives. Whether it’s 100% rent collections, pet policy enforcement, home compliance, 100% occupancy or park expansion, they (to quote Walt Disney) “Keep moving forward.”
• Resident Relations involves proper marketing, tenant selection, and ongoing manager training. Resident Relations should never be at the bottom of the to-do list; it NEEDS to be a daily habit of every manager and owner.
• Resident Relations is a measurable quality. It is quantifiable in terms of:
  • • Profitability
    • Return of Investment (ROI)
    • Home Compliance Rate
    • Increased Applicant Pool
    • Increased Rental Rates and Home Sale Prices

You can see it. There even is a waiting list of prospective residents. There are no rundown POH’s nor abandoned homes that need to be removed. Let’s stop calling these ‘handyman specials” and allowing them to sit there month after month. We all know that the odds are slim that an actual handyman is coming along to buy, fix up and move into one of these homes.

• Mission-oriented managers and owners are players, not victims. Properly trained owners and managers understand the vital role housing plays in the lives of their residents. They care about being accountable to the mission and initiatives of their parks. They are players, strategizing for the best outcomes for maximizing the bottom line. “Victim” owners and managers can’t grasp why the residents don’t pay on time, and why their yards are not mowed. They blame the tenants, the city, the economy… As time goes on there are more homes out of compliance and more late payers. 
• Let’s play a game… (this is a spin on the Florida man birthday Google search game) You type in affordable housing, your birthday (affordable housing, January 15^th) in Google then click the news tab. How many articles did you get? Most towns and cities have weekly newspapers articles and TV news reports on the lack of affordable housing. It’s a key topic of discussion for local, state, and national elections. Mobile home parks can be an important part of the solution for affordable housing, but not if the political candidate or their staff drive through a park and see unsightly abandoned homes, tires stacked in yards, or weeds three feet high. Resident Relations are the face of mobile home parks.

Three Things Owners and Managers Can Start Doing to Have the Fastest Resident Relations Outcomes:

1. Review your mission, initiatives, and goals for the year. It is not too late to get going on the things that have fallen through the cracks. Your mission, initiatives and goals need to be in writing, and you need to look at them every morning.

2. Contact three residents every day. This means if you have a 200-site park, you have called each resident at least once in the past three months. (21 workdays per month, times 3= 189)

3. Every resident, prospective resident, local official, political candidate, journalist ought to be able to look at your website (your virtual front door) or drive the community and have a favorable impression. If the homes in your community are in compliance, what might the prospective tenants think when they drive through? Guaranteed, they just drove through a competing park, where the rules have not been enforced.

The good news is that mobile home parks are filling up. This is the time to be selective in renting and selling homes. Check out the tenants’ budget. Can they afford to live in your community? Ideally 30% or so of their gross income is their budgeted housing cost. If the homes in your community are out of that price range, don’t rent to them. Being selective with your prospects and keeping your homes in compliance is good for your park’s image and for your stress level!

Joanne Stevens is a national Mobile Home Park broker.  Sign up for her free industry E-newsletter at www.joannemstevens.com  To request a mailed copy of her newsletter, contact Joanne at: joannestevens@iowarealty.com M: 319-310-0641 / O: 319-378-6786 

Answer. The land belongs to the landlord, and with the exception of (a) what a tenant plants on their own space[1], and (b) hazard tree responsibilities under ORS 90.727, it is my opinion that what grows out of the ground is the landlord's responsibility. Thus, the trees are the landlord's responsibility, and certainly, they cannot be left to grow to the point of prohibiting removal of a home - or to put it another way, if the trees are permitted to grow in such a manner as to block homes, it is the landlord's responsibility to deal with the cost of removal, so the home can be relocated.

As for the landlord's liability for costs to move the home, etc., I'm going out on a limb - pardon the pun - but that is really a matter of causation, i.e. why did the landslide occur? You did not state in your question that the tenant was somehow responsible for the slide, so I'm going to assume it was an "Act of God". Most good liability insurance policies do cover "Acts of God" events, and hopefully the landlord has such a policy.

So if the ground moves due to earthquake, flooding, shifting, etc., the cost to relocate the home is probably something the tenant would claim against the landlord. If the insurance carrier provides coverage, then that will be the source of payment to the tenant. If there is no such coverage, the question becomes whether a landlord can be held liable for an event the landlord did not cause, i.e. an "Act of God". Without doing a little research, I don't have a good answer, but that is a good reason for the landlord to want to have a good liability policy.

As I've written before, the landlord is in the business of renting out the ground, and therefor has the incentive to insure against risks to the ground, even those caused by "Acts of God". Tenants do not have an insurable interest in the ground, and accordingly, one would not expect them to assume the risk of something happening to property owned by the landlord.

[1] Your question did not indicate that the trees were planted by the tenant or on the tenant's space. In any event, it seems to me that other than maintaining the trees on one's space (subject to the hazard tree statute) they are still the landlord's responsibility, since they will remain when or if the tenant moves their home out.

Answer: First, it must be noted that since tenants are not “owners,” and therefore, the caselaw and statutes that might apply to the latter do not necessarily apply to tenants in manufactured housing communities where the Spaces are rented.

Since landlords are the “owners” of the community, so they should maintain good liability insurance coverage because even if maintenance of a non-hazard tree may be the tenant’s responsibility based on the park rules or rental agreement, (a) he or she may not have sufficient assets or insurance to cover the damage caused – especially if it involves personal injury, and (b) even if they do have coverage, there is a good chance the tenant or the insurance carrier, may try to pass the liability on to the landlord either for indemnity or contribution.

It is also important that landlords have good rules in place that are consistently enforced. Setting aside the hazard tree issue, which are mandated by statute, park rules should be clear in addressing each resident’s duties regarding maintenance responsibilities for non-hazard trees, especially in dealing with low hanging limbs over the resident’s home or that cross over onto another resident’s space. This is especially important where limbs are over a home, patio, driveway, and play areas.

Oregon law allows landlords to require that tenants carry liability insurance not exceeding $100,000.[1] The rental agreement may be unilaterally amended to impose the insurance, subject to 30-days’ notice.[2]

Before we address liability, we must first address duties. Is the tree a “hazard tree” – which is generally the landlord’s duty unless assumed by the tenant as discussed below. If it is not a hazard tree, who has responsibility? That depends upon what the rules and rental agreement say. If the issue is not addressed in those documents, it is – in my opinion - almost certain the landlord will be held responsible if any damages occur. ORS 90.740 governing tenant duties, does not deal with maintenance of trees, except for watering and removal of fallen limbs. ORS 90.730, governing landlord responsibilities, does not address maintenance of trees on the tenant’s space. For common areas, the landlord is liable for maintenance of all trees.

This means that if the issue is entirely ignored in the rules or rental agreement, it will fall to the landlord.

Definitions. The hazard tree statute, ORS 90.727, provides the following definitions:

• Maintenance.  “Maintaining a tree” means removing or trimming it for the purpose of eliminating features of the tree that cause it to be hazardous or may cause it to become hazardous in the near future. The term “hazardous” is discussed below.
• Removal. “Removing a tree” includes both felling and removing it and also grinding or removing the stump.

Hazard Trees. ORS 90.100(20) defines them as trees located in a manufactured housing community measuring at least eight inches DBH[3] and “…considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 (Issuance of license) 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.” (Emphasis added.)

Landlord Duties. The following hazard tree rules apply under the statute:

• Landlord must maintain a tree that is a hazard tree (i.e., that was not planted by the current tenant) on the Space if “…the landlord knows or should know that the tree is a hazard tree.”
• Landlord may maintain a tree on the Space to prevent the tree from becoming a hazard tree. Prefacing the statute with “may” means it is not mandatory. But if the issue is not covered in the rules or rental agreement, guess what? If the tenant does not maintain the tree voluntarily, it could ultimately become a “hazard tree” thereby removing any doubt about who has the duty to maintain.
• Landlords have discretion in deciding whether the appropriate maintenance is removalor trimming of the hazard tree.
•  Landlords are not responsible for (a) maintaining a tree that is not a hazard tree or (b) for maintaining any tree for aesthetic purposes.
• ORS 90.725 is the general access statute for all landlords and tenants. It is lengthy and detailed. But ORS 90.727(4) requires that the reasonable notice be given to inspect a tree and “…except as necessary to avoid an imminent and serious harm to persons or property, a reasonable opportunity for the tenant to maintain the tree. The notice must specify any tree that the landlord intends to remove.”

Tenant Duties.  Except as provided above, the tenant is responsible – at their expense - for maintaining the trees on their Space. (Notwithstanding this provision, I believe it is good practice to include the responsibility in the rules or rental agreement.) Tenants may retain certain qualified arborists[4] to inspect a tree on their Space, and if the arborist determines that the tree is a hazard, the tenant may either (a) require the landlord to maintain the hazard tree, or (b) maintain the tree at the tenant’s expense, after providing the landlord with reasonable written notice of the proposed maintenance and a copy of the arborist’s report.

Whether it is the tenant’s duty or the landlord’s based upon the above rules, maintenance of any tree with a DBH of eight inches or more requires engaging the services of a landscape construction professional with a valid license issued pursuant to ORS 671.560.

Tree Interfering With Removal Home. If a tenant’s home cannot be removed without first removing or trimming a tree on the Space, the owner of the home may remove or trim the tree at the tenant’s expense, after giving reasonable written notice to the landlord.

General Liability Issues. What follows are my opinions only, and not legal advice. In addressing these issues, I am following general real estate laws.

• Who is responsible if a non-hazard tree – or limbs, falls on the resident’s home or injures a resident or guest?
  • Under ORS 90.727(5), it is the tenant’s responsibility. If the tenant has their home insured, it would be submitted to the insurance carrier. Otherwise, it’s absorbed by the tenant. If they have health insurance, the injury should be covered.
• Who is responsible if a non-hazard tree – or limbs, fall on the neighbor’s home or injures the resident or a guest?
  •  Does the tenant on whose space the tree grows, have liability insurance? If a claim is brought by the neighbor against that tenant, the liability carrier will likely cover it.
  • If the neighbor whose home was damaged had property damage insurance, that carrier would pay, and if the tenant was responsible for tree maintenance by virtue of ORS 90.727(5) the carrier might bring a subrogated[5] claim against the tenant if he/she has assets or liability insurance.
  • If the neighbor was injured and had health insurance, the same rules would apply as above.

• Who is responsible if the roots of a non-hazard tree protrude under the resident’s home, or onto the neighbor’s Space and cause that home to become out of level or otherwise damaged?
  • ORS 90.730(3)(g) provides that “…Excluding the normal settling of land, a surface or ground capable of supporting a manufactured dwelling approved under applicable law at the time of installation and maintained to support a dwelling in a safe manner so that it is suitable for occupancy. A landlord’s duty to maintain the surface or ground arises when the landlord knows or should know of a condition regarding the surface or ground that makes the dwelling unsafe to occupy.” (Emphasis added.)
  • This suggests that the root system from the non-hazard tree is going to be the landlord’s problem if safety becomes an issue as the tree remains there.
  • For this reason, landlords should be attentive to the problem, especially upon the change of ownership of the home, i.e., before the offending root system causes more damage.
• What if a non-hazard tree is blown over in a storm or struck by lightning, and cause damages or injuries to tenants or their property?
  • This is well beyond my real estate legal skill set, except to say that “Acts of God” e.g., weather, forest fires, earthquakes, etc. would not normally create liability to the tenant unless the risk was foreseeable and/or the result of an intentional or grossly negligence act of the tenant – e.g., the tenant damaged the tree affecting its stability, but allowed it to remain on the Space. Certainly, the damage or injuries resulting from the non-hazardous tree would be covered by health or property damage insurance, if the affected resident carried it.

Lastly, notwithstanding the ORS 90.727(5) imposes non-hazard tree maintenance responsibility on the tenant, management must be careful to assure that they are safe. The cost of trimming to prevent a tree from becoming a hazard tree could be significant, and beyond the tenant’s financial capacity. For that reason, among others, it is my belief management must be vigilant about the safety of all trees on th

[1] See, ORS 90.222. This statute is quite detailed. It must be reviewed carefully before a landlord attempts to require it of the residents.

[2] Interestingly, the 30-day notice only applies to month-to-month tenants; it is therefore doubtful that a fixed term lease can be unilaterally amended. Landlords using leases for new residents should consider requiring it in the lease from the start.

[3] The width of a standing tree at four and one-half feet above the ground on the uphill side. Don’t tell the Woke Police, but “DBH” stands for “Diameter at breast height.”

[4] Details in ORS 90.727(5).

[5] Subrogation is a concept that permits an insurance company to pay their insured’s claim and then recover the amount paid from the party ultimately liable for the damage or injury.

Editor's Note:  Earlier this year MHCO passed significant changes to Oregon's abandonment law in the Oregon Legislature.  To assist MHCO Members with these changes, MHCO has developed three new forms as a result of the new abandonment law:  The new forms are: MHCO Form 31A "Declaration of Intent"; MHCO Form 31B "Declaration of Compliance"; and MHCO Form 31C "Declaration of Sale".  Attorneys Phil Querin and Mark Busch provided input as well as the Oregon Department of Revenue.  Below is Phil Querin's explanation of the changes to Oregon's abandonment law.  Further clarification will be provided in the 2016 MHCO Management Training Seminars and future "Question and Answer" sessions with Phil Querin.

Current Oregon Law. ORS 90.675(14) provides that following the public or private sale of an abandoned home, a landlord may deduct from the proceeds of the sale the reasonable or actual costs of notice, storage and sale and the unpaid rent. If any funds remain, the landlord is required to remit the excess proceeds to the county tax collector to the extent of any unpaid property taxes and assessments owed.1 

However, if one of the following circumstances apply, the county tax collector is required to cancel all unpaid property taxes and assessments: 

1. The landlord destroys or disposes of the home after a determination from the assessor that its current market value is $8,000 or less; 

2. The sale was held, but there was no buyer of the home; 

3. There is a buyer of the home; its current market value is $8,000 or less; but the 

   proceeds of sale are insufficient to satisfy the unpaid property taxes and assessments owed after distribution of the proceeds for the landlord's actual cost of notice, storage and sale and unpaid rent; or 

4. The landlord buys the home at the sale; its current market value is more than $8,000; the proceeds of sale are insufficient to satisfy the unpaid property taxes and assessments; and, the landlord disposes of the home. 

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

Answer:  This question relates, in part, to the Q&A that immediately preceded this one regarding the tenant who refused to maintain their Space. Please review it. The major difference here is that Tenant also has a duty to “Use electrical, water, storm water drainage and sewage disposal systems in a reasonable manner and maintain the connections to those systems;” (Emphasis added.) See, ORS 90.740(4)(f). This means that from the point of connection from the ground below the home and into the home, is the  Tenant’s responsibility.

So, to the issue of the Tenant refusing to perform their ORS 90.740(4)(f) duties, the Landlord’s best alternative is to issue a 30-day notice to terminate the tenancy pursuant to ORS 90.630(1)(b).

In answer to whether you could – following advance written notice – access the Tenant’s space and perform the repairs yourself, I strongly recommend not doing so, even if your rules or rental agreement allow for it. Tampering with the water system affecting the home could result in defective repairs and potential damages, including to Tenant health and safety. You do not want that liability.

Should you decide otherwise, be aware that the issue of entering a Tenant’s Space is fraught with risk relating to Tenant damage claims. During the tenancy, a Landlord’s rights are governed by ORS 90.322, which limits access to:

• Inspection of the premises;
• Making necessary or agreed repairs, decorations, alterations or improvements;

• Supplying necessary or agreed services, perform agreed yard maintenance or grounds keeping; or
• Exhibiting the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers or contractors.

However, assuming no emergency,[1] and absent a written agreement providing otherwise, Landlords must give at least 24-hours’ actual notice[2] of the intent to enter, but only at reasonable times. An “unreasonable time" is defined as: “…a time of day, day of the week or particular time that conflicts with the tenant's reasonable and specific plans to use the premises.” The open-ended nature of this language leaves room for argument, but my interpretation (without reading the case law) on what should be reasonable is weekdays between  9:00 AM and 5:00 PM, and Saturdays, 10:00 AM – 4:00 PM. I would avoid Sundays if possible, unless with Tenant’s consent. The best way to deal with an emergency here would be to turn off the Tenant’s water (with proper advance notice if possible, or immediately following your access.

Conclusion. Accessing a Tenant’s Space to perform repairs to the water pipes entering their home is not a good option. As soon as you become aware of the problem, notify the Tenant to immediately perform the repairs. If the tenant refuses, consider, after consulting with legal counsel, turning off the water to the space.

Under these circumstances, a 30-day notice to terminate the tenancy is the most effective tool in either securing the Tenant’s cooperation - or eviction. Deciding whether to also turn off the water would be up to your attorney’s advice. Good luck!

[1] “Emergency” includes but is not limited to a repair problem that, unless remedied immediately, is likely to cause serious damage to the premises. If a landlord makes an emergency entry in the tenant’s absence, the landlord shall give the tenant actual notice within 24 hours after the entry, and the notice shall include the fact of the entry, the date and time 

[2] This term is defined in governed by ORS 90.150, and includes verbal and written notice. It should be closely reviewed before proceeding.

ORS 90.675 is the abandonment law that applies generally to homes located in manufactured housing communities. Today it contains 23 separate subsections, a behemoth in size compared to most statutes. Buried 21 sections down in the subterranean recesses of the statute is that portion of the law dealing with health, safety and welfare issues, in which 45 day letters and 30 response periods could not possibly work. In such situations, time is of the essence. Accordingly, subsection 21 sets forth a fast-track protocol for declaring the abandonment of a home that poses certain risks to others (such as the abandoned shell of a home destroyed by fire). Below is a summary of what this subsection says:

If a governmental agency determines that the condition of the abandoned home constitutes an extreme health or safety hazard under state or local law and the agency determines that the hazard endangers others in the facility and requires quick removal of the property, the landlord may sell or dispose of it by taking the following steps[1]:

• The date by which a tenant, lienholder, personal representative or designated person must contact a landlord to arrange for the disposition of the property shall not be less than 15 days after personal delivery or mailing of the abandonment letter required by ORS 90.675(3);
• The date by which a tenant, lienholder, personal representative or designated person must remove the property must be not less than seven (7) days after the date the tenant, lienholder, personal representative or designated person issues the abandonment letter;
• The contents of the abandonment letter must be in accordance with ORS 90.675(5), except that:
  • The dates and deadlines in the notice must be consistent with the fast-track protocol above;
  • The abandonment letter must state that a governmental agency has determined that the property constitutes an extreme health or safety hazard and must be removed quickly; and
  • The landlord must attach a copy of the agency's determination to the abandonment letter.
  • If the tenant, a lienholder or a personal representative or designated person does not remove the property within the time required under the abandonment letter, the landlord or a buyer at a sale conducted under ORS 90.675(11) must promptly remove the home from the facility.
  • Contrary to ORS 90.675(19), the landlord is not required to enter into a storage agreement with a lienholder, personal representative or designated person.

Thanks, John!

[1] Note: the following steps are exceptions to the rest of ORS 90.675. This means that if there is no exception in this list, the rest of the statute will apply.

Last month the manufactured housing landlord-tenant coalition met to continue discussing issues in preparation for the 2015 Oregon Legislative session. As mentioned earlier, the coalition is a group of manufactured housing community interests - tenant organizations, landlord associations, banking interests, builders - that meet once a month to discuss industry issues. Manufactured Housing Communities of Oregon has been participating in the coalition since the 1990s.

It's the Dog Days of Summer - As 2015 Legislative Issues Get Legs

There are four issues that the coalition is discussing: 1. Back taxes owed on abandoned MHs (ORS 90.675 (14) 2. Who collects the $6 assessment on manufactured homes to fund the Manufactured Communities Resource Center (MCRC) 3. Revising ORS 90.630 regarding the cure period for ongoing versus discrete violations 4. Manufactured home sales conflicts with owner sales versus tenant sales

1. Back taxes owed on abandoned MHs (ORS 90.675 (14)

The negotiations on this statute focus on the situation where the current market value of the abandoned home is more than $8,000 and the proceeds of the sale don't cover the landlord costs and the past due taxes that have accumulated. In these cases, the financial incentive for the landlord when there is no purchaser at the abandonment sale is to destroy the home. Most community owners are not willing to pay $12,000 in taxes for a $9,000 home.

MHCO's position is to reduce this tax burden on the community owner as much as possible either by completely eliminating the tax obligation or reducing it as far as possible. The county tax assessors proposed eliminating up to $8,000 of the tax liability. MHCO's position is that the amount waived needs to be higher so that the economics of keeping abandoned homes in the community pencils out. We will be back in August negotiating this issue further, but it remains MHCO's top legislative issue.

2. Who collects the $6 assessment on manufactured homes to fund the Manufactured Communities Resource Center (MCRC)

Currently, ORS 446.525 imposes an annual $6 assessment on all manufactured homes which are taxed as personal property, meaning that they are not real estate (on land with joint ownership of the MH and the land or in a co-op or with a 20 year lease). The county assessor is responsible for collecting the assessment and forwarding the revenue to OHCS for MCRC. The concept is to collect this special assessment with the annual property taxes owed. This applies regardless of whether the MH is in a park.

MCRC estimates that the special assessment plus the $25 registration fee for all parks generated $443,051 in FY 2013 and $422,627 in FY 2014.

There are an estimated 63,000 MHs in parks; at $6 apiece, that would be $378,000/year. But the assessment is paid by non-park MHs, too.

In the past couple of years Multnomah County and some other counties have expressed a desire to get out of the business of collecting the $6 assessment. Multnomah County is drafting a bill for the 2015 Legislative Session exempting it from having to collect the $6 assessment

County tax collectors feel that, as a matter of principle, they should only collect taxes for their costs and for other local governments. This is not a tax.

Some manufactured home residents don't pay property taxes, either because of the senior tax deferral program or because of the ORS 308.250 cancellation of taxes on low-value (currently $15,500) MHs. That means the county bills those residents only for the $6. And, with the early payment 3 percent discount, the actual amount owed is only $5.82. The counties' cost to collect this amount exceeds the amount collected.

The coalition discussed increasing the assessment to $10 per manufactured home and possibly use some of the extra money to compensate the counties or MCRC to cover the cost to collect. Another proposal would expand this fee to floating homes. MHCO's position is to avoid having the community owner collecting the assessed fee from the residents and then passing the accumulated fees on to the Oregon Department of Revenue. The issue remains open to further negotiation.

3. Revising ORS 90.630 regarding the cure period for ongoing versus discrete violations

Manufactured home community residents who own and occupy their MHs and rent the space under the home in a community can only have their tenancies terminated for cause. Those causes are defined, to some degree, in ORS 90.630. The statute allows the tenant to cure the cause, within the 30 day notice period, and thereby avoid the termination. In some cases, the result of this cure right means that a tenant may continue the conduct which is the cause up until the 30th day.

Over the years, many of you have contacted the MHCO office to discuss 30 day notices of eviction and in the process expressed frustration that residents who where disturbing the peaceful enjoyment of other residents or where violating the rules and regulations in the community could continue living in the community till the end of the 30 day period after the notice had been served. As many of you have said to me on the phone, So basically they can misbehave for 30 days and we can't do a thing...."

We continue to discuss what conduct should be stopped immediately and what conduct should be allowed the full 30 days to cure. Phil Querin has suggested using the distinction that anything that materially impacts other residents should require a shorter period to cure. Some feel this is too subjective - where do you draw the line: failure to mow grass; large campaign sign for Kitzhaber; loud music; foul odors coming out of a home etc.

We will continue to discuss this issue in the months ahead. MHCO recognizes this is an important issue to both community owners/managers and residents. It remains one of our top legislative priorities.

4. Manufactured home sales conflicts with owner sales versus tenant sales

There have been some alleged abuses in situations where residents are trying to sell their homes and the community owner has other homes in the community that he/she are selling. Some residents claim that this inherent conflict results in their homes either not selling or selling at a substantially reduced price.

The State of Oregon has been investigating this through the Department of Consumer and Business Services. It is not clear what action the State wants to take - or other legislators for that matter. One of the proposals considered by the state is to prohibit issuance of any type of Manufactured Structure Dealer license to any mobile home or manufactured dwelling park owner or onsite park management representative. Other less draconian measures would be to adopt a "best practices".

Needless to say this is an issue that MHCO that will be watched closely. MHCO opposes eliminating your ability sell homes in your community. This may be an issue we will have to fight in the 2015 Oregon Legislative Session.

When you drive through a "pure mobile home park" and then drive through a park with a lot of RV tenants you can feel the difference in overall quality. The overall value of a MHP with "Permanent RV" tenants mixed in with Mobile Home tenants is lower than a MHP which is completely filled with Mobile Homes. RV's are not really permanent homes so MHP buyers and banks see RV occupancy as more risky than Mobile Home occupancy. The appraised value is lower, the interest rate that the bank charges can be higher and the pool of interested buyers is smaller. There are a number of MHPs in Oregon which have RV tenants who have been tenants in the same space for over 15 years, but even if you prove this to a bank, they can still be hesitant to lend on the park. Many buyers will simply not look at MHPs with a high percentage of RV tenants. One advantage of having RV tenants to fill spaces is that you can give them a 60 day no cause notice to move out. This can be beneficial for two reasons. Firstly, if the tenant turns out to be a problem tenant who does not adhere to the rules, it is easy to replace them with a good tenant. This also allows a MHP owner to temporarily fill spaces with RV tenants but replace them with Mobile Homes when they find one to put into that space. Of course, it is always a good idea to inform an RV tenant that this is your intention before they move in and expect to live there for years.

Not only does the park income rise when spaces are full, but the overall feeling of full occupancy is good for tenants, management and once full, parks with 100% full lots tend to stay that way for a very long time. Vacant spaces can make a Mobile Home Park feel old, neglected, and undesirable even if it is well maintained otherwise. Also, we all know that it is expensive to bring even a used Mobile Home into a park. The purchase of the house, moving expenses, set up, and final touch up will generally run at least $17,000 for a single wide and anywhere from $35,000 - $60,000+ for a double wide home. Other items to consider are the sales commissions for the Mobile Home Dealer and it can prove to be difficult to get both a house, and a tenant to both qualify for bank financing. Having the park buy and set up mobile homes can be a risk but may be worth it. There is really no calculation or standard that determines what the reduction in value of a MHP with RV tenants is but it certainly is the case that the demand is lower and lending is more difficult.

By using a good Mobile Home Dealer who can find used mobile homes to fill spaces, arrange them to be moved and set up and then sell them is a win-win situation. There are a number of highly reputable licensed dealers who can seamlessly fill vacant spaces and in the end the cost is usually worth it when you calculate the improvement made to the park. If you are thinking about selling your MHP, and even if you are not expecting to, it makes sense to improve your property for long term value.

On the other hand, simply having RV tenants pull their RV into a space has many short term benefits for both the tenant and the MHP. The screening criteria is still the same so the RV tenants make up a very good pool of possible tenants. All in all a pure MHP is more desirable but RV tenants can be as long term as Mobile Home tenants and with the trend heading in the direction of very small living spaces, RV living may be considered a luxury before long.

Kim Berry, Principal Broker

Rundle CRE - Mobile Home Brokers

5319 SW Westgate Dr. Suite 232

Portland, OR 97221

503-980-3512

CELL: 503-807-2568

FAX: 360-935-3512

Answer: First, it must be noted that since tenants are not “owners,” and therefore, the caselaw and statutes that might apply to the latter do not necessarily apply to tenants in manufactured housing communities where the Spaces are rented.

Since landlords are the “owners” of the community, so they should maintain good liability insurance coverage because even if maintenance of a non-hazard tree may be the tenant’s responsibility based on the park rules or rental agreement, (a) he or she may not have sufficient assets or insurance to cover the damage caused – especially if it involves personal injury, and (b) even if they do have coverage, there is a good chance the tenant or the insurance carrier, may try to pass the liability on to the landlord either for indemnity or contribution.

It is also important that landlords have good rules in place that are consistently enforced. Setting aside the hazard tree issue, which are mandated by statute, park rules should be clear in addressing each resident’s duties regarding maintenance responsibilities for non-hazard trees, especially in dealing with low hanging limbs over the resident’s home or that cross over onto another resident’s space. This is especially important where limbs are over a home, patio, driveway, and play areas.

Oregon law allows landlords to require that tenants carry liability insurance not exceeding $100,000.[1] The rental agreement may be unilaterally amended to impose the insurance, subject to 30-days’ notice.[2]

Before we address liability, we must first address duties. Is the tree a “hazard tree” – which is generally the landlord’s duty unless assumed by the tenant as discussed below. If it is not a hazard tree, who has responsibility? That depends upon what the rules and rental agreement say. If the issue is not addressed in those documents, it is – in my opinion - almost certain the landlord will be held responsible if any damages occur. ORS 90.740 governing tenant duties, does not deal with maintenance of trees, except for watering and removal of fallen limbs. ORS 90.730, governing landlord responsibilities, does not address maintenance of trees on the tenant’s space. For common areas, the landlord is liable for maintenance of all trees.

This means that if the issue is entirely ignored in the rules or rental agreement, it will fall to the landlord.

Definitions. The hazard tree statute, ORS 90.727, provides the following definitions:

Maintenance.  “Maintaining a tree” means removing or trimming it for the purpose of eliminating features of the tree that cause it to be hazardous or may cause it to become hazardous in the near future. The term “hazardous” is discussed below.
Removal. “Removing a tree” includes both felling and removing it and also grinding or removing the stump.

Hazard Trees. ORS 90.100(20) defines them as trees located in a manufactured housing community measuring at least eight inches DBH[3] and “…considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 (Issuance of license) 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.” (Emphasis added.)

Landlord Duties. The following hazard tree rules apply under the statute:

Landlord must maintain a tree that is a hazard tree (i.e., that was not planted by the current tenant) on the Space if “…the landlord knows or should know that the tree is a hazard tree.”
Landlord may maintain a tree on the Space to prevent the tree from becoming a hazard tree. Prefacing the statute with “may” means it is not mandatory. But if the issue is not covered in the rules or rental agreement, guess what? If the tenant does not maintain the tree voluntarily, it could ultimately become a “hazard tree” thereby removing any doubt about who has the duty to maintain.
Landlords have discretion in deciding whether the appropriate maintenance is removal or trimming of the hazard tree.
 Landlords are not responsible for (a) maintaining a tree that is not a hazard tree or (b) for maintaining any tree for aesthetic purposes.
ORS 90.725 is the general access statute for all landlords and tenants. It is lengthy and detailed. But ORS 90.727(4) requires that the reasonable notice be given to inspect a tree and “…except as necessary to avoid an imminent and serious harm to persons or property, a reasonable opportunity for the tenant to maintain the tree. The notice must specify any tree that the landlord intends to remove.”

Tenant Duties.  Except as provided above, the tenant is responsible – at their expense - for maintaining the trees on their Space. (Notwithstanding this provision, I believe it is good practice to include the responsibility in the rules or rental agreement.) Tenants may retain certain qualified arborists[4] to inspect a tree on their Space, and if the arborist determines that the tree is a hazard, the tenant may either (a) require the landlord to maintain the hazard tree, or (b) maintain the tree at the tenant’s expense, after providing the landlord with reasonable written notice of the proposed maintenance and a copy of the arborist’s report.

Whether it is the tenant’s duty or the landlord’s based upon the above rules, maintenance of any tree with a DBH of eight inches or more requires engaging the services of a landscape construction professional with a valid license issued pursuant to ORS 671.560.

Tree Interfering With Removal Home. If a tenant’s home cannot be removed without first removing or trimming a tree on the Space, the owner of the home may remove or trim the tree at the tenant’s expense, after giving reasonable written notice to the landlord.

General Liability Issues. What follows are my opinions only, and not legal advice. In addressing these issues, I am following general real estate laws.

Who is responsible if a non-hazard tree – or limbs, falls on the resident’s home or injures a resident or guest?
Under ORS 90.727(5), it is the tenant’s responsibility. If the tenant has their home insured, it would be submitted to the insurance carrier. Otherwise, it’s absorbed by the tenant. If they have health insurance, the injury should be covered.
Who is responsible if a non-hazard tree – or limbs, fall on the neighbor’s home or injures the resident or a guest?
 Does the tenant on whose space the tree grows, have liability insurance? If a claim is brought by the neighbor against that tenant, the liability carrier will likely cover it.
If the neighbor whose home was damaged had property damage insurance, that carrier would pay, and if the tenant was responsible for tree maintenance by virtue of ORS 90.727(5) the carrier might bring a subrogated[5] claim against the tenant if he/she has assets or liability insurance.
If the neighbor was injured and had health insurance, the same rules would apply as above.
Who is responsible if the roots of a non-hazard tree protrude under the resident’s home, or onto the neighbor’s Space and cause that home to become out of level or otherwise damaged?
ORS 90.730(3)(g) provides that “…Excluding the normal settling of land, a surface or ground capable of supporting a manufactured dwelling approved under applicable law at the time of installation and maintained to support a dwelling in a safe manner so that it is suitable for occupancy. A landlord’s duty to maintain the surface or ground arises when the landlord knows or should know of a condition regarding the surface or ground that makes the dwelling unsafe to occupy.” (Emphasis added.)
This suggests that the root system from the non-hazard tree is going to be the landlord’s problem if safety becomes an issue as the tree remains there.
For this reason, landlords should be attentive to the problem, especially upon the change of ownership of the home, i.e., before the offending root system causes more damage.
What if a non-hazard tree is blown over in a storm or struck by lightning, and cause damages or injuries to tenants or their property?
This is well beyond my real estate legal skill set, except to say that “Acts of God” e.g., weather, forest fires, earthquakes, etc. would not normally create liability to the tenant unless the risk was foreseeable and/or the result of an intentional or grossly negligence act of the tenant – e.g., the tenant damaged the tree affecting its stability, but allowed it to remain on the Space. Certainly, the damage or injuries resulting from the non-hazardous tree would be covered by health or property damage insurance, if the affected resident carried it.

Lastly, notwithstanding the ORS 90.727(5) imposes non-hazard tree maintenance responsibility on the tenant, management must be careful to assure that they are safe. The cost of trimming to prevent a tree from becoming a hazard tree could be significant, and beyond the tenant’s financial capacity. For that reason, among others, it is my belief management must be vigilant about the safety of all trees on the residents’ spaces.

[1] See, ORS 90.222. This statute is quite detailed. It must be reviewed carefully before a landlord attempts to require it of the residents.

[2] Interestingly, the 30-day notice only applies to month-to-month tenants; it is therefore doubtful that a fixed term lease can be unilaterally amended. Landlords using leases for new residents should consider requiring it in the lease from the start.

[3] The width of a standing tree at four and one-half feet above the ground on the uphill side. Don’t tell the Woke Police, but “DBH” stands for “Diameter at breast height.”

[4] Details in ORS 90.727(5).

[5] Subrogation is a concept that permits an insurance company to pay their insured’s claim and then recover the amount paid from the party ultimately liable for the damage or injury.

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

No matter how is starts, a fire ca destroy a home in just a few minutes.  In manufactured home communities, as in any densely populated community, fire is an especially dangerous problem, because the homes are often close together.  One fire could damage many homes.

Many fires are started by faulty heating and electrical equipment and by flammable materials that are not stored properly. 

If your community is near a wild land area, you and your residents also need to be prepared for wild fires.  Danger zones include land that is heavily wooded, is filled with brush or has large grassy areas.  According to FEMA, states at risk for wild fires include California, Florida, Georgia, Kansas, Louisiana, Massachusetts, Mississippi, North Carolina, South Carolina and Tennessee.  Also at risk are the national forests in the western United States.

What To Do

Encourage your residents to include a plan for fires in their family disaster plans.  Special steps for fires include an escape plan for every room in the home.  Draw a floor plan with at least two ways to get out of every room.

Here are some other steps that you and your residents can take to reduce the risk of fire and fire damage:

• Install smoke detectors and test them monthly.  If they work on batteries, replace them at least once a year.

• Keep an “A-B-C” type fire extinquisher handy and teach all family members how to use it.  (Fire extingquishers are labeled for the types of fires they can be used on.  An “A rated unit is good for wood, paper, trash and plastic fires.  “B” rated is good for gasoline, oil and grease fires.  “C” rated is used to extingquish electrical fires.  An “A-B-C” fire extinquisher  can be used for all three types of fires, so it is the best choice for homes.)

• Keep trees and shrubs trimmed so they don’t come in contact with electric wires.

• Clean your roof and gutters regularly.

• Don’t store flammable materials under your home or near anything that could ignite them.

• Keep the stove area clean and don’t store anything that can burn, such as paper bags or napkins, near it.

• Repair or replace electric wiring if it’s damaged, and don’t overload electric outlets or extension cords.

• Don’t use space heaters near drapes, clothing or anything else that could burn.

• Have your heating system inspected regularly by a qualified technician.

• Install skirting material to keep leaves and debris from blowing under your home.

• Keep brush, debris and other materials away from fire hydrants.

• Practice alerting other people in the house and evacuating the house blindfolded.  In a real fire situation, smoke might make it hard to see.

If your home is on fire, you and your family should get out immediately and call for help from a phone outside the home.  Close doors as you go to slow down the fire.

If smoke is pouring in around the bottom of a door or it feels hot, use another door or window to get out.  If there is no smoke at the bottom or top and the door is not hot, then open the door slowly.

When getting out, stay low to the floor to avoid breathing smoke.  If possible, cover your mouth with a damp cloth.

Know how to drop and roll on the ground if your clothes catch fire.  If someone else’s clothes are on fire, use blankets to wrap and smother the flames.

Wildfires

If a wild fire is in your area, monitor your local radio or TV stations to keep up with its progress.

Encourage residents to take the following precautions:

• Remove anything outside the house that could burn, like lawn chairs or firewood.
• Take down flammable drapes and curtains, and close the blinds
• Close all doors and windows insides the home to prevent drafts.
• If advised, close gas valves and turn off all pilot lights.
• Turn on a light in each room so you can see if there is smoke.
• If you have hoses and a good water supply, put sprinklers on the roof.  Turn them on when the fire gets near.
• Have your car full of gas and your emergency supplies packed in case and evacuation is called for.
• Make sure pets are taken care of.

If you are caught outside in a wildfire, try to find a pond or creek to get into.  Cover your head with wet clothing.  If you can’t find water, look for shelter in an area without much vegetation.  Lie flat and cover your body with wet clothing or dirt.

After A Fire

When your residents return home after a fire, they should inspect their home.  Follow these special tips for fires:

• Don’t assume all of the fire is out – hot spots can flare up.  Check your roof and all through your home for several hours after the fire seems to be out.
• Throw out any food that has been exposed to heat, smoke or soot.
• Don’t use furnaces, appliances or other major equipment unit they have been check by a qualified technician.
• If you know the cause of the fire, take steps to prevent it from happening again.