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Phil Querin Q&A: Abandoned Home with Lots of Deferred Taxes

Phil Querin

Answer: The Department of Revenue (“DOR”) is treated like any other lienholder. It is critical that before the 45-day letter is sent, the park check with the Oregon Department of Consumer and Business Services (“DCBS”) to determine if there are any lienholders on title. We understand that DOR is now showing up on the DCBS records. Remember, if they show up on the record and you fail to give them notice, they could come back against the park for failing to notify them. If they show up on the DCBS records, they should be copied on the 45-day letter, and given all of the same rights as other lienholders, e.g. entering into a one year storage agreement, paying the storage fees, selling the home, etc. Currently, it is our understanding the DOR does not sign and returned storage agreements. If there is a purchase money lien on the property, it will be superior to the DOR and then it [the DOR] will only get payment if there is any equity from the sale. Since the property is worth more than $8,000, if there is no sale, it would go to auction. As a lienholder, the DOR is behind the park, in terms of payment of cost, and then the county tax collector [which presumably is current – thanks to the DOR]. Next, as a lienholder, the DOR would receive some payment. If there are any further proceeds, they would go to the tenant, and if the tenant cannot be located, then to the county fund. If the landlord follows these procedures, there is no remaining liability to the DOR for and of the taxes paid under the program.

Phil Querin Q&A: Death of Tenant in Community Owned Home Disposal of Personal Property

Phil Querin

Answer: First, remember that if the resident who is occupying the home is NOT the owner of the home, the manufactured housing section of the Oregon landlord-tenant law (ORS 90.505 et seq.) does NOT apply. This means that the applicable law is that which applies to tenants in apartments and single family homes. This portion of the landlord tenant law is more landlord-favorable - at least in terms of timing. MHCO is currently in the process of developing a form for abandoned personal property, other than manufactured homes located inside of parks.

 

In this case, ORS 90.425 applies. Although this is the abandonment law, it is limited to such things as personal property, motor vehicles, RVs, and manufactured homes not located in a park. If you have ever done an abandonment of a home in your community, ORS 90.675 applies. Although the protocols are much the same, there are some material differences. Here is a summary of the law addressing your question:

 

 

  1. Automobiles.
    1. You must determine if there are any lienholders;
    2. You must also determine if the owner of the vehicle is different that the deceased resident;
    3. You must send a written abandonment letter[1]:
      1. By first class mail to the deceased tenant at the premises[2];
      2. Personally deliver or send it by first class mail to any heir, devisee, personal representative or designated person, if actually known to the landlord; and
      3. Sent it by first class mail to the attention of an estate administrator of the Department of State Lands.
    4. The letter must give the heir, devisee, or personal representative of designated person, not less than 45 days to notify the landlord of their intent to claim the vehicle(s), and allow them not more than 15 days (or such longer period as agreed to by the parties) to actually pick it/them up.
    5. If the recipient does not pick up the vehicle(s), the landlord may sell it/them at a public or private sale, or if the reasonable current fair market value is $1,000 or less or so low that the cost of storage and conducting a public sale probably exceeds the amount that would be realized from the sale, may sell certain items and destroy or otherwise dispose of the remaining personal property.
    6. The vehicle(s) may be stored at the space, or stored at a commercial storage company, or other place of safekeeping;
    7. NOTE: This is an abbreviated version of the process, and should not undertaken without expert assistance.
  2. All Other Personal Property
    1. The written notice of abandonment must be sent to the same persons as for the vehicle(s);
    2. The heir, devisee, or personal representative of designated person must be given not less than five (5) days if the notice is personally delivered, or eight (8) days if mailed, to notify the landlord if they intend to pick up the personal property, and not more than fifteen (15) days (or such longer period as agreed to by the parties) to actually pick it up.
    3. If the personal property is not picked up, the same protocol applies as fore vehicle(s);
    4. The personal property may be stored at the space, or stored at a commercial storage company or other place of safekeeping[3];

A word of caution: Until the letter is sent, both of the abandonment statutes, ORS 90.425 and ORS 90.675, are not clear about the landlord's legal responsibility for "safekeeping" of a resident's abandoned property. However, there is no question that the landlord does have that responsibility once the abandonment has been declared by issuance of the letter.

 

This means that you can secure the personal property, either by removing it from the home, or, in this case, with the owner's consent, secure it in the home, and prohibiting access. The reason I bring this up is because you mentioned that the foster brothers gained access to the home and apparently removed what they wanted.

 

 

Yet, ORS 90.425(21) provides:

 

 

(d) The landlord shall allow a person that is an heir, devisee or personal representative of the tenant, or an estate administrator of the department, to remove the personal property if the person contacts the landlord within the period provided by [ORS 90.425(25)], complies with the requirements of this section and provides the landlord with reasonable evidence that the person is an heir, devisee or personal representative, or an estate administrator of the department. (Emphasis added.)

 

 

(e) If neither an heir, devisee nor personal representative of the tenant, nor an estate administrator of the department, contacts the landlord *** the landlord shall allow removal of the personal property by the designated person of the tenant, if the designated person contacts the landlord within that period and complies with the requirements of this section and provides the landlord with reasonable evidence that the person is the designated person.

 

(f) A landlord who allows removal of personal property under this subsection is not liable to another person that has a claim or interest in the personal property. (Emphasis added.)

 

Subsection (f) is as important for what it doesn'tsay, as what it does, i.e. the landlord's failure to follow the statute could result in liability, e.g. to the heirs, etc., whose property was released to persons not so entitled.

 

So the take-away here is this: In the case of residents living alone, park records should be updated to determine (a) if there is a will; and (b) who should be notified in the event of death or disability.

 

 

And lastly, rather than allowing various persons entry into the home of a deceased resident, it is more prudent to immediately send out an abandonment letter, which gives you automatic power to "secure" the decedent's personal property, until the proper persons can be identified to remove it.

 

 

If the resident owned the home, you would have proceeded under ORS 90.675 (for abandoned homes in a park), which is much the same as ORS 90.425 (for personal property only), except that in the case of abandoned homes in parks, the 45-day letter gives the estate 30 days to remove the home or enter into a storage agreement, for its resale; and since the home is subject to a personal property tax, the tax assessor and/or collector would have to be notified with the 45-day letter.

 

[1] The information contained in this letter is much the same as that when a manufactured home is abandoned in a park. See, ORS 90.425(5).

[2] The notice must refer to the heir, devisee, personal representative, designated person or estate administrator of the department, instead of the deceased resident.

[3] If the deceased resident owned the home, the personal property could be stored there, as well.

Important Provisions To Consider In Your Rules and Regulations

MHCO

  1. Manufactured Home Set-Up
  1. Include provisions limiting owner's responsibility for such conditions as soils, site preparation, foundation stability, final grading, and settling.
  2. Include provision that homeowner has examined the home site and accepts the condition, "as-is."

  1. Manufactured Home Removal

Include a provision notifying resident that they will be held liable for any damage to the home site or manufactured community in the event there is any damage during removal of the home.


  1. Manufactured Home Standards

Include provisions addressing the following items pertaining to the manufactured home itself:

  1. Description of the home and all other structures and accessories that will be sited on the home site.
  2. Age, make and model of home.
  3. Installation of skirting, gutters and downspouts (within prescribed period of time).
  4. Awnings, decks and patios (within prescribed period of time).
  5. Above ground piping.
  6. Landscaping (Within prescribed period of time).
  7. Will fences be allowed, and if so, what height, material and color? Who's responsibility will it be to maintain?

  1. Maintenance of Home and Home Site.
  1. Add provision making resident responsible for maintaining and keeping the exterior of the home clean and in good repair. Require painting or staining of all wooden structures such as decks, hand railings, storage buildings etc. to prevent their visual and/or physical deterioration.
  2. Make resident responsible for maintaining all lawn areas, flowers and shrubbery within their space (e.g. regular mowing and weeding of lawns).
  1. Can/should owner reserve the right to perform or have performed landscape maintenance which resident fails to perform?
  1. Who owns the landscaping improvements upon termination of tenancy? Address exceptions. Have in writing.
  2. Storage of personal property (e.g. firewood, toys, tools, patio furniture, garbage cans, etc.)
  3. Clothes lines or clothes line poles.
  4. Play equipment, its location and visibility.

  1. Homeowners and Guests
  1. Limit amount of rent to the persons identified in the rental agreement. Require that any additional residents must be approved by the owner prior to move-in, and an additional monthly amount paid as rent.
  2. Limit the total number of permanent residents in any home (rule of thumb 2 persons/bedroom plus one).
  3. Make resident responsible for the actions of other occupants of the home, its guests, licensees and invitees.
  4. Will there be a limitation on conducting business out of the home?
  5. Limitations on "obnoxious or offensive activities which owner believes are an annoyance or nuisance to the community."
  6. How long may guests remain in community? Consider placing limit (e'g' 14 days consecutively or cumulatively) after which time they must be qualified as a resident.
  7. Have prohibitions against unreasonably loud or disturbing noise through parties, radios, televisions, stereo equipment, etc. and include a time. (e.g. 10:00 p.m. until 8:00 a.m.

  1. Subletting
  1. Will subletting of a home be permitted or must they be owner occupied?
  2. Require approval of house sitters for any extended period of time (e.g. in excess of 30 days) prior to occupancy.

  1. Sale of Manufactured Home
  1. Require that prospective resident-purchasers submit an application for residency and be approved by owner prior to occupancy. See ORS 90.680.
  2. Size and location of "For Sale" signs.

  1. Utilities
  1. How are electrical, garbage, sewer and water services going to be paid?
  1. ORS 90.510 permits direct pass through, but only if the rental agreement specifically provides the right to do so.
  2. Problem: How do you "convert" from including utilities in base rent to direct pass-throughs?
  3. Who pays for T.V. cable service? Can owner contract with provider, and add on an extra charge?
  1. Pets
  1. Place limits on control, sanitation, number, type and size of pets. Note ORS 90.530
  2. May require that pet agreement be signed and proof of liability insurance making landlord co-insured.

  1. Common Areas
  1. Limit use and address owner's liability (e.g. streets shall not be used as playgrounds by resident or guests. Sidewalks are not meant for use by bicycles, skateboards, tricycles, etc.)
  2. Require resident to assume liability for their guests and invitees.
  3. If there are recreation facilities, describe them and place limitations on their use.
  1. If there is a clubhouse, describe how it may be used. Consider requiring pre-registration for use; strictly limit or prohibit the use of alcohol; limit use of guests without resident present.
  2. Note: can require reasonable cleaning deposit; cannot require bond or insurance; cannot prohibit tenant association meetings there.




  1. Automobiles and Motorized Vehicles

  1. Strictly limit the dumping of motor oils and other caustic or non-biodegradable substance in street drains, sewer systems or the grounds within the community.
  2. Place limitations on car repair and storage of inoperable cars.
  3. Limit the number of vehicles and location of parking. Be careful about towing violators.
  4. Place limits on the parking of commercial vehicles in the community.
  5. Limit overnight parking on streets by guests or homeowners
  6. Limit speed and vehicle noise within the community.
  7. Limit storage of motor homes, campers, trailers, boats, snowmobiles, etc. on residents' space.
  8. Limit use of motorcycles and ATV's within the community.

  1. Occupancy Guidelines (ORS 90.510(7))
  1. Statute provides that "if adopted, an occupancy guideline in a facility shall be based upon reasonable factors and shall not be more restrictive than limiting occupancy to two people per bedroom.
  2. Reasonable factors are defined to include (but not necessarily be limited to):
  1. The size of the dwelling.
  2. The size of the rented space.
  3. Any discriminatory impact for reasons identified.
  4. Limitation placed on water or sewage disposal.

  1. Dispute resolution (ORS 90.610)
  1. What is dispute resolution?

It is an alternative to court litigation and most frequently includes mediation and arbitration.

  1. Mediation - non binding dispute resolution
  2. Arbitration - binding dispute resolution
  3. ORS 90.610(1) states that resident and owner '_shall provide for a process establishing informal dispute resolution of disputes that may arise concerning the rental agreement for a manufactured dwelling."
  4. Parties to dispute resolution - Resident vs. owner disputes (not resident vs. resident disputes).
  5. Types of disputes:
  1. Should be limited to rules violations (as opposed to rental agreement issues such as rent).
  2. Exceptions:
  1. Statutory (Facility closure, facility sale, rent including but not limited to amount, increase and nonpayment) ORS 90.610(7).
  2. Charges and fees due under the rental agreement.
  3. Matters for which a non-curable notice could be issued (e.g. 24-hour notice; 3-strikes notice; 20-day repeat violation notice).
  4. Approval of new residents purchasing home in park.
  5. Lease renewal.
  1. Query: What about claims (generally arising against the landlord) such as tort claims (e.g. personal injury, trespass, fraud, misrepresentation, Unlawful Trade Practice claims, Fair Housing claims, etc.)? Any such clause must be in writing and signed.

  1. Miscellaneous
  1. Address the services and facilities you do not provide.
  1. For example, security patrol or security systems - encourage residents to exercise reasonable diligence and caution in securing their homes. Ask that if they observe any suspicious or illegal acts to notify the manager and/or the police department.
  2. If there are dimly lighted and/or dark areas within the community, say so, and ask that the resident agree to carry a portable light source when walking at night.
  1. Include a non discrimination provision.
  1. For example, a recital that the owner will not discriminate on the basis of race, color, sex, marital status, familial status, religion, national origin, or handicap, etc.

Mark Busch Q&A: Abandoned RVs

Mark L. Busch

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

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

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

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

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

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

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

Mark Busch Q&A - RV Abandonment

Mark L. Busch

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

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


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


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


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

Mark Busch Q&A: Abandoned Recreational Vehicle

Mark L. Busch

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

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

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

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


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


Mark Busch Q&A - Deceased Tenant's RV, Vehicle and Other Property

Mark L. Busch

Answer: Under Oregon law, the property of deceased tenants is considered "abandoned" and must be treated as such. The park must issue an abandoned property notice as required by ORS 90.425.

As required by the statute, the abandonment notice must state that: (a) The RV and any other property left behind is considered abandoned; (b) Any lienholder, owner or heir must contact the landlord within 45 days to arrange for the removal of the RV; (c) All other personal property (including the pickup truck) must be "claimed" by contacting the landlord within 8 days after the notice is mailed, and removed within 15 days after contacting the landlord; (d) The RV and other property are stored at a place of safekeeping; (e) Any lienholder, owner or heir may arrange for removal of the RV and other property by contacting the landlord at a described telephone number or address on or before the specified dates; (f) The landlord will make the RV and other property available for removal by appointment at reasonable times; (g) The landlord may require payment of removal and storage charges; (h) If any lienholder, owner or heir fails to contact the landlord by the specified date, or after that contact, fails to remove the RV within 30 days or other property within 15 days, the landlord may sell or dispose of the RV and other property; and, (i) If there is a lienholder, owner or heir of the RV or other property, they have a right to claim the property.

The park must send the notice to the tenant's park address addressed to "The Estate of [Tenant]." The notice must also be sent to any other known address for the tenant's relatives or contact person (sometimes listed on the tenant's rental application). The park must additionally conduct a title search on the RV and send the notice to any lienholder or other owners listed on the title. (Contact the Oregon DMV with the license plate number to determine lienholders or owners on title.) The notice must be sent by regular first class mail, except that lienholders and owners listed on the title (if any) must additionally be sent the notice by certified mail.

While not required by the statute, I also recommend that my clients also conduct a similar DMV search for lienholders or owners on abandoned vehicles (besides the RV). If any are listed, the abandonment notice should also be sent to them via 1st class and certified mail. However, the statutes do allow park owners to post a 72-hour tow notice on abandoned motor vehicles that can then be towed away by a qualified tow company instead of following the abandoned property notice requirements. Most tow companies can provide information on the process that needs to be followed in such circumstances.

In any event, after the park issues the abandonment notice, the RV, pickup truck, and other property can be removed from the rented space to open it up for a new RV tenant. The abandoned RV, vehicle and personal property must be stored in a "place of safekeeping," such as an on-site storage lot.

If the RV remains unclaimed after the 45-day period expires, the park can either throw away or give away the RV if the park estimates that the current fair market value is $1,000 or less, or so low that the cost of storage and conducting an auction probably exceeds the amount that could be realized from a sale. The same holds true for the vehicle and other personal property if unclaimed after the required 8/15 day claiming periods. If the estimated value of any particular piece of personal property (e.g., the RV, vehicle, or other property) is more than $1,000, the park must hold an abandonment auction using the procedures described by the abandonment statute. Since the abandonment auction process is complicated, the park should consult a knowledgeable attorney to handle that aspect, if necessary.

Mark L. Busch
Cornell West, Suite 200, 1500 NW Bethany Blvd
Beaverton, OR 97006
(503) 597 - 1309

mark@marklbusch.com

www.marklbusch.com


Documents Upon Acceptance of Residency

In order to comply with Oregon Law, and to provide accurate records, there are several forms that are to be completed when the applicant is accepted to become a resident in the community. These forms should be completed after you have reviewed the resident's application, and completed all background checks and tenant screening, but before the resident moves into their home.

Copies of the following forms should be given to the new resident:

  • Copy of signed Rental Application
  • Copy of signed Rental Agreement signed by both manager and new resident
  • Copy of Park "Rules and Regulations" signed by the new resident
  • Copy RV Storage Agreement if applicable.
  • Copy of Pet Agreement if applicable
  • Copy of "Statement of Policy" signed by the new resident
  • Copy of Receipt of Statement of Policy
  • Copy of Rental History Addendum to Statement of Policy
  • Flood Plain Notice

The following documents should be in the new resident's office file:

  • Signed "Reciept of Statement of Policy" (signed before signing rental agreement)
  • Signed Rental Application
  • Signed Rental Agreement (signed by both manager and new resident)
  • Park "Rules and Regulations" signed by the new resident
  • Statement of Policy signed by the new resident
  • Rental History Addendum to Statement of Policy
  • Emergency Contact Information
  • RV Storage Agreement (if applicable)
  • Pet Agreement (if applicable) signed by the new resident
  • A copy of criminal, credit and rental checks. Remember, credit check results are confidential
  • Age verification (if 55 and Older Community)
  • Flood Plain Notice

Remember - Prior to renting a space and permitting possession, you must have all proper inquiries completed and applicant accepted and the rental agreement signed.

If you are aware of a sale and do not have the purchaser fill out an application, or fail to advise the seller and prospective purchaser in writing that the application has been rejected within 7 days after they fill out the application, then the purchaser can move into the mobile home under the same condition of the rental agreement of the seller. Basically, they assume the existing rental agreement you have with the seller of the manufactured home.

If a prospective tenant refuses to provide you with the necessary information for you to qualify them, then it is an automatic denial of the applicant.

It is important that an application is filled out and you check out the person carefully. You should check them out the same as you do any prospective resident. You do not have to approve the person just because they are buying an existing home in the park. If they have a bad credit or rental history, they can be refused as a prospective tenant. This does not necessarily kill the sale of the mobile home. They can still purchase the home, they just cannot keep it in the park. You need to provide a written rejection to both the seller and prospective purchaser within 7 days. You need to advise them why they were not accepted. If you denied them for credit reasons, give the applicant the name and phone number of the company who provided you with the report. Advise the applicant that they can call them if they have any questions regarding the report.

It is important that you advise anyone that has a "For Sale" sign on their manufactured home that they do the three things listed at the beginning of this section. Failure by the prospective resident to fill out an application or the landlord's failure to advise them that they do not qualify can be a very costly mistake in the event they move in and then you give them notice. It makes for ill feelings for everyone involved.

If a resident sells their home and the new owner of the home has not filled out an application prior to moving into the home, you do not need to accept them as a resident. You have no contract with them and you can request them to remove the home from the park. DO NOT ALLOW PROSPECTIVE TENANTS TO MOVE IN BEFORE THE SCREENING PROCESS HAS BEEN COMPLETED, AND THE APPLICANT HAS BEEN APPROVED AND SIGNED, AND RECEIPTED FOR THE STATEMENT OF POLICY, RULES AND REGULATIONS AND RENTAL AGREEMENT. DO NOT ACCEPT RENT FROM ANYONE THAT YOU HAVE NOT APPROVED TO LIVE IN THAT HOME. If you accept rent before you qualify them then you may have established them as a tenant. Simply tell them that you cannot accept the rent until they fill out an application and are accepted by the landlord. DO NOT HAVE ANYONE SIGN A RENTAL AGREEMENT UNTIL YOU HAVE RUN CREDIT, RENTAL AND CRIMINAL CHECKS ON THEM AND THEY HAVE BEEN ACCEPTED. If any of the reports come back unfavorable there is nothing you can do about it because you have established them as a tenant by signing the agreement/lease.

Acceptance Briefing

Once you have determined that an individual is qualified to live in the community and all the proper documentation has been explained and signed, you should consider a meeting with the new resident. Use the Park Rules & Regulations as a briefing tool. The conversation should not be a "laying down of the law", but rather an open discussion of what is expected of both the new resident and community management. New residents may not know their responsibilities (despite signing numerous documents outlining their rights/responsibilities), thus it is your responsibility to clarify and remind them of their responsibilities. Be sure your new resident understands such things as:

  1. Rent is due on the first of each month:
    1. If rent is paid after the 5th day, the residents will be faced with a late fee.
    2. If not paid by the 8th day, the resident will receive a 72-hour notice.
    3. Residents must give 30 days written notice to vacate space or they intend to sell their manufactured home.
  2. Help your new resident be a good neighbor. Be sure that he/she is informed about:
    1. Quiet hours
    2. Pet Control
    3. Laundry room/Recreation room hours
    4. Swimming pool hours
    5. Review Rules and Regulation and remind the new resident that they are strictly enforced.

Statement of Policy - Complying with the Truth in Renting Act

As of July 1, 1992, all manufactured home communities renting space for manufactured dwellings have been required to provide prospective and existing tenants with a Statement of Policy. The applicants must receive their Statement of Policy before signing the rental agreement. Existing tenants who have not previously received a copy of the Statement of Policy and are on month-to-month rental agreements must receive their copy at the time the next 90-day rent increases notice is issued (ORS 90.510(3)(b). All other existing tenants shall receive a copy of the statement of policy upon expiration of their current rental agreement and before signing a new agreement.

While a Statement of Policy is not technically a contract, it is an important document. A tenant or rental applicant who makes their decisions or changes their position in reliance upon the policies set forth in the statement may be entitled to hold the landlord to those written policies. As proof of delivery of the Statement of Policy to tenants or applicants, it is advised to get a signed receipt.

A landlord who intentionally and deliberately fails to provide a Statement of Policy as required by ORS 90.510, or delivers a legally defective one, may be subject to a lawsuit.

The Statement of Policy is required to include the following information in summary form:

  1. The location and approximate size of the space to be rented.
  2. The federal fair housing age classification and present zoning that affect the use of the rented space.
  3. The facility policy regarding rent adjustment and a rent history for the space to be rented. The rent history must, at a minimum, show the rent amounts on January 1 of each of the five preceding calendar years or during the length of the landlord's ownership, leasing or subleasing of the facility, whichever period is shorter.
  4. All personal property, services and facilities to be provided by the landlord.
  5. All installation charges imposed by the landlord and installation fees imposed by government agencies.
  6. The facility policy regarding rental agreement termination including but not limited to closure of the facility.
  7. The facility policy regarding facility sale.
  8. The facility policy regarding informal dispute resolution.
  9. Utilities and services available, the person furnishing them and the person responsible for payment.
  10. If a tenants' association exists for the facility, a one-page summary about the tenants' association that shall be provided to the landlord by the tenants' association and shall be attached to the statement of policy.
  11. Any facility policy regarding the removal of a manufactured dwelling, including a statement that removal may impact the market value of a dwelling.

Tenant Files

Before any tenant moves into your community the tenant's file should contain the following information:

  1. Completed Application
  2. Signed Rental Agreement. (Resident is to receive a copy)
  3. Signed Rules and Regulations (Resident is to receive a copy)
  4. Signed Statement of Policy including Rent History Addendum. (Tenant is to have received a copy of the Statement of Policy prior to signing rental agreement.)
  5. Copy of Homeowner's insurance policy with community named as an interested party (for the purpose of being notified of cancellation of insurance. (This is for pets only.)
  6. Credit check results
  7. Rental check results
  8. Criminal check results
  9. Application screening fee receipt
  10. Pet Agreement - Identify type of pet, name, size. You might consider taking a picture of the pet to include in your file in case you need to identify the pet in the future. Resident must sign the pet agreement. (Resident is to receive a copy)
  11. Proof of Age if 55 and older community (photo ID, driver's license)
  12. RV Storage Agreement. Identify type of RV (i.e. boat, camper, trailer, etc.) and include license number and description of recreational vehicle. (Resident is to receive a copy)
  13. Any and all notices/correspondence between landlord/manager and resident 

New Abandonment Laws - Effective January 1st, 2016

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

Legislative Update: MHCO Wins Major Concession on Abandoned Home Back Taxes

Last week MHCO met with representatives of the Oregon county tax assessors and successfully negotiated the elimination of abandoned home back taxes.

For those you who have been following this issue - earlier this year MHCO set out to make significant changes to ORS 90.675 that requires community owners to pay the back taxes owed on an abandoned home if they want to purchase the home and keep it in their community.  After a lengthy series of meetings with MHCO, the counties agreed to cancel unpaid back taxes on abandoned manufactured homes.

There remain technical issues, but the main hurdle - eliminating the tax obligation - has been resolved.  Here are the details of the agreement -

 

  • No cap on the amount of back taxes to be cancelled.

 

  • The landlord will need to file an affidavit/form (MHCO will work with the county tax assessors on the form which ultimately will be posted on MHCO.ORG). 

 

  • The affidavit/form will state:

 

  • That the landlord has sold or will sell the MH to an unrelated buyer;
  • The buyer will live in the MH in the park;
  • The sale is an arms-length transaction;
  • The amount of the sale price, along with the total of the landlord's claims or costs against the manufactured home, limited to unpaid back rent, sale costs (per ORS 90.675 (13) (a) consists of the reasonable or actual cost of notice, storage for a reasonable period, and sale; presumably this includes attorney fees, but only to do these tasks), and any improvements done by the landlord to the manufactured home as part of the sale.
  • The landlord may deduct from any sale proceeds the cost of storage (typically space rent) only for a reasonable period, as necessary to complete the abandonment process, to make any repairs necessary to make the manufactured home saleable, and to sell it.
  • The landlord will pay any county warrant fees required for the cancellation
  • The landlord will pay any amount from the sale in excess of the landlord's costs (unpaid rent, sale costs, improvement, etc.) to the county for unpaid taxes.  The landlord will be allowed to keep any excess over the unpaid back tax amount.

        

Later this month there will be further discussions on the details regarding the affidavit and other potential legislative issues.  As with all previous landlord-tenant coalition bills the participants in the negotiations reserve the right not to make a final commitment until the final draft is on the table.  Depending on what is or is not in that final agreement will determine MHCO's final position.  A lot can happen between now and the final draft of a bill - but today we are very happy that we have made significant progress in changing a very onerous statute that impacts every community owner who ends up wanting to buy an abandoned home in their community.

 

Thanks to everyone from MHCO who worked on these negotiations.  We will keep you posted on legislative developments as move in to the post election/pre legislative world.  Stay tuned!