The 2015 Oregon Legislative Session convened this month with House and Senate Committees beginning their work the first week in February. There are a wide variety of issues the Oregon Legislature will be dealing with - many being repeats from previous sessions such as education funding and taxes that never seem to go away.
The Manufactured Housing Landlord-Tenant Coalition continues to work on possible legislation. The group has been meeting since June 2014 - at least once a month to address a variety of issues. The issues have been significantly narrowed down as we rapidly approach the end of these negotiations. The odds are that there will either be a compromise bill (typically know as the coalition bill) or we could face some nasty political battles on some onerous legislation. The coalition provides a venue for both landlords and tenants to work through selected issues. In general the coalition's work tends to be better thought out than most of the knee jerk legislative proposals we see from individual legislators.
The biggest challenge of any negotiation process is the end - reaching a final compromise. We all know, compromise is something that is not easily accomplished in today's political environment. Perhaps the best sign of a successful compromise is when both sides are unsatisfied with the final product. Having worked on coalition bills since 1999 most times both sides grumble their way to agreement. I suspect this year will be no different.
Over the last six months MHCO has posted updates on the issues we have been working. There are now four issues in the proposed 2015 Coalition Bill. Many of these issues are complicated and consume pages of proposed legal language. We will spare you that in this report but will try to convey the key substance of each issue. The following is a summary of where those issues stand in very broad brushstrokes:
1. Unpaid Taxes on Abandoned Homes
The County Tax Collector and the Oregon Department of Revenue have agreed to cancel all unpaid property taxes and special assessments as provided under ORS 311.790. There is no limit on the market value of the home or limit on the amount of tax to be canceled.
In general, in order to obtain the tax cancelation of unpaid taxes on an abandoned home the landlord will be required to file an affidavit with the county tax collector stating that the landlord will sell the property in an arms length transaction to an unrelated buyer who intends to occupy the property in that facility. Once the home is sold by the landlord another affidavit or declaration with the county tax collector would have to be filed stating that the landlord has sold the property, the sale price and description of any costs incurred by the landlord to improve the property for sale.
MHCO will create these affidavits as new MHCO Forms for community owners or managers to utilize.
This is an issue MHCO has wanted to address over the past ten years. We are very happy that the issue is finally resolved and the unpaid taxes on an abandoned home will be completely eliminated. This will impact nearly every community in the state of Oregon.
In addition, on a separate issue there will also be and increase in the yearly fee paid by community owners paid to Oregon Housing and Community Services. The department will charge $50 for communities with more than 20 spaces and $25 for those communities with less than 20 spaces. Under ORS 446.525 the special assessment levied annual upon each manufactured dwelling will increase from $6 to $10. This $10 assessment is to be paid by the tenants.
2. Habitability - Ground Support, Natural Gas and Garbage Cans
This issue has been significantly altered since it was first introduced last summer.
One of the main concerns the residents have is being able to cancel a rental agreement or lease if the foundation of their home is partially washed away. The proposed language is: For manufactured dwellings only
