By Dianne Lugo
Salem Statesman Journal - February 11, 2025
- The bill that would cap rent increases for manufactured home parks and marinas to the annual inflation rate.
- Proponents of the bill say it would protect residents, many of whom are on fixed incomes, from exorbitant rent increases.
- Opponents, including park owners, argue the bill would lead to closures and sales to large corporations, exacerbating the housing crisis.
Supporters of proposed legislation that would limit rent increases in manufactured home parks and marinas say it would protect existing affordable housing, but opponents fear the bill would force the closure of smaller parks or selling to large conglomerates.
House Bill 3054 would cap allowable rent increases for tenants in manufactured home parks and marinas to annual inflation rates.
"It addresses an alarming trend that we are seeing in manufactured housing communities across our state which is the skyrocketing costs for tenants" who predominantly are on fixed incomes and relying on Social Security, said House Majority Leader Rep. Ben Bowman, D-Tigard.
Multifamily NW, an association of members managing nearly 300,000 units, also wrote testimony opposing the bill, saying rent control poliies have created uncertainty in the state.
"We all know that Oregon is facing a severe housing shortage, and it is abundantly clear that our approach to this issue is not working," wrote Zach Lindahl with Multifamily NW. "Our focus should be on policies that encourage investment and increase supply, not those that further constrain the market."
What Oregon House Bill 3054 would do
HB 3054 would impact a specific subsection of tenants: owners of manufactured homes who rent the land within a park or marina. If a person rents a home within a park, the law won’t apply. Recreational vehicles, apartments or mobile homes outside parks or marinas would not be covered by the law.
“We’re trying to provide a little more transparency, predictability around what the costs of staying in that park will be for people,” said Rep. Pam Marsh, D-Ashland, a chief sponsor of the bill and chair of the House Committee on Housing and Homelessness.
According to testimony from the Oregon Law Center during a packed public hearing on Feb. 3, there are about 1,000 mobile home parks representing 62,000 spaces in the state. There are many of those parks in Marsh’s district in southern Jackson County.
The bill also removes some of what landlords can require before the sale of a manufactured home at parks or marinas. Rental increases for this subsection of tenants would be capped at the Consumer Price Index, a measure of inflation. The CPI calculation in 2024 was 3.2%, according to Oregon's Office of Economic Analysis.
Landlords would be unable to raise rent above 10% of what a selling tenant was paying if they sold a manufactured home that would remain in a rented space.
The bill would prohibit landlords from requiring that a selling tenant, prospective buyer, or buyer agree to an inspection of the inside of a home as a condition to approve the sale or new tenancy. HB 3054 also would bar landlords from requiring aesthetic or cosmetic improvements from prospective tenants.
Supporters cite fear, affordability in Oregon
Nearly 250 pieces of written testimony were submitted in support of the bill.
Bowman said he and other lawmakers hosted a constituent event at a mobile home park in his district that more than 100 people attended. The theme that became impossible to miss, he said, was that the status quo is not sustainable.
"These folks are facing egregious hikes to their rent year over year and it is pushing them to the brink," Bowman said. He said tenants in the mobile home park saw an 8.9% rent increase in 2022, a 10.3% increase in 2023, an 8.7% increase in 2024 and face a 9% increase this year.
The Oregon State Tenants Association submitted a report with a survey of nearly 500 tenants. According to the report, the average annual rent increase was nearly 7%. Average rent prices are projected to surpass Social Security benefits by 75% within 10 years and 100% within 15 years, wrote Rochelle Love Elder, vice president of the Oregon State Tenants Association.
Many of the tenants who would be impacted were too afraid of retaliation to submit testimony or even take a flyer, Elder told lawmakers. Most residents currently pay $865 a month in lot rent. Scheduled rent increases in 2025 will bring most residents' lot rent to $951, she said.
"A lot of them are feeling like cash cows," Elder said.
Elder described the bill as a solution to keep 62,000 people in their homes.
Opponents say bill would force closures, sale of manufactured home parks
Opponents of HB3054 said the bill would do the opposite of what it intends, forcing the closure of smaller parks or sales to large conglomerates. Nearly 100 pieces of submitted testimony opposed the bill.
"It is an extreme proposal that hits owners with a one-two punch," said Bill Miner, a lawyer representing Manufactured Housing Communities of Oregon.
The organization represents 750 manufactured homes and marina facilities with 42,000 spaces. According to Miner, the bill relies on faulty assumptions.
"This bill is a solution in search of a problem," he told the Statesman Journal.
A survey from 100 of their owners found the average annual rent increase from 2019 and 2024 was 5.39%. Miner told lawmakers that in the last month, he had received five calls from landlords representing more than 5,000 spaces about the process of closing their parks should the current bill pass.
Miner described the proposal as "an industry killing type of bill."
