MHCO Legislative Summary: Payment to Residents When Parks Close; Notices Upon Transfer; and Manufactured Dwelling Cooperatives

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August 29, 2017
Phil Querin
MHCO Legal Counsel
Querin Law

 

Payments to Residents Upon Park Closure. This bill amends ORS 90.645 (Closure of Manufactured Dwelling Park) by increasing the required amount payable to residents as follows:

 

  • From $5,000 to $6000 if the manufactured  dwelling  is  a  single-wide;
  • From $7,000 to $8,000 if the manufactured dwelling is a double-wide; and
  • From $9,000 to $10,000 if the manufactured dwelling is a triple-wide or larger;

 

The Office of Manufactured Dwelling Park Community Relations of the Housing and Community Services Department is charged with establishing by administrative rule a process to annually recalculate these figures “to reflect inflation.” 

 

Comment:  Without being involved with this legislation it is hard to know why a generally accepted and reliable index or set of indices was not identified. As the administrative rule takes place, we should watch to see what develops. All hearing and rulemaking notices are filed through the online filing system: http://sos.oregon.gov/archives/Pages/fileonline.aspx. To expedite the rulemaking process, agencies are encouraged to file a Notice of Proposed Rulemaking Hearing specifying the hearing date, time and location, and to submit their filings early in the submission period. All notices and rules must be filed by the 15th of the month to be included in the next month's Oregon Bulletin and OAR Compilation postings.

 

 

Notice to Office of Manufactured Dwelling Park Community Relations. In addition to providing the notice as required by ORS 90.842[1] (Notice of sale of manufactured dwelling park), HB 2008 provides that upon sale of a manufactured dwelling park, or upon any sale, transfer, exchange or other conveyance of a manufactured dwelling park described in ORS 90.848 (Exceptions to requirements for sale or transfer of manufactured dwelling park), the owner must give notice of the conveyance to the Office of Manufactured Dwelling Park Community Relations stating:

 

  • The number of vacant spaces and homes in the manufactured dwelling park;
  • If applicable, the final sale price of the manufactured dwelling park (emphasis mine);
  • The date the conveyance became final; and
  • The name, address and telephone number of the new owner.

 

Comment:  There are several transfers under ORS 90.848 to which disclosure of the “final sale price may not be applicable. For example: A gift; a transfer by a corporation to an affiliate; the liquidation of a partnership to its partners or limited liability company to its members; the conveyance of a trust deed to a lender as security for a loan; a conveyance resulting from the foreclosure of a mortgage or deed of trust; a transfer between joint tenants or tenants in common owning a park. 

Manufactured Dwelling Cooperatives. HB 2008 also amends ORS 62.809 (Requirements for membership in cooperative), a statute I have little familiarity with.

A person may become a member of a manufactured dwelling park nonprofit cooperative if the person: (a) Is a natural person; (b) Owns a manufactured dwelling that is, or is to be, located in a manufactured dwelling park of the cooperative and occupied by the person; (c) Pays the membership fee required by the cooperative; and (d) Meets any additional membership qualifications established in the articles of incorporation or bylaws of the cooperative.

 

Membership in a manufactured dwelling park nonprofit cooperative entitles the member to rent space for a dwelling in the park and to occupy the manufactured dwelling. The total number of memberships available for issuance by the cooperative may not exceed the number of dwelling spaces in the park. Cooperatives issue one membership for each manufactured dwelling that is, or is to be, located in the park of the cooperative and occupied by an owner. A person may not own more than one membership in the same cooperative. Members may sell or redeem their membership in the cooperative, so long as it is for the price the member paid for the membership.

 

This legislation proves that if title to a manufactured dwelling located in the park of a cooperative is transferred to a lienholder, and a buyer of the dwelling from the lienholder or a person that acquired title from the lienholder does not become a member of the cooperative within 12 months after title is transferred to the lienholder, the owner of the manufactured dwelling must remove it from the park.

 

Under HB 2008, an owner of a manufactured dwelling is not required to remove the manufactured dwelling described above if the cooperative agrees with the owner in writing to: (a) Waive or extend the deadline by which the buyer or subsequent buyer must remove the manufactured dwelling; or (b) Store the manufactured dwelling on the space for a specified period of time.

 

The existing park-cooperative law allows for lienholders and a cooperative to enter into storage agreements for up to 12 months, under similar provisions as found in the current park abandonment law. (See, ORS 90.675(20)) HB 2008 now provides that the lienholder and cooperative may agree in writing to extend the term of the agreement beyond 12 months.

 

Effective Date.  The Effective Date of HB 2008 is June 6, 2017. As for the increase in payments for manufactured homes, the new law will apply to park closures for which notice was given on or after the Effective Date. The amendments to the park-cooperative laws will apply to transfers of title and termination of memberships that occur on or after the Effective Date.

 


[1] Currently, the notice must include the following information: (a) That the owner is considering selling the park; (b) That the tenants, through a tenants committee, have an opportunity to compete to purchase the park; (c) That in order to compete to purchase the park, within 10 days after delivery of the notice, the tenants must form or identify a single tenants committee for the purpose of purchasing the park and notify the owner in writing of: (i) The tenants’ interest in competing to purchase the park; and (ii) The name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.

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