House Bill 3054A affects four sections of Oregon’s manufactured housing laws. Below is a summary of the changes.
ORS 90.324 (Calculation of maximum rent increases). The text in bold print is new:
1. No later than September 30th of each year, the Oregon Department of Administrative Services shall calculate the maximum annual rent increase percentage allowed for the followingcalendar year:
(a) For tenancies subject to ORS 90.600(1)[1] in facilities with more than 30 spaces, assix percent.
(b) For tenancies subject to ORS 90.600 (1) in facilities with 30 or fewer spaces or for tenancies subject to ORS 90.323,[2] as the lesser of: (A) Ten percent; or (B) Seven percent plusCPI.
2. No later than September 30th of each year, the Oregon Department of AdministrativeServices shall publish the maximum annual rent increase percentages allowed under thissection, along with the provisions of ORS 90.323 and 90.600, in a press release.
- The term “CPI” means the September annual 12-month average change in theConsumer Price Index for All Urban Consumers, West Region (All Items), as most recentlypublished by the Bureau of Labor Statistics of the United States Department of Labor.
Comment: This change bifurcates rent caps for MHP month-to-month tenancies into those with more than 30 spaces and those with 30 or fewer spaces. For those with over 30 spaces, the rent cap is six percent (6.00%) and for 30 or less it is the lesser of 10.00% or 7.00% plus CPI.
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ORS 90.545 (Fixed term tenancy expiration). The text in bold print is new:
A landlord’s proposed new rental agreement may include new or revised terms, conditions, rulesor regulations, if the new or revised terms, conditions, rules or regulations:***Are consistent withthe rights and remedies provided to tenants under this chapter, including the right to keep a petpursuant to ORS 90.530 and limits on rent increases under ORS 90.600 (1);
Comment: Prior to HB 3054, , the legislative drafters overlooked leases (i.e., “fixed term tenancies”). The result was that landlords using leases were not limited in their rent formulas (within reason at least) by the same caps as month-to-month tenancies. This new legislation eliminates that oversight, and subjects rental increases in leases to the same rental caps found in month-to-month tenancies.
Since the effective date of this Bill is September 1, 2025, landlords may wish to consider putting their new tenants on fixed term leases before then. This is not to suggest that the rent formulas should be open-ended without limits or guidelines. But a well- drafted rent formula based upon reasonable and objective criteria should survive attack. After all, before the caps, there were never any limits on rent increases (other than the existing good faith provision under ORS 90.130.)
ORS 90.600 (Increases in rent). The text in bold print is new:
A rent increase is not subject to [the rent cap for month-to-month tenancies] if:
***[It] is:
(A) For a facility with more than 30 spaces;
(B) Not greater than 12 percent;
(C) In lieu of and not in addition to a rent increase allowed within the 12-month period asdescribed [above];
(D) Occurring at least five years following a previous rent increase authorized under this paragraph, if any;
(E) Related to a significant project to add, replace, repair or upgrade infrastructure for thefacility;
(F) Approved by a written affirmative vote of 51 percent of the spaces in the facility that areoccupied by tenants on a vote that contains the signature and identifies the space of the voter;
(G) Approved by votes ***that are collected:
(i) At least 30 days after the landlord has provided in writing to each tenant the proposedinfrastructure project, a documented estimate of the cost of the project, an estimated timeline for the start and completion date for the project and the estimate of the rentincrease necessary to cover the cost of the improvement; and
(ii) At least 14 days after the landlord has met with the tenants to discuss the proposal; and
(H) Fully refunded to tenants by the landlord, without demand, less the maximumallowable rent increase under ORS 90.324, if the project is not substantially completed asdescribed [above] in the notice [described above] within 12 months of the estimatedcompletion date in the notice.
(4) A landlord that increases rent in violation of [this subsection] *** shall be liable to the tenant inan amount equal to three months’ rent plus actual damages suffered by the tenant.
Comment: The purpose of this new text is self-explanatory. It provides an exception to the rent increase statute for communities with over 30 spaces to recover the cost of adding, replacing, repairing or upgrading park infrastructure.
ORS 90.680 (Sale of home on rental space). The text in bold print is new:
A landlord may not require that a selling tenant, prospective purchaser or purchaser consentto the inspection of the interior of the dwelling or home or obtain an inspection of theinterior of the dwelling or home by a third party, including as a condition of:
(a) Acceptance of the [required] notice of sale under subsection (8)(a) of this section;
(b) Approval of a sale under this section; or
(c) Approval of a new tenancy by the purchaser.
Comment: Not having been present during the negotiations of this Bill, I cannot explain its rationale. I will attempt to find out more. But since I participated in the (now discontinued) landlord-tenant coalitions, I cannot resist the following observation: ORS 90.740(4)(c) imposes upon tenants the duty to “Keep the dwelling or home, and the rented space, safe from the hazards of fire.” (Emphasis added.) This is a required tenant duty to the landlord. So today when the home sells, if the owner had made dangerous non-code wiring alterations to its interior, those risks can be discovered by a required inspection upon transfer. Then the tenant and prospective purchaser can reach agreement upon bringing the wiring up to code and averting electrical fires.
It is for that reason that the current MHCO Rental and Lease Agreements provides that as a condition of landlord’s consent, the homeowner/seller must provide
“…a copy of a current written inspection report from an Oregon-certified and licensed Home inspector, verifying that as of the date of the inspection: (a) the Home, including, but not limited to all heating, cooling, and electrical systems and all appliances located therein, are safe from the hazards of fire; (b) the Home has one or more smoke alarms approved under applicable law, and, where applicable, one or more carbon monoxide alarms****The cost of this inspection shall be the responsibility of the TENANT, but may be negotiated with the prospective purchaser as part of the sale transaction.”
By prohibiting professional inspections upon resale, it would seem HB 3054 creates the risk that dangerous conditions such as defective wiring and resulting fire hazards will be perpetuated. Fire endangers not just the new purchaser but the entire community.
Going forward, landlords may wish to consider including an inspection advisory to all prospective purchasers emphasizing the importance of home inspections prior to closing a sale. While this cannot make inspections a condition of landlord’s consent to the sale, it can certainly encourage the practice.
The above information is general in nature and should not be construed as legal advice. MHCO Members should consult with their own attorney if they have any questions or concerns on the above legislation.
[1] ORS 90.600(1) applies to tenancies that are governed by ORS 90.505 – 90.850, the manufactured housing statutes.
[2] ORS 90.323 applies to tenancies that are not governed by ORS 90.505 – 90.850, the manufactured housing statutes.
