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This morning MHCO and several other landlords filed a lawsuit against the City of Portland to declare invalid a portion of the Renter Protection" Ordinance which requires property owners to afford tenants a minimum 90 day notice for rent increases of more than 5%. MHCO believes the notice provision is an attempt by the City Council to push the envelope to challenge the current statewide prohibition on local rent control legislation.  

We are taking this action for the following reasons (you may have to ""cut and paste"" the links below into your browser):

1. The 90 day notice provision is directly preempted by ORS 91.225.  
2. The City Council has already stated its preference in legislative hearings to enact local rent control ordinances and would likely do more if it could overcome statutory preemption. Ironically

By: Phil Querin, MHCO Legal Counsel

Current Oregon Law. ORS 90.680 is the statute governing the on-site sale of homes in a manufactured housing community. It previously contained no limitations on landlords who required, as a condition of tenancy, that residents selling their homes must enter into a consignment agreement with the landlord. That will change on January 1, 2016.

New Oregon Law. ORS 90.680 is now amended as follows:
1. It defines the term consignment" to mean a written agreement in which a resident

authorizes a landlord to sell their manufactured dwelling or floating home in the

community for compensation.

1. It prohibits landlords from requiring as a condition of occupancy

By: Phil Querin, MHCO Legal Counsel

Current Oregon Law. ORS 90.680 is the statute governing the on-site sale of homes in a manufactured housing community. It previously contained no limitations on landlords who required, as a condition of tenancy, that residents selling their homes must enter into a consignment agreement with the landlord. That will change on January 1, 2016.

New Oregon Law. ORS 90.680 is now amended as follows:
1. It defines the term "consignment" to mean a written agreement in which a resident

authorizes a landlord to sell their manufactured dwelling or floating home in the

community for compensation.

2. It prohibits landlords from requiring as a condition of occupancy, that residents enter

   into consignment agreements with the landlord.

3. It prescribes the specific conditions under which a landlord may sell a resident's home

   on consignment:

a. The landlord must be licensed to sell dwellings under ORS 446.661 to 446.756;

i. The license may be held by a person other than the community owner, so long as there is common ownership between them;

b. The landlord and resident must first enter into a written consignment contract that specifies at a minimum:

1. The duration of the contract, which, unless extended in writing, may not exceed 180 days;

2. The estimated square footage of the home, together with the make, model, year, vehicle identification number and license plate number, if known;

3. The price offered for sale of the home;

4. Whether lender financing is permitted, and the amount, if any, of the

   earnest money deposit;

5. Whether the transaction is intended to be closed through a state-licensed

   escrow;

6. All liens, taxes and other charges known to be in existence against the

   home that must be removed before the resident can convey marketable

   title to a prospective buyer;

7. The method of marketing the sale of the home (e.g. signs posted in the

   community; Internet advertising; print publications, etc.);

8. The form and amount of compensation to the landlord (e.g. fixed fee

   with amount stated; commission percentage, etc.); and

ix. In determining the resident's net sale proceeds, the order by which the gross sale proceeds will be applied toward payoff of the liens, taxes, actual costs of sale, landlord compensation, and other closing costs.

c. Within 10 days after a sale, the landlord is to pay the resident their share of the sale proceeds, and provide a written accounting for all funds received;

d. The above-described process (i.e. through a written consignment agreement with landlord acting as the resident's representative) is the only permissible way a landlord may recover any commission, fee (however designated), or retain a portion of the sale proceeds of a resident's home in the community.

4. In cases in which a landlord is attempting to sell a home under ORS 90.680 and so is a resident in the community, the following new rules will apply:

1. If a landlord advertises a home for sale within the community, a resident selling their home may do so as well, by posting a sign in a similar manner and location;

2. A landlord may not knowingly make false statements to a prospective purchaser about the quality of a resident's home also being offered for sale;

3. Note: Nothing prevents a landlord from selling a home to a prospective purchaser at a price or on terms, including space rent, that are more favorable than the price and terms offered for homes offered by residents.

5. Miscellaneous:
a. If a landlord requires a prospective purchaser to submit an application for

occupancy, upon request from the purchaser, the landlord must provide, a copy

of the application;

2. Upon a prospective resident's request for a copy of the rental/lease agreement,

   the landlord may require payment of a reasonable copying charge;

3. If the prospective purchaser agrees, a landlord may provide these requested

   documents in an electronic format;

4. When a landlord considers an application for tenancy from a prospective

   purchaser of a resident's home, the landlord shall apply substantially similar credit and conduct screening to a prospective purchaser of a home from the landlord;

5. A landlord or resident who sells a home located inside the community is required to deliver title to the purchaser within 25 business days after completion of the sale;

6. If the sale by the landlord or resident includes paperwork whereby the seller is carrying back a contract or security interest and the purchaser is paying some or all of the purchase price with installment payments, where applicable, the landlord or resident is required to notify the county that the purchaser is responsible for property tax payments;

7. If a person violates ORS 90.680 three or more times within a 24-month period, a person damaged thereby has a cause of action against the violator for the damages caused as a result of the third or subsequent violation or $500, whichever is greater.

By Michael G. McClory

Attorney, Bullard Law. 

Mike can be reached at mmcclory@bullardlaw.com

While you were attending last weekend's record opening for Star Wars: The Force Awakens, Congress approved and President Obama signed the Consolidated Appropriations Act of 2016, which provides for $1.14 trillion in federal spending through the end of the fiscal year.  The 2016 Budget Act received bipartisan support (though it did not have universal support) and averts a government shutdown until at least October 2016 (just before the next presidential election).  

Rolled into the 2016 Budget Act's spending appropriations is the following spending prohibition:

SEC. 542.  None of the funds made available in this Act to the Department of Justice may be used

The short" session of the legislature begins this coming Monday

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

Good morning!  We are now on day 7 of the 2016 Oregon Legislative Session - 28 days left.

MHCO has been monitoring several bills.  The most significant is HB 4143, now referred to as the renter protection bill".  This bill is the legislature's response to the Portland housing crisis that has been the focus of the media over the past 6 months.

For the most part this bill does not impact manufactured home communities.  MHCO has worked to include an amendment that would exempt RV's from the proposed legislation. We expect that the amendment will be accepted by the Legislature and RV's will be exempt from the new laws.  If the dash 7 amendment is adopted the only impact on manufactured home communities will be on landlords who own homes in their community.  If you own a home in a MHC and rent it out the "no cause" notice increases from 60 days to 90 days.

However

We are now in day 9 of the 2016 Oregon Legislative Session.  Today is a major milestone for the session - after today House Bills NOT passed out of House Committees (and likewise Senate Bills in Senate Committees) are considered dead and will have to be reintroduced in the 2017 Legislative Session.  Bills in the House or Senate Rules Committee, Revenue and Ways and Means are the exception.  Which by the way, is our next stop in our 2016 Legislative journey.

There were two committee work sessions yesterday.  In the "Senate Committee Human Services and Early Childhood" the "inclusionary zoning" bill (SB 1533) was amended with a compromise between a large pool of interests - from cities, counties, realtors, home builders, housing activists etc.   The amendment eliminates the pre-emption on inclusionary zoning" - which cuts close to our pre-emption on rent control (ORS 91.225).  There had been rumors/discussions in the Capitol for the that the legislature would make adjustments to our rent control pre-emption.  It did not happen.  The committee never mentioned rent control.  The bill (SB 1533) passed unanimously out of the Senate committee to the Senate Revenue Committee.  SB 1533 allows construction excise taxes as part of the overall compromise hence requiring a detour to the Senate Revenue Committee.  (Side note: Some of the revenue generated by this legislation will go to Oregon Housing and Communities Services for affordable housing programs such as money for first time home buyers.  That money could be used for first time homebuyers in MHCs.  MHCO will look into this further.)

The second hearing and work session was in the ""House Committee on Human Services and Housing"".  The committee adopted the dash 11 amendment to HB 4143.  This amendment strengthens the RV exception which MHCO requested and exempts MHCs from the new regulations on apartments (such as no rent increase during the fist year).  The bill passed out of the Committee to the ""House Rules Committee"". The "Rules Committee" may also adopt some changes that would open up land outside the urban growth boundary for building of affordable house.  The committee may also make changes to the 90 day no cause notice setting it back to 60 days.    The dash 11 amendment was adopted and the committee voted along party lines with one Republican (Knute Buehler

We are now approaching the halfway point in the 2016 Oregon Legislative Session. We are starting to get a much better sense of what legislative proposals are moving forward and which ones will likely remain in committees and not see the light of day until perhaps the next legislative session in 2017.

The "tenant rights" bill HB 4143A passed out of the Oregon House Rules Committee late yesterday afternoon with the "dash 14A" amendment which addressed MHCO's last issue - the extension to 90 days for "no cause" evictions. This amendment returns "no cause" evictions to 60 days for tenancies over 1 year. With the adoption of this amendment manufactured home communities in Oregon will face NO SIGNIFICANT CHANGES from this legislative session. There will be no rent control or rent justificiation. The one year limit on rent increases will impact only apartments - NOT manufactured home communities. HB 4143A heads to the House floor for a vote then on to the Senate. MHCO does not expect any "anti-landlord" language to be added as we head over to the Senate chamber.

The other legislation MHCO is watching is SB 1533 the "inclusionary zoning" bill. This bill is up for a public hearing tomorrow in the Senate Committee on Finance and Revenue. Since it is only scheduled for a public hearing the bill will not move out of committee until possibly later this week. Time is starting to run out on this legislative session and there is little room for bills to stall.

This has turned out to be a very successful legislative session for community owners in Oregon. It is the first Oregon legislative session in 20 years to not have any signficant legisaltive changes impacting community owners. We still have a couple weeks to go - but things are looking good. MHCO will keep you up to date as we head into the final weeks of the 2016 Oregon Legislative Session.

By Emily Q. Shults

Bullard Law - 503.248.1134 or on the web at www.bullardlaw.com

On Thursday, the Oregon House of Representatives approved landmark legislation (Senate Bill 1532) which raises the state's minimum wage rate to the highest in the United States, and does so through an unprecedented tiered system based on where Oregon residents work.  The bill now heads to Governor Kate Brown, who has already indicated that she will sign it into law. 

A product of heated debate and compromise between the interests of unions, businesses and farmers, the plan imposes a series of gradual increases over six years.  By 2022, the state's current $9.25 an hour minimum wage - already one of the highest in the nation - would climb to $14.75 in metro Portland, $13.50 in cities such as Salem, Eugene, and Bend, and $12.50 in rural communities.  Below is a timeline of the planned minimum wage increases for each designated geographic tier":

Tier 1 (the Portland urban growth boundary):

July 1