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Answer: If the rent is past-due for the current month, the answer is a 72-hour rent nonpayment notice. Assuming the notice is properly prepared and served, the tenant has until the deadline in the notice to pay the rent in full. If the tenant doesn'tpay, you can file an eviction case. But even after you file an eviction, there is no guarantee that you'll get paid. While most nonpayment eviction cases are settled with a court-approved payment plan, if not, then the court will give you possession of the RV space. However, in most cases the court doesn'thave authority to award you a money judgment for the rent.

What to do now? Look first to your security deposit to cover any unpaid rents. If you don't have a security deposit, or if it is insufficient, you may need to file a small claims action. Even then, the best that you can do is get a money judgment that still needs to be collected. Bank accounts and wages can be garnished, but this whole process might be more trouble than it's worth to most landlords. (Hint: Consider turning over cases to a collection company. They will typically charge a high percentage fee, but recovering debts is their business.)

You also mentioned that some RV tenants owe late charges. Since late charges are not "rent," they must be handled separately. The solution is a 30-day, for-cause notice giving the tenant 14 days to pay the late charges. A 30-day notice is also the remedy for security deposits that haven'tbeen paid, rents that are over 2 months old, and any other charges the tenant might fail to pay (e.g., NSF fees). If a 30-day notice doesn'twork, the alternative is again an eviction case, followed by a small claims action if necessary.

But all of this still begs the question of "how do I get paid" when a tenant defaults. The best remedy for every landlord is a security deposit. There is no limit on the amount of a security deposit in Oregon, so I recommend that landlords get as much of a security deposit as they can from RV tenants, but at least enough to cover one month's rent. The security deposit is a cushion against losses for landlords.

The other thing you should do as a landlord is be vigilant. Take action on payment defaults right away and don't let them linger for months - or longer. The longer you wait, the more you stand to lose as the unpaid charges accumulate. (Note: There is a one-year statute of limitations to recover unpaid amounts from the date the tenant fails to pay.)

Answer. Under ORS 90.100(21), a "hazard tree" is one that:

1. Is located on a rented space in a manufactured dwelling park;
2. Measures at least eight inches DBH;[1] and
3. Is considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 (Issuance of license) and certified by the International Society of Arboriculture, to pose an unreasonable risk of causing serious physical harm or damage to individuals or property in the near future.

ORS 90.727(5) provides as follows:

Except as provided in subsection (3) of this section, a tenant is responsible for maintaining the trees on the tenant's space in a manufactured dwelling park at the tenant's expense. (Emphasis added.)

So my take is that (a) if the trees qualify as hazard trees, the resident must maintain/remove them; (b) if the trees are technically not hazard trees (due to girth), the resident must still maintain them; and (c) if the resident declines to remove them, you should do so.

Given the recommendation of the arborist, you should contact the resident about having the trees removed at their expense. If the resident cannot afford the expense, you will have to work something out (e.g. cost sharing, or you remove them and seek reimbursement), since you cannot afford to allow this dangerous situation to continue, as it might endanger other residents.

ORS 90.740(4)(i) provides that it is the resident's responsibility to: "Maintain and water trees, including cleanup and removal of fallen branches and leaves, on the rented space for a manufactured dwelling except for hazard trees as provided in ORS 90.727." Thus, the resident's failure to do so in this case would constitute a basis for your issuance of a 30-day curable notice of termination under ORS 90.630(1).

If the resident declines to do the removal, and decides to move from the community, you will have to make sure that the buyer of the home is aware of the removal responsibility. You could write that into the new rental agreement. (If you do not make it a condition of the rental agreement, and they are "hazard trees," the new resident will not had a duty to remove - you will at your cost.) My guess is that with your advance notice to the prospective purchaser, the cost of removal would be deducted from the sales price.

As for your insurance agent's less than sage advice, I respectfully disagree. If a dangerous condition exists on a space in the community and it is not remedied, even though it is the tenant's primary responsibility, you will be held liable if you permit it to continue. It may be an "Act of God" in your agent's mind, but it is a foreseeable risk waiting to happen in the eyes of the law. (Henceforth, I promise not to give advice on insurance coverage, if your agent promises to refrain from practicing law.)

[1] "Diameter at breast height" i.e. 4.5 feet. See: http://www.phytosphere.com/treeord/measuringdbh.htm

1. Manufactured Home Set-Up

1. Include provisions limiting owner's responsibility for such conditions as soils, site preparation, foundation stability, final grading, and settling.
2. Include provision that homeowner has examined the home site and accepts the condition, "as-is."

1. Manufactured Home Removal

Include a provision notifying resident that they will be held liable for any damage to the home site or manufactured community in the event there is any damage during removal of the home.

1. Manufactured Home Standards

Include provisions addressing the following items pertaining to the manufactured home itself:

1. Description of the home and all other structures and accessories that will be sited on the home site.
2. Age, make and model of home.
3. Installation of skirting, gutters and downspouts (within prescribed period of time).
4. Awnings, decks and patios (within prescribed period of time).
5. Above ground piping.
6. Landscaping (Within prescribed period of time).
7. Will fences be allowed, and if so, what height, material and color? Who's responsibility will it be to maintain?

1. Maintenance of Home and Home Site.

1. Add provision making resident responsible for maintaining and keeping the exterior of the home clean and in good repair. Require painting or staining of all wooden structures such as decks, hand railings, storage buildings etc. to prevent their visual and/or physical deterioration.
2. Make resident responsible for maintaining all lawn areas, flowers and shrubbery within their space (e.g. regular mowing and weeding of lawns).

1. Can/should owner reserve the right to perform or have performed landscape maintenance which resident fails to perform?

1. Who owns the landscaping improvements upon termination of tenancy? Address exceptions. Have in writing.
2. Storage of personal property (e.g. firewood, toys, tools, patio furniture, garbage cans, etc.)
3. Clothes lines or clothes line poles.
4. Play equipment, its location and visibility.

1. Homeowners and Guests

1. Limit amount of rent to the persons identified in the rental agreement. Require that any additional residents must be approved by the owner prior to move-in, and an additional monthly amount paid as rent.
2. Limit the total number of permanent residents in any home (rule of thumb 2 persons/bedroom plus one).
3. Make resident responsible for the actions of other occupants of the home, its guests, licensees and invitees.
4. Will there be a limitation on conducting business out of the home?
5. Limitations on "obnoxious or offensive activities which owner believes are an annoyance or nuisance to the community."
6. How long may guests remain in community? Consider placing limit (e'g' 14 days consecutively or cumulatively) after which time they must be qualified as a resident.
7. Have prohibitions against unreasonably loud or disturbing noise through parties, radios, televisions, stereo equipment, etc. and include a time. (e.g. 10:00 p.m. until 8:00 a.m.

1. Subletting

1. Will subletting of a home be permitted or must they be owner occupied?
2. Require approval of house sitters for any extended period of time (e.g. in excess of 30 days) prior to occupancy.

1. Sale of Manufactured Home

1. Require that prospective resident-purchasers submit an application for residency and be approved by owner prior to occupancy. See ORS 90.680.
2. Size and location of "For Sale" signs.

1. Utilities

1. How are electrical, garbage, sewer and water services going to be paid?

1. ORS 90.510 permits direct pass through, but only if the rental agreement specifically provides the right to do so.
2. Problem: How do you "convert" from including utilities in base rent to direct pass-throughs?
3. Who pays for T.V. cable service? Can owner contract with provider, and add on an extra charge?

1. Pets

1. Place limits on control, sanitation, number, type and size of pets. Note ORS 90.530
2. May require that pet agreement be signed and proof of liability insurance making landlord co-insured.

1. Common Areas

1. Limit use and address owner's liability (e.g. streets shall not be used as playgrounds by resident or guests. Sidewalks are not meant for use by bicycles, skateboards, tricycles, etc.)
2. Require resident to assume liability for their guests and invitees.
3. If there are recreation facilities, describe them and place limitations on their use.

1. If there is a clubhouse, describe how it may be used. Consider requiring pre-registration for use; strictly limit or prohibit the use of alcohol; limit use of guests without resident present.
2. Note: can require reasonable cleaning deposit; cannot require bond or insurance; cannot prohibit tenant association meetings there.

1. Automobiles and Motorized Vehicles

1. Strictly limit the dumping of motor oils and other caustic or non-biodegradable substance in street drains, sewer systems or the grounds within the community.
2. Place limitations on car repair and storage of inoperable cars.
3. Limit the number of vehicles and location of parking. Be careful about towing violators.
4. Place limits on the parking of commercial vehicles in the community.
5. Limit overnight parking on streets by guests or homeowners
6. Limit speed and vehicle noise within the community.
7. Limit storage of motor homes, campers, trailers, boats, snowmobiles, etc. on residents' space.
8. Limit use of motorcycles and ATV's within the community.

1. Occupancy Guidelines (ORS 90.510(7))

1. Statute provides that "if adopted, an occupancy guideline in a facility shall be based upon reasonable factors and shall not be more restrictive than limiting occupancy to two people per bedroom.
2. Reasonable factors are defined to include (but not necessarily be limited to):

1. The size of the dwelling.
2. The size of the rented space.
3. Any discriminatory impact for reasons identified.
4. Limitation placed on water or sewage disposal.

1. Dispute resolution (ORS 90.610)

1. What is dispute resolution?

It is an alternative to court litigation and most frequently includes mediation and arbitration.

1. Mediation - non binding dispute resolution
2. Arbitration - binding dispute resolution
3. ORS 90.610(1) states that resident and owner '_shall provide for a process establishing informal dispute resolution of disputes that may arise concerning the rental agreement for a manufactured dwelling."
4. Parties to dispute resolution - Resident vs. owner disputes (not resident vs. resident disputes).
5. Types of disputes:

1. Should be limited to rules violations (as opposed to rental agreement issues such as rent).
2. Exceptions:

1. Statutory (Facility closure, facility sale, rent including but not limited to amount, increase and nonpayment) ORS 90.610(7).
2. Charges and fees due under the rental agreement.
3. Matters for which a non-curable notice could be issued (e.g. 24-hour notice; 3-strikes notice; 20-day repeat violation notice).
4. Approval of new residents purchasing home in park.
5. Lease renewal.

1. Query: What about claims (generally arising against the landlord) such as tort claims (e.g. personal injury, trespass, fraud, misrepresentation, Unlawful Trade Practice claims, Fair Housing claims, etc.)? Any such clause must be in writing and signed.

1. Miscellaneous

1. Address the services and facilities you do not provide.

1. For example, security patrol or security systems - encourage residents to exercise reasonable diligence and caution in securing their homes. Ask that if they observe any suspicious or illegal acts to notify the manager and/or the police department.
2. If there are dimly lighted and/or dark areas within the community, say so, and ask that the resident agree to carry a portable light source when walking at night.

1. Include a non discrimination provision.

1. For example, a recital that the owner will not discriminate on the basis of race, color, sex, marital status, familial status, religion, national origin, or handicap, etc.

Answer: There are certain facts that are missing from this question. I will supply them and then answer. So, let's assume the following: (a) This is a periodic (i.e. month-to-month) tenancy; (b) The tenant has moved out of the home and it is now vacant; (c) The rents are not being paid; and lastly, let's assume that (d) The landlord was to be paid all past-due rent from the sale proceeds.

However, before answering the question, however, let me point out a fatal error by this landlord - and many other landlords: They don't look at the Worst Case Scenario. I'm sure the Storage Agreement adequately covered what was to occur upon sale. But since we have a landlord now asking what happens if the sale does not occur by November 30, I'm led to believe the parties neglected to address (in writing) the possibility of failure. Memo to MHCO landlords: Written agreements with tenants should always address "the exit strategy" - i.e. what protocol kicks in if the home is not sold and not removed by November 30.

Without addressing this issue in the written Storage Agreement, we are left to figure out what Oregon law would provide under these facts. Here's my take:

• On December 1, the landlord should contact the ex-tenant and demand that the home be removed. This should be done in writing or e-mail, so it can be used later if necessary.
• If removal does not occur promptly, the landlord must rely upon Oregon law. Unfortunately, the law leaves landlords holding the bag if a home is abandoned.
• The landlord will have to determine if the tenant will voluntarily waive his abandonment rights, and if not, then he must follow the legal procedure under ORS 90.675.[2] If there is a lienholder on the home, the landlord will have to give them notification under the abandonment law.
• If the landlord wants to leave the home on the site and resell it to a new tenant, that option is always available[3], and probably should be pursued first, rather than going down the abandonment route, which can be costly in time and money. Care should be exercised to properly document such an arrangement, in order to avoid later complaints by the tenant that they were taken advantage of.

In Oregon, following the formal abandonment process is the only legal way for a landlord to take control of a manufactured home if the tenant fails or refuses to remove it upon termination of the tenancy.

[1] The question about a one-year rule, relates only to the closure of a park or park space, and will not be addressed here.

[2] This may mean that the landlord will have to go through the exercise of issuing a 72-hour notice, then going to court to get a judgment of restitution. Only then is it safe for the landlord to proceed with abandonment.

[3] If title to the home shows that a lienholder has a security interest, the formal abandonment procedure must likely be followed.

Answer. ORS 90.630(1) provides as follows:

(1)Except as provided in subsection (4) of this section, the landlord may terminate a rental agreement that is a month-to-month or fixed term tenancy for space for a manufactured dwelling or floating home by giving to the tenant not less than 30 days notice in writing before the date designated in the notice for termination if the tenant:

(a)Violates a law or ordinance related to the tenants conduct as a tenant, including but not limited to a material noncompliance with ORS 90.740 (Tenant obligations);

The exception found at subsection (4) says:

The tenant may avoid termination of the tenancy by correcting the violation within the 30-day period specified in subsection (1) of this section. However, if substantially the same act or omission that constituted a prior violation of which notice was given recurs within six months after the date of the notice, the landlord may terminate the tenancy upon at least 20 days written notice specifying the violation and the date of termination of the tenancy.

The rules prohibit running a business inside the community. I suspect that the local zoning ordinances do as well. So if the resident intends to run the same type of business as in town, in her home, it would likely violate both the park rules and the local land use ordinances. I also suspect that by whatever name she describes it, she is in the business of selling marijuana from her home.

The fact that she may hold a medical marijuana card permitting this activity does not persuade me that it is a ticket to place her grow site operation in a location that violates the park rules or the local land use rules.

On the State of Oregon website describing the Medical Marijuana Dispensary Program, here, it provides that:

The law requires the Oregon Health Authority to develop and implement a process to register medical marijuana facilities, which must be located on property zoned for commercial, industrial, mixed use or agriculture uses only. The issue of whether a local government believes a certain type of business should operate within one of these zones is a local government decision.

On March 19, 2014, Senate Bill 1531 was signed into law. SB 1531 gives local governments the ability to impose certain regulations and restrictions on the operation of medical marijuana dispensaries, including the ability to impose a moratorium for a period of time up until May 1, 2015. The law also authorizes the Oregon Health Authority to issue refunds upon request to dispensary applicants whose facilities are located in an area that falls under a moratorium.

Update:

Read the list of cities and counties that have enacted a moratorium on medical marijuana dispensaries. The Medical Marijuana Dispensary Program was last notified by a city or county of changes to this list on 5/21/14. This list includes only cities and counties that have submitted documentation of a moratorium to the Medical Marijuana Dispensary Program, consistent with the rules implementing SB 1531. The Oregon Health Authority is only authorized to offer a full refund to applicants and licensees whose dispensaries are located in an area named on this list.

Before going into battle with this resident, I suggest that you ask that she describe for you, in writing, exactly what she proposes to do, so that you can better understand and evaluate it. Once you fully understand the business model, you will be in a much better position to know whether her plans will constitute a violation that you may enforce. But remember, your remedy under ORS 90.630(1) and (4) is to give her a 30-day notice and opportunity to cure.

Based upon the state requirement that the grow site operation be consistent with local zoning laws, I do not view this as a fair housing issue. And based upon my prior MHCO articles on this subject, I do not believe the Oregon Bureau of Labor and Industries (the state's fair housing enforcement arm) would pursue your denial of the resident's request for a reasonable accommodation (i.e. permitting you to "bend" the rules, and ignore the land use laws).

Such shifts in the American population will bring significant changes to America - from the way products and services are developed and marketed to this expanding audience to the types of homes people will choose to purchase - including where these homes are located. When baby boomers choose to relocate/downsize from their existing "McMansion" homes, they will have a wider variety of housing options to choose from than today's senior home owners. Manufactured home builders and land"lease manufactured home communities will find themselves in an increasingly competitive housing marketplace where innovation and creativity are essential to success.

Housing Realities and Impacts

Forty"six percent of all households in America are headed by baby boomers (45"64 years old). If you add in those already aged 65 years or older, the number of these senior households grows to 60 percent. According to METLIFE Insurance Company, a large percentage of these heads of households will be grandparents. Due to economic necessity, many grandparents will be financially supporting their children and grandchildren, including having their children and grandchildren live with them. At the other extreme, 20 percent of these seniors will be living alone (this jumps to 38 percent of seniors over the age of 75). Because their children delayed having children until later in life, more of these seniors living alone also will have grandchildren who visit frequently.

Approximately 35 percent of Americans over the age of 65 rely almost entirely on Social Security payments for income, with the average Social Security benefit for a retired worker in 2011 about $1,177.00 per month. The Council on Aging estimates that while many aging Americans perceive their health as excellent or good, the reality is that most older adults have at least one chronic condition and many have multiple conditions. Older Americans spend approximately 13 percent of their total expenditures on health - more than twice the proportion spent by all consumers.

So what do these demographic changes mean for an owner of a land"lease manufactured home community? According to the U.S. Census Bureau's 2010 report, manufactured home community owners should expect the following housing impacts: expect people to double up or share their homes by renting rooms; they will have less income available to deal with higher utility bills and the need to financially support their extended families; and more home"bound residents will not have the option or won't be able to afford other living arrangements.

The impacts and challenges continue. Are 55+ communities realistic considering the need to allow extended or non" traditional families in manufactured home communities? Does offering homes for rent in these communities make economic sense? Should communities build playgrounds (maybe with adult exercise equipment) as a way of making them more family"friendly? Should people be allowed to rent rooms in their homes? Can duplex manufactured homes be developed to replace older homes in communities? Are manufactured homes able to accommodate residents who want to "age in place" in their homes? What kind of "assisted living" rental income homes with "age"in"place" technologies will keep residents in their communities longer?

Innovative Approaches and Solutions

The Newport Pacific Family of Companies is a manufactured home community, marina and apartment property management firm, managing properties and home owner associations in five states stretching across the country. Its full"service property management strategies have one goal: to create successful communities and increase their value for owners and residents alike. It has been a pioneer in addressing many of the issues created by an aging population within manufactured home communities.

Mike Sullivan, CEO and principal of Newport Pacific Capital and President of Cirus Development, is a certified property manager, a California General Contractor and a manufactured home retailer. As former President of the Board of Directors of the Western Mobilehome Park Owners Association (WMA) and President of the Santa Clara County Manufactured Housing Education Trust, Sullivan has an extensive understanding and appreciation of the challenges facing land" lease community owners.

Sullivan explains that land"lease community owners face an increasing problem as community residents get older. "One of my communities was facing the situation where it lost 10 residents in one month, 18 percent of its residents in one quarter, and the children of the deceased residents had stopped paying space rent," Sullivan noted. "We had to be creative in order to stem the problems this community faced." Another fact he uncovered in his research was that their original 55+ aged residents (now 75 to 85 years old and older) were being marketed to heavily by the local assisted"living companies surrounding their communities. "We had become the feeder lot for these organizations," said Sullivan.

Newport Pacific created a subsidiary, Lifestyle Services, Inc., to develop solutions that could address the many issues being raised by an aging resident population. Its Lifestyle Services Concierge Service helps seniors stay in their homes longer by helping them retain their independence as long as possible. The service assists residents with tasks that they can't easily do - or at all - any more. Additionally, the service offers family members who can't be with their aging loved ones as often as they would like the peace of mind of knowing that they are being well"cared"for. Services include housekeeping and yard maintenance, running errands and handyman services, and modified house sitting services.

Another approach has been the development of technologies such as the "Close"By" Network that provides in"home monitoring and reporting of behavioral patterns like eating, sleeping and medication use directly to the doctors of the aging residents. The service also allows routine medical tests, such as blood pressure, to be performed directly in the resident's home, enabling doctors to monitor the procedures and results via direct video links. "It's a virtual doctor's office," said Sullivan. The service can even be expanded to offer in"community services in a community's clubhouse.

Next Steps Forward

One of the company's more innovative approaches has been the development of its Net Zero model home and electric car. Newport Pacific's sister companies, Modular Lifestyles and Cirus Development, began developing and building "Net Zero Green" homes in 2008 for a new 62+ community, Oak Haven, located in Ojai, CA. The new modular homes incorporated maximum energy"efficiency technologies that operate at or near "Net Zero" energy use. The home has a home energy rating system at the factory that is 21 percent better than standard"built homes. The homes are 90 percent constructed in the factory, with minimal waste and the onsite work requiring only two 8x8x8 dumpsters.

The first model of this new generation of homes was placed in the community in 2008 and proved to be quite successful. The community began filling up with these innovative homes within two years, and won the 2011 MHI "Homes Under 1800 Square Foot" award category with Cavco Industries.

When Florence Roach's Santa Barbara condominium sold the first day on the market, she knew that her decision to move was a good one. Considering her future retirement, Florence had wanted a less expensive place to live and maintain. With her daughter living in Ojai, Florence checked out Oak Haven's advertising claims of "low cost" living with "green" solar"powered, energy"efficient modular homes. Florence was sold on the Ojai Valley and purchased one of Modular Lifestyle's homes.

Before coming to Ojai, Florence had experienced respiratory problems that could come on without notice along with allergies and osteoarthritis. Since moving into her new home, she has had unexpected health improvements which she attributes to the dry heat and the less toxic interior environment of her new home. The whole"house fan in the new home continuously replaces the home's interior air with filtered air.

The homes include extra ceiling, wall and floor insulation that keeps their interior temperature moderate, with Florence's electric and gas bills at or near zero every month, even during her first hot summer in Ojai. These are the kinds of operating costs she can afford for the future. In fact, from July 2011 to July 2012 she has a cumulative negative $19.50 credit on her electric bill.

The company then turned its focus to developing and building its "Quest" home. These solar"powered, energy" efficient modular homes also include other energy"saving features such as tankless water heaters and propane"powered generators so that the homes are virtually independent of outside electrical service. Due to the high number of 30" and 50"amp "mobile home parks," this home solves the overall issue of aging infrastructure.

New Thinking

Senior communities, such as Oak Haven, are proving that land"lease communities are well"positioned for the upcoming Baby Boomer population explosion and have a unique opportunity unlike any other multi"family housing project. They have existing facilities that can be upgraded to incorporate services and products that more directly appeal to seniors. But to be successful, land"lease communities must embrace the changing housing marketplace with creative thinking and innovation. By doing so, land"lease communities can compete with and be attractive alternatives to the newly" built senior apartments and assisted"living developments. The reality of the generational changes taking place in the housing marketplace requires new thinking and new approaches...all at a very accelerated pace of just a few short years.

Such shifts in the American population will bring significant changes to America - from the way products and services are developed and marketed to this expanding audience to the types of homes people will choose to purchase - including where these homes are located. When baby boomers choose to relocate/downsize from their existing "McMansion" homes, they will have a wider variety of housing options to choose from than today's senior home owners. Manufactured home builders and land"lease manufactured home communities will find themselves in an increasingly competitive housing marketplace where innovation and creativity are essential to success.

Housing Realities and Impacts

Forty"six percent of all households in America are headed by baby boomers (45"64 years old). If you add in those already aged 65 years or older, the number of these senior households grows to 60 percent. According to METLIFE Insurance Company, a large percentage of these heads of households will be grandparents. Due to economic necessity, many grandparents will be financially supporting their children and grandchildren, including having their children and grandchildren live with them. At the other extreme, 20 percent of these seniors will be living alone (this jumps to 38 percent of seniors over the age of 75). Because their children delayed having children until later in life, more of these seniors living alone also will have grandchildren who visit frequently.

Approximately 35 percent of Americans over the age of 65 rely almost entirely on Social Security payments for income, with the average Social Security benefit for a retired worker in 2011 about $1,177.00 per month. The Council on Aging estimates that while many aging Americans perceive their health as excellent or good, the reality is that most older adults have at least one chronic condition and many have multiple conditions. Older Americans spend approximately 13 percent of their total expenditures on health - more than twice the proportion spent by all consumers.

So what do these demographic changes mean for an owner of a land"lease manufactured home community? According to the U.S. Census Bureau's 2010 report, manufactured home community owners should expect the following housing impacts: expect people to double up or share their homes by renting rooms; they will have less income available to deal with higher utility bills and the need to financially support their extended families; and more home"bound residents will not have the option or won't be able to afford other living arrangements.

The impacts and challenges continue. Are 55+ communities realistic considering the need to allow extended or non" traditional families in manufactured home communities? Does offering homes for rent in these communities make economic sense? Should communities build playgrounds (maybe with adult exercise equipment) as a way of making them more family"friendly? Should people be allowed to rent rooms in their homes? Can duplex manufactured homes be developed to replace older homes in communities? Are manufactured homes able to accommodate residents who want to "age in place" in their homes? What kind of "assisted living" rental income homes with "age"in"place" technologies will keep residents in their communities longer?

Innovative Approaches and Solutions

The Newport Pacific Family of Companies is a manufactured home community, marina and apartment property management firm, managing properties and home owner associations in five states stretching across the country. Its full"service property management strategies have one goal: to create successful communities and increase their value for owners and residents alike. It has been a pioneer in addressing many of the issues created by an aging population within manufactured home communities.

Mike Sullivan, CEO and principal of Newport Pacific Capital and President of Cirus Development, is a certified property manager, a California General Contractor and a manufactured home retailer. As former President of the Board of Directors of the Western Mobilehome Park Owners Association (WMA) and President of the Santa Clara County Manufactured Housing Education Trust, Sullivan has an extensive understanding and appreciation of the challenges facing land" lease community owners.

Sullivan explains that land"lease community owners face an increasing problem as community residents get older. "One of my communities was facing the situation where it lost 10 residents in one month, 18 percent of its residents in one quarter, and the children of the deceased residents had stopped paying space rent," Sullivan noted. "We had to be creative in order to stem the problems this community faced." Another fact he uncovered in his research was that their original 55+ aged residents (now 75 to 85 years old and older) were being marketed to heavily by the local assisted"living companies surrounding their communities. "We had become the feeder lot for these organizations," said Sullivan.

Newport Pacific created a subsidiary, Lifestyle Services, Inc., to develop solutions that could address the many issues being raised by an aging resident population. Its Lifestyle Services Concierge Service helps seniors stay in their homes longer by helping them retain their independence as long as possible. The service assists residents with tasks that they can't easily do - or at all - any more. Additionally, the service offers family members who can't be with their aging loved ones as often as they would like the peace of mind of knowing that they are being well"cared"for. Services include housekeeping and yard maintenance, running errands and handyman services, and modified house sitting services.

Another approach has been the development of technologies such as the "Close"By" Network that provides in"home monitoring and reporting of behavioral patterns like eating, sleeping and medication use directly to the doctors of the aging residents. The service also allows routine medical tests, such as blood pressure, to be performed directly in the resident's home, enabling doctors to monitor the procedures and results via direct video links. "It's a virtual doctor's office," said Sullivan. The service can even be expanded to offer in"community services in a community's clubhouse.

Next Steps Forward

One of the company's more innovative approaches has been the development of its Net Zero model home and electric car. Newport Pacific's sister companies, Modular Lifestyles and Cirus Development, began developing and building "Net Zero Green" homes in 2008 for a new 62+ community, Oak Haven, located in Ojai, CA. The new modular homes incorporated maximum energy"efficiency technologies that operate at or near "Net Zero" energy use. The home has a home energy rating system at the factory that is 21 percent better than standard"built homes. The homes are 90 percent constructed in the factory, with minimal waste and the onsite work requiring only two 8x8x8 dumpsters.

The first model of this new generation of homes was placed in the community in 2008 and proved to be quite successful. The community began filling up with these innovative homes within two years, and won the 2011 MHI "Homes Under 1800 Square Foot" award category with Cavco Industries.

When Florence Roach's Santa Barbara condominium sold the first day on the market, she knew that her decision to move was a good one. Considering her future retirement, Florence had wanted a less expensive place to live and maintain. With her daughter living in Ojai, Florence checked out Oak Haven's advertising claims of "low cost" living with "green" solar"powered, energy"efficient modular homes. Florence was sold on the Ojai Valley and purchased one of Modular Lifestyle's homes.

Before coming to Ojai, Florence had experienced respiratory problems that could come on without notice along with allergies and osteoarthritis. Since moving into her new home, she has had unexpected health improvements which she attributes to the dry heat and the less toxic interior environment of her new home. The whole"house fan in the new home continuously replaces the home's interior air with filtered air.

The homes include extra ceiling, wall and floor insulation that keeps their interior temperature moderate, with Florence's electric and gas bills at or near zero every month, even during her first hot summer in Ojai. These are the kinds of operating costs she can afford for the future. In fact, from July 2011 to July 2012 she has a cumulative negative $19.50 credit on her electric bill.

The company then turned its focus to developing and building its "Quest" home. These solar"powered, energy" efficient modular homes also include other energy"saving features such as tankless water heaters and propane"powered generators so that the homes are virtually independent of outside electrical service. Due to the high number of 30" and 50"amp "mobile home parks," this home solves the overall issue of aging infrastructure.

New Thinking

Senior communities, such as Oak Haven, are proving that land"lease communities are well"positioned for the upcoming Baby Boomer population explosion and have a unique opportunity unlike any other multi"family housing project. They have existing facilities that can be upgraded to incorporate services and products that more directly appeal to seniors. But to be successful, land"lease communities must embrace the changing housing marketplace with creative thinking and innovation. By doing so, land"lease communities can compete with and be attractive alternatives to the newly" built senior apartments and assisted"living developments. The reality of the generational changes taking place in the housing marketplace requires new thinking and new approaches...all at a very accelerated pace of just a few short years.

Answer. First, let me ask why we're having this discussion today, rather than before you began the conversion in 2011? This is always a risky proposition, since if you converted without following the proper protocols, there could be potential liability. (On the other hand, one might argue that even if it was done improperly, there is no damage, since the residents actually saved money in the process!)

To rephrase your question, let me ask it this way: Is it permissible to pass sewer charges directly to residents from (a) the base rent method (i.e. where it's included in base rent), to (b) a pro-rata method (i.e. where the monthly sewer bill is prorated to each resident based upon the number of occupied spaces in the community)?

The short answer today is "No." Since the statute, ORS 90.532, is complicated, I will try to paraphrase the prohibition as follows: For rental agreements entered into on or after January 1, 2010, a landlord and tenant may not amend a rental agreement to convert water or sewer utility and service billing from a method described in subsection (1)(b)(C)(i) (the base rent method) to a method described in subsection (1)(b)(C)(ii) (the prorate allocation method).

If your residents are on month-to-month rentals, they "renew" every month. Thus, every resident who was in the community before January 1, 2010 and is still there today, has a rental agreement that was entered into after January 1, 2010.

As for what to do now, I would recommend that you discuss the situation with your attorney, and proceed upon his or her recommendation. The first order of business is to make absolutely sure that your prorata method worked to your residents' financial benefit. Secondly, if financially feasible, institute a submetering system, according to the conversion laws. As for your new residents, here is a paraphrase of what the law says:

A landlord may not use a separately charged pro rata apportionment billing method for sewer service, if sewer service is measured by consumption of water and the rental agreement for the dwelling unit was entered into on or after January 1, 2010, unless the landlord was using a separately charged pro rata apportionment billing method for all tenants in the facility immediately before January 1, 2010. If the sewer service is not based upon consumption of water, you may prorate.

For new residents, you do not want to put them on a base rent method with the idea that you can later convert to a pass-through method using a prorata allocation. Oregon law does not permit that method of pass-through conversions today, unless the prorate allocation method existed in the entire community before January 1, 2010. Good luck!

That is the question on the minds of most MHCO members we speak to. As you have likely noticed, the costs of water, sewer, and other utilities has increased exponentially in the last few years for both commercial and residential properties alike. The addition of unrelated or undefined fees, such as street maintenance, base charges, and additional services, has become commonplace. Combine that with careless usage of water by tenants and you have a perfect storm for losing revenue. Since we cannot directly control these increasing costs or the careless usage, it is nearly impossible to try and keep up by using rent increases alone.

Our recommendation is to focus on what you can control: who is directly paying for the utility expense. According to the Alliance for Water Efficiency (http://www.allianceforwaterefficiency.org), the average submetered customer uses up to 20% less than a customer on a master metered system. In our professional experience, we have seen decreases of up to 40%. It is really no surprise that when you transfer the responsibility to the tenant, they instantly become more aware of the leaks and conservation behaviors that they had been ignoring previously. It is just human nature that if something doesn'tcost you anything, you are less likely to be conscientious.

In order to place this responsibility on the tenant and get control of your utility expenses, you need to convert your park to the "Submeter Billing Method" outlined in the Oregon statutes. This can be a daunting task to take on alone, so it is important that you use someone who is an expert. We have spent the last few years immersed in research and have designed Jet Utilities' Submeter Conversion Program around the laws specific to Oregon. We have consulted the best minds in the business, including many Coalition board members, as well as independent council. We can confidently call ourselves experts in not only regulations and project management, but also in the actual installation of the system. Jet has its own licensed journeyman plumbers who are dedicated to the installation of submeters at mobile home parks. We have the knowledge and experience to handle a park of any size, with any type of plumbing material, anywhere in Oregon, Washington, or California.

We are confident that submetering is the right thing to do for your manufactured home community. The largest obstacle that many owners face after realizing their need to submeter is finding a way to fund the project. Until recently, your choices have been very limited: use your own capital or try and secure financing on your own. Neither of those is very attractive or very easy to do given the current economic state. Jet Utilities' Submeter Conversion Program offers owners and managers a turn key solution including the funding for the equipment and installation. There are no loans to qualify for, no up-front capital, and no cost to you. How can we do this, you ask? It is simple. We already have the funding for these projects. We simply install an Automatic Meter Reading (AMR) System and utility grade water meters at each space, and then bill you a flat monthly fee that Oregon law allows you to pass directly through to the tenants.

There are some very important laws and regulations that go into the preparation of this as well as the requirement for a Unilateral Amendment to the Rental Agreement which is now available to MHCO members in the "Forms" section of the MHCO website. (MHCO Form 14 - Unilateral Amendment to Rental Agreement for Sub-Metering). This is the first step in preparing for Submeter Conversion.

For more information and a quote for your park, please visit our website www.jetutilities.com or call 1-844-JET-UTIL (844-538-8845) and ask for Erik.

Answer: This fact patter should be a cautionary tale for all park owners and managers about the risk of letting too much time elapse between the violation and legal action. In order to fully answer the question, I need to assume certain facts. First, I assume that the rules clearly do not permit one to occupy a home without management approval. Secondly, I assume that some form of permitted subleasing is OK, so long as the subtenant is approved by management. Third, I assume that someone - presumably the father - has been paying the rent.

If rent has been accepted with knowledge of this violation, it would be deemed to have been waived after the second acceptance of rent - regardless of who paid it. Clearly, if the rules prohibit this, as does the rental agreement and law, action should have been taken the moment she refused to cooperate.

The best solution may be for the father to proceed with the eviction, since he is a "landlord" under the non-manufactured housing side of the Landlord-Tenant law. Clearly, he can work it out with her and/or the court, better than management working with the recalcitrant occupant, who has already established her unwillingness to cooperate. Besides, why should the park absorb this expense, when it is really between the father as a "landlord" and his daughter as the "tenant." (I don't know why the judge sent them home, but suspect it was to try to resolve it as a family matter rather than a court matter.)

As for whether to accept the rent, it's already pretty late to be worried about "waiver" since that has long since been confirmed to have occurred. Nevertheless, I would NOT accept the rent until this matter is resolved.

The problem with park management doing the eviction based upon an "unauthorized occupant," violation, is that it's too late to enforce, in my opinion. However, your question about a "No-cause" eviction suggests that you believe this might be a viable alternative - i.e. the legal basis for eviction arises under the non-manufactured housing side of the statutes. I don't think so. First, because the manufactured housing side of the law still applies vis a vis the father, and regardless, rent has been accepted, making the waiver argument a real possibility.