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Submeter Your Community at Zero Out of Pocket Landlord Expense

By Troy Brost Owner SongBrook MHC, Eugene, Past President and Legislative Chair of Manufactured Housing Communities of Oregon The title of this Community Update should have caught your attention. It is not a gimmick, I have done it myself. Adam Cook's MHCO Community Update article, "Can You Afford to Keep Utilities Included in Your Rent?" from last week is spot on! My answer is no, I cannot and no longer do". Both Landlords and Tenants agree of the importance of sub-metering; it is a win-win proposition. Enduring years of Landlord/Tenant Coalition, one of the most daunting tasks was demonstrating Landlords do not have safes' locked full of money. Financing options simply did not exist to fund mandatory sub-metering. Where were Landlords to find upwards of $750+ per homesite to install water sub-meters? Of course, Landlords proved their argument and negotiated the right to unilaterally amend rental agreements to permit community-wide sub-metering; creating provisions to recapture installation expenses by billing Tenants. Considering a new program now available, I believe every Landlord should sub-meter sooner than later! Now available is a sub-meter and installation program at zero expense to any Landlord wanting to install new or replace old sub-meter systems. No applications, no qualifications, and no money down gets you state of the art wireless monitored sub-meters (water, electric, and gas are all available). What's the catch? ... the Landlord signs a 10 year Billing Agreement with the provider, in which the Tenant pays. So, how does it work? First, the meters are purchased/installed/administered/maintained/repaired/monitored/insured/read/etc. by an Independent 3rd party. Just as all meter reading companies, this 3rd party charges a monthly fee for their service ... it is their cost of doing business. In Eugene, this 3rd party charges nearly 1/2 less of what EWEB (Eugene Water and Electric Board) charges it's customers. Second, per ORS 90, the 3rd party bills the Tenant the cost of the sub-meter and installation over a minimum of 60 months. The sub-metering process is complicated; no worries, this 3rd party is experienced, has been in business for nearly a decade, has all the systems and sample notices in place, and handles the entire process on behalf of the Landlord. The Bottom line: local government agencies and utility companies use Landlords to pass through their exorbitant "fees" and rate increases, in which Landlords are forced to carry until the next "rent" increase ... making the Landlord the greedy bad guy. Prior to sub-metering, utility expenses were 23% of my rent; my monthly invoices now line item sub-meter every utility possible. My rents are now very competitive within the market and I have direct control over costs. I see every reason why all Landlords should do the same. Indeed, it sounds too good to be true ... it is. Contact me at troybrost@gmail.com, 541-554-1499, or visit www.infrasystems.us to find out for yourself. I will provide you with the contact and information you need and assist you along the way. -- Troy Brost

Lessons From a $76,000 Fair Housing Settlement

By Jo Becker, Education/Outreach Specialist, Fair Housing Council Serving Oregon and SW WashingtonIn May 2013, Connecticut complainants were awarded over $76K (before attorneys' fees) by the courts in The U.S.A v. Hylton. This is a rental case but the ruling holds several important legal lessons for any housing provider.The complaint alleged that the Hyltons, a Black married couple, violated the Fair Housing Act (FHA) by refusing to allow a mixed-race couple, the Bilbos, to sublet their unit to a Black woman with children because they did not want "too many Blacks" at the property.The decision awarded the following damages:o $31,750 to Mr. And Mrs. Bilbo because their landlord made discriminatory statements to them about being a mixed-race couple, and about the race of their prospective subtenant refusing to allow them to sublet the home to an African American woman and her children because of race. o $10K of this sum was awarded for emotional distress.o Because Ms. Wilson, the prospective subtenant, was denied the home she sought and was qualified for, she continued to live in a racially concentrated area of poverty. Her damages were awarded at $44,431.05o As part her damages, the court awarded Ms. Wilson $20K for compensation for the lost opportunity to live in a neighborhood of lower crime, higher educational opportunities, and greater upward mobility. o Nearly half of the judgment, before attorneys' fees, was for punitive damages.o An additional $37,422 in attorneys' fees brings the total judgment against the defendants to over $113K.Details of the case can be found online.o A summary of the case is available on the HUD site: http://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_adv… A summary of the ruling is posted on the DOJ's site: http://www.justice.gov/usao/ct/Press2013/20130812.html (DOJ). o The court's decision can be read at http://law.justia.com/cases/federal/district-courts/connecticut/ctdce/3… Hyltons were independent rental owners managing their own property. They initially rented to the Bilbos; however, the Bilbos found that their personal circumstances required them to move and to break the lease agreement. The Bilbos agreed to find a suitable renter to sublease to. When they did the defendant asked if the person is white. When told she was Black, Hylton stated that he did not want too many Blacks at the property" and that "the neighbors would not want to see too many Blacks there." The defendant also told the Bilbos the only reason they were rented the house was because his wife is white and it was "a good mix."There are several salient points in this case

Recreational Vehicle Question and Answer with Attorney Mark Busch

An owner of a mobile home park allows RVs to stay in spaces within his mobile home park. He has them sign an RV nonresident agreement which states that they are not residents and they sign a set of rules and regulations that are different from what the mobile home residents sign. Over the weekend the landlord called the sheriff to evict one of the RVs that had fallen behind in their rent. The sheriff refused to evict the RV as a squatter for trespassing and told the landlord that the RV tenant does, in fact, have certain tenant rights under the Oregon Residential Landlord Tenant Act. The landlord obviously disagrees believing that the RV is transient and since they have fallen behind in their rent, they are a squatter and should be immediately removed from the property for trespassing. How does the landlord deal with this? Does the RV resident have tenant rights even though it is an RV and they signed an RV agreement? How should the landlord proceed with an eviction since the sheriff will not remove the RV? Can the landlord turn off the utilities to the RV?Answer:The last thing the landlord should do is turn off utilities to the RV. Under Oregon law, RV residents do qualify as tenants

Occupancy By Who's Standard (Part 1 of 2)

By Jo Becker, Education/Outreach Specialist, Fair Housing Council Serving Oregon and SW WashingtonI recently read an article on screening by a representative of a NW property management firm. In it was included the company's screening requirements, as well as what was apparently their stock occupancy standard for all units: Maximum occupancy of no more than two (2) persons per bedroom."There is a growing body of case law across the country in which housing providers - both landlords and condo / homeowners' associations - have lost cases in which they've had two-people-per-bedroom policies. At this point

Comparison of Current Law to Compromise Legislation - (Community Sale Notification Process - Removal of "Right of First Refusal" Language from Current Statute)

Current Oregon law (adopted in 1989) already requires manufactured home park landlords/owners to notify park residents prior to a sale to another owner and to negotiate a possible sale to the residents. ORS 90.760, 90.800 to 90.840. Unfortunately, both landlord and tenant advocates recognize that the current law is seriously flawed and doesn't work for either side. HB 4038A fixes those problems.1.Under current law, it is unclear whether and to whom an owner must give notice of the owner's interest in selling the park, or what that notice must say.a. ORS 90.760 allows an undefined tenants association to give notice to the owner of its interest in buying the park before the owner indicates an interest in selling. Apparently, this notice is good forever, even if the tenants die/move or if there is a different owner. No-one keeps track of these notices. And tenants generally do not think about buying their park until there is some indication that the owner wants to sell, so they don't give the advance notice to the owner.b. ORS 90.810 appears to require notice from the owner even if the tenants have not previously notified the owner of their interest in purchasing the park.HB 4038A amends the law to require an owner to give notice to all tenants, without advance registration, or, if there is an active tenant group with which the owner has met during the past 12 months, to that group only, whenever the owner is interested in selling or has received an offer to buy which the owner is considering. And it defines what must be in the notice. And it requires that a copy go to the Oregon Housing & Community Services Department. And it provides a safe harbor for minor errors in giving the notice. Sections 1, 3(3).2. Under current law, owners are required to negotiate in good faith with the tenants and to give the tenants a 14 day right of first refusal to buy the park. ORS 90.820. a. This duty is completely open-ended, with no time limit on the duty or on the owner's duty to negotiate. b. Owners strongly dislike the concept of a right of first refusal. On the other hand, tenants think that 14 days isn't enough time. c. There is no provision regarding what financial information an owner must share with the tenants in the negotiations. d. There is no provision making shared financial information confidential, and no provision providing a remedy to owners if tenants violate a confidentiality duty. e. There is no provision regarding what steps the tenants must take in the negotiation. f. This duty would apply to an owner even if the owner has a time-sensitive offer from another buyer. g. Good faith" is not the right duty to apply in a commercial real estate transaction.The proposed legislation (HB 4038A) removes the right of first refusal language

Helpful Tips for 55 & Older Community Owners

By David M. Weber & M. Christine Weber We all know it is far easier to maintain a resident than find one who will fill a vacant space within a community. This is particularly true in 55+ communities. To be great at resident retention, managers need to believe strongly in the lifestyle that has led many seniors to a manufactured housing way of life. Managers must be helpful, respectful, enthusiastic and work relentlessly to continuously improve their seniors' lifestyles. One of the measuring sticks of great managers, as well as great regional managers, is their ability to be friendly while at the same time, keeping their eyes firmly upon the objectives of the community. The responsibilities of property management are immense and sometimes thankless. It is hard to believe that any of us could add another thing to our schedules to strive for better resident relations. But we must, and we must go at it with an eager, devoted, and intense passion to be successful. The only way to achieve this and still maintain the quality of the community is great organizational skills, resident, participation and the initiative to be creative. No matter how large or small a community and its budget, the following simple steps will bring a community to its peak performance and create strong resident relations. Get the Residents Involved Make photo albums or scrapbooks of residents enjoying their community or community activities. Seniors enjoy donating photos from their past and the fun time they've had with neighbors or friends. Residents can form a photography club to take pictures of all community events, funny resident situations and neighbors helping one another. Photo clubs are a good source for pictures submitted by residents. Volunteers can help with the collection of photos and putting together the album. Display the album(s) proudly in the activity center or community lounge area for all to enjoy. Managers should look through the books from time to time to ensure quality content. Encourage residents to write positive letters or stories about the community. Resident writings can be collected in an attractive album, which is also to be displayed in the community activity center. When the letters have been submitted, ask if they may be used in the community newsletter. Pick one letter a month to exhibit in an attractive picture frame under the caption, Letter of the month" or "Why we enjoy living in this community." Create a journal to pass around the community (it may be a spiral notebook) for all residents to write in. A note stating the topic should be firmly attached on the outside of the journal for all to read before inserting thoughts. The note may ask for how long the resident has lived in the community and a short biography. Encourage the use of photos or themselves

Recreational Vehicle Question and Answer with Attorney Mark Busch: RV Rental Agreements

By Mark L. Busch, P.C., Attorney at Law Question: Can our park use the regular MHCO manufactured home rental agreement for RV tenants who are allowed in certain spaces throughout our manufactured home park? Answer: No, the park should definitely not use a regular manufactured home rental agreement for RVs. By doing so, the park might inadvertently give the RV tenants more rights than they are otherwise entitled to under Oregon's Landlord-Tenant Laws. Specifically, the MHCO manufactured home rental agreement (and most other, similar manufactured home rental agreements) typically define the rented space as being used for a manufactured home." This could used against the park in an eviction action. The RV tenant's attorney could very well argue that the RV is a "manufactured home

Americans With Disabilities Revised Requirements - Service Animals

The Department of Justice published revised final regulations implementing the Americans with Disabilities Act (ADA) for title II (State and local government services) and title III (public accommodations and commercial facilities) on September 15, 2010, in the Federal Register. These requirements, or rules, clarify and refine issues that have arisen over the past 20 years and contain new, and updated, requirements, including the 2010 Standards for Accessible Design (2010 Standards). OverviewThis publication provides guidance on the term service animal" and the service animal provisions in the Department's revised regulations. ? Beginning on March 15

Screening Criteria - Essential to Application Process and Preserving Your Role as the Gate Keeper for Your Community

Your Screening Criteria" is another important document that should be provided to an interested applicant. This is the document that will determine where you draw the line between acceptance and denial. Your "Screening Criteria" is a written statement of the factors the landlord considers in deciding whether to accept of reject an applicant and any qualification required for acceptance. What can you have on that list? That is up to you. Here is a brief list to get you started: unsatisfactory rental references