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Bill Miner: Question and Answers When Selling a Community In Oregon (Second of Two Parts)

MHCO

Q: What happens after I give them the financial information?


A: The tenants committee must (1) form a corporate entity that is legally capable of purchasing property or associate with a nonprofit corporation or housing authority that is legally capable of purchasing real property or that is advising the tenants about purchasing the park in which the tenants reside; and (2) submit a written offer to purchase the park, in the form of a proposed purchase and sale agreement, and either a copy of the articles of incorporation of the newly formed entity .


Q: Do I have to accept the offer?


A: No. You may accept, reject or submit a counteroffer. You should view the tenants (and negotiate with them) as you would a potential purchaser. If the offer is far off, reject the offer and explain why it's far off (e.g. unreasonable financing terms, not enough cash, long closing date). If the offer is close to the mark, counter with terms. The key is to deal with the tenants committee as you would any bona fide purchaser. don't treat them differently just because they are tenants.


Q: What happens if the tenants don't respond within the 10 days or don't respond within the 15 days of me providing financial information?


A: You have no further duties under the statute.


Q: What do I do if I think this process is only being invoked to harass me?


A: Call your lawyer. The parties (including the tenants) arerequired to act in a commercially reasonable manner. Depending on the conduct (and the ability to establish the conduct and motive) your attorney should be able to develop a strategy to combat poor behavior.


Q: I've entered into a purchase and sale agreement with a separate buyer and I haven'tfollowed the process. What should I do?


A: Call your lawyer. It may be fixable, but failing to follow this process allows affected tenants to obtain injunctive relief to prevent a sale to a third-party purchaser (which could cause you to be in breach with that third party purchaser) and to recover the greater of actual damages or 2 times the monthly rent. Bottom line is be aware of your responsibilities and follow the statute.


Q: What do I do after I've completed the process?


A: You must file an affidavit certifying that you've complied with the process and that you have not entered into a contract for the sale or transfer of the park to an entity formed by or associated with the tenants. The purpose of this affidavit is to preserve the marketability of title to parks.


Q: Who are you and why are you talking to me?


A: I serve as the Partner in Charge of the Portland office of Davis Wright Tremaine. DWT is a full service law firm with 500 attorneys on both coasts and in Shanghai, China. The Portland office consists of approximately 80 attorneys and over 80 staff. I work with my clients to resolve their legal problems through pre-litigation counseling, litigation, and mediation. I try cases in state and federal courts and through private arbitration. My experience includes defending and prosecuting business torts; breach of contract claims; disputes between and among members of limited liability companies; residential and commercial real estate matters, including landlord-tenant, title, lien, and timber trespass disputes; and probate and trust cases. I speak often at MHCO seminars and conferences. You can reach me here: http://www.dwt.com/people/WilliamDMiner/

Bill Miner is currently Partner in Charge of the Portland office of Davis Wright Tremaine. DWT is a full service law firm with 500 attorneys on both coasts and in Shanghai, China. The Portland office consists of approximately 80 attorneys and over 80 staff. He works with clients to resolve their legal problems through pre-litigation counseling, litigation, and mediation. He tries cases in state and federal courts and through private arbitration. His experience includes defending and prosecuting business torts; breach of contract claims; disputes between and among members of limited liability companies; residential and commercial real estate matters, including landlord-tenant, title, lien, and timber trespass disputes; and probate and trust cases. He is a frequent and popular speaker at MHCO seminars and conferences. You can reach Bill at: http://www.dwt.com/people/WilliamDMiner/


Bill Miner | Davis Wright Tremaine LLP
1300 SW Fifth Avenue, Suite 2300 | Portland, OR 97201
Tel: (503) 778-5477 | Fax: (503) 778-5299
Email: billminer@dwt.com | Website: www.dwt.com

Phil Querin Q&A: Lease Renewal

Phil Querin

 

Question:  I have recently revised all of our lease agreements including Oregon, where I have made substantial updates and changes. I understand that by law I have to give renewal notices 60 days in advance of a lease expiration if I want the tenant to continue on the newly proffered lease.I understand that pursuant to ORS 90.545, I am supposed to identify what is different in the new lease from the old one. Due to the number of changes I’ve made, it would be very difficult to identify and list them all. 

I’m wondering if I can just inform the residents that the new lease has numerous updates and that they should read it as if it were a completely new edition. 

 

The only other real option is to offer a redline version which would be so marked up it would be difficult  to read and understand. Can you check to see what would meet the requirements of the notice?

 

 

Answer. ORS 90.545(Fixed Term Tenancies) provides that unless you take action not less than 60 days prior to the end of the term, the lease becomes a month-to-month tenancy on the same conditions as the original lease. 

 

The only exception to this is for the landlord to submit a proposed new lease to the tenant at least 60 days prior to the ending date of the term. Any provisions that are new, i.e. not in the prior lease, are to be summarized in a written statement; the same applies if the landlord is going to create new community rules. Remember, however, that if there are substantive changes to either or both of these two sets of park documents, you may also have to issue a new Statement of Policy under ORS 90.510,[1]which is a summary explanation of certain park policies provided to new and existing residents.

 

If you introduce new lease terms or new rules, they must “(f)airly implement a statute or ordinance adopted after the creation of the existing agreement; or are the same as those offered to new or prospective tenants in the community.”

 

Note, however, that the new lease terms or rules cannot relate to the “…age, size, style, construction material or year of construction of the manufactured dwelling” *** and cannot “…require an alteration of the manufactured dwelling *** or new construction of an accessory building or structure.

 

The tenant must accept or reject the proposed new lease at least 30 days prior to the ending of the term by giving written notice to the landlord.

So, your choice on expiring leases under ORS 90.545 is: (a) To do nothing, in which case the lease morphs into a month-to-month tenancy on the same terms as the earlier lease, or (b) Introduce a new lease and/or rules that “(f)airly implement a statute or ordinance adopted after the creation of the existing agreement; or are the same as those offered to new or prospective tenants in the community.”

You do not have an option to notnon-renew the tenant at the end of a lease term.  This is not to say that you are limited in termination  for cause under: ORS 86.782(6)(c) (foreclosure trustee sale),90.380(5) (dwelling posted asunsafe by gov’t),90.392 (termination for cause),90.394 (termination forfailure to pay rent),90.396 (termination on 24-hour notice),90.398(termination drugs, alcohol),90.405 (termination, unpermitted pet),90.440(termination in group recovery facility)or90.445 (termination for criminalact).  

 

As to the summary, the statute simply says that “(t)he landlord shall include with the proposed agreement a written statement that summarizesany new or revised terms, conditions, rules or regulations.” (Emphasis added.)

 

However, since you will have many changes to the new lease, you ask about two possible alternatives: Either to send the new lease to the tenant: (a) and inform him/her it has numerous updates and they should read it as if it were a completely new edition; or (b) “…offer a redline version which they wouldn’t be able to read.”

 

ORS 90.130 provides:

 

Every duty under this chapter and every act which must be performed as a condition precedent to the exercise of a right or remedy under this chapter imposes an obligation of good faith in its performance or enforcement.”

 

I read that to mean that good faith compliance is satisfactory in this case. Since ORS 90.545 does not elaborate about the written summary, I would opt for an approach that gives you more coverage rather than less. Both of your alternatives, especially (a) standing alone, could be attacked by residents as insufficient since it really doesn’t comply – if the goal is to inform and educate residents about the new changes. Alternative (a) is too little, and (b) is too much.

 

My view is that you don’t have to detail every single change, just the material ones that aid in understanding the nature and scope of the new provisions. Stylistic changes that do not alter the substance of the new text don’t need to be addressed. As to material changes, they should be summarized.

 

I would give the new lease to the residents together with a marked redline showing the material changes.[2]I would then include a distillation of the material changes in the new lease into categories and short summaries.

 

For example:

 

  • Rule No. ___, Late Fees: they are going to increase from X$ to $Y;
  • Rule No. ___, Pets: There will be a fine for pet violations;
  • Rule No. ___, Mediation: Adds mediation rules under the recently enacted SB 586 Sec. 7 et seq. (2019) and provides that Landlord has the duty to mediate if requested by Tenant. See,https://olis.leg.state.or.us/liz/2019R1/Measures/Overview/SB586;
  • Rule No. ___, Occupants: Tenants must now notify manager within X days of the person coming into the park and obtain a Temporary Occupancy Agreement.

 

Be sure the notice invites residents to contact the park manager if they have any questions. I believe this approach meets the spirit and intent of ORS 90.545, and is in good faith compliance with the law.  

 

Lastly, before sending out the notice, enlist the help of someone who is not privy to the changes, and ask them to read your summary. If they understand it (without your coaching), then send. If not, I would re-work the language until it is clear. The goal is to avoid ambiguity in the summary; but if reasonable minds can differ as to the meaning of the new summary, it is, per se’ambiguous, and needs to be clarified before sending.

 

 

 

 

 

 

 

 

 

 

 

 

 

[1]Note that ORS 90.510 was amended by SB 586 (2019) that adds text related to the new laws on mandatory mediation.

[2]If you’re used to using MSWord, you can simply accept the non-material changes, and show just the material ones (both the deleted and new text). Make sure the reader knows that there have been non-material changes that are not marked. Tell them if they want a complete set of marked changes to immediately contact management. (There may be some residents that want more detail rather than less.)

Phil Querin Q&A: Meth User and Eviction

Phil Querin

Answer: You are correct that ORS 90.630 may only be used to give residents notice of a violation and an opportunity to cure. This is not so say you couldn'tuse a 30-day notice in this case, but the "cure" would be for the resident to stop possessing the meth, which would be highly difficult to verify. Moreover, in many cases, the possession of meth can be accompanied by other activities that can pose health, safety, welfare, and peaceable enjoyment, issues to the other residents of your community.


ORS 90.396(1) provides in relevant part:


Except as provided in subsection (2) of this section, after at least 24 hours written notice specifying the acts and omissions constituting the cause and specifying the date and time of the termination, the landlord may terminate the rental agreement and take possession as provided in ORS 105.105 (Entry to be lawful and peaceable only) to 105.168 (Minor as party in proceedings pertaining to residential dwellings), if:

***

(f) The tenant, someone in the tenants control or the tenants pet commits any act that is outrageous in the extreme, on the premises or in the immediate vicinity of the premises. For purposes of this paragraph, an act is outrageous in the extreme if the act is not described in paragraphs (a) to (e) of this subsection [i.e. committing serious injury to persons and property in the community, etc. - PCQ], but is similar in degree and is one that a reasonable person in that community would consider to be so offensive as to warrant termination of the tenancy within 24 hours, considering the seriousness of the act or the risk to others. An act that is outrageous in the extreme is more extreme or serious than an act that warrants a 30-day termination under ORS 90.392 (Termination of rental agreement by landlord for cause). Acts that are outrageous in the extreme include, but are not limited to, the following acts by a person:

***

(B) Manufacture, delivery or possession of a controlled substance, as described in ORS 475.005 (Definitions for ORS 475.005 to 475.285 and 475.752 to 475.980), but not including [Oregon marijuana exceptions - PCQ]... .(Underscore mine.)






Note that ORS 90.396(1)(f)(B) expressly says that the manufacture, delivery, or possession of a controlled substance constitutes an act that is "outrageous in the extreme." Accordingly, it is not proscribed conduct that is open to debate about whether it may be "cured" within thirty days. Illegal drug possession is considered an automatic violation of the law.


Accordingly, the use of a 24-hour notice (MHCO form # ), would be appropriate in this case. However, just because the statute and form refer to "24-hours" does not mean you must require the resident to vacate within that time. It just means you cannot give less than 24-hours' notice.


This answer assumes that the resident's possession occurred '_on the premises (i.e. the space) or in the immediate vicinity of the premises." If not, that is, while he was arrested inside the community, the possession occurred outside of the community, your reliance ORS 90.396(1)(f)(B) would be inappropriate and would likely fail.


Additionally, based on your question, I cannot tell if the resident is causing any other problems in the community. Nor can I tell if he is - or will shortly be - in jail. Assuming that he is released and comes back into the community, you could give him the 24-hour notice, but provide the time period for compliance to be a few days, which would perhaps allow him the ability to relocate, rather than be out on the street. Based upon the urgency of having him out - assuming he returns - this call is up to you.

Phil Querin Q&A: Trees - Liability and Responsibility

Phil Querin

Answer: Oregon law addresses tenant responsibilities in ORS 90.740. Subsection (4)(h) says that except as provided in the rental agreement it is the tenant’s responsibility to “(m)aintain, water and mow or prune any trees, shrubbery or grass on the rented space….” In my opinion, this provision is a good example of how not to draft a statute. Trees are not “mowed” and grass is not “pruned.” However, it is correct that “pruning” of trees [whatever that entails] is a tenant responsibility unless otherwise provided in the rental or lease agreement. As with everything these days, the Internet is replete with discussions and definitions of pruning. One example is found here: http://tinyurl.com/Q-Law-Definitions-pruning. Regardless of your reference source, it is clear that there are many, many, different types of pruning, depending upon the goal sought. You can prune to “teach” a tree or shrub how to grow in a particular fashion; you can prune for appearance; you can prune for maintenance, i.e. the health of the tree or shrub. Lastly, you prune for safety - this is called “hazard pruning.” Putting my “lawyer’s hat” on and returning to my law school roots, I recall a rule of interpretation called “ejusdem generis”. Here is one definition: “(eh-youse-dem generous) v adj. Latin for "of the same kind," used to interpret loosely written statutes. Where a law lists specific classes of persons or things and then refers to them in general, the general statements only apply to the same kind of persons or things specifically listed. Example: if a law refers to automobiles, trucks, tractors, motorcycles and other motor-powered vehicles, "vehicles" would not include airplanes, since the list was of land-based transportation.” http://www.legal-explanations.com/definitions/ejusdem-generis.htm Applying that legal rule to ORS 90.740(4)(h), it could reasonably be argued that the words “maintain, water and mow or prune” are intended to refer to normal and routine landscaping activities. In other words, a tenant’s landscaping responsibility for his or her own space is limited to normal and routine activities. In other words, imposing a statutory duty and financial responsibility of “hazard pruning” on manufactured housing residents was unlikely. ORS 90.730(3) provides that “(f)or purposes of this section, a rented space is considered inhabitable if it substantially lacks: (e) At the time of commencement of the rental agreement, buildings, grounds and appurtenances that are kept in every part safe for normal and reasonably foreseeable uses, clean, sanitary and free from all accumulations of debris, filth, rubbish, garbage, rodents and vermin [underscore mine];” Thus, there is little question that as of the commencement of the tenancy, it is a landlord duty to make sure the community grounds, including the spaces and common areas, are safe for “normal and reasonably foreseeable uses….” Is a 40-foot fir tree “safe” at the commencement of the tenancy? Can it be made safe? If it is made safe, e.g. by hazard trimming, will it stay safe for the entire duration of the tenancy? It seems to me that a community landlord has two choices: 1. Doing nothing, and relying upon a poorly drafted statute for absolute immunity when a giant tree falls, killing an entire family during a windstorm; or 2. Envision the Doomsday Scenario – i.e. assume that such a disaster could occur regardless what a poorly drafted statute says, and that a multi-million wrongful death lawsuit will surely be filed by some aggressive plaintiff’s attorney, arguing to a jury that the landlord owns the ground, owns the trees coming out of the ground, and is simply trying to avoid the financial responsibility to thin and top dangerous trees. So my advice would be the following: (a) If you are in doubt about your legal responsibilities because the law is unclear, and (b) where doing nothing could place lives in danger, it is far better to undertake the financial responsibility of hazard pruning on a regular basis. In short, relying upon ORS 90.740(4)(h) when it comes to trimming and topping potentially dangerous trees, could be a serious and costly mistake.

Mark Busch Q&A: RV Tenant Eviction

Mark L. Busch

Answer: The process for evicting an RV tenant is the same process used for evicting most tenants in any setting. Nearly every eviction begins with an eviction notice, which must be properly served on the RV tenant. "Proper service" under Oregon law means that the eviction notice must be either (1) personally served, (2) mailed by first class mail, or (3) posted and mailed (if allowed by the rental agreement).

I recommend that if the RV tenant has an individual mailbox at the park, eviction notices should be mailed with at least 3 days added for mailing time. If the tenant does not have mail service at the park, or if the mail goes through the park office for RV tenants, then personally serve the notice by putting it in his or her hand. "Posting and mailing" as a method of service should be avoided, since there must be very specific language in the rental agreement allowing such service.

Most notices give the tenant a certain amount of time to remedy a default (i.e., 72 hours to pay past-due rent), followed by a tenancy termination deadline if the default isn't remedied. Other notices can't be remedied (i.e., a 24-hour notice for outrageous conduct) and simply inform the tenant that they must vacate by a certain time and date. RV tenants can also be evicted with a 30-day, no-cause notice if they have been in the park less than a year. Anything over a year requires a 60-day notice to evict without cause.

The one special circumstance for evicting an RV that does not require service of a notice is the so-called "midnight move-in." This occurs when an RV simply drives onto a space in the park without the prior consent of the landlord. When that happens and the RV owner refuses to vacate immediately, the landlord can simply file an eviction case without needing to serve any notice.
In all other cases, after an eviction notice expires and the RV tenant fails to vacate, the landlord will need to file an eviction lawsuit at the local county courthouse. The eviction lawsuit is sometimes referred to as an "FED" ("Forcible Entry and Detainer"). The tenant will be served with an eviction summons and complaint and be required to appear in court.

As the landlord, you will also need to appear in court unless you have an attorney or other agent (such as a property manager) appear in court at the "1st appearance hearing." This hearing is usually set 8 days after the FED is filed. The purpose of the hearing is to see whether the parties can work out a payment plan, move-out agreement, or other arrangement. If not, the case will be set for trial.

If you are unable to settle the case at the first appearance hearing, by law the trial must be scheduled within 15 days from the 1st appearance hearing. Sometimes, the parties or the court will delay the trial beyond this time frame, but most cases move quickly. This leaves little time for preparation, meaning it is important to have your witnesses, exhibits, and trial arguments ready to go.
You do not necessarily need an attorney for court appearances, but you will increase your chance of success if you do. The eviction statutes are very technical, and most people aren't familiar with courtroom procedures. You will especially be at a disadvantage if the RV tenant has an attorney. If your case gets to the point of a trial, it is usually worth it to hire an attorney.

Mark L. Busch, P.C.
Attorney at Law
Cornell West, Suite 200
1500 NW Bethany Blvd.
Beaverton, Oregon 97006

Ph: 503-597-1309
Fax: 503-430-7593
Web: www.marklbusch.com
Email: mark@marklbusch.com

Phil Querin Q&A: Resident Builds Carport - Sells Home - New Owner Wants to Take Home and Carport

Phil Querin

Answer: This situation is not directly addressed in the Oregon manufactured housing laws. First, some general observations: The manufactured housing side of the landlord-tenant law regards the “space” as the “premises.” For example, a resident in an apartment may not, without landlord permission, intentionally make major structural changes to the interior of the premises. However, most apartments have rules against this, or it is included in the rental agreement. Your space agreement or rules may have similar prohibitions regarding major changes to the space. In this case, however, you permitted the work to commence. It is unclear whether you had reviewed any plans, before the work started. You should have made this a condition of building the carport in the first place. What about permits? It is unclear whether they are required in your jurisdiction, but it is something you should always make sure is complied with. I am unclear what you mean when you say that other such structures are “free standing and permanent.” If they are permanent, in the sense of being permanently affixed to the space, then presumably, you are treating these as structures that would remain if the home were sold and removed. However, your independent conclusion that a structure is “permanent” and therefor stays with the space is really not the complete issue; what does the resident believe? It was his money that presumably paid for the work, and he may have some say in whether he intended it to be a part of the home, and movable if the time came. While your opinion is important, so is that of your resident. For this reason, I suggest that before doing this again, you might consider addressing it in the community rules. Some of the things that should be covered are the following: • Code compliance • Management pre-approval of completed drawings • Time to complete work • Your right to post a notice of non-responsibility for liens if the resident hires a contractor • Method of affixing to the ground • Safety of final structure and perhaps inspector sign-off • Who owns the structure • Can it be removed upon sale and removal of the home (I suggest “yes” so long as the space is returned to its original condition and all holes are safely and completed filled, etc.) • Duty to keep the carport in good and safe condition – remember if it is a part of the space, absent agreement with the resident, it would be your duty, since you own the park. In this particular case, I suggest that if you have not pre-addressed these issues with your resident, he may believe this is his structure to do with as he sees fit. I really can’t disagree, since you permitted the project and from your question, it appears no ground rules were established regarding ownership in the event the home was moved. However, if you permit the carport structure to be removed, you should insist that the space be returned to its original pre-construction condition. That’s about the best you can do with this situation, although establishing rules – or at least agreed-upon terms – before construction commences again, is a good idea.

Phil Querin Q&A: Resident Improvements and Building Code Compliance

Phil Querin

Answer: This situation is not directly addressed in the Oregon manufactured housing laws. First, some general observations: The manufactured housing side of the landlord-tenant law regards the "space" as the "premises." For example, a resident in an apartment may not, without landlord permission, intentionally make major structural changes to the interior of the premises. However, most apartments have rules against this, or it is included in the rental agreement. Your space agreement or rules may have similar prohibitions regarding major changes to the space. In this case, however, you permitted the work to commence. It is unclear whether you had reviewed any plans, before the work started. You should have made this a condition of building the carport in the first place. What about permits? It is unclear whether they are required in your jurisdiction, but it is something you should always make sure is complied with. I am unclear what you mean when you say that other such structures are "free standing and permanent." If they are permanent, in the sense of being permanently affixed to the space, then presumably, you are treating these as structures that would remain if the home were sold and removed. However, your independent conclusion that a structure is "permanent" and therefor stays with the space is really not the complete issue; what does the resident believe? It was his money that presumably paid for the work, and he may have some say in whether he intended it to be a part of the home, and movable if the time came. The same issues pertain to the new buyer. While your opinion is important, so are those of your resident and his buyer. For this reason, I suggest that before doing this again, you might consider addressing it in the community rules. Some of the things that should be covered are the following: - Code compliance - Management pre-approval of completed drawings - Time to complete work - Your right to post a notice of non-responsibility for liens if the resident hires a contractor - Method of affixing to the ground - Safety of final structure and perhaps inspector sign-off - Who owns the structure upon completion? - Can it be removed upon sale and removal of the home (I suggest "yes" so long as the space is returned to its original condition and all holes are safely and completed filled, etc.) - Duty to keep the carport in good and safe condition - remember if it is a part of the space, absent agreement with the resident, it would be your duty, since you own the park. In this particular case, I suggest that if you have not pre-addressed these issues with your resident, he may believe this is his structure to do with as he sees fit. I really can't disagree, since you permitted the project and from your question, it appears no ground rules were established regarding ownership in the event the home was moved. However, if you permit the carport structure to be removed, you should insist that the space be returned to its original pre-construction condition. That's about the best you can do with this situation, although establishing rules - or at least agreed-upon terms - before construction commences again, is a good idea.

Phil Querin Q&A: Use of the MHCO Retail Installment Contract for the Sale of Pre-owned Homes

Phil Querin

Answer: That is a good question. First, to be clear for our readers, a "security agreement" is any agreement that serves as "security" on the property. For example, a trust deed is recorded on real property, and secures the promissory note. If the note is not paid, the holder can turn to the security, and sell it to satisfy the unpaid indebtedness.


Since manufactured homes are not real property, the document is different, but the concept is the same. A Retail Installment Contract is defined in ORS 83.510(12). Its purpose is to retain a lien upon the manufactured home to secure a buyer's obligations under the contract. Form 2A informs the buyer that the seller/dealer is claiming a security interest in the home for the duration of the contract, and that in the event of default the seller/dealer will have certain remedies to foreclose and/or repossess the home. Upon a buyer's full payment and performance under the Retail Installment Contract, the seller/dealer is required to mail to the buyer good and sufficient instruments to indicate payment in full and to release all security rights in the home.


If the sale transaction is closed in escrow, there is nothing more for the seller to do to secure his/her security interest in the home, as escrow will submit the necessary documents to the Oregon Department of Business and Consumer Services.


However, if the seller/dealer does not close the transaction through escrow, they will have to perform the following steps themselves:


  1. Submit to the Department of Consumer and Business Services (DCBS) an application for an ownership document on behalf of the purchaser.

  1. The application must be on a DCBS-approved form, and include the following:
    1. The year, manufacturer's name, model if available, and identification number for the home;
    2. Any existing ownership document for the home or, if none, the homes certificate of origin or other document evidencing its ownership;
    3. The legal description or street address for site where the home is or will be placed;
    4. If the home is sited in a manufactured housing community, the name of the community;
    5. The name and mailing address of each person acquiring an interest in the home;
    6. The name and mailing address of each person acquiring a security interest in the home; and
    7. Any other information required by the DCBS by administrative rule.

  1. If the seller/dealer is unable to comply with Sec. 2, above, within 25 business days of the sale/closing of the home, he/she must provide a notice of delay to the purchaser. The notice must contain:
    1. The reason for the delay;
    2. The anticipated extent of the delay; and
    3. A statement of the rights and remedies available to the purchaser if the delay becomes "unreasonably extended."[1]
  2. Fail to comply with the above could result in the seller/dealer becoming subject to revocation or suspension of their license or being placed on probation by the DCBS pursuant to ORS 446.741.
  3. If they fail to comply with Sec. 2, above within 90 days of the sale/closing, they could become subject to criminal penalties under ORS 446.746 (1)(h).
  4. However, if the home buyer is not in compliance with the payment terms of their purchase or security agreement with you by the 20th calendar day after the sale/closing, the seller/dealer is not required to perform the steps in Sec. 2 until 25 calendar days after the home purchaser is in compliance with the payment terms. [Note: This does not excuse a seller/dealer from complying with Sec. 3, above, even though the purchaser is late on his/her payments.]


[1] Note: The statute does not define "unreasonably extended," nor does it identify any particular remedies you might suggest. If such a delay occurs, you should contact your own legal counsel, since you do not want to write such a letter to the purchaser identifying their "legal remedies" - that would be up to the purchaser's attorney.

A Refresher on the Housing for Older Persons Act (55 and Older Communities)

MHCO

Answer: That is a good question. First, to be clear for our readers, a "security agreement" is any agreement that serves as "security" on the property. For example, a trust deed is recorded on real property, and secures the promissory note. If the note is not paid, the holder can turn to the security, and sell it to satisfy the unpaid indebtedness.

Since manufactured homes are not real property, the document is different, but the concept is the same. A Retail Installment Contract is defined in ORS 83.510(12). Its purpose is to retain a lien upon the manufactured home to secure a buyer's obligations under the contract. Form 2A informs the buyer that the seller/dealer is claiming a security interest in the home for the duration of the contract, and that in the event of default the seller/dealer will have certain remedies to foreclose and/or repossess the home. Upon a buyer's full payment and performance under the Retail Installment Contract, the seller/dealer is required to mail to the buyer good and sufficient instruments to indicate payment in full and to release all security rights in the home.

If the sale transaction is closed in escrow, there is nothing more for the seller to do to secure his/her security interest in the home, as escrow will submit the necessary documents to the Oregon Department of Business and Consumer Services.

However, if the seller/dealer does not close the transaction through escrow, they will have to perform the following steps themselves:

  1. Submit to the Department of Consumer and Business Services (DCBS) an application for an ownership document on behalf of the purchaser.
  2. The application must be on a DCBS-approved form, and include the following:
    1. The year, manufacturer's name, model if available, and identification number for the home;
    2. Any existing ownership document for the home or, if none, the homes certificate of origin or other document evidencing its ownership;
    3. The legal description or street address for site where the home is or will be placed;
    4. If the home is sited in a manufactured housing community, the name of the community;
    5. The name and mailing address of each person acquiring an interest in the home;
    6. The name and mailing address of each person acquiring a security interest in the home; and
    7. Any other information required by the DCBS by administrative rule.
  3. If the seller/dealer is unable to comply with Sec. 2, above, within 25 business days of the sale/closing of the home, he/she must provide a notice of delay to the purchaser. The notice must contain:
    1. The reason for the delay;
    2. The anticipated extent of the delay; and
    3. A statement of the rights and remedies available to the purchaser if the delay becomes "unreasonably extended."[1]
  4. Fail to comply with the above could result in the seller/dealer becoming subject to revocation or suspension of their license or being placed on probation by the DCBS pursuant to ORS 446.741.
  5. If they fail to comply with Sec. 2, above within 90 days of the sale/closing, they could become subject to criminal penalties under ORS 446.746 (1)(h).
  6. However, if the home buyer is not in compliance with the payment terms of their purchase or security agreement with you by the 20th calendar day after the sale/closing, the seller/dealer is not required to perform the steps in Sec. 2 until 25 calendar days after the home purchaser is in compliance with the payment terms. [Note: This does not excuse a seller/dealer from complying with Sec. 3, above, even though the purchaser is late on his/her payments.]

[1] Note: The statute does not define "unreasonably extended," nor does it identify any particular remedies you might suggest. If such a delay occurs, you should contact your own legal counsel, since you do not want to write such a letter to the purchaser identifying their "legal remedies" - that would be up to the purchaser's attorney.

Mark Busch RV Q&A: Covid-19 Eviction Moratoriums and RVs

Mark L. Busch

Question: Do the state and federal eviction moratoriums apply to RV tenants?  What about short-term guests who are not technically “tenants?”

 

Answer:  Oregon House Bill 4213 prohibits residential evictions (including eviction notices) based on nonpayment of rent or other charges owed to the landlord, and further prohibits no-cause evictions against residential tenants through September 30, 2020.  The federal government through the CDC issued an order placing a nationwide ban on nonpayment residential evictions through December 31, 2020.  (Under both, rent is deferred, not waived, although HB 4213 waives late fees and gives tenants until March 31, 2021 to repay past-due amounts.)

 

Oregon HB 4213 protects tenants from nonpayment and no-cause evictions until September 30, 2020.  After that, the CDC order takes over to protect tenants ifthey submit a sworn declaration to the landlord stating that the tenant:  (1) has used best efforts to obtain all available government housing assistance, (2) does not expect to earn more than $99,000 in 2020, or no more than $198,000 if filing taxes jointly, (3) is unable to pay full rent due to lost income, lost employment, or extraordinary medical expenses, (4) is using best efforts to make timely partial rent payments as circumstances permit, (5) if evicted is likely to become homeless or will need to move to “a new residence shared by other people who live in close quarters,” (6) understands that rent, late fees and other lease charges must eventually be paid in full, and (7) understands that after December 31, 2020, the landlord may evict the tenant if past-due payments are not made in full.

 

The bottom line is that RV parks should NOT be issuing anynonpayment notices (i.e., 72-hour rent nonpayment notices or otherwise) or no-cause notices to tenants until at least October, which is when the statewide eviction moratorium under HB 4213 is scheduled to end.  And while I have my doubts about the legality and enforceability of the CDC order, I also recommend that landlords notissue any nonpayment notices until the end of the year ifa tenant submits the required declaration.  There are potential criminal penalties for landlords who violate the CDC order, which together with the cost of litigation make it entirely too risky to ignore.

 

The other issue is whether HB 4213 and the CDC order apply to short-term, “vacation occupants” in an RV park?  The answer is “no.”  In Oregon, “vacation occupants” are not covered by the protections given to “tenants” by HB 4213 and ORS Chapter 90.  The CDC order also exempts properties “rented to a temporary guest or seasonal tenant as defined under the laws of the State, territorial, tribal, or local jurisdiction.”

 

A “vacation occupant” under Oregon law meansoccupancy in a dwelling unit (which includes an RV rental space), that has all of the following characteristics:  (a) The occupant rents the unit for vacation purposes only, not as a principal residence; (b) the occupant has a principal residence other than at the unit; and (c) the period of authorized occupancy does not exceed 45 days.  So long as your temporary RV park guests fall into this category, they cannot exercise any tenancy-based rights under either state or federal law to avoid being removed from the park for nonpayment.  However, be careful to ensure that your temporary guests actually fit this category, preferably with a written registration agreement specifying that they are, in fact, vacation occupants.

 

As usual, you should consult with a knowledgeable attorney before you resume issuing nonpayment or no-cause eviction notices.  Also be sure to check whether your county or local municipality may have enacted a broader moratorium that could cover short-term RV guests.