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One decision can make a significant difference in monthly payments: whether to finance the mobile home with a personal property loan or a mortgage.

Personal property loans, known as chattel loans, have much higher interest rates than mortgages. To some owners of manufactured homes, refinancing chattel loans into mortgages could reduce monthly housing expenses.

Get the latest refinance rates

Refinancing a mobile home

To qualify for refinancing as a mortgage:

• The home must be on a permanent foundation that meets standards set by the Department of Housing and Urban Development.
• The manufactured home must be titled as real estate rather than as personal property.
• The homeowner has to own the land that the manufactured home is on. An important exception to this rule is explained below.

Big difference in interest rates

In 2012, about 68 percent of all manufactured-housing purchase loans were considered higher-priced mortgage loans, and many of them were chattel loans, according to the Consumer Financial Protection Bureau.

Interest rates on chattel loans range from 7 percent to 12.75 percent, says Ken Rishel, founder of Rishel Consulting Group in Chicago. The loans are usually for 15 or 20 years.

In contrast, the average rate for a 30-year fixed-rate loan has been well below 5 percent for all of 2014.

Rishel, whose company makes chattel loans of at least $5,000, says the interest rates are risk-based, and chattel loans are often the only choice for borrowers with poor credit. Chattel loans are the main option for owners whose mobile homes are not permanent foundations.

Converting to a new title

Some states have eased the process of converting a personal property title into a real estate title, making refinancing possible, says Marc J. Lifset, an attorney with McGlinchey Stafford in Albany, New York.

Lifset helped financial institutions lobby for the approval of that legislation in Alaska, Illinois, Iowa, Louisiana, Maryland, Missouri, Nebraska, North Dakota, Tennessee and Virginia.

"The legislation provides a clear definition of when the home is real estate and when it is not," he says. "It makes the process more certain. In many states, the definition was murky."

Getting a real estate title

A real estate attorney or title company can help with a title conversion as a first step to refinance. Owners of manufactured homes need to provide:

• A certificate of title to the home or a copy of the manufactured certificate of origin.
• The deed to the land where the home with the permanent foundation is located.

Once the owner has the real estate title in hand, the next step is to find lenders that provide mortgages on manufactured homes. The rest of the process is similar to closing a mortgage on any residential property.

Borrowing on leased land

Under some circumstances, owners of manufactured homes leasing a lot at a mobile home community can get mortgages -- even if they don't own the land beneath their feet.

The Federal Housing Administration offers a program known as Title I, designed for owners whose mobile homes are on a permanent foundation but are within a manufactured housing community.

Among the requirements for a Title 1 mortgage:

• The mobile home must be the borrower's primary residence.
• The home has to be on a rental site in a manufactured home park that conforms to FHA guidelines.
• The lease agreement must meet FHA standards.

It's not easy to find mobile home communities that meet the FHA's strict guidelines, says Rishel, whose company makes chattel loans in land-lease communities. "Not many landlords participate on the Title I program."

Few lenders offer Title I mortgages. One is 21st Mortgage, which is owned by Clayton Homes, one of the nation's largest manufacturers of mobile homes.

Costs of switching title

When a mobile home is titled as personal property, the owner pays personal property taxes. When it's titled as real estate, the owner pays real estate taxes. In many states, property taxes tend to be higher.

"The consumer has to do the math on how much they are going to save by lower interest rates, compared to how much more taxes they may be paying and what the closing costs are going to be" in a refinancing, Lifset says.

Another potential downside: If the owner has to build a permanent foundation to refinance a chattel loan, that expense has to be taken into account. Building a new foundation could cost $10,000 to $15,000, Rishel says.

"Refinancing is a valuable thing but for a limited number of people who live in manufactured homes," he says.

MHCO would like to thank Ken Rishel for providing this article:

Answer: Both approaches are incorrect, as they do not comply with 90.610and 90.155for proper rule changes. This is exceeding risky, since, in my opinion, it creates the potential tenant argument that not being effectively enacted means the new rule is not enforceable. Any legal action to enforce a violation of an improperly enacted rule would be a nullity.

Below is the correct procedure in adopting new rules. It should not be varied from or ignored without first discussing with legal counsel:

• The landlord may propose changes in rules or regulations, including changes that make a substantial modification of the landlord's bargain with a tenant.
• It should be by written notice and served as described in 90.155.
• Unless tenants of at least 51 percent of the "eligible spaces"[1]in the community object in writing within 30 days of the date the rule change notice was served, the change shall become effective for all tenants of those eligible spaces on a date not less than 60 days after the date that the notice was properly served by the landlord.
  • One tenant of record per eligible space may object to the rule or regulation change through either: (i) A signed and dated written communication to the landlord; or (ii)A petition format that is signed and dated by tenants of eligible spaces and that includes a copy of the proposed rule or regulation and a copy of the notice.

• If a tenant of an eligible space signs botha written communication to the landlord and a petition, or signs more than one written communication or petition, only the latest signature of the tenant may be counted.
• Aproxy may be used only if a tenant has a disability that prevents them from objecting to the rule or regulation change in writing.
  • The landlord's notice of a proposed change in rules or regulations must be given or served as provided in 90.155and must include: (i) Language of the existing rule or regulation and the language that would be added or deleted by the proposed rule or regulation change; and (ii) A statement substantially in the following form, with all blank spaces in the notice to be filled in by the landlord:

______________________________________________________________________________

(MHCO FORM 60) NOTICE OF PROPOSED RULE

OR REGULATION CHANGE

The landlord intends to change a rule or regulation in this facility.

The change will go into effect unless tenants of at least 51 percent of the eligible spaces object in writing within 30 days. Any objection must be signed and dated by a tenant of an eligible space.

The number of eligible spaces as of the date of this notice is:_____. Those eligible spaces are (space or street identification):___________________________.

The last day for a tenant of an eligible space to deliver a written objection to the landlord is _________ (landlord fill in date).

Unless tenants in at least 51 percent of the eligible spaces object, the proposed rule or regulation will go into effect on _________.

The parties may attempt to resolve disagreements regarding the proposed rule or regulation change by using the facility's informal dispute resolution process.

______________________________________________________________________________

• A good faith mistake by the landlord in completing those portions of the notice relating to the number of eligible spaces that have tenants entitled to vote or relating to space or street identification numbers does not invalidate the notice or the proposed rule or regulation change.
• After the effective date of the rule or regulation change (i.e. "a date not less than 60 days after the date that the notice was served by the landlord"), when a tenant continues to engage in an activity affected by the new rule or regulation to which the landlord objects, the landlord may give the tenant a notice of termination of the tenancy pursuant to ORS 90.630.
  • The notice shall include a statement that the tenant may request a resolution through the facility's informal dispute resolution process by giving the landlord a written request within seven (7) days from the date the notice was served.
  • If the tenant requests an informal dispute resolution, the landlord may not file an action for possession (i.e. eviction action) until 30 days after the date of the tenant's request for informal dispute resolution or the date the informal dispute resolution is complete, whichever occurs first.
• NOTE: Informal dispute resolution does not apply to disputes relating to:
  • Facility closure;
  • Facility sale; or
  • Rent, including but not limited to amount, increase and nonpayment.
• NOTE: Requiring a landlord to provide a Statement of Policy, do not create a basis for a tenant to demand informal dispute resolution of a rent increase.

[1]An "eligible space" means each space in the community as long as: (a) It is rented to a tenant and the tenancy is subject to ORS 90.505 to 90.850 (the manufactured housing section of the landlord-tenant law); and (b) The tenant who occupies the space has not: (i) Previously agreed to a rental agreement that already includes the proposed rule or regulation change; or (ii) Become subject to the proposed rule or regulation change as a result of a change in rules or regulations previously adopted under ORS 90.610.

What is this thing called Marketing?

Let's first look at what Webster has to say about the meaning of "marketing" - (1) the act or process of buying and selling in a market; and (2) the commercial functions involved in transferring goods from producer to consumer.  A more commercial definition of marketing that might be found in a high school or college text could read something like this: "creating a sale with the consumer for your product and/or service."

         Then, let's look at Webster's definition of "promoting" - (1) to forward or further, to encourage, to advance; (2) to raise to a more important rank, to contribute to the progress or growth of, to urge adoption of or advocate; and (3) to attempt to sell or popularize by advertising or by securing financial support.  Again, a more commercial definition of promoting might be something like: "bringing the consumer to your product and/or service."

         These definitions tell us that we need to be involved in both promoting and marketing!  It is the act of promoting that creates enthusiasm and brings us the traffic.  It is the act of marketing that defines the sale of a home or signing of a lease.  Without both of these tools in your toolkit, you would have a really hard time filling, re-filling, or upgrading your community.

Deciding Why you Want to Market

Do you want to promote because you have a new development?  Or will it be to fill vacancies within an existing community, or to upgrade (and turn around) an older community?  Each of these three stages of a community requires a different marketing plan, a different focus, different promotional strategies, and differing amounts of involvement.

Marketing has been the subject of many volumes of material, college courses, high school courses, and numerous articles in literally thousands of magazines. There are many facets of marketing for whatever business you try to promote.  It depends on the type of market you are in, the general state of the economy at the time you decide to start a promotion and marketing program, whether you are creating a demand or meeting a need, and several other variables.

Who are your Partners in Marketing?

Media Sources

• Motif
• Residents
• Employees
• Retailers
• Curb Appeal
• Vendors
• Personal Development
• Professionalism
• Industry Knowledge
• Civic Involvement

The Mental Picture of Marketing

Every minute of every day in every dealing you have with each person, you are promoting yourself, the company you represent, your community, and the industry as a whole.  Picture a diagram that consists of a huge wheel.  There is a hub in the very center. It is a small circle.  You are this hub.  Radiating outward from this hub are eleven spokes that then connect with a huge wheel on the outside.  Each of the eleven spokes is one of the areas of promotion we are going to discuss in this handbook.  The huge wheel on the outside is your market: the general public, the planning and zoning officials. 

In other words, this huge wheel is a never-ending stream of potential customers.  This huge wheel also makes up the members of the general public at large.  Everyone has an opinion.  On this huge wheel, everyone has an opinion about manufactured housing and manufactured home communities.  Part of a successful promotion and marketing program is to create more and more favorable opinions of the general public that is part of that huge wheel. 

When the one of the eleven spokes joins the wheel, a direct line of vision, understanding and agreement is created between the hub (you) and the wheel (your market).  Both ends of the spoke (you in the hub and the general public on the wheel) then see things the same way.  The conduit that enables this "coming together" of opinion is the spoke that links you in your hub with your potential customer on the huge wheel.  When this happens, you have successfully created a promotion (being noticed) that may result in effective marketing (a sale or lease).   The other positive side effect is usually the creation of a more favorable image of the manufactured housing industry as a whole.

When the public that is represented by the wheel is comprised of elected officials, your promotional efforts may result in positive zoning decisions or approval of expansion plans for a new community.  When that public represents your customer, you will have created a sale of a home or a lease of a homesite.  We need all kinds of people from this public arena on our side.

This illustration gives you a visual image of the way a successful promotion can take you where you have never been before - or leave you spinning around in circles.  You are in the center ring.  Take charge of your promotional efforts.  Create new markets.  Realize new growth opportunities.  Change the image of manufactured housing.  It all starts with you!

A successful promotion and marketing program will affect your staff, your community, your residents, their friends, their co-workers and families, the surrounding business community, and the industry as a whole in a positive way.  It will help change the perception of manufactured housing in the eyes of the uneducated public, the elected officials, and increase the number of homeowners.  Your successful promotion and marketing program will generate a continued bottom-line growth for your community and your company while providing housing that is perceived as a true value by your customers.

And, by the same token, an unsuccessful promotion and marketing program - or the total lack of one - can keep your community frozen in time.  It can perpetuate a negative image of the industry.  It will hamper your efforts in expansion, fill or upgrade.  It will prevent you from reaching the highest level of personal and professional excellence that is obtainable.  To be more blunt, the lack of a promotion and marketing program that does good means you, your community, and the industry will suffer.  It means that more people will neither believe nor share the positive messages the industry has to offer.

Key Concepts to a Successful Marketing Program 

• A successful promotion is a successful perception of value
• Every day is Open House
• Curb appeal is your job
• Use white classifieds
• Use reverse classifieds
• Create a comparison grid for your community
• Look at your community honestly - through the eyes of a video
• Enforce your Guidelines for better curb appeal
• Remember that word-of-mouth is your best advertising
• Utilize business cards in new and creative ways
• Everyone forms an opinion and every opinion matters
• We are no better than others perceive us to be
• Help retailers understand the values of your community
• Allow them to use the amenities
• Invite them to activities
• Offer a special tour for new salespeople
• Allow them to install model homes
• Hang a lifestyle picture in their sales office
• Visit on a regular basis
• Use custom labels for bags of donuts or candy
• Color code a map with vacant sites and sizes of homes
• Send gift certificates to a salesman's spouse
• Call to thank them for sending prospects
• Consider using resident referrals
• Free rent
• Certificates for dinner
• Mention in the newsletter
• Create a win-win promotion
• Give a shed, plants, gift certificate from nursery, deck, patio furniture, lawn mower, lawn care for six months, snow removal for a season, sod for the lawn, reduced water bill for watering
• Take brochures to area businesses
• Join the chamber of commerce and volunteer on committees

What is this thing called Marketing?

Let's first look at what Webster has to say about the meaning of "marketing" - (1) the act or process of buying and selling in a market; and (2) the commercial functions involved in transferring goods from producer to consumer.  A more commercial definition of marketing that might be found in a high school or college text could read something like this: "creating a sale with the consumer for your product and/or service."

         Then, let's look at Webster's definition of "promoting" - (1) to forward or further, to encourage, to advance; (2) to raise to a more important rank, to contribute to the progress or growth of, to urge adoption of or advocate; and (3) to attempt to sell or popularize by advertising or by securing financial support.  Again, a more commercial definition of promoting might be something like: "bringing the consumer to your product and/or service."

         These definitions tell us that we need to be involved in both promoting and marketing!  It is the act of promoting that creates enthusiasm and brings us the traffic.  It is the act of marketing that defines the sale of a home or signing of a lease.  Without both of these tools in your toolkit, you would have a really hard time filling, re-filling, or upgrading your community.

Deciding Why you Want to Market

Do you want to promote because you have a new development?  Or will it be to fill vacancies within an existing community, or to upgrade (and turn around) an older community?  Each of these three stages of a community requires a different marketing plan, a different focus, different promotional strategies, and differing amounts of involvement.

Marketing has been the subject of many volumes of material, college courses, high school courses, and numerous articles in literally thousands of magazines. There are many facets of marketing for whatever business you try to promote.  It depends on the type of market you are in, the general state of the economy at the time you decide to start a promotion and marketing program, whether you are creating a demand or meeting a need, and several other variables.

Who are your Partners in Marketing?

Media Sources

• Motif
• Residents
• Employees
• Retailers
• Curb Appeal
• Vendors
• Personal Development
• Professionalism
• Industry Knowledge
• Civic Involvement

The Mental Picture of Marketing

Every minute of every day in every dealing you have with each person, you are promoting yourself, the company you represent, your community, and the industry as a whole.  Picture a diagram that consists of a huge wheel.  There is a hub in the very center. It is a small circle.  You are this hub.  Radiating outward from this hub are eleven spokes that then connect with a huge wheel on the outside.  Each of the eleven spokes is one of the areas of promotion we are going to discuss in this handbook.  The huge wheel on the outside is your market: the general public, the planning and zoning officials. 

In other words, this huge wheel is a never-ending stream of potential customers.  This huge wheel also makes up the members of the general public at large.  Everyone has an opinion.  On this huge wheel, everyone has an opinion about manufactured housing and manufactured home communities.  Part of a successful promotion and marketing program is to create more and more favorable opinions of the general public that is part of that huge wheel. 

When the one of the eleven spokes joins the wheel, a direct line of vision, understanding and agreement is created between the hub (you) and the wheel (your market).  Both ends of the spoke (you in the hub and the general public on the wheel) then see things the same way.  The conduit that enables this "coming together" of opinion is the spoke that links you in your hub with your potential customer on the huge wheel.  When this happens, you have successfully created a promotion (being noticed) that may result in effective marketing (a sale or lease).   The other positive side effect is usually the creation of a more favorable image of the manufactured housing industry as a whole.

When the public that is represented by the wheel is comprised of elected officials, your promotional efforts may result in positive zoning decisions or approval of expansion plans for a new community.  When that public represents your customer, you will have created a sale of a home or a lease of a homesite.  We need all kinds of people from this public arena on our side.

This illustration gives you a visual image of the way a successful promotion can take you where you have never been before - or leave you spinning around in circles.  You are in the center ring.  Take charge of your promotional efforts.  Create new markets.  Realize new growth opportunities.  Change the image of manufactured housing.  It all starts with you!

A successful promotion and marketing program will affect your staff, your community, your residents, their friends, their co-workers and families, the surrounding business community, and the industry as a whole in a positive way.  It will help change the perception of manufactured housing in the eyes of the uneducated public, the elected officials, and increase the number of homeowners.  Your successful promotion and marketing program will generate a continued bottom-line growth for your community and your company while providing housing that is perceived as a true value by your customers.

And, by the same token, an unsuccessful promotion and marketing program - or the total lack of one - can keep your community frozen in time.  It can perpetuate a negative image of the industry.  It will hamper your efforts in expansion, fill or upgrade.  It will prevent you from reaching the highest level of personal and professional excellence that is obtainable.  To be more blunt, the lack of a promotion and marketing program that does good means you, your community, and the industry will suffer.  It means that more people will neither believe nor share the positive messages the industry has to offer.

Key Concepts to a Successful Marketing Program 

• A successful promotion is a successful perception of value
• Every day is Open House
• Curb appeal is your job
• Use white classifieds
• Use reverse classifieds
• Create a comparison grid for your community
• Look at your community honestly - through the eyes of a video
• Enforce your Guidelines for better curb appeal
• Remember that word-of-mouth is your best advertising
• Utilize business cards in new and creative ways
• Everyone forms an opinion and every opinion matters
• We are no better than others perceive us to be
• Help retailers understand the values of your community
• Allow them to use the amenities
• Invite them to activities
• Offer a special tour for new salespeople
• Allow them to install model homes
• Hang a lifestyle picture in their sales office
• Visit on a regular basis
• Use custom labels for bags of donuts or candy
• Color code a map with vacant sites and sizes of homes
• Send gift certificates to a salesman's spouse
• Call to thank them for sending prospects
• Consider using resident referrals
• Free rent
• Certificates for dinner
• Mention in the newsletter
• Create a win-win promotion
• Give a shed, plants, gift certificate from nursery, deck, patio furniture, lawn mower, lawn care for six months, snow removal for a season, sod for the lawn, reduced water bill for watering
• Take brochures to area businesses
• Join the chamber of commerce and volunteer on committees

What is this thing called Marketing?

Let's first look at what Webster has to say about the meaning of "marketing" - (1) the act or process of buying and selling in a market; and (2) the commercial functions involved in transferring goods from producer to consumer.  A more commercial definition of marketing that might be found in a high school or college text could read something like this: "creating a sale with the consumer for your product and/or service."

         Then, let's look at Webster's definition of "promoting" - (1) to forward or further, to encourage, to advance; (2) to raise to a more important rank, to contribute to the progress or growth of, to urge adoption of or advocate; and (3) to attempt to sell or popularize by advertising or by securing financial support.  Again, a more commercial definition of promoting might be something like: "bringing the consumer to your product and/or service."

         These definitions tell us that we need to be involved in both promoting and marketing!  It is the act of promoting that creates enthusiasm and brings us the traffic.  It is the act of marketing that defines the sale of a home or signing of a lease.  Without both of these tools in your toolkit, you would have a really hard time filling, re-filling, or upgrading your community.

Deciding Why you Want to Market

Do you want to promote because you have a new development?  Or will it be to fill vacancies within an existing community, or to upgrade (and turn around) an older community?  Each of these three stages of a community requires a different marketing plan, a different focus, different promotional strategies, and differing amounts of involvement.

Marketing has been the subject of many volumes of material, college courses, high school courses, and numerous articles in literally thousands of magazines. There are many facets of marketing for whatever business you try to promote.  It depends on the type of market you are in, the general state of the economy at the time you decide to start a promotion and marketing program, whether you are creating a demand or meeting a need, and several other variables.

Who are your Partners in Marketing?

Media Sources

• Motif
• Residents
• Employees
• Retailers
• Curb Appeal
• Vendors
• Personal Development
• Professionalism
• Industry Knowledge
• Civic Involvement

The Mental Picture of Marketing

Every minute of every day in every dealing you have with each person, you are promoting yourself, the company you represent, your community, and the industry as a whole.  Picture a diagram that consists of a huge wheel.  There is a hub in the very center. It is a small circle.  You are this hub.  Radiating outward from this hub are eleven spokes that then connect with a huge wheel on the outside.  Each of the eleven spokes is one of the areas of promotion we are going to discuss in this handbook.  The huge wheel on the outside is your market: the general public, the planning and zoning officials. 

In other words, this huge wheel is a never-ending stream of potential customers.  This huge wheel also makes up the members of the general public at large.  Everyone has an opinion.  On this huge wheel, everyone has an opinion about manufactured housing and manufactured home communities.  Part of a successful promotion and marketing program is to create more and more favorable opinions of the general public that is part of that huge wheel. 

When the one of the eleven spokes joins the wheel, a direct line of vision, understanding and agreement is created between the hub (you) and the wheel (your market).  Both ends of the spoke (you in the hub and the general public on the wheel) then see things the same way.  The conduit that enables this "coming together" of opinion is the spoke that links you in your hub with your potential customer on the huge wheel.  When this happens, you have successfully created a promotion (being noticed) that may result in effective marketing (a sale or lease).   The other positive side effect is usually the creation of a more favorable image of the manufactured housing industry as a whole.

When the public that is represented by the wheel is comprised of elected officials, your promotional efforts may result in positive zoning decisions or approval of expansion plans for a new community.  When that public represents your customer, you will have created a sale of a home or a lease of a homesite.  We need all kinds of people from this public arena on our side.

This illustration gives you a visual image of the way a successful promotion can take you where you have never been before - or leave you spinning around in circles.  You are in the center ring.  Take charge of your promotional efforts.  Create new markets.  Realize new growth opportunities.  Change the image of manufactured housing.  It all starts with you!

A successful promotion and marketing program will affect your staff, your community, your residents, their friends, their co-workers and families, the surrounding business community, and the industry as a whole in a positive way.  It will help change the perception of manufactured housing in the eyes of the uneducated public, the elected officials, and increase the number of homeowners.  Your successful promotion and marketing program will generate a continued bottom-line growth for your community and your company while providing housing that is perceived as a true value by your customers.

And, by the same token, an unsuccessful promotion and marketing program - or the total lack of one - can keep your community frozen in time.  It can perpetuate a negative image of the industry.  It will hamper your efforts in expansion, fill or upgrade.  It will prevent you from reaching the highest level of personal and professional excellence that is obtainable.  To be more blunt, the lack of a promotion and marketing program that does good means you, your community, and the industry will suffer.  It means that more people will neither believe nor share the positive messages the industry has to offer.

Key Concepts to a Successful Marketing Program 

• A successful promotion is a successful perception of value
• Every day is Open House
• Curb appeal is your job
• Use white classifieds
• Use reverse classifieds
• Create a comparison grid for your community
• Look at your community honestly - through the eyes of a video
• Enforce your Guidelines for better curb appeal
• Remember that word-of-mouth is your best advertising
• Utilize business cards in new and creative ways
• Everyone forms an opinion and every opinion matters
• We are no better than others perceive us to be
• Help retailers understand the values of your community
• Allow them to use the amenities
• Invite them to activities
• Offer a special tour for new salespeople
• Allow them to install model homes
• Hang a lifestyle picture in their sales office
• Visit on a regular basis
• Use custom labels for bags of donuts or candy
• Color code a map with vacant sites and sizes of homes
• Send gift certificates to a salesman's spouse
• Call to thank them for sending prospects
• Consider using resident referrals
• Free rent
• Certificates for dinner
• Mention in the newsletter
• Create a win-win promotion
• Give a shed, plants, gift certificate from nursery, deck, patio furniture, lawn mower, lawn care for six months, snow removal for a season, sod for the lawn, reduced water bill for watering
• Take brochures to area businesses
• Join the chamber of commerce and volunteer on committees

Answer:  I will address this in a series of suggestions which will hopefully provide some answers and/or approaches. First, remember that park property is private property. The landlord owns the spaces and common areas, and the residents own their home.  This gives Management the right to control who enters the community.

Second, this basic fact does not often get conveyed to the residents or their guests. Third, this communication gap can be addressed in written park policies and rules – which rarely happens. The result is that management frequently does not know how to deal with people inside the park but with questionable authority to be there. Accordingly, here are some suggestions:

1. Notify residents of management’s right to keep people off park property if they cannot account for why they are there.
2. This can be accomplished through communications with the residents, but best accomplished through adoption of a new rule providing that management reserves the right to require persons in the park (especially on foot) with no apparent reason, to identify themselves and their purpose. (The reasons could be work related, family/guest related, or possibly just strolling etc.). But absent those or similar reasons, management may be rightfully suspicious.
3. The Community should be properly posted that it is private property and unauthorized persons are not permitted without first contacting the management office. This would be management’s opportunity to vet the credentials of the people.
4. This posting could require that all people other than tenants must first register at the park office (at least the first time). It should say that unauthorized persons will be asked to leave.
5. Your question does not clarify why you contact the police. Was it because you saw someone suspicious, but never contacted them?  If you did make contact, did they refuse to tell you what they were doing there? Did they tell you but you either could not verify it or didn’t believe them? Going forward, I suggest that before you contact the police, you first do everything you can to determine for yourself what the person is doing there. If you don’t know and can’t tell the police, I understand their taking the path of least resistance by saying that unless they know the person has no business being there, its reasonable to assume they are a guest or a visitor of some tenant. But you can and should vet these issues first before asking the police to come remove the person.
6. Contact the local jurisdiction (county or city – whoever polices the area) and find out from them under what circumstances they will, at your request, trespass someone. Each jurisdiction can be different, so you want to know exactly what your police require.
7. My experience is that generally, the trespass issue doesn’t occur as much with vagrants who have no business there in the first place, but with guests and family members who are not tenants on the rental agreement - but using it as a crash-pad with the tenant’s permission. It is these people that can be biggest problem precisely because they are invitees of authorized tenants.
8. Your rules should address the amount of time these guests may remain before they either have to leave or apply for residency. (It’s often because they cannot be approved as a tenant that they just stay at a space without Management’s knowledge or consent. It is these folks who can cause the greatest problems, especially for the neighbors. Clearly, the first approach is to speak to the authorized tenant and try to secure their cooperation without issuing a for-cause rule violation.
9. My experience with obtaining police cooperation is generally to formally initiate the trespass issue first. This would include personally delivering the person a letter requiring them to leave the park and giving them a certain date and time after which they will be deemed to be a “trespasser. This leaves no question that if they are still on park property after the deadline, they are a “trespasser.” I would deliver the letter to the problem person and the tenant of the space.
10. Once you have the letter delivered (using a witness perhaps to verify service) I believe the police will remove the person. But you want to verify this protocol with them first.

Answer. The hazard tree legislation is relatively new; it was passed by the Oregon Legislature in 2013. Here is a summary:

1. Definitions.

• "DBH" means the diameter at breast height, which is measured as the width of a standing tree at four and one-half feet above the ground on the uphill side.

• "Hazard tree" means a tree that:
  • Is located on a rented space in a manufactured dwelling park;
  • Measures at least eight inches DBH; and
  • Is considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 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.

1. Habitability. A rented space is considered uninhabitable if the landlord does not maintain a hazard tree required by the 2013 Act.

1. Resident Duties re Trees Located on Space. A resident shall 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.

• "Maintaining a tree" means removing or trimming a tree for the purpose of eliminating features of the tree that cause the tree to be hazardous, or that may cause the tree to become hazardous in the near future.
• "Removing a tree" includes:
  • Felling and removing the tree; and
  • Grinding or removing the stump of the tree.

4. Landlord Duties re Hazard Trees.

• Landlord shall maintain a hazard tree that was not planted by the current resident if the landlord knows or should know that the tree is a hazard tree;
• Landlord may maintain a tree on the rented space to prevent the tree from becoming a hazard tree;
  • Landlord must provide residents with reasonable written notice and reasonable opportunity to maintain the tree themselves.
• Landlord has discretion to decide whether the appropriate maintenance of a hazard tree is removal or trimming.
• Landlord is not responsible for:
  • Maintaining a tree that is not a hazard tree; or
  • Maintaining any tree for aesthetic purposes.
• A landlord must comply with the access provisions of ORS 90.725 before entering a resident's space to inspect or maintain a tree. [Generally, 24-hour notice. - PCQ]
• Subject to the preceding, a resident is responsible for maintaining the non-hazard trees on the resident's space at the resident's expense.
  • The resident may retain an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture to inspect a tree on the resident's space at the resident's expense;
  • If the arborist determines that the tree is a hazard, the resident may:
    • Require the landlord to maintain the tree as a hazard tree; or
    • Maintain the tree at the resident's expense, after providing the landlord with reasonable written notice of the proposed maintenance and a copy of the arborist's report.

1. Tree Obstructing Removal of Home From Space. If a manufactured home cannot be removed from a space without first removing or trimming a tree on the space, the owner of the home may remove or trim the tree at the owner's expense, after giving reasonable written notice to the landlord, for the purpose of removing the home.

1. Use of Landscape Professional. The landlord or resident that is responsible for maintaining a tree must engage a landscape construction professional with a valid landscape license issued pursuant to ORS 671.560 to maintain any tree with a DBH of eight inches or more.

1. Access to Resident's Space [ORS 90.725].

• An "emergency" includes but is not limited to:
  • A repair problem that, unless remedied immediately, is likely to cause serious physical harm or damage to individuals or property;
  • The presence of a hazard tree on a rented space in a manufactured dwelling park.
• An "unreasonable time" refers to a time of day, day of the week or particular time that conflicts with the resident's reasonable and specific plans to use the space.
• "Yard maintenance, equipment servicing or grounds keeping" includes, but is not limited to, servicing individual septic tank systems or water pumps, weeding, mowing grass and pruning trees and shrubs.
• A landlord or a landlord's agent may enter onto a rented space to:
  • Inspect or maintain trees;
  • A landlord or the landlord's agent may enter a rented space solely to inspect a tree despite a denial of consent by the resident if the landlord or the landlord's agent has given at least 24 hours' actual notice of the intent to enter to inspect the tree and the entry occurs at a reasonable time.
  • If a landlord has a report from an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture that a tree on the rented space is a hazard tree that must be maintained by the landlord under this Act, the landlord is not liable for any damage or injury as a result of the hazard tree if the landlord is unable to gain entry after making a good faith effort to do so.
• If the resident refuses to allow lawful access, the landlord may obtain injunctive relief to compel access or may terminate the rental agreement pursuant to ORS 90.630 (1) and take possession in accordance with the Oregon eviction statutes. In addition, the landlord may recover actual damages.

8.Statement of Policy. It shall include the facility policy regarding the planting of trees on the resident's rented space. [See ORS 90.510]

Discussion. As you can see from the above, the definition of a hazard tree relates to whether it poses an unreasonable risk of serious physical harm or damage to individuals or property in the near future. The size of the tree alone, i.e. exceeding eight inches or more DBH, does not, in itself, make it a hazard tree; there must be potential for injury or damage in the near future.

Secondly, you will note that the hazard tree statutes make no distinction as to what part of the tree causes damage or injury. Although I had some involvement, along with John Van Landingham and others, in the creation of the legislation, speaking for myself, I was focused on the tree or branches falling on a home or resident. I was not thinking about damage from root systems.

Third, a landlord's removal obligation for hazard trees speaks to felling and removing them, and removing or grinding the stumps. Again, speaking only for myself, I was not thinking about tree roots that might remain after the stump is removed. (As a layperson, I think of the stump as the unremoved portion of the downed tree, and that portion below ground necessary to return the ground to its original level, sans the tree. But I certainly didn't focus on requiring that landlords remove root systems.

All of this is to say that my reading of the hazard tree statutes seems to make no distinction between damage above or below ground. Moreover, I suspect we would agree that damage to the foundation of a resident's home, could fall within the definition of what constitutes a hazard tree.

Remember that pursuant to ORS 90.730(4), the failure to maintain a hazard tree can constitute a habitability violation for which a tenant could bring a claim against their landlord.

Conclusion. Unfortunately, it appears to me that absent some language in the hazard tree statutes indicating an intent to exclude that portion of a tree below ground, i.e. its root system, a case could be made that remediating the damage caused by a hazard tree to a resident's home, or the cost to relevel it, is on your shoulders.

This does not mean, however, that the root systems of all felled hazard trees need to be removed. Once the tree is downed, and the trunk removed, the root system will not (as I understand it[1]) continue to grow. That being the case, if the roots are not posing a danger to a resident's space or the common area, there should be little reason to remove it.

The take-away here, is that landlords should be proactive in assessing hazard tree issues. This may include inspection of resident spaces. And when evaluating risk, landlords should look down, as well as up.

One interesting question, which I will not opine on here, is what a landlord should do about an otherwise healthy tree that is least eight inches DBH, if its root system poses, or could pose, a risk of damage to a resident's home. Must the tree be removed now?

[1] I suspect the major exception is bamboo trees, whose root systems seem to have a zombie-like life of their own.

Behind the Headlines: Lessons Learned from the Latest Fair Housing News

This is the first of four articles that MHCO spotlights settlements reached in fair housing cases. The amounts reportedly paid are sometimes staggering—which is news in and of itself—and show just how much it can cost to resolve fair housing complaints. But the real news is in the backstory, the events that led to a complaint against the community. It’s there that you can learn what, if any- thing, the community could have done to avoid the problem in the first place, or once the problem arose, to prevent it from escalating into a formal fair housing complaint.   Over the next four weeks MHCO will run four stories on Fair Housing settlements along with the backstory and lessons learned.  
 

In this lesson, we’re highlighting the news about four fair housing settlements. We’ll start with the headlines and then give you the backstory—the allegations in the complaint—so you can get a feel for how and why the situation led to a formal fair housing complaint. Then we’ll review the lessons learned from each scenario to help you avoid similar fair housing trouble at your community. 

Editor’s Note: Since we’re looking at settlements, we get to hear only one side of the story—the allegations of the resident, the government, or the fair housing advocacy group filing the complaint. It may not be what really happened: All the owners, managers, and communities denied the allegations, so we don’t get to hear their side of the story, which may very well have gotten the whole thing thrown out of court. As a practical matter, however, it’s often better to settle to put an end to the matter, rather than face the prospect of lengthy and expensive legal proceedings. Just remember: The fact that the case was settled doesn’t mean that anyone did anything wrong. 

First Headline:  Landlords Pay $19,500 for Allegedly Denying Housing to Mother of Twins 

HUD announced that a group of landlords have agreed to pay $19,500 to resolve complaints alleging discrimination against families with children. According to the complaint, the owners and their on-site property manager allegedly refused to rent a two-bedroom apartment to a single mother and her twin boys. 

The Backstory:This case started when a mother said she contacted a property manager about renting a two-bedroom unit for herself and her twin 4-year-old boys. She alleged that, after learning she had two sons, the property manager told her that there would be some clean-up involved and that he would get back to her—but he never did. Two weeks later, she said her mother called the property manager on her behalf. When the grandmother reminded him about the two children, the manager allegedly said that he would need to consult with his wife, who wouldn’t be back in town for two weeks. 

Suspecting discrimination, the mother asked her cousin to call about the unit. Allegedly, the property manager asked who would be living there and when the cousin said the apartment would be for her and her husband, he offered to show her the unit the next day.

The mother filed a HUD complaint, alleging that the community denied her the opportunity to rent a two-bedroom unit because she has children. Though the owners and manager denied the allegations, the parties reached a settlement. Without admitting liability, the community agreed to pay the mother $19,500 and to modify its website and advertising policy to clearly state that families with children are welcome. 

“When a property owner refuses to show an available unit to a family because they have children, they’re not only denying them a housing opportunity, they’re violating the law,” Gustavo Velasquez, HUD Assistant Secretary for Fair Hous- ing and Equal Opportunity, said in a statement. “No one should have to hide who they are or who their family is while looking for a place to live. This agreement reaffirms HUD’s commitment to ensuring that housing providers treat all applicants the same, regardless of gender, race or family status.” 

Lessons Learned: 

1. It’s NOT Okay to Turn Away Families with Children:  Though it’s been unlawful for 25 years, communities continue to run afoul of fair housing provisions banning discrimination based on familial status. These rules bar communities from denying housing to applicants because they have one or more children under 18 living with them. Unless the community qualifies as senior housing, it’s unlawful to screen out or deny housing to families with children. 

2. Dot Your I’s and Cross Your T’s to Qualify as Senior Housing: Don’t get lulled into a false sense of security because fair housing law recognizes an exception to the rules banning familial status for senior housing communities. It’s a limited exception, which applies only to “housing for older persons,” and there are lots of hurdles to jump before a community may qualify for the exception. Unless your community meets those specific technical requirements, you can’t simply decide that you’d prefer to rent to adults instead of people who have one or more children in their household. 

3. Testers Are on the Lookout for Discrimination Against Families: 

It’s common for prospects to ask friends or family members to check out suspicions that they’re getting the runaround because they have kids,
but increasingly it’s testers who are contacting communities to check for discrimination based on familial status. To avoid even the hint of discriminatory intent, treat every contact as if he was a fair housing tester—he very well may turn out to be one. 

EDITOR’S NOTE: This settlement is among a string of settlements and court filings in housing discrimination complaints based on familial status. A Wisconsin community agreed to a $100,000 settlement to resolve allegations that it unlawfully excluded families with children from significant portions of its 230-lot mobile home park. 

Answer: By way of refresher, ORS 90.630 pertains to curable maintenance/appearance violations relating to residents' spaces. However, if the violation relates to the physical condition of the home's exterior, ORS 90.632 applies, to address repair and/or remediation that can take more time to cure, either due to the weather, the amount or complexity of the work, or availability of qualified workers.

SB 277A, became law on June 14, 2017 ("Effective Date"), applies: (a) To rental agreements for fixed term tenancies - i.e. leases - entered into or renewed on or after the Effective Date; and, (b) To rental agreements for periodic tenancies - i.e. month-to-month tenancies - in effect on or after the Effective Date.

Both ORS 90.632 and the MHCO form (No. 55) provides that if the tenant performs the necessary repairs before the end of the compliance date, or extended compliance date, they have the right to give the landlord/manager a written notice that the issues have been corrected. There is no fixed time for management's response as to whether the repairs have been satisfactorily and timely performed; it is sufficient if it is within a reasonable time following the tenant's written notice. However, if a tenant gives this notice to management at least 14 days prior to the end of the completion deadline, or extended deadline, their failure to promptly respond is a defense to a landlord's termination of tenancy.

I am assuming the tenant gave you no such notice, otherwise, you would have responded that the color was too bright.

MHCO Form 55 contains a prompt at several places to attach additional pages, documents or photos, if doing so would be helpful in identifying the disrepair or deterioration, and the necessary repair. As I said in an article last year on this form, '_you cannot expect the tenant to be a mind reader - just because you know the nature of the problem and the appropriate repair, does not mean the tenant is on the same page. If there is any ambiguity in the notice, a court would likely rule in favor of the tenant. Why? Because the landlord/manager filled out the Notice and had the ability at that time to draft it with sufficient clarity."

Is there a technical argument that since the requirement was not in the Form 55 Notice, that it is not effective? In other words, he complied with the Notice, but not the letter. As you said: "He did paint like we asked him, but it was not a color approved by management." I personally think such an argue is specious - assuming that the letter accompanied, or quickly followed the Notice.

But to the question whether you can proceed under the Notice, I don't think I would recommend that, because the Notice was complied with. Assuming you have some rule about pre-approval on painting in your rules, I would issue a 30-day notice.

If you do not have such a rule, you will likely have to tread lightly, as you may not be in a good position to declare a violation upon which to issue a termination notice. In other words, you should try to reach a compromise, which may result in some form of cost sharing. I'm sorry to reach this conclusion, but without the requirement of management approval somewhere (i.e. in the rules or the Form 55 Notice) you may find that it the tenant secures legal counsel, you options are limited.[1]

The cautionary tale here is to make sure that when issuing Form 55 Notice, you not only need to identify what the problem is, but all completely explain what is necessary to cure. Had the pre-approval requirement been set out in the Form, you would have at least had a reasonable argument of non-compliance. I say "reasonable" because there still remains an argument by the tenant that you are imposing a requirement (i.e. management pre-approval), that is not contained in the rules or rental agreement.

[1] There is an argument that the Letter was part of the Form 55 Notice, and therefore the tenant is in violation. However, unless one of them referred to this cross-reference, it is not a pitch I would try to make in court.

Answer: Since the tenant does not own the home, the answer is found on the general landlord-tenant side of ORS Chapter 90 (as opposed to the manufactured housing side). Here is a summary of the tenant duties under ORS 90.325: - Use the parts of the premises including the living room, bedroom, kitchen, bathroom and dining room in a reasonable manner considering the purposes for which they were designed and intended. - Keep all areas of the premises under control of the tenant in every part as clean, sanitary and free from all accumulations of debris, filth, rubbish, garbage, rodents and vermin, as the condition of the premises permits and to the extent that the tenant is responsible for causing the problem. The tenant shall cooperate to a reasonable extent in assisting the landlord in any reasonable effort to remedy the problem. - Dispose from the dwelling unit all ashes, garbage, rubbish and other waste in a clean, safe and legal manner. With regard to needles, syringes and other infectious waste, as defined in ORS 459.386, the tenant may not dispose of these items by placing them in garbage receptacles or in any other place or manner except as authorized by state and local governmental agencies. - Keep all plumbing fixtures in the dwelling unit or used by the tenant as clean as their condition permits. - Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air conditioning and other facilities and appliances including elevators in the premises. - Test at least once every six months and replace batteries as needed in any smoke alarm, smoke detector or carbon monoxide alarm provided by the landlord and notify the landlord in writing of any operating deficiencies. - Behave and require other persons on the premises with the consent of the tenant to behave in a manner that will not disturb the peaceful enjoyment of the premises by neighbors. The underscored portion above clearly applies. The next question is the right of access. That is covered in ORS 90.322. The statute is quite long and complicated. Here is a summary of the relevant portions applicable to your situation: - A landlord or, to the extent provided in this section, a landlord's agent may enter into the tenant's dwelling unit or any portion of the premises under the tenant's exclusive control in order to inspect the premises, make necessary or agreed repairs, decorations, alterations or improvements, supply necessary or agreed services, perform agreed yard maintenance or grounds keeping or exhibit the dwelling unit to prospective or actual purchasers, mortgagees, tenants, workers or contractors. The right of access of the landlord or landlord's agent is limited as follows: - In case of an emergency, a landlord may enter the dwelling unit or any portion of the premises under a tenant's exclusive control without consent of the tenant, without notice to the tenant and at any time. "Emergency" includes but is not limited to a repair problem that, unless remedied immediately, is likely to cause serious damage to the premises. If a landlord makes an emergency entry in the tenant's absence, the landlord shall give the tenant actual notice within 24 hours after the entry, and the notice shall include the fact of the entry, the date and time of the entry, the nature of the emergency and the names of the persons who entered. - If the tenant requests repairs or maintenance in writing, the landlord or landlord's agent, without further notice, may enter upon demand, in the tenant's absence or without the tenant's consent, for the purpose of making the requested repairs until the repairs are completed. The tenant's written request may specify allowable times. Otherwise, the entry must be at a reasonable time. The authorization to enter provided by the tenant's written request expires after seven days, unless the repairs are in progress and the landlord or landlord's agent is making a reasonable effort to complete the repairs in a timely manner. If the person entering to do the repairs is not the landlord, upon request of the tenant, the person must show the tenant written evidence from the landlord authorizing that person to act for the landlord in making the repairs. - A landlord may not abuse the right of access or use it to harass the tenant. A tenant may not unreasonably withhold consent from the landlord to enter. - If the tenant refuses to allow lawful access, the landlord may obtain injunctive relief to compel access or may terminate the rental agreement under ORS 90.392 and take possession as provided in ORS 105.105 to 105.168. In addition, the landlord may recover actual damages. You have two choices in this situation: (a) Declare an emergency and enter to remediate the problem, carefully following the provisions of the access statute; (b) Try to secure the tenant's consent to have an exterminator enter and remediate the problem; (c) Terminate the tenancy and then fix the problem. Note that if you seek consent and the tenant refuses, you cannot then enter under the emergency provisions of the law, since the tenant has already refused access. As for damages, yes you can recover the cost, assuming that the exterminator confirms that this was a tenant caused problem.