69th OREGON LEGISLATIVE ASSEMBLY--1997 Regular Session NOTE: Matter within { + braces and plus signs + } in an amended section is new. Matter within { - braces and minus signs - } is existing law to be omitted. New sections are within { + braces and plus signs + } . LC 523 House Bill 2025 Ordered printed by the Speaker pursuant to House Rule 12.00A (5). Presession filed (at the request of Representative Larry Sowa for Lyman G. Louis) SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor's brief statement of the essential features of the measure as introduced. Requires landlord who rents space for manufactured dwelling or floating home to submit rent increase application to Housing and Community Services Department prior to increase. Requires department to consider specific factors when granting rent increase approval. Allows contested case hearing on application. Allows department to charge fee for administrative expenses. A BILL FOR AN ACT Relating to rent charged for facility spaces; creating new provisions; and amending ORS 90.600, 90.710 and 90.765. Be It Enacted by the People of the State of Oregon: SECTION 1. { + Sections 2 and 3 of this Act are added to and made a part of ORS 90.505 to 90.840. + } SECTION 2. { + Except as provided in section 3 of this 1997 Act: (1) A landlord who rents a space for a manufactured dwelling or floating home shall not demand, accept or retain rent for the space exceeding the rent in effect for the space on January 1, 1997. (2) If a previously rented space was not rented on January 1, 1997, the landlord shall not demand, accept or retain rent for the space exceeding the rent in effect during the last month the space was rented prior to January 1, 1997. (3) If a space is rented for the first time after January 1, 1997, the landlord shall not demand, accept or retain rent for the space exceeding the rent first charged for the space. + } SECTION 3. { + (1) A landlord shall file with Housing and Community Services Department a rent increase application for a manufactured dwelling or floating home space. (2) A rent increase application shall be filed upon a form prescribed by the department. The department may charge an application fee. The fee shall not exceed the administrative expenses incurred by the department. (3) The rent increase application shall specify: (a) The address of the facility; (b) The space number or numbers for which rent is requested to be increased; (c) The amount of the requested rent increase; and (d) The facts supporting the requested increase. (4) Upon receipt of a rent increase application, the department shall mail a notice that the rent increase application has been filed to the affected tenants at the spaces designated in the application. The notice shall include: (a) The amount of the requested rent increase; (b) A summary of the landlord's justification for the request; and (c) The tenant's right to submit written statements or documents to the department and time limit for submitting statements and documents. (5) The department shall make a determination on the rent increase application within 30 days after the time has expired for the tenant's submissions. The department shall approve a rent increase if the department determines the rent increase to be reasonable based on the following factors and any other factors it considers relevant: (a) Changes in the Portland Consumer Price Index for All Urban Consumers for All Items as prepared by the Bureau of Labor Statistics of the United States Department of Labor. (b) The rent charged for comparable spaces in Oregon. (c) The length of time since the last rent increase. (d) The completion of any capital improvements or rehabilitation work related to space or spaces specified in the rent increase application, including the cost of materials, labor, construction interest, permit fees and other items as the department deems appropriate. (e) Changes in taxes related to the facility. (f) Changes in the rent paid by the landlord for the lease of the land on which the subject facility is located. (g) Changes in the utility charges for the facility paid by the landlord and the extent, if any, of reimbursement from the tenants. (h) Changes in reasonable operating and maintenance expenses. (i) The need for repairs caused by circumstances other than ordinary wear and tear. (j) The amount and quality of services provided by the landlord to the affected tenants. (k) Any existing written agreement entered into between the landlord and the affected tenants. (6) An affected landlord or tenant may appeal a determination of the department under subsection (5) of this section to the department as a contested case under ORS 183.413 to 183.470. The department shall hold a hearing on the appeal within 60 days after receipt of the hearing request. (7) The department may provide that an increase in rent or a portion of an increase in rent granted by the department be limited to the length of time necessary to allow the landlord to reasonably amortize the cost of a capital improvement, including interest. Such increase granted as a result of the capital improvement shall not continue beyond the time necessary for reasonable amortization of the cost of such improvement. + } SECTION 4. ORS 90.600 is amended to read: 90.600. (1) In the case of a rental agreement to which ORS 90.505 to 90.840 apply, the landlord may not increase the rent unless: (a) The landlord gives notice in writing to each affected tenant at least 90 days prior to the effective date of the rent increase specifying the amount of the increase, the amount of the new rent and the date on which the increase becomes effective; (b) The landlord gives each affected tenant prior notice in writing that the landlord or a representative of the landlord will be available for discussion with tenants at a specified time which is not less than 10 nor more than 30 days after the date on which the landlord gave notice of the rent increase, and at a specified place which is on the premises in the case of a facility with facilities suitable for that purpose or, in all other cases, at a location reasonably convenient to tenants; { - and - } (c) The landlord or a representative of the landlord is in fact available for discussion with tenants at the time and place specified in the notice required by subsection (2) of this section { + ; and (d) The landlord has received approval of the rent increase pursuant to sections 2 and 3 of this 1997 Act + }. (2) The notice required by subsection (1)(b) of this section shall be given with or after the notice of rent increase, and not less than 10 days before the time at which the landlord is available for discussion, unless the time and place that the landlord is available is a regular office hour or regularly scheduled meeting known to the tenants. (3) In the event an association of tenants or a tenants' association chapter of tenants who reside in the facility requests in writing, within 10 days after mailing of a notice of rent increase under subsection (1) of this section, that the landlord meet to discuss the rent increase, the rent increase shall not become effective unless: (a) The landlord or a representative of the landlord holds one meeting which shall be open, but may be limited to, all tenants of the facility; (b) The meeting is held not less than 10 nor more than 30 days after written notice to all tenants of the time and place of the meeting, and not more than 40 days after mailing of the notice of the rent increase; and (c) The meeting is held on the premises if the facility has facilities suitable for that purpose, or at a location reasonably convenient to the tenants if the facility has no such facilities. (4) A meeting held under subsection (3) of this section constitutes compliance with subsection (1)(b) and (c) of this section. (5) This section does not create a right to increase rent that does not otherwise exist. (6) This section does not require a landlord to compromise or reduce a rent increase that the landlord otherwise is entitled to impose. { - (7) Neither ORS 90.510 (1), requiring a landlord to provide a statement of policy, nor ORS 90.510 (4), requiring a landlord to provide a written rental agreement, shall be construed to create a basis for tenant challenge of a rent increase, judicially or otherwise. - } SECTION 5. ORS 90.710 is amended to read: 90.710. (1) Any person aggrieved by a violation of ORS 90.525, 90.630, 90.680 or 90.765 { + or section 2 of this 1997 Act + } shall have a cause of action against the violator thereof for any damages sustained as a result of the violation or $200, whichever is greater. (2)(a) Except as provided in paragraphs (b) and (c) of this subsection, a tenant shall have a cause of action against the landlord for a violation of ORS 90.510 (4) for any damages sustained as a result of such violation, or $100, whichever is greater. (b) However, the tenant shall have no cause of action if, within 10 days after the tenant requests a written agreement from the landlord, the landlord offers to enter into a written agreement which does not substantially alter the terms of the oral agreement made when the tenant rented the space and which complies with this chapter. (c) If, within 10 days after being served with a complaint alleging a violation of ORS 90.510, the landlord offers to enter into a written rental agreement with each of the other tenants of the landlord which does not substantially alter the terms of the oral agreement made when each tenant rented the space and which complies with this chapter, then the landlord shall not be subject to any further liability to such other tenants for previous violations of ORS 90.510. (d) Notwithstanding ORS 41.580 (1), if a landlord and a tenant mutually agree on the terms of an oral agreement for renting residential property, but the tenant refuses to sign a written memorandum of that agreement after it has been reduced to writing by the landlord and offered to the tenant for the tenant's signature, the oral agreement shall be enforceable notwithstanding the tenant's refusal to sign. (e) A purchaser shall have a cause of action against a seller for damages sustained or $100, whichever is greater, who sells the tenant's manufactured dwelling or floating home to the purchaser before the landlord has accepted the purchaser as a tenant if: (A) The landlord rejects the purchaser as a tenant; and (B) The seller knew the purchaser intended to leave the manufactured dwelling or floating home on the space. (3) The court may award reasonable attorney fees to the prevailing party in an action under this section. SECTION 6. ORS 90.765 is amended to read: 90.765. (1) In addition to the prohibitions of ORS 90.385, a landlord who rents a space for a manufactured dwelling or floating home may not retaliate by increasing rent or decreasing services, by serving a notice to terminate the tenancy or by bringing or threatening to bring an action for possession after: (a) The tenant has expressed an intention to complain to agencies listed in ORS 90.385; (b) The tenant has made any complaint to the landlord which is in good faith; (c) The tenant has filed or expressed intent to file a complaint under ORS 659.045; { - or - } { + (d) The tenant has participated in the rent increase application process or hearing held pursuant to section 3 of this 1997 Act; or + } { - (d) - } { + (e) + } The tenant has performed or expressed intent to perform any other act for the purpose of asserting, protecting or invoking the protection of any right secured to tenants under any federal, state or local law. (2) If the landlord acts in violation of subsection (1) of this section the tenant is entitled to the remedies provided in ORS 90.710 (1) and has a defense in any retaliatory action against the tenant for possession. ----------