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.
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