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 373 House Bill 2345 Sponsored by Representatives STROBECK, FAHEY (at the request of Manufactured-Mobile Home Owners Association Northwest, Inc.) 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 manager of facility to have certain qualifications. Requires landlord to maintain reserve account for maintenance and upkeep. Prohibits landlord of facility from requiring relocation of habitable manufactured dwelling following sale of dwelling unless certain conditions met. Specifies participants in informal dispute resolution process. A BILL FOR AN ACT Relating to residential landlord-tenant relations; creating new provisions; and amending ORS 90.510, 90.525, 90.600, 90.610, 90.680 and 91.225. Be It Enacted by the People of the State of Oregon: SECTION 1. { + Sections 2 to 4 of this Act are added to and made a part of ORS 90.505 to 90.840. + } SECTION 2. { + The Legislative Assembly finds that both landlords and tenants of manufactured dwelling facilities need to settle disputes using informal dispute resolution processes because of the investment in the facility by both landlords and tenants as evidenced by ownership of: (1) The land, utilities and improvements of manufactured dwelling facilities by the landlords; and (2) The homes, decks, garages and sheds of manufactured dwelling facilities by the tenants. + } SECTION 3. { + The manager of a facility shall be a person who has the following qualifications: (1) Is of good character; (2) Has a good credit rating; (3) Has not been convicted of a felony as demonstrated by a criminal background check; and (4) Has no history of drug abuse. + } SECTION 4. { + The landlord of a facility shall place in a reserve bank account a portion of the rental income generated by the facility. The bank account may only be used for the maintenance and upkeep of the facility. The amount and the use of the money in the account shall be determined by an agreement between the landlord and representatives of the tenants' association. + } SECTION 5. ORS 90.510 is amended to read: 90.510. (1) Effective July 1, 1992, every landlord who rents a space for a manufactured dwelling or floating home shall provide a written statement of policy to prospective and existing tenants that shall provide the following information in summary form: (a) The location and approximate size of the space to be rented; (b) The federal fair-housing age classification and present zoning that affect the use of the rented space; (c) The facility policy regarding rent adjustment; (d) All personal property, services and facilities to be provided by the landlord; (e) All refundable deposits, nonrefundable fees and installation charges imposed by the landlord and installation fees imposed by government agencies; (f) The facility policy regarding rental agreement termination including, but not limited to, closure of the facility; (g) The facility policy regarding facility sale; (h) The facility policy regarding informal dispute resolution; and (i) Utilities and services available, the person furnishing them and the person responsible for payment. (2) The rental agreement and the facility rules and regulations shall be attached as an exhibit to the statement of policy. If the recipient of the statement of policy is a tenant, the rental agreement attached to the statement of policy shall be a copy of the agreement entered by the landlord and tenant. (3) Effective July 1, 1992: (a) Prospective tenants shall receive a copy of the statement of policy before signing a rental agreement; (b) Existing tenants who are on month-to-month rental agreements shall receive a copy of the statement of policy at the time the next 90-day notice of a rent increase is issued; and (c) All other existing tenants shall receive a copy of the statement of policy upon the expiration of their current rental agreement and before signing a new agreement. (4) Every landlord who rents a space for a manufactured dwelling or floating home shall provide a written rental agreement, except as provided by ORS 90.710 (2)(d), which shall be signed by the landlord and tenant and which cannot be unilaterally amended by one of the parties to the contract except by: (a) Mutual agreement of the parties; (b) Actions pursuant to ORS 90.600 or subsection (8) of this section; or (c) Those provisions required by changes in statute or ordinance. (5) The agreement required by subsection (4) of this section shall specify: (a) The location and approximate size of the rented space; (b) The federal fair-housing age classification; (c) The rent per month; (d) All personal property, services and facilities to be provided by the landlord; (e) All refundable deposits, nonrefundable fees and installation charges imposed by the landlord, and installation fees imposed by governmental agencies; (f) Improvements which the tenant may or must make to the rental space, including plant materials and landscaping; (g) Provisions for dealing with improvements to the rental space at the termination of the tenancy; (h) Any conditions the landlord applies in approving a purchaser of a manufactured dwelling or floating home as a tenant in the event the tenant elects to sell the home. Such conditions shall be in conformance with state and federal law and may include, but are not limited to, conditions as to pets, number of occupants, credit references, character references and criminal records; (i) That the tenant shall not sell the tenant's manufactured dwelling or floating home to a person who intends to leave the manufactured dwelling or floating home on the rental space until the landlord has accepted the person as a tenant; (j) The term of the tenancy; (k) The process by which the rental agreement or rules and regulations may be changed which shall identify that the rules and regulations may be changed with 60 days' notice unless 51 percent of the tenants file an objection within 30 days; and (L) The process by which notices shall be given by either landlord or tenant. (6) Every landlord who rents a space for a manufactured dwelling or floating home shall provide rules and regulations concerning the tenant's use and occupancy of the premises. A violation of the rules and regulations may be cause for eviction. However, this subsection does not create a presumption that all rules and regulations are identical for all tenants at all times. A rule or regulation shall be enforceable against the tenant only if: (a) The rule or regulation: (A) Promotes the convenience, safety or welfare of the tenants; (B) Preserves the landlord's property from abusive use; or (C) Makes a fair distribution of services and facilities held out for the general use of the tenants. (b) The rule or regulation: (A) Is reasonably related to the purpose for which it is adopted and is reasonably applied; (B) Is sufficiently explicit in its prohibition, direction or limitation of the tenant's conduct to fairly inform the tenant of what the tenant shall or shall not do to comply; and (C) Is not for the purpose of evading the obligations of the landlord. (7)(a) A landlord who rents a space for a manufactured dwelling or floating home may adopt a rule or regulation regarding occupancy guidelines. If adopted, an occupancy guideline in a facility shall be based on reasonable factors and shall not be more restrictive than limiting occupancy to two people per bedroom. (b) As used in this subsection: (A) 'Reasonable factors' may include but are not limited to: (i) The size of the dwelling. (ii) The size of the rented space. (iii) Any discriminatory impact for reasons identified in ORS 659.033. (iv) Limitations placed on utility services governed by a permit for water or sewage disposal. (B) 'Bedroom' means a room that is intended to be used primarily for sleeping purposes and does not include bathrooms, toilet compartments, closets, halls, storage or utility space and similar areas. (8) Notwithstanding a change in the rules and regulations of a facility which would prohibit pets, a tenant may keep a pet that is otherwise legally living with the tenant at the time the landlord provides notice of the proposed change to the rules and regulations of the facility. The tenant may replace a pet with a pet similar to the one living with the tenant at the time the landlord provided notice of the proposed change. New rules and regulations that regulate the activities of pets shall apply to all pets in the facility, including those pets who were living in the facility prior to the adoption of the new rule or regulation. (9) When a rental agreement does not specifically provide otherwise, the facility management may elect to bill a tenant separately for utility service fees and charges assessed by the utility for services provided to or for spaces in the facility. Any separately billed utility fees and charges shall not be considered to be included in the rent charged for those spaces under the rental agreement and shall not be considered to be rent or a rent increase. Utility services to which this subsection applies are natural or liquid propane gas, electricity, water, cable television, garbage or refuse service and sewer service. Nothing in this subsection requires rental agreements to provide for separate billing to tenants of fees and charges. { + (10) A landlord may not adopt a rule or regulation regarding the internal condition of a manufactured dwelling or floating home. This restriction includes rules or regulations on the interior condition, color or furniture within the manufactured dwelling or floating home. + } { - (10) - } { + (11) + } Intentional and deliberate failure of the landlord to comply with subsections (1) to (3) of this section shall be cause for suit or action to remedy the violation or to recover actual damages. The prevailing party is entitled to reasonable attorney fees and court costs. { - (11) - } { + (12) + } A receipt signed by the potential tenant or tenants for documents required to be delivered by the landlord pursuant to subsections (1) to (3) of this section shall be a defense for the landlord in an action against the landlord for nondelivery of the documents. { - (12) - } { + (13) + } A suit or action arising under subsection { - (10) - } { + (11) + } of this section must be commenced within one year after the discovery or identification of the alleged violation. SECTION 6. ORS 90.525 is amended to read: 90.525. (1) No landlord shall impose conditions of rental or occupancy which unreasonably restrict the tenant or prospective tenant in choosing a fuel supplier, furnishings, goods, services or accessories. (2) No landlord of a facility shall require the prospective tenant to purchase a manufactured dwelling or floating home from a particular dealer or one of a group of dealers. (3) No landlord renting a space for a manufactured dwelling or floating home shall give preference to a prospective tenant who purchased a manufactured dwelling or floating home from a particular dealer. (4) No manufactured dwelling or floating home dealer shall require, as a condition of sale, a purchaser to rent a space for a manufactured dwelling or floating home in a particular facility or one of a group of facilities. { + (5) Notwithstanding ORS 90.510 (5)(h), the landlord of a facility shall not require the removal of a habitable manufactured dwelling from the facility following the sale of the dwelling unless the landlord: (a) Locates a reasonable replacement site agreeable to the purchaser and pays the full cost of relocating the dwelling, including landscaping the new site; or (b) Purchases the manufactured dwelling at the fair market value. + } SECTION 7. 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) + } A specified time { - which is - } { + or times that are convenient for a majority of the affected tenants and are + } not less than 10 nor more than 30 days after the date on which the landlord gave notice of the rent increase { - , - } { + ; + } and { + (B) + } { - at - } A specified place { - which - } { + that + } 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. (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 8. ORS 90.610 is amended to read: 90.610. (1) Notwithstanding ORS 90.245 (1), the parties to a rental agreement to which ORS 90.505 to 90.840 applies shall provide for a process establishing informal dispute resolution of disputes that may arise concerning the rental agreement for a manufactured dwelling or floating home space. { + The informal dispute resolution process shall include the direct involvement of: (a) The owner of the facility; (b) If the facility is owned by a partnership, one of the major partners; or (c) If the facility is owned by a corporation, one of the officers of the corporation. + } (2) The landlord may propose changes in rules or regulations, including changes that make a substantial modification of the landlord's bargain with a tenant, by giving notice of the proposed rule or regulation change, and unless tenants of 51 percent of the rented spaces in the facility object in writing within 30 days of the date the notice was served, the change shall be effective for all tenants on a date not less than 60 days after the date that the notice was served by the landlord. (3) One tenant of record per rented space may object to the rule or regulation change through either: (a) An individual written communication to the landlord; or (b) A petition format that shall include a copy of the proposed rule or regulation and of the notice. (4) Notwithstanding subsection (3) of this section, a proxy may be used only if a tenant has a disability that prevents the tenant from objecting to the rule or regulation change in writing. (5) The landlord's notice of a proposed change in rules or regulations required by subsection (2) of this section shall include: (a) Language of the existing rule or regulation and the language that would be added or deleted by the proposed rule or regulation change; and (b) A statement substantially in the following form: _________________________________________________________________ NOTICE OF PROPOSED RULE CHANGE The landlord intends to change a rule or regulation in this facility. The change will go into effect unless tenants of 51 percent of the rented spaces object in writing within 30 days. The number of rented spaces as of the date of this notice is:___. The last day for written objection to be delivered to the landlord is________ (landlord fill in date). Unless tenants in 51 percent of the rented spaces object, the proposed rule will go into effect on________. The parties may attempt to resolve disagreements regarding the proposed rule change by using the facility's informal dispute resolution process. _________________________________________________________________ (6) After the effective date of the rule or regulation change, 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 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 pursuant to ORS 105.105 to 105.168 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. (7) No agreement under this section shall require informal dispute resolution of disputes relating to: (a) Facility closure; { + or + } (b) Facility sale { + . + } { - ; or - } { - (c) Rent, including but not limited to amount, increase and nonpayment. - } { - (8) ORS 90.510 (1) to (3), requiring a landlord to provide a statement of policy, shall not be construed to create a basis for a tenant to demand informal dispute resolution of a rent increase. - } SECTION 9. ORS 90.680 is amended to read: 90.680. (1) No landlord shall deny any manufactured dwelling or floating home space tenant the right to sell a manufactured dwelling or floating home on a rented space or require the tenant to remove the home from the space solely on the basis of the sale. (2) The landlord shall not exact a commission or fee for the sale of a manufactured dwelling or floating home on a rented space unless the landlord has acted as agent for the seller pursuant to written contract. (3) The landlord may not deny the tenant the right to place a ' for sale' sign on or in a manufactured dwelling or floating home owned by the tenant. The size, placement and character of such signs shall be subject to reasonable rules of the landlord. (4) The landlord may require: (a) That a tenant give not more than 30 days' notice in writing prior to the sale of a manufactured dwelling or floating home on a rented space if the prospective purchaser of the home desires to leave the home on the rented space and become a tenant; and (b) That the prospective purchaser complete and submit a complete and accurate written application for occupancy of the home as a tenant when the sale is complete. (5) The following apply if a landlord receives an application for tenancy from a prospective purchaser under subsection (4) of this section: (a) The landlord is subject to subsection (6) of this section if the landlord does not accept or reject the prospective purchaser's application within 20 days of receipt or within a longer time period to which the landlord and prospective purchaser agree. (b) The landlord, for cause as specified in ORS 90.510 (5)(h), may reject the prospective purchaser as a tenant. In such case the landlord shall furnish to the seller and purchaser a written statement of the reasons for the rejection. (c) If the landlord accepts the potential purchaser as a tenant, the landlord shall inform the purchaser, at the time of acceptance, what conditions will be imposed on a subsequent sale. These conditions need not be the same as those in the previous rental agreement. { + The landlord may not require, as a condition of acceptance, that the potential purchaser agree to remove the dwelling in the event the potential purchaser later resells the dwelling. + } (6) The following apply if a landlord does not require a prospective purchaser to submit an application for occupancy as a tenant under subsection (4) of this section or if the landlord does not accept or reject the prospective purchaser as a tenant within the time required under subsection (5) of this section: (a) The landlord waives any right to bring an action against the tenant under the rental agreement for breach of the landlord's right to establish conditions upon and approve a prospective purchaser of the tenant's home; (b) The prospective purchaser, upon completion of the sale, may occupy the home as a tenant under the same conditions and terms as the tenant who sold the home; and (c) If the prospective purchaser becomes a new tenant, the landlord may only impose conditions or terms on the tenancy that are inconsistent with the terms and conditions of the seller's rental agreement if the new tenant agrees in writing. SECTION 10. ORS 91.225 is amended to read: 91.225. { - (1) The Legislative Assembly finds that there is a social and economic need to insure an adequate supply of affordable housing for Oregonians. The Legislative Assembly also finds that the imposition of general restrictions on housing rents will disrupt an orderly housing market, increase deferred maintenance of existing housing stock, lead to abandonment of existing rental units and create a property tax shift from rental-owned to owner-occupied housing. Therefore, the Legislative Assembly declares that the imposition of rent control on housing in the State of Oregon is a matter of statewide concern. - } { - (2) - } { + (1) + } Except as provided in subsections { - (3) to (5) - } { + (2) to (4) + } of this section, a city or county shall not enact any ordinance or resolution which controls the rent that may be charged for the rental of any dwelling unit. { - (3) - } { + (2) + } This section does not impair the right of any state agency, city, county or urban renewal agency as defined by ORS 457.035 to reserve to itself the right to approve rent increases, establish base rents or establish limitations on rents on any residential property for which it has entered into a contract under which certain benefits are applied to the property for the expressed purpose of providing reduced rents for low income tenants. Such benefits include, but are not limited to, property tax exemptions, long-term financing, rent subsidies, code enforcement procedures and zoning density bonuses. { - (4) - } { + (3) + } Cities and counties are not prohibited from including in condominium conversion ordinances a requirement that, during the notification period specified in ORS 100.305, the owner or developer may not raise the rents of any affected tenant except in a proportional amount equal to the percentage increase in the All Items Portland Consumer Price Index since the date of the last rent increase for the dwelling unit then occupied by the affected tenant. { - (5) - } { + (4) + } Cities, counties and state agencies may impose temporary rent controls when a natural or man-made disaster that materially eliminates a significant portion of the rental housing supply occurs, but must remove the controls when the rental housing supply is restored to substantially normal levels. { - (6) - } { + (5) + } As used in this section, 'dwelling unit' and ' rent' have the meaning given those terms in ORS 90.100. { - (7) - } { + (6) + } This section is applicable throughout this state and in all cities and counties therein. The electors or the governing body of a city or county shall not enact, and the governing body shall not enforce, any ordinance, resolution or other regulation that is inconsistent with this section. ----------