Item B: Ordinance Concerning Manufactured Dwelling Park Regulations

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Manufactured Dwelling Park Regulations Meeting Date: June 11, 2007 Agenda Item Number: B Department: Planning and Development Staff Contact: Richie Weinman www.eugene-or.gov Contact Telephone Number: 682-5533 ISSUE STATEMENT The council is asked to consider recommendations from the Housing Policy Board pertaining to closure of manufactured home parks. Eugene was the first of four Oregon jurisdictions to provide protections for tenants who own their own home and rent a space in a manufactured home park. Eugene’s protections/benefits are limited to “special category” tenants in a very limited class of parks. The limited protections that once existed have now been substantially eroded due to inflation. The proposed amendments attempt to strike a balance between the rights of the property owners and the risks to the homeowners. BACKGROUND In 1989, Eugene adopted an ordinance that augments state statutes. Eugene’s ordinance applies only to manufactured home parks located in flood plains or on land not residentially zoned. Furthermore, Eugene’s ordinance only applies to “special category” tenants. Special category tenants are defined as residents who are: 1) 70 years of age or older; 2) disabled; or 3) low-income. Low-income residents are defined as households that earn 80 percent or less of Area Median Income. In total there are at least 34 manufactured home parks in Eugene with 3,136 spaces. There is a very low vacancy rate. Of these, at least 18 parks with 1,201 spaces are potentially regulated by Eugene’s current ordinance because they are in a flood plain or on non-residentially zoned land. Under state law, the park owner must provide a written notice to tenants either 180 days or 365 days prior to a park closure. If the park owner elects to use the 180-day notice period, the owner must pay each tenant the lesser of: 1) actual costs for moving their unit, or 2) $3,500. Most parks elect a 365-day notice. In 2005, the state created a tax credit for residents of manufactured home parks that are forced to move as a result of a park closure. Resident households with incomes of $60,000 or less may receive up to $10,000 in tax credits. For those who qualify under Eugene’s current ordinance, if an owner uses the 365-day notice, the park owner must pay the state required moving costs for special category tenants only. If the park owner elects to use a 180-day closure notice, they must also locate a space for the tenant to move their unit to and pay moving costs. The ordinance also requires the park owner to hire a housing counselor to help special category tenants apply for moving costs. When the City originally adopted protections, it recognized the needs of special category tenants. The thinking at the time was that other tenants had more options. The ordinance was also limited to parks anticipated to eventually close because of their location. Today, land prices are higher and flat, easily L:\CMO\2007 Council Agendas\M070611\S070611B.doc