Item 3: PH on Ordinance Concerning Manufactured Dwelling Park Closures

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Concerning Manufactured Dwelling Park Closures; and Amending Sections 2.1060 and 2.1086 of the Eugene Code, 1971 Meeting Date: June 25, 2007 Agenda Item Number: 3 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. Currently, Eugene’s protections/benefits are limited to “special category” tenants in a very limited class of parks. These limited protections have 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. The council conducted a work session on June 11, 2007. A minor clarification has been made to the draft ordinance since the work session. The City Attorney, upon further review of their draft language, recommends that the ordinance stipulate that the flat fee that is based on the federal relocation compensation schedule (paid to owners who are unable to move their homes), be implemented through an administrative order so that the flat fee can be updated to reflect future changes to the federal relocation compensation schedule. 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 who 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 L:\CMO\2007 Council Agendas\M070625\S0706253.DOC