Item 3: Ordinance Concerning Manufactured Dwelling Park Closures

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: An Ordinance Concerning Manufactured Dwelling Park Closures; and Amending Sections 2.1060 and 2.1086 of the Eugene Code, 1971 Meeting Date: July 9, 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 adopt an ordinance amending the City’s current manufactured dwelling park closure provisions. The proposed amendments are based on recommendations from the Housing Policy Board. 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 and other factors. 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, and a public hearing on June 25, 2007. Seven people testified at the hearing. Five generally favored the proposal and two were opposed. BACKGROUND In 1989, Eugene adopted an ordinance that augmented 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. For those who qualify under Eugene’s current ordinance, if an owner gives the tenants 365-day notice, the park owner must pay the actual costs for moving their unit or $3,500, whichever is less. 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 buildable parcels all over the City are increasingly attractive for redevelopment. Manufactured home parks occupy some of these flat, easy to build on parcels. Risk to park residents has become a national issue. Park owners may wish to retire or take financial advantage of their investment when offered an L:\CMO\2007 Council Agendas\M070709\S0707093.doc