Item 3: Ordinance Concerning Manufactured Dwelling Park Closures

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opportunity. In some cases, tenants may wish to collectively purchase the park they live in. However, legal remedies at the state level are needed to facilitate the financing options. Furthermore, there are examples in Oregon and elsewhere where the sale price far exceeded the ability of tenants to purchase the park themselves. If a park closes, homeowners can be faced with a bleak situation. They may not have any place to move their home to, as new parks are rarely created. Or, tenants may discover that their home can not be moved due to its age or condition. Sometimes these homeowners have been required by their park to invest in expensive “park packages” that include paying for a driveway, a patio, or a carport. If the park closes they may be left with a debt in addition to owning a devalued home. Two parks have closed under the current ordinance. No existing Eugene parks have indicated any plans to close. However, many tenants are concerned about their future and have followed this issue closely. The Housing Policy Board (HPB) examined this issue and appointed a committee to study the problem and make recommendations. City Councilor Jennifer Solomon chaired the committee. The committee included a park owner, park manager, tenants, and the HPB chair, John Van Landingham. They met eight times during a seven-month period. They listened to public testimony and debated emotionally charged issues. The HPB’s recommendations attempted to acknowledge and balance the rights of property owners and the concerns of tenants. Response to Questions Raised at the Council Work Session 1. Councilor Bettman raised the issue of tenant notification. The ordinance requires that park owners provide tenants with written notice not less than 365 days before the closure date. A park owner first gives notice to tenants and the City of his or her intent to close the park. Following notice of intent to close the park, the owner must apply to the City for a closure permit. The owner must submit the permit application to the City no sooner than 30 days, and no later than 60 days, after providing the notice of intent to close. The owner must post a copy of the entire application in a conspicuous place within the manufactured dwelling park. The City has 30 days to review the application and issue a report. The owner must also post a copy of the staff report. The City Manager then may issue or deny the requested permit. If the permit is issued, the park owner must promptly notify each affected tenant in writing of the decision and the City will notify each property owner within 100 feet of the decision. The City’s decision may be appealed within 10 days by any person affected by the decision. 2. Councilor Bettman had questions regarding the possible waiver of System Development Charges (SDC). During the council’s work session, staff explained the discussion and compromises from the Housing Policy Board Committee that led to these recommendations. Some on the committee advocated for the park owner, home owner, state and local jurisdiction (City) to each share in the financial solution for assisting displaced home owners. Staff reported to the council that the only identified portion that may actually fall to Eugene was a potential SDC credit that could be transferred from the old development to the new development. As a clarification, no SDC credits are included in the draft ordinance or staff recommendations. Rather, this is only an option that is sometimes available in any redevelopment situation -- where some infrastructure improvements have already been paid for at the site and therefore, constitute a credit toward those assessed on new development. 3. Mayor Piercy asked for a comparison of the benefits of the City’s proposed ordinance amendments and the proposed state legislation. This comparison was provided in a chart attached as Attachment L:\CMO\2007 Council Agendas\M070709\S0707093.doc