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HomeMy WebLinkAboutItem B: Ordinance Concerning Manufactured Dwelling Park Regulations 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 buildable parcels all over the City are increasingly attractive for redevelopment. Manufactured home parks occupy some of these flat, easy-to-build 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 opportunity. In some cases, tenants may wish to collectively purchase the park in which they live. 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 home owners have been required by their park to invest in expensive “park packages” that include paying for a driveway, a patio, or a car port. If the park closes, they may be left with a debt in addition to a devalued home. Two parks have closed under the City’s 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 members included a park owner, a park manager, tenants, and the HPB Chair, John Van Landingham. The group 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. The proposed amendments, which would apply Eugene’s ordinance to all tenants who own their home, are summarized in Attachment B. Attachment B also shows a comparison of these amendments and HB 2735 and SB 17A, which are currently being considered by the State Legislature. The ability of the City to act is impacted by the Oregon Legislature, which is considering bills that were drafted by a coalition including park owners and tenant advocates. The same bill was introduced in both the Senate (SB 17) and the House (HB 2735). The coalition’s bill provides statewide protections but would also preempt local jurisdictions from passing their own ordinances. One amended version of the bill would grandfather in jurisdictions that adopt legislation that takes effect prior to October 1, 2007. The Oregon Legislature is likely to complete its session prior to the scheduled City Council action. RELATED CITY POLICIES The City’s 2007 Legislative Policies, V.B2 supports legislation that provides assistance to residents when manufactured home parks are closed. The City currently has an ordinance in place. This action would amend the ordinance so that it is more responsive to current issues and needs. Two of Eugene’s Growth Management Policies apply to manufactured home park closures: Policy 7: Provide for a greater variety of housing types. Policy 9: Mitigate the impacts of new and/or higher density housing, in-fill, and redevelopment on neighborhoods through design standards, open space and housing maintenance programs, and continuing historic preservation and neighborhood planning programs. L:\CMO\2007 Council Agendas\M070611\S070611B.doc COUNCIL OPTIONS The council may adopt, amend, or reject this proposal. CITY MANAGER’S RECOMMENDATION The City Manager recommends that a public hearing be held on June 18 to consider amendments to the manufactured home park regulations. SUGGESTED MOTION No motion is necessary; this is a work session only. ATTACHMENTS A. Draft Ordinance B. Summary of Proposed Amendments C. Housing Policy Board Committee Roster FOR MORE INFORMATION Staff Contact: Richie Weinman, Urban Services Manager Telephone: 682-5533 Staff E-Mail: Richie.d.weinman@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070611\S070611B.doc ATTACHMENT A ORDINANCE NO. ___________ AN ORDINANCE CONCERNING MANUFACTURED DWELLING PARK CLOSURES; AND AMENDING SECTIONS 2.1060 AND 2.1086 OF THE EUGENE CODE, 1971. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. The caption and first sentence of Section 2.1060 of the Eugene Code, 1971, and the caption preceding it are amended; the definitions contained therein of “Affected tenant,” “Disabled person,” “Elderly person,” “Hearings officer,” “Low income person,” “Moving expenses,” “Permit,” and “Rental agreement” are amended; and the definitions of “Alternative housing,” “Conversion (manufactured dwelling park),” “Manufactured dwelling,” “Manufactured dwelling park,” “Manufactured dwelling park owner or park owner,” and “Tenant (manufactured dwelling park)” are deleted therefrom, to provide as follows: Condominium [and Manufactured Dwelling Park] Conversion 2.1060 Condominium [and Manufactured Dwelling Park] Conversion - Definitions. In sections 2.1060 to [2.1086] 2.1084 of this code, the following words and phrases mean: Affected tenant. Any tenant who resides in a building to be converted at the time of notice of planned conversion[, or who is a tenant of a manufactured dwelling park at the time of notice of park closure]. [Alternative housing. Manufactured dwelling or other housing which is reasonably similar to the manufactured dwelling occupied or owned by the special category tenant or a manufactured dwelling space which is reasonably similar to the space then occupied by the special category tenant in terms of location, price, proximity to services, general amenities, and any other factors identified in administrative rules issued hereunder. Housing or a manufactured dwelling space is not reasonably similar if it is located in a manufactured dwelling park for which a notice of park closure has been given or for which reasonable evidence exists that the owner of the manufactured dwelling park is contemplating conversion to other uses.] [Conversion (manufactured dwelling park). The termination of a rental L:\CMO\2007 Council Agendas\M070611\S070611B.doc agreement for a manufactured dwelling and/or manufactured dwelling space by the manufactured dwelling park owner for the purpose of ending manufactured dwelling residential uses of the park and either beginning different land uses or selling the property, which conversion is not required by the exercise of eminent domain or by order of state or local agencies; or, the obtaining of a building permit for a structure located on a site previously used as a manufactured dwelling park within the past two years.] Disabled person. A person who has, at the time of issuance of a condominium conversion permit [or manufactured dwelling park conversion permit,] a mental, emotional or physical disability or illness of more than a temporary duration that: (a) Substantially impairs his or her ability to move about to find or maintain a housing unit without the use of external aids (e.g., wheelchair, cane, walker, guide dog) or without another person's assistance, or without pain; or (b) Involves the loss of sight or hearing ability, prevents normal walking or climbing of stairs, or requires a special life support system; or (c) Affects his or her ability to make decisions or manage his or her own financial affairs without assistance. A disability must prevent or make it difficult for the person to carry out regular activities of daily living (e.g., housework, shopping, laundry, meal preparation, personal care such as bathing and dressing). Evidence that would determine the status of disability would include a doctor's certificate, a statement from a health care specialist attesting to the above criteria, a governmental determination of disability, or a worker's compensation determination of greater than 50 percent disability. Elderly person. A person who is 70 years of age or over at the time of the notice of planned conversion[ or notice of park closure]. Hearings officer. A person appointed by the city manager to decide contested issues arising under sections 2.1060 to [2.1086] 2.1084 of this code. Low income person. A person who, at the time of notice of planned conversion[ or notice of park closure], has a current income equal to or less than 80% of the median income on a yearly basis determined for Lane County by the Department of Housing and Urban Development or its successor. [Manufactured dwelling. As that term is defined by section 9.015 of this code.] [Manufactured dwelling park. As that term is defined in section 9.015 of this code.] [Manufactured dwelling park owner or park owner. The owner, lessor, sub- lessor or manager of a manufactured dwelling park.] Moving expenses. [For condominium tenants, a A fixed sum of money based on the number of rooms of furniture that is intended to cover the cost of moving the L:\CMO\2007 Council Agendas\M070611\S070611B.doc tenant's possessions to another location within the urban growth boundary exclusive of expenses attributable to packing and unpacking. For elderly or disabled tenants moving expenses include an additional fixed sum of money intended to cover the costs of packing and unpacking. [For manufactured dwelling tenants, a sum of money representing the actual costs for moving the tenants possessions and a tenant’s manufactured dwelling to another location within the urban growth boundary. In the case of manufactured dwelling moving expenses, eligible expenses also include removal and reinstallation of skirting, disconnecting utilities, disconnecting and removing awnings and decks from the manufactured dwelling, trip permit and public inspection fees, transportation costs, set up charges, utility connection expenses and fees, unit improvements to meet destination park standards, unit improvements to meet state structural specialty codes, and temporary housing and meals for the tenant and permanent occupants during unit relocation and set up.] The amount of moving expenses shall be set by administrative rules issued hereunder. Permit . A condominium conversion permit [or manufactured dwelling park closure permit] issued by the city manager under section 2.1066 [or 2.1086] of this code. Rental agreement. All written or oral agreements[, and valid rules and regulations adopted under ORS 90.262 as amended on or before January 1, 1991, embodying the terms and conditions concerning the use and occupancy of a manufactured dwelling or manufactured dwelling space]. [Tenant (manufactured dwelling park). A person entitled under a rental agreement to occupy, to the exclusion of others, a manufactured dwelling or manufactured dwelling space in a manufactured dwelling park.] Section 2. A caption is hereby added, and Section 2.1086 of the Eugene Code, 1971, is amended to provide: MANUFACTURED DWELLING PARK CLOSURES 2.1086 Manufactured Dwelling Park Closures. (1) Definitions. As used in this section 2.1086, the following words and phrases mean: Affected tenant. A person who owns and occupies a manufactured dwelling in a manufactured dwelling park and is entitled under a rental agreement to occupy, to the exclusion of others, a manufactured dwelling space in a manufactured dwelling park at the time notice of park L:\CMO\2007 Council Agendas\M070611\S070611B.doc closure is given. A person who rents, but does not own the manufactured dwelling located in a manufactured dwelling park is not an “affected tenant” for purposes of this section. Alternative housing. A manufactured dwelling or other housing which is reasonably similar to the manufactured dwelling owned and occupied by the affected tenant, or a manufactured dwelling space which is reasonably similar to the space then occupied by the affected tenant in terms of location, price, proximity to services, general amenities, and any other factors identified in administrative rules issued hereunder. Housing, or a manufactured dwelling space, is not reasonably similar if it is located in a manufactured dwelling park for which a notice of park closure has been given or for which reasonable evidence exists that the owner is contemplating conversion to other uses. City manager. The city manager or the manager’s designee. Conversion. The termination of a rental agreement for a manufactured dwelling and/or manufactured dwelling space by the manufactured dwelling park owner for the purpose of ending manufactured dwelling residential uses of the park and either beginning different land uses or selling the property, which conversion is not required by the exercise of eminent domain or by order of state or local agencies; or, the obtaining of a building permit for a structure located on a site previously used as a manufactured dwelling park within the past two years. Hearings officer. A person appointed by the city manager to decide contested issues arising under this section 2.1086. Manufactured dwelling. Includes: a manufactured home constructed for movement on the public highways that has sleeping, cooking and plumbing facilities, that is intended for human occupancy, that is being used for residential purposes and was constructed in accordance with federal manufactured housing construction and safety standards and regulations in effect at the time of construction; a residential trailer, a structure constructed for movement on the public highways that has sleeping, cooking and plumbing facilities, that is intended for human occupancy, that is being used for residential purposes and was constructed before January 1, 1962; a mobile home meeting the above requirements that was constructed between January 1, 1962 and June 15, 1976 and met the construction requirements of Oregon mobile home law in effect at the time of construction, and a manufactured home meeting the above requirements. A “manufactured dwelling” does not mean any building or structure constructed to conform to the State of Oregon Structural Specialty Code or the One and Two Family Dwelling Code adopted pursuant to ORS 455.100 to 455.450 and 455.610 to L:\CMO\2007 Council Agendas\M070611\S070611B.doc 455.630 or any unit identified as a recreational vehicle by the manufacturer. Manufactured dwelling park. Any place where 4 or more manufactured dwellings or manufactured homes are located within 500 feet of one another on a lot, tract or parcel of land under the same ownership, the primary purpose of which is to rent or lease space or keep space for rent or lease to any person for a charge or fee paid or to be paid for the rental or lease or use of facilities or to offer space free in connection with securing the trade or patronage of such person. “Manufactured dwelling park” does not include a lot or lots located within a subdivision being rented or leased for occupancy by no more than 1 manufactured dwelling per lot if the subdivision was approved by the city, but does include a “manufactured home park.” Manufactured dwelling park closure. The termination of rental agreements by the park owner so that the park owner can either close the park or convert the park to a different use. Manufactured dwelling park owner or park owner. The owner, lessor, sub-lessor or manager of a manufactured dwelling park. Moving/relocation expenses. A sum of money as established in subsection (8) of this section and administrative rules issued hereunder that is intended to compensate affected tenants for losses incurred as a result of a manufactured dwelling park conversion or closure. Permit. A manufactured dwelling park closure permit issued by the city manager under this section 2.1086. Rental agreement. All written or oral agreements, and valid rules and regulations adopted under ORS 90.262 embodying the terms and conditions concerning the use and occupancy of a manufactured dwelling or manufactured dwelling space. (1) 2 Intent. It is the intent of these provisions to mitigate the adverse effects of displacement on affected tenants [in] of manufactured dwelling parks that will close or convert to a different use. (2) 3 Scope of Regulations. This [S]section 2.1086 [of this code] shall be applicable to [the conversion of a] manufactured dwelling park closures and conversions. [to a different use or use if the park is: (a) Located in an area designated for non-residential use(s) in the Metropolitan Area General Plan or applicable neighborhood refinement plans; or (b) Zoned primarily for non-residential uses; or (c) Located in whole or in part in the 100 year flood plain as shown on the Federal Insurance Administration Flood Insurance Rate Map.] (3) 4 Limitations. Notwithstanding any other provision of law, no person may close L:\CMO\2007 Council Agendas\M070611\S070611B.doc or convert, nor shall the city permit the closure or conversion of, any manufactured dwelling park to a different use unless a manufactured dwelling park closure permit has been obtained and a fee paid in the amount set by the city manager under section 2.020 of this code. (4) 5 Closure Permit Process. (5) a Notice of Park Closure. (a)1. The park owner shall provide a written notice of park closure to affected tenants of the manufactured dwelling park prior to any closure or conversion of the manufactured dwelling park. The notice shall be given [at the times specified in ORS 90.630 (as amended on or before January 1, 1991)] not less than 365 days before the closure date designated in the notice. The notice shall contain the date of park closure, date of termination of tenancy, information on tenant rights and benefits and park owner duties under state and local law, and any other information required by state law, this code, or administrative rules issued hereunder. (b)2. After the notice of park closure has been given to affected tenants, all prospective tenants of the manufactured dwelling park shall be given written notice of the park closure prior to entering into a rental agreement. The notice shall disclose the estimated date of park closure and [unavailability of] that relocation benefits will not be available for such prospective tenants under this code. 3. The written notice of park closure shall be delivered to the city in the manner prescribed by administrative rule at the same time the notice is provided to affected tenants. (b) Application. No later than 60 days after the filing of notice of closure, the park owner, or the park owner’s agent (the “applicant”) shall apply for a park closure permit on a form prescribed by the city manager. The application shall include all information and documents required by administrative rule issued hereunder and shall include an application fee in an amount set by the city manager. The applicant shall promptly post a copy of the entire application in a conspicuous place within the manufactured dwelling park. [The procedures and requirements of sections 2.1066(1), 2.1066(2), 2.1066(3), 2.1066(4), 2.1066(6), 2.1074(6), and 2.1076 (1) of this code as they apply to condominium conversion permits shall apply to the application, staff review, approval, appeal, reapplication, revocation and dispute resolution for a manufactured dwelling park closure permit.] (c) Staff review. Within 30 days from the receipt of a completed application the city shall issue a staff report on the applicant's compliance with conditions for approval of the permit. The staff report shall be sent to the applicant who shall have 7 days after receipt to submit additional information or material. The applicant shall promptly post a copy of the staff report in a conspicuous place within the manufactured dwelling park. (d) Permit approval. Within 14 days after the issuance of the staff report the city manager shall approve or deny the permit. Within five days L:\CMO\2007 Council Agendas\M070611\S070611B.doc of the decision the city shall notify the applicant in writing of the decision. The applicant shall promptly notify each affected tenant in writing of the decision of the city manager on the permit application. In addition, the city manager shall mail, by first class mail, a notice of the decision and of the opportunity to appeal to owners and occupants of property located within 100 feet of the property on which the subject manufactured dwelling park is located and to persons who have requested notification. The city manager shall issue a manufactured dwelling park closure permit if the manager finds that the park owner has completed or is contractually obligated to the city to complete the obligations imposed by this section [of the code] 2.1086. [It shall be grounds for denial of a permit that the park owner has evicted more than one special category tenant for a reason not specified in ORS 90.630 as amended on or before January 1, 1991 during the year preceding the notice of park closure.] No permit shall be transferred or sold unless such transfer or sale is first approved by the city manager. Unless appealed, the city manager's decision is effective on the eleventh day after notice of the decision is mailed. (e) Appeal of permit decision. 1. Within ten days of the date that notice of the permit decision is mailed by the city manager, it may be appealed to the hearings official by the owner, applicant, a party, an affected tenant, or a person entitled to notice from the city under subsection (5)(c) of this section. Such appeal shall be instituted by filing a notice of appeal on a form to be provided by the city. 2. Within 45 days of the notice of appeal, the hearings officer shall conduct a public evidentiary hearing on the permit approval or disapproval action of the city manager. The hearing notice and procedures shall conform with the requirements for quasi- judicial hearings provided in sections 9.7065 to 9.7095 of this code. At least 20 days prior to the hearing, the city shall mail notice thereof to the applicant, appellant, persons who requested notice of the city manager's decision, and to persons entitled to notice from the city under subsection (5)(c) of this section. 3. Such appeal shall be limited to the issues of whether the applicant has satisfied the conditions and obligations of the permit approval, whether approval or denial of the permit was an abuse of discretion by the city manager, and whether the information supplied by the applicant in connection with the application is true and correct. (f) Revocation of closure permit. A permit may be revoked after notice and a contested case hearing before a hearings officer upon a written finding of fact that the park owner has: 1. Failed to comply with the terms of a cease and desist order; 2. Been convicted in any court subsequent to the filing of the permit application for a crime involving fraud, deception, false pretenses, misrepresentation, false advertising, or L:\CMO\2007 Council Agendas\M070611\S070611B.doc dishonest dealing in real estate transactions; 3. Disposed of, concealed, or diverted any funds or assets of any person so as to defeat the rights of affected tenants; 4. Intentionally or repeatedly failed to perform any stipulation or agreement made with the city as an inducement to grant or reinstate any permit; 5. Made intentional misrepresentations or concealed material facts in an application for a permit; or, 6. Intentionally or repeatedly violated any provision of this section 2.1086. Findings of fact shall be accompanied by a concise and explicit statement of the underlying facts supporting the findings. A determination of a hearings officer on a revocation of a permit shall be final. (6) Provision of Housing Information. After notice of park closure to [an] affected tenants, a park owner shall create, maintain, and make available to all affected tenants a current survey showing the total number of manufactured dwelling spaces, the number of vacant manufactured dwelling spaces, rent schedules, and available manufactured dwellings for sale in manufactured dwelling parks located within the urban growth boundary shown on the Metropolitan Area General Plan. The park owner shall update this information at least every four months, or at such intervals [provided for] as required in administrative rules issued hereunder. The survey [contents shall be subject to] shall contain such information as required by the administrative rules issued hereunder. (7) Relocation Costs. After the notice of park closure is given, a park owner shall [pay all of the eligible moving expenses of qualified affected tenants. To qualify, an affected tenant must reside in a household whose income at the time of notice of park closure is at or below the annual median income for a household of that size in Lane County as determined by the Department of Housing and Urban Development or its successor (median income). Eligible moving expenses shall be all or part of the affected tenant's actual moving expenses or a maximum cost set by administrative rule, whichever is less. The percentage of a tenant's actual moving expense that is an eligible moving expense is: 100%, if the tenant's household income is at or below 50% of the median income; 50%, if the tenant's household income is at or below 75% and above 50% of the median income; and, 25%, if the tenant's household income is at or below 100% and above 75% of the median income.] compensate affected tenants for their losses and relocation costs incurred due to the park closure as follows: (a) If the manufactured home can be moved from the park, the park owner shall pay the affected tenant, at the affected tenant’s option, and subject to subsection (c), either: 1. The affected tenant’s actual costs incurred for moving the manufactured home to a location within 60 miles from its present location, using the most direct and economical route. Payment will be made within 10 days of receipt by the park L:\CMO\2007 Council Agendas\M070611\S070611B.doc owner of a statement reflecting the amount of the costs incurred; or 2. A flat dollar amount, to be paid prior to the park closure and removal of the manufactured home from the park of: a. $11,000 for a single wide home; b. $17,000 for a double wide home; and c. $21,000 for a triple wide home. The amounts established in this subsection shall be periodically adjusted by administrative order of the city manager to reflect changes in the Consumer Price Index. (b) If for any reason the manufactured home cannot be moved, prior to the park’s closure the park owner shall pay to the affected tenant, at the affected tenant’s option, and subject to subsection (c) either: 1. A payment equal to the real market value of the manufactured home as determined by the Lane County Assessor, plus a flat dollar amount to be established by administrative order of the city manager, based on the recommendation of the Housing Policy Board, for the costs of moving the affected tenant’s personal property; or 2. A flat dollar amount equivalent to the amount as determined by the federal government for relocation compensation, with a single wide manufactured home considered the equivalent of a two room home; a double wide manufactured home equivalent to a three room home; and a triple wide manufactured home equivalent to a four room home. 3. From the amounts determined due under either 1. or 2. above, the park owner shall first deduct a portion of the park owner’s costs incurred in disposing of the abandoned manufactured home consisting of $1,000 for disposing of a single wide manufactured home, $2,000 for disposing of a double wide manufactured home, and $3,000 for disposing of a triple wide manufactured home. The disposal allowances provided herein may be periodically adjusted by administrative order of the city manager to reflect changes in the Consumer Price Index. (c) The net amount to be paid by the park owner to an affected tenant under subparagraphs (a) or (b) of this section may be subject to an adjustment if: 1. There is a state subsidy payment available to an affected tenant at the time notice of park closure is given, the amount of the subsidy shall be deducted from the amount determined due the affected tenant under subparagraphs (a) and (b) of this section in arriving at the net amount due. 2. The manufactured dwelling park for which the notice of closure is given is located in an industrial or commercial zone or flood plain, the amount determined due shall be reduced by 50%. (8) [Benefits to Special Category Tenants] Housing Counselor. The park owner shall hire a person or entity as a housing counselor for affected tenants who L:\CMO\2007 Council Agendas\M070611\S070611B.doc [are also special category tenants. The housing counselor] shall [perform the following services for special category tenants on behalf of the park owner] assist affected tenants with moving and relocation assistance claims. In addition to any other duties that may be assigned, the housing counselor shall: (a) [Determine special category tenant eligibility by conducting tenant surveys, keeping records, and preparing reports as the city requires. (b)] Explain moving and relocation benefits to [special category] affected tenants. (cb) Act as a housing referral resource by providing [special category] affected tenants with a list of alternative manufactured dwelling parks and other available housing. (dc) Provide assistance in locating and securing alternative housing [based on special category tenant needs]. [(e) Seek alternative housing to meet special category tenant needs by maintaining an inventory of potential spaces in parks and vacancies in alternative housing, possibly including on-site visits to determine those most suitable.] (fd) Assist [special category] affected tenants in viewing spaces in parks or alternative housing. (ge) Assist [special category] affected tenants in understanding rental agreements. (hf) Assist [special category] affected tenants [to] with arrangements for moving. After notice of park closure is given, no [special category] affected tenant shall be evicted for a reason not specified in ORS 90.630[, as amended on or before January 1, 1991,] from the manufactured dwelling park or required to pay more rent than the rent charged for a comparable manufactured dwelling or space in the manufactured dwelling park. (9) Retaliation Prohibited. If an owner has as his or her dominant purpose retaliation against an affected tenant because of the exercise by the affected tenant of rights under this section 2.1086, because the tenant has expressed an opinion on any matter relating thereto, and the tenant is not in default in payment of his or her rent or otherwise in breach of the rental agreement, the owner may not recover possession of the manufactured dwelling park space in any action or proceeding, cause the tenant to quit involuntarily, or increase the rent or decrease any services to that tenant. (9) 10 Enforcement. [The city shall have the general enforcement powers with respect to this section of the code as is provided by section 2.1078(2) with respect to condominium conversion.] If it appears that a person has engaged in or is about to engage in an act or practice constituting a violation of any provision of this section 2.1086, or rule, regulation or order thereunder, or failed to faithfully perform any stipulation of agreement made with the city as an inducement to grant or reinstate any permit, the city, with or without any prior administrative proceedings, may bring an action in the Circuit Court for Lane County to enjoin the L:\CMO\2007 Council Agendas\M070611\S070611B.doc acts or practices and to enforce compliance with this section 2.1086 or any rule, regulation, order, or contract thereunder. Any person who converts a manufactured dwelling park without a permit shall be guilty of a violation. Any person who willfully makes an untrue or misleading statement of material fact or willfully omits to provide required data on any document prepared pursuant to this section of the code shall be guilty of a violation. The penalty for any such violation shall be as provided in section 2.1990(5) of this code. (10) 1 Rulemaking Authority. The city manager is authorized to promulgate any rules necessary for the implementation of this section of the code. These rules shall be adopted in the manner provided for in section 2.019 of this code. Section 3. The City Recorder, at the request of, or with the concurrence of the City Attorney, is authorized to administratively correct any reference errors contained herein or in other provisions of the Eugene Code, 1971, to the provisions added, amended or repealed herein. Passed by the City Council this Approved by the Mayor this ____ day of ____________, 2007 ____ day of _____________, 2007 ___________________________ ____________________________ City Recorder Mayor L:\CMO\2007 Council Agendas\M070611\S070611B.doc ATTACHMENT B Manufactured Home Park Committee Recommendations from the Housing Policy Board; Comparison to HB 2735 1) All three local jurisdictions (Lane County, Springfield, and Eugene) should establish protections for residents of Manufactured Home parks when park owners voluntarily close or convert. Protections do not apply when the park is closed due to condemnation or foreclosure. To qualify as a Manufactured Home Park there must be at least 4 spaces occupied by owners of Manufactured Homes. Recreational Vehicles are not considered manufactured homes. HB 2735: Preempts local ordinances SB 17A Same as HB 2735, but grandfathers in local ordinances if they are effective prior to October 1, 2007 2) All parks, not just parks in industrial or commercial zones or flood plains, shall be covered. HB 2735: Covers all parks 3) All residents who own and occupy their Manufactured Homes in the closing park should be covered, regardless of income, age, or disability. a. Residents who rent the Manufactured Home, rather than own it, should not receive any special assistance. 4) The owner of the closing park should be required to hire a housing counselor to assist residents with moving and with any relocation assistance claims. HB 2735: No housing counselor provided 5) The current state requirements regarding notice of closure – that the statement of policy warn potential residents of the risk of closure and that a 365 day closure notice be given to a resident prior to closure – should not be changed, by making the warning notice more prominent or increasing the length of the closure notice. HB 2735: 365 day notice only – no shorter notices Current law (ORS 90.630 (5)): A park landlord may close a manufactured housing park to ( convert the land to another use with either: (1) a 365-day notice and no financial assistance or (2) no less than 180 days notice plus $3,500 and an alternative space.) No rent increases allowed during the one year period. No rent obligation if resident leaves during the one year notice period. No charge to resident if home is abandoned. L:\CMO\2007 Council Agendas\M070611\S070611B.doc 6) Covered residents are entitled to some compensation for the losses they will incur from the closing of the park. a. If the Manufactured Home can be moved from the park, the resident shall receive, at the resident’s option, either: • Actual moving costs for a location within 60 miles, using the most direct and economical route (retroactive payment, after moving); or • A flat amount (paid in advance of the closing) at the following rate: $11,000 for a single wide home, $17,000 for a double wide home, and $21,000 for a triple wide home. These amounts shall be periodically adjusted by the City Manager (Eugene or Springfield) or the Lane County Administrator to reflect changes in the Consumer Price Index. b. If the Manufactured Home cannot be moved, for whatever reason, the resident shall receive (paid in advance of closing), at the resident’s option, either: • A payment equal to the real market value, of the Manufactured Home, as determined by the assessor plus a flat amount for moving costs of personal property (set by the HPB and adjusted by the City Manager or County Administrator for inflation); or • A flat amount will be the same as determined by the federal government for relocation compensation. A single wide will be considered equivalent to a two room home, a double wide will be equivalent to a three room home, and a triple wide equivalent to a four room home • Payment shall, in either case, be paid after deducting a portion of the owner’s costs to dispose of the abandoned Manufactured Home. The deduction payment for disposing of a single wide shall be $1,000; double wide, $2,000 and triple wide, $3,000. The City Manager or County administrator can periodically adjust these amounts to reflect changes in the Consumer Price Index. HB 2735: Landlord must pay each resident in advance of moving a. $5,000 for a single-wide MH b. $7,000 for a double-wide c. $9,000 for a triple or larger Payments in are to be adjusted annually per CPI by OHCS Payments are not taxable income to the resident 7) The closing park owner should pay the compensation required by #6, minus any state subsidy (primarily the state tax credit, which will require amendment of state law). a. In addition, the local government shall give the owner credit for System Development Charges. L:\CMO\2007 Council Agendas\M070611\S070611B.doc b. Also, it is assumed that the compensation in #6 will not cover 100 percent of the resident’s loss, so in that sense the resident is also making a major “contribution. 8) Residents of parks in industrial or commercial zones or flood plains are entitled to 50% of the assistance received by owners in residentially zoned parks because those parks have long been anticipated to close and convert to other uses. 9) Local governments should encourage the creation or preservation of existing parks as affordable housing: a. By assisting residents to purchase their parks from willing park landlord sellers or by assisting nonprofits or the Housing and Community Services Agency (HACSA) to buy parks (both possibly with income restrictions), and c. By providing land for new parks. HB 2735: Extends the sunset date on the current $10,000 tax credit for residents displaced by a closure. Expands it to be available and refundable to all displaced residents, regardless of income or whether they are able to move their homes (also in HB 2600) Extends the sunset on the capital gains break for landlords who sell to entities that will preserve the park (also HB 2600) Clarifies the law regarding closures: only for conversion to another use; copy of notice to Oregon Housing and Community Services (OHCS) and known lenders; spells out contents of notice, including information on adjusting assessed values of Manufactured Homes. 5 year property tax assessed valuation freeze on park land after closure. L:\CMO\2007 Council Agendas\M070611\S070611B.doc ATTACHMENT C HPB Manufactured Home Park Committee Members Jennifer Solomon 29720 Jeans Rd, #41 777 Pearl Street #105 PO Box 895 Eugene, Or 97401 Veneta, Or 97487 461-3518 935-1558 Jennifer.l.solomon@ci.eugene.or.us jkoenig@cswinet.com John Van Landingham Tom Bruton th 170 E. 11 2314 Maia Loop Eugene, OR 97401 Springfield, OR 97477 485-1017 741-7563 johnvl@lclac.org Troy Brost 2560 Pioneer Pike Eugene, Or 97401 232-3363 (business address: 4055 Songbrook #161 - 461-4000) Jerry Hardin 1450 Candlelight Dr #224 Eugene, OR 97402 688-2863 Mail4jah@clearwire.net Mike Whitty 3220 Crescent Ave #90 Eugene, OR 97408 344-0408 h 984-0029 w 915-5860 cell mowhitty@earthlink.net janmike63@msn.com James Koenig L:\CMO\2007 Council Agendas\M070611\S070611B.doc