Chapter 7.45
MOBILE HOME PARK CLOSURES

Sections:

7.45.005    Purpose and Intent.

7.45.010    Definitions.

7.45.015    Manufactured Home Park Closure Permit.

7.45.020    Closure Impact Report.

7.45.025    Payment Plan.

7.45.030    Required Notifications.

7.45.035    Required Findings.

7.45.040    Conditions of Approval.

7.45.045    Enforcement.

7.45.050    Affordable Housing Density Bonus.

7.45.005 Purpose and Intent.

The purpose of these provisions is to protect public health and safety. The provisions are intended to mitigate the adverse impacts of mobile home park closures on park residents by ensuring that the closure is preceded by adequate notice, that the social and economic impacts of the involuntary relocation of tenants associated with the closure are adequately defined, and that relocation and other assistance is provided park residents. [Ord. NS-2157, 2011]

7.45.010 Definitions.

The following definitions apply in this chapter.

A.    Appraisal means a written statement independently and impartially prepared by a qualified and licensed appraiser setting forth an opinion of defined value of real property as of a specific date and meeting professional standards for an appraisal.

B.    Closure of a manufactured home park means the termination of manufactured home space rental agreements for all or a portion of the park spaces for the purpose of ceasing to use all or a portion of the park as a manufactured home park. Termination of tenancy for violation of rental agreements or park rules, actions required by the exercise of eminent domain or by order of State or local agencies shall not constitute closure of a manufactured home park.

C.    Comparable manufactured home park space means any space, lot, or parcel of land in Deschutes, Jefferson, Crook and northern Klamath Counties that is (1) decent, safe, and sanitary; (2) adequate in size to accommodate the manufactured dwelling; (3) within the financial means of the displaced tenant (the higher of rent not greater than current rent of tenant or a rent, with mortgage on home if applicable, that is not greater than 30 percent of tenant’s income).

D.    Manufactured home means a manufactured home, mobile home or residential trailer as these terms are defined in ORS 446.003(26).

E.    Manufactured home park means a place where four or more manufactured homes are located in a residential zone, the primary purpose of which is to rent space or keep space for rent to any person for a fee as defined in ORS 449.003(27). Manufactured home parks not defined under this section must still complete the closure impact report prior to closing.

F.    Owner means a mortgagee in possession and means one or more persons, jointly or severally, in whom is vested all or part of the legal title to a manufactured home park or all or part of the beneficial ownership and a right to present use and enjoyment of the manufactured home park. “Owner” includes an authorized representative of the owner.

G.    Owner-tenant means a person who owns and occupies a manufactured dwelling in a manufactured home park. For the purpose of this chapter, a tenant does not include a tenant who has accepted an earlier termination date or contracted with the landlord as provided in ORS 90.630(6)(a) or (b). [Ord. NS-2157, 2011]

7.45.015 Manufactured Home Park Closure Permit.

A.    Permit Required. No person may close a manufactured home park unless a manufactured home park closure permit has been obtained; provided, however, that nothing in this section is intended to limit or regulate in any manner a person’s ability to: (1) to apply for and obtain a plan amendment, zone change, or other land use decision pursuant to the City’s Comprehensive Plan or Zoning Ordinance; (2) sell, convey or transfer a manufactured home park; or (3) provide notification pursuant to Oregon State law.

B.    Scope of Permit Requirement – Construction. These provisions shall be construed as not to conflict with State law and shall be applied in a manner such that the provisions and State law operate concurrently.

C.    Application Filing. Applications for closure permits shall include the following information as may be required by this chapter and the City Manager or City Manager’s designee:

1.    A detailed narrative description of and timetable for the proposed closure;

2.    A report on the impact of the closure of the manufactured home park on its residents pursuant to BC 7.45.020;

3.    The payment plan pursuant to BC 7.45.025;

4.    Notice pursuant to BC 7.45.030;

5.    The application filing fee in an amount established by the City Council.

D.    Application Processing. Upon receipt of a complete application, the City Manager or designee shall review the application and, within 45 days of the receipt of the complete application, issue a decision either denying the application, approving the application, or approving the application with conditions. A decision of the City Manager or designee may be appealed to the Council by the owner of the park. [Ord. NS-2157, 2011]

7.45.020 Closure Impact Report.

A.    Any person filing an application for a closure permit shall file a closure impact report on the impact of the closure, change of use, or cessation of use upon the residents of the manufactured home park. The closure impact report shall include the following, as well as any other information deemed necessary and appropriate by the City Manager or designee.

1.    A detailed description of the manufactured home spaces within the manufactured home park, including but not limited to:

a.    The total number of manufactured home spaces in the park and the number of spaces occupied;

b.    The length of time each space has been occupied by the present resident(s) thereof;

c.    The age, size, and type of manufactured home occupying each space;

d.    The monthly rent currently charged for each space, including any utilities or other costs paid by the present resident(s) thereof;

e.    Name and mailing address of the primary resident(s) and owner if different than occupant of each manufactured home within the manufactured home park. Tenant shall provide this information at request of park owner. Any refusal of cooperation by tenant for this information will negate any benefits for tenant under this chapter.

2.    The City of Bend will assist the park owner and tenants by providing a list of all comparable manufactured home parks spaces within Deschutes, Crook, and Jefferson Counties and northern Klamath County. This list shall include the age of the manufactured home park and the manufactured homes therein, a schedule of rents for each park listed, a listing of the vacancies in the parks and the criteria of the management of each park for acceptance of new tenants and used manufactured homes.

3.    A detailed analysis of the economic impact of the relocation on the tenants, including comparisons of current rents paid and rents to be paid at comparable manufactured home parks in Deschutes County, the estimated costs of moving a manufactured home and personal property and any direct or indirect costs associated with relocation to another manufactured home park.

4.    A list of the names, addresses and telephone numbers of one or more housing specialists with an explanation of the services the specialists will perform. These services shall include, but not be limited to, assistance in locating a suitable replacement manufactured home park, coordination of moving the manufactured home and personal property, and any other tasks necessary to facilitate the relocation to another comparable manufactured home park. [Ord. NS-2157, 2011]

7.45.025 Payment Plan.

A.    A payment plan for owner-tenants of the manufactured home park shall be submitted for review and approval as part of the application for a closure permit. The payment plan shall provide, at a minimum, for the following:

1.    Units That Can Be Relocated. The owner shall provide a list of each single-wide, double-wide and triple-wide unit that can be relocated and the name and contact information for each unit. The payment plan for units that can be relocated shall provide for the owner to pay the tenants the amount stipulated by Oregon State law (ORS 90.505 to 90.840) and, if the owner utilizes the increased density bonuses provided for in BC 7.45.050, to pay the owner-tenants the following amounts:

a.    For each single-wide unit an additional $1,000.

b.    For each double-wide unit an additional $3,000.

c.    For each triple-wide unit an additional $3,500.

These additional amounts shall be adjusted annually by the increase, if any, in the Consumer Price Index (CPI) based on the index published by the U.S. Department of Labor, Bureau of Labor Statistics, using the index U.S. City Average, All Items, All Urban Consumers, Not Seasonally Adjusted (1982-1984 = 100).

The park owner is not required to provide the additional amount(s) stated above to the tenant until such time as the manufactured home unit has been removed from the park.

In the event that the owner does not utilize the density bonus program contained in BC 7.45.050, the City may pay owner-tenants these amounts, subject to budgetary authority approved by the City Council prior to the subject fiscal year and subject to Council’s right to limit the total amount of payments on an annual basis.

2.    Units That Cannot Be Relocated. The payment plan shall identify those manufactured homes that cannot be relocated to a comparable manufactured home park space in Deschutes, Crook, Jefferson Counties and northern Klamath County. This list shall include the name and contact information for each owner-tenant. In the event that the owner utilizes the density bonus program contained in BC 7.45.050, the owner shall be required to offer to purchase any manufactured home that cannot be relocated in conformance with this chapter. The offer to purchase the manufactured home will be made at the greater of the:

a.    The real market value, per Deschutes County Property Records, of the home as reported on the most recent property tax assessment roll; or

b.    The amount required by Oregon State law (HB 2735 ORS 90.505 to 90.840).

B.    The owner shall be responsible for the cost of disposal of the mobile home park unit for those units that cannot be relocated. [Ord. NS-2157, 2011]

7.45.030 Required Notifications.

A.    Any written notice by the landlord of termination of a rental agreement because of facility closure and the land or leasehold being converted to a different use shall conform with the requirements of ORS 90.630 and provide at least the following information:

1.    The landlord’s or representative agent’s address for contact and communications;

2.    The firm date set for the closure of the facility or of the relevant portion of the facility;

3.    The actions and activities the landlord plans to take in the facility closure that may affect the facility tenants;

4.    The landlord’s obligations under ORS 90.630(5), (6), (7) and (8);

5.    The tenant’s rights under ORS 90.630(4) for a 365-day closure notice or 180-day closure notice, as applicable, including the right, if any, for payment of moving expenses under OAR 813-008-0030 and the eligible moving expenses defined under OAR 813-008-0025;

6.    The voluntary benefits, if any, to be provided to the tenant by the landlord or contracted between the parties, together with any shortened period between notice and termination of the rental agreement arising therefrom;

7.    A copy of ORS 90.630 and of OAR Chapter 813, Division 008;

8.    Any definitions referenced within these rules applicable to the tenant’s rights under these rules;

9.    A description of any City or County regulations, laws, or ordinances that apply to tenant interests in facility closures; and

10.    A list of the names, addresses and telephone numbers of one or more housing specialists with an explanation of the services the specialists will perform. These services shall include, but not be limited to, assistance in locating a suitable replacement manufactured home park, coordination of moving the manufactured home and personal property, and any other tasks necessary to facilitate the relocation to another comparable manufactured home park.

B.    Notices required by ORS 90.630 or by these rules shall be delivered personally or by first class mail to each affected tenant or tenant organization. If served by mail, the minimum period before facility closure shall be extended by three days, and the notice shall recite the fact and extent of the extension. The notice shall be delivered to the tenant at the address specified in the lease or rental agreement between the tenant and the landlord. In any sublet unit, the notice shall be delivered to the tenant at his or her current address and to the subtenant in possession. If the tenant’s address is unknown and not reasonably discoverable, his or her copy shall be delivered to the subtenant with written instructions to forward it to the tenant. Failure of the subtenant to deliver such copy to the tenant shall not limit the landlord’s right to terminate the rental agreement because of facility closure.

C.    For 365-day closure notices as provided in ORS 90.630(5)(a), the provisions of OAR 813-008-0020 through 813-008-0030 do not apply.

D.    For 180-day closure notices as provided in ORS 90.630(5)(b), the landlord shall comply with the provisions of OAR 813-008-0020 through 813-008-0030. [Ord. NS-2157, 2011]

7.45.035 Required Findings.

A.    The City Manager may approve a permit for a manufactured home park closure, only if the City Manager finds that the proposed closure meets the following requirements in addition to the other requirements of this chapter.

1.    That the tenants or tenants’ association of the manufactured home park have been adequately notified of the proposed closure, including information pertaining to the anticipated timing of the proposed closure;

2.    That the payment plan meets the requirements of BC 7.45.025;

3.    That, if the owner files a tentative plat or plan for a land division to be created from the closure of a rental manufactured home park, the owner provides all tenants offers and other information required by law. [Ord. NS-2157, 2011]

7.45.040 Conditions of Approval.

The City Manager or designee shall not deny, but must approve or conditionally approve, the permit involving the closure of the park or cessation of the use of the land as a manufactured home park, provided the applicant has properly complied with the requirements of this chapter and there is no evidence that the applicant or prior owners have attempted to evict or otherwise cause the removal of residents for the purpose of avoiding the requirements of this chapter. [Ord. NS-2157, 2011]

7.45.045 Enforcement.

A.    Violations. Any person who closes a manufactured home park without a permit, who fails to comply with the requirements of this chapter or the conditions of the permit, or who willfully makes an untrue or misleading statement of material fact or willfully omits required information in the process of application, or whose actions, through the raising of rent or otherwise, objectively manifests an intent or effort to avoid the requirements to this chapter, shall be guilty of a violation. Notwithstanding any other provision of this code, the penalty for any such violation shall be not greater than $1,000. Each day of noncompliance shall constitute a separate violation. [Ord. NS-2157, 2011]

7.45.050 Affordable Housing Density Bonus.

The City’s Zoning Ordinance authorizes increased density in Manufactured Home Park Overlay Zones through a density bonus program. To qualify for the density bonus program, the park owner must enter into a development agreement that commits to compliance with this section.

A.    A minimum of 10 percent of new units must meet the following affordability requirements:

1.    The owner must offer to qualified tenants who are being displaced and whose units cannot be moved the opportunity to either rent or purchase one of the affordable units.

2.    The mortgage/rent for these tenants shall not be greater than the higher of:

a.    Amount of current space rent and mortgage on home;

b.    Thirty percent of the family’s adjusted income per Department of Housing and Urban Development (HUD) standards; or

c.    Thirty percent of the income for a family at 50 percent of median income, based upon most recent HUD Income Limits for the Bend Metropolitan Statistical Area (Bend MSA), with family size corresponding to unit size as follows: For one-bedroom units the income shall be based upon a family of two. For two-bedroom units the income shall be based upon a family of three; for three-bedroom units the income shall be based upon a family of four; and for four-bedroom units the income shall be based upon a family of six.

3.    For rental developments, up to 10 percent of the newly created affordable units shall have a rent or mortgage that is affordable for a family at or below 30 percent of median income. The number of units that will be required to meet this threshold shall be based upon the income surveys of existing tenants. Income surveys of all existing tenants shall be initiated by the owner and tenants shall be required to provide verification information to the owner as condition of receiving benefits/housing under this section. Units created as part of this section must be offered to existing tenants whose incomes are at or below 30 percent of median income.

B.    Any displaced tenant-owner shall be assured of affordable transitional housing and the payment of any necessary and reasonable moving expenses for personal property to relocate from their existing unit to a transitional unit and from the transitional unit to the permanent housing in the new unit. Tenant shall be required to solicit a minimum of two bids from licensed moving companies and shall be required to take the lower of these bids. The allowable transitional relocation expenses shall not exceed:

1.    Actual reasonable expenses in moving family or other personal property.

2.    Actual direct losses of tangible personal property as a result of moving but not to exceed an amount equal to the reasonable expenses that would have been required to relocate such property, as determined by the City Manager or designee.

3.    An amount not to exceed $4,000 (adjusted annually by the increase, if any, in the Consumer Price Index (CPI) based on the index published by the U.S. Department of Labor, Bureau of Labor Statistics, using the index U.S. City Average, All Items, All Urban Consumers, Not Seasonally Adjusted (1982-1984 = 100)), in total for relocation to transitional housing and from transitional housing to permanent housing. However, during the period of transition, tenant will still be required to pay, for rent, the amount stated above in this section and comply with lease agreement and applicable Landlord Tenant Law. Any significant violations of lease will negate tenant rights under this chapter.

4.    Park owners may elect to contract for moving of tenant or may move tenants utilizing other resources; provided, that all bonding and insurance is satisfied for the moving of the belongings.

5.    Park owners may provide transitional housing, either on site or off site to meet the requirements of this section.

6.    Tenant-owners who cannot qualify for the new permanent unit due to rental history issues, credit worthiness or other factors shall not be eligible for relocation benefits under this section but shall receive compensation for their units as stated in BC 7.45.025. Income alone cannot be a factor in excluding someone from receiving benefits under this section.

C.    All tenant property in a park under closure notice shall remain secure and all services in rental agreements shall be provided to tenants remaining in park until closure.

D.    New rental units developed under the density bonus program shall meet the affordability requirements for not less than 20 years, beginning after project completion, and must be offered first to existing tenants in the park. The affordability requirements for the rental units apply without regard to the term of any loan or mortgage or the transfer of ownership. The requirements must be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by the City of Bend, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. The City of Bend, the owner, or other entity having property rights in project may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure or deed in lieu of foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the foreclosure, or deed in lieu of foreclosure, or any entity that includes the former owner or those with whom the former owner has or had family or business ties, obtains an ownership interest in the project or property. Rent for new units to be occupied by tenant-owners shall be as stated in this section. All other rental units required to meet the 10 percent of total unit requirement will have a rent that shall not exceed 30 percent of income for a family at 50 percent of median income per HUD Income Limits for Bend MSA and family size will be based upon unit size.

E.    Subsequent Rents for Units Vacated During Affordability Period. Units that are vacated by original tenants during the period of affordability shall remain available and rented to low-income tenants. Rents for these units shall not exceed 30 percent of income for tenants at 50 percent of median per HUD Income Limits for Bend MSA and family size will be based upon unit size as stated in this section. Owners of rental properties shall be required to submit an annual rent schedule for all units to the City of Bend.

1.    Rent Increases. Any increase in rents for assisted units is subject to the provisions of outstanding leases and, in any event, the owner must provide tenants of those units not less than 30 days’ prior written notice before implementing any increase in rents.

2.    Over-Income Tenants. Units continue to qualify as affordable housing despite a temporary noncompliance caused by increases in the incomes of existing tenants, if actions satisfactory to City of Bend are being taken to ensure that all vacancies are filled in accordance with this section until the noncompliance is corrected.

F.    New affordable ownership units developed under the MHP Overlay Zone shall be acquired by an existing tenant or homebuyer whose family qualifies as a low-income family, and the housing must be the principal residence of the family throughout the period of affordability. Units shall be first offered to tenants being displaced.

1.    Mortgage Amounts. Mortgage for new units shall be as stated in this section for units that are to be sold to existing owner tenants. All other ownership units required to meet the 10 percent of total unit requirement will have a sales price whose mortgage shall not exceed 30 percent of income for a family at 80 percent of median income per HUD Income Limits for Bend MSA and family size will be based upon unit size.

2.    Periods of Affordability. The newly created/assisted ownership unit must remain affordable for a period of eight years. However, a portion of the gained equity shall be recaptured for a period of 20 years.

3.    Resale and Recapture. To ensure affordability, the property owner/developer must impose either resale or recapture requirements, at its option and upon agreement with the City of Bend. The resale or recapture requirements shall comply with the following standards:

a.    Resale. Resale requirements must ensure, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, that the housing is made available for subsequent purchase only to a buyer whose family qualifies as a low-income family (80 percent of median income per HUD Income Limits for the Bend MSA) and will use the property as its principal residence. The resale requirement must also ensure that the price at resale provides the original assisted owner a fair return on investment (including the homeowner’s initial investment (down payment) and any capital improvement) and ensure that the housing will remain affordable to a reasonable range of low-income homebuyers.

b.    Transaction Documents. Deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose the resale requirements. The affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. The owner/developer of the property, with approval of the City of Bend, may use purchase options, rights of first refusal or other preemptive rights to purchase the housing before foreclosure to preserve affordability. The affordability restrictions shall be revived according to the original terms if, during the original affordability period, the owner of record before the termination event obtains an ownership interest in the housing.

c.    Recapture. Recapture provisions must ensure that the market value of the assistance to the homebuyers (real market value of property minus total cost to purchaser at time of initial sale/occupancy), if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, is recouped. Deed requirements shall ensure that this recaptured amount of funding is deposited with Neighbor Impact (or designated successor) and shall be utilized, minus administrative costs, to assist a future purchaser of the property. Neighbor Impact will market the property to eligible purchasers. Trust deeds, mortgages or other instruments of property transfer executed at time of sale shall ensure compliance with this section.

d.    Reduction During Affordability Period. The market value amount to be recaptured shall be reduced on a pro rata basis for the time the owner-tenant homeowner has owned and occupied the housing measured against the required affordability period. This shall be at a rate of 50 percent per year beginning in year six and accelerating to 100 percent per year beginning in year eight.

e.    Shared Net Proceeds. Upon recapture of market value of assistance, 10 percent of the amount of seller’s net proceeds shall be deposited in the City of Bend Affordable Housing Fee Fund to be utilized for affordable housing projects. This requirement shall expire 20 years after project completion.

f.    Uses of Recaptured Proceeds. All funding recaptured upon sale of any unit during period of affordability shall be utilized to assist a qualifying low-income homebuyer to purchase the unit. Portion of seller’s net proceeds recaptured shall be utilized as stated in this section. [Ord. NS-2157, 2011]