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Council Communication

Title:	An Ordinance Adding Chapter 10.114 to the Ashland Municipal Code Relating to the Conversion or Sale of Mobile Home Parks
Dept:	Legal Department
Date:	May 7, 2002
Submitted By:	Paul Nolte
Reviewed By: ........................	Greg Scoles, City Administrator

Synopsis:	This ordinance proposed by the Housing Commission regulates the conversion or closure of mobile home parks by requiring the park owner to notify the city and park tenants that the park will be converted or closed and by requiring the park owner to pay up to $5,000 for relocation of park tenants. This ordinance differs from state law in that it requires a mobile home park owner to pay relocation costs regardless of when the notice of closure is given to tenants. Under state law a park owner is not required to pay any costs in certain situations, and costs, when required, are limited to $3,500. In addition, section 10.114.050 requires the owner to notify tenants and the city of any written offer to purchase the park or any listing agreement entered into by the owner to sell the mobile home park. The owner is then required to deal in good faith with any tenant or tenant supported organization who may want to purchase the park. These requirements differ from state law in that state law requires notice only to a tenant association, if such association has been formed prior to the offer or listing taking place. Changes to the ordinance presented for first reading at the March 19, 2002, council meeting are highlighted in the attached ordinance. The more significant changes eliminate conflicts with state law when a tenant agrees to accept the benefits provided by statute.
Recommendation:	Should the council desire to augment state requirements for the conversion or sale of mobile home parks, then staff recommends adoption of the attached ordinance.
Fiscal Impact:	Undetermined. The fiscal impact to the city is minimized because the park owner is required to pay a fee to cover the cost of administering the ordinance, providing notices and conducting the hearing. The fee is set at the rate of Type II planning actions which is currently $1,500.00
Background:	This ordinance was presented to the council for first reading on March 19, 2002, but was not read at my request. Shortly before that meeting an analysis of the ordinance was received from Jeff Condit, an attorney representing HMC Three LLC. His analysis concluded that the city was preempted by state law from imposing additional requirements on mobile home park owners and that the adoption of the ordinance could be a land use decision. Subsequent to the meeting, I requested Jerome Lidz, an attorney with the Harrang law firm in Eugene to review Condit's analysis in reference to these issues. Lidz's law firm represents the City of Eugene which adopted a similar ordinance in 1991. Lidz concluded that the ordinance was neither preempted nor was the adoption a land use decision. The changes reflected in the attached ordinance are proposed to correct other problems noted by Condit and Lidz and their analyses. While you have received both analyses, they are attached for your convenience, as well as an analysis by the Oregon Law Center State Support Unit sent to the Mayor and City Council on April 25, 2002.

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ORDINANCE NO. ___________

AN ORDINANCE ADDING CHAPTER 10.114 TO THE ASHLAND MUNICIPAL CODE RELATING TO THE CONVERSION OR SALE OF MOBILE HOME PARKS

Annotated to show deletions and additions to the ordinance first presented to the council on March 19, 2002. First reading of the ordinance did not occur at that time. Deletions are lined through and additions are underlined.

THE PEOPLE OF THE CITY OF ASHLAND DO ORDAIN AS FOLLOWS:

SECTION 1. The following Chapter 10.114 is added to the Ashland Municipal Code:

Chapter 10.114

SECTIONS:

10.114.010 Purpose
10.114.020 Definitions
10.114.030 Conversion of a Mobile Home Park
10.114.040 Public Hearing by Council
10.114.050 Notification of Intent to Sell Mobile Home Park

SECTION 10.114.010 Purpose. Mobile home parks provide housing affordable for low- and moderate-income persons and should be preserved as a long-term resource to the maximum extent practicable. Recognition is given to mobile home park owners' interests, as well as tenants of such properties who own the housing located on that land. The provisions of this ordinance are designed to protect the availability of affordable housing for low- and moderate-income households by: 1) ensuring adequate notice to the City and resident mobile home owners when transitions from current affordable housing uses are planned; 2) providing information about the impact of that sale on its residents and housing stock in Ashland, 3) providing purchase opportunities for resident mobile home owners to purchase the park as a group when it is placed on the market and 4) providing assistance to those persons displaced by mobile home park conversions.

SECTION 10.114.020 Definitions. For the purpose of this ordinance the following definitions shall apply:

A. ''Comparable replacement space'' means any space within the city's urban growth boundary 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; (4) functionally equivalent; (5) in an area not subject to unreasonable adverse environmental conditions; and (6) in a location generally not less desirable than the location of the displaced tenant's space with respect to public utilities, facilities, services, and the displaced tenant's place of employment.

B. "Conversion" includes conversion of a mobile home park to another use, closure of a mobile home park or cessation of use of the land as a mobile home park.

C. "Manufactured dwelling" means a residential trailer, a mobile home or a manufactured home as those terms are defined in ORS 446.003(26). Manufactured dwelling does not include a recreational vehicle.

D. "Mobile home park" means place where four or more manufactured dwellings are located, the primary purpose of which is to rent space or keep space for rent to any person for a fee.

E. "Owner" includes 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 mobile home park; or all or part of the beneficial ownership and a right to present use and enjoyment of the mobile home park. Owner includes an authorized representative of the Owner.

F. "Relocation costs" include actual reasonable expenses in moving the tenant's manufactured dwelling and possessions to a comparable replacement space. Such expenses include:

1. Removal and reinstallation of skirting;
2. Disconnecting utilities;
3. Disconnecting and removing awning(s) and deck(s) from the manufactured dwelling;
4. Trip permit and public inspection fees;
5. Transportation costs;
6. Set up charges;
7. Utility connection expenses and fees;
8. Unit improvements to meet destination facility space standards;
9. Costs for packing and unpacking manufactured dwelling or residential vehicle contents as necessary for unit relocation for elderly and disabled persons, as defined in OAR 813-005-0005 and 813-060-0010, respectively;
10. Temporary housing and meals for the tenant and permanent occupants during unit relocation and set up; and
11. Landlord expenses to secure the relocation space acceptable to the tenant from the time of tenant acceptance until the date the relocated manufactured dwelling or residential vehicle is approved for occupancy.

G. "Tenant" means a person who owns and occupies a manufactured dwelling in a mobile 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)

SECTION 10.114.030 Conversion of a Mobile Home Park

A. Notwithstanding any other provision of law, no person may convert any mobile home park except as provided in this chapter 10.114.

B. Notice of a conversion shall be filed with the city administrator by the Owner at least 90 days before the conversion is scheduled to occur. The Owner shall file the notice on a form prescribed by the city administrator and shall submit as part of the notice the information and documents set forth below. The notice shall include:

1. A report on the availability of comparable replacement spaces in other mobile home parks, including a current survey showing the total number of manufactured dwelling spaces, the number and location of vacant manufactured dwelling spaces, rent schedules, and available manufactured dwellings for sale in manufactured dwelling parks located within the city's urban growth boundary. The Owner shall maintain and update this survey at least every two months and shall make it available to all tenants.
2. A tenant assistance plan for each tenant. The tenant assistance plan shall show the relocation costs associated with relocating the tenants and manufactured dwellings to be displaced. Except as provided in section 10.114.030.D, the plan shall also show the location of two comparable replacement spaces.

The Owner shall pay a fee to the city at the time the notice is filed. The fee shall be in the same amount as the fee for planning actions involving Type II Procedures.

C. The Owner shall provide a copy of the notice including the report and tenant assistance plan to each tenant in the mobile home park at the time the notice is made. At the time the report is provided, the Owner shall also provide in writing:

1. The Owner's address for contact and communications;
2. The firm date set for the conversion;
3. The actions and activities the Owner plans to take in the facility closure which may affect the facility tenants;
4. The Owner's obligations under this chapter.
5. The tenant's rights under this chapter, including the right to relocation expenses under this chapter;
6. A copy of this chapter.

The information required under this section shall be delivered personally or by first class mail to each 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, the copy shall be delivered to the subtenant with instructions to forward same to the tenant.

D. Prior to the date set for conversion, an Owner shall pay:

1.  Rrelocation costs plus costs to implement the tenant assistance plan or $5,000, whichever is less., or

2.  If the manufactured dwelling cannot be reasonably relocated because of its condition, then the displaced tenant shall be paid $5,000, or the value of the manufactured dwelling whichever is less.  If payment is made under the preceding sentence, the tenant shall transfer No payment shall be required to be paid under the preceding sentence unless the tenant transfers a clear title to the Owner. Upon transfer of the title, the Owner who shall then be responsible for disposing of the manufactured dwelling. For purpose of determining the value of the manufactured dwelling under this section, the real market value of the dwelling as reported on the most recent property tax assessment roll shall be used. The amounts specified in this section shall be increased annually in July by the CPI for the previous calendar year.

a. Any sum paid to a tenant pursuant to ORS 90.630(5)(b) shall be deducted from any amount due under this section.

b. No sum shall be due under this section to a tenant who accepted an alternative space pursuant to ORS 90.630(5) and failed to relocate to that space within 30 days of the space becoming available.

E. At the time the notice is filed, the Owner shall verify that tenants have been given a copy of the report described in section 10.114.030.B and a copy of this chapter 10.114.

F. This section shall not apply to any conversion resulting from an adjudication of bankruptcy.

SECTION 10.114.040 Public Hearing by Council

A. Upon receipt of the report described in section 10.114.030, the city administrator shall schedule a public hearing before the council not less than 30 days from the date the report is filed. The purpose of the hearing is to provide an opportunity for public review and comment on the report.

1. Notice of the hearing shall be published in the newspaper and delivered to the Owner at least 20 days prior to the date of the hearing. The Owner shall be responsible for delivering a copy of the notice of the hearing to each tenant not less than 15 days prior to the hearing. At the hearing the Owner shall verify that tenants have been given a copy of the notice 15 days prior to the hearing.
2. At the hearing, any person may appear and be heard. The Owner shall also be present to answer any questions that may arise.

SECTION 10.114.050 Notification of Intent to Sell Mobile Home Park.

A. The Owner shall notify tenants and the City of Ashland within 10 days of receipt of:

1. Any written offer received by the owner or agent of the owner to purchase the facility which the owner intends to consider; or
2. Any listing agreement entered into, by the owner or agent of the owner, to effect the sale of the mobile home park.

B. The notice shall contain the name, address and phone number of the owner and the owner's representative, if any, who is authorized to negotiate the sale of the mobile home park.

C. Within 2814 days of delivery by or on behalf of the owner of the notice required by subsection A of this section, a tenant may notify the owner by certified mail or personal service at the address disclosed in the notice that the tenant or a tenant supported nonprofit organization, is interested in purchasing the mobile home park.

D. Upon delivery of the notice required by subsection A of this section, the owner shall negotiate in good faith with the tenant or organization and provide the tenant or organization an opportunity to purchase the facility as the owner would any bona fide third party potential purchaser.

E. This section does not apply to those sales and transfers described in ORS 90.820(4) or to any offer or listing agreement made before this section was adopted.

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