Chapter 711 Oregon Laws 2001

AN ACT

HB 3686

Relating to park for mobile home or manufactured dwelling; creating new provisions; amending ORS 92.427; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. As used in sections 1 to 5 of this 2001 Act, unless the context requires otherwise:

(1) “Lot” has the meaning given that term in ORS 92.010.

(2) “Manufactured dwelling” has the meaning given that term in ORS 90.100.

(3) “Manufactured dwelling park” and “mobile home park” have the meanings given those terms in ORS 446.003.

(4) “Person” has the meaning given that term in ORS 92.305.

SECTION 2. The Legislative Assembly finds:

(1) There is a need to create a mechanism for owners of manufactured dwellings in existing manufactured dwelling parks and mobile home parks to acquire individual ownership interest in the lot on which the dwelling is located;

(2) The creation of an individual ownership interest should not impose an undue financial burden on the owner of a park; and

(3) The public interest is furthered by regulating the promotion, subdivision and sale of individual ownership interests in the lots in a park to ensure that local jurisdictions do not place unreasonable constraints on the conversion of an existing park into a subdivision.

SECTION 3. Notwithstanding the standards and procedures established under ordinances and regulations adopted by the governing body of a city or a county under ORS 92.044 or 92.048, when application for approval of the subdivision of a manufactured dwelling park or a mobile home park is made under ORS 92.040 to the governing body of a city or county, the governing body of the city or county shall approve:

(1) A tentative plan upon receipt and verification of evidence that:

(a) The park is in compliance with the governing body's standards for a manufactured dwelling park or a mobile home park or is an approved nonconforming use. For the purposes of this paragraph, a park is in compliance if the governing body of the city or county has not issued a written notice of noncompliance on the effective date of this 2001 Act; and

(b) The tentative plan does not increase the number of lots, as defined in ORS 446.003, approved for the park, change the boundary lines or setback requirements or make other development changes; and

(2) A plat in compliance with the applicable requirements of ORS 92.010 to 92.190, except standards and procedures adopted by regulation or ordinance under ORS 92.044 or 92.048.

SECTION 4. (1) Notwithstanding the provisions of ORS 92.016 (1), prior to the approval of a tentative plan, the declarant may negotiate to sell a lot in a manufactured dwelling park or a mobile home park for which approval is required under sections 1 to 5 of this 2001 Act.

(2) Prior to the sale of a lot in a park, the declarant shall offer to sell the lot to the tenant who occupies the lot. The offer required under this subsection:

(a) Terminates 60 days after receipt of the offer by the tenant or upon written rejection of the offer, whichever occurs first; and

(b) Does not constitute a notice of termination of the tenancy.

(3) The declarant may not sell the lot to a person other than the tenant for 60 days after termination of the offer required under subsection (2) of this section at a price or on terms that are more favorable to the purchaser than the price or terms that were offered to the tenant.

(4) After the park has been submitted for subdivision under sections 1 to 5 of this 2001 Act and until a lot is offered for sale in accordance with subsection (2) of this section, the declarant shall notify a prospective tenant, in writing, prior to the commencement of the tenancy, that the park has been submitted for subdivision and that the tenant is entitled to receive an offer to purchase the lot under subsection (2) of this section.

(5) The declarant may not begin improvements or rehabilitation to the lot during the period described in ORS 90.630 (6) without the permission of the tenant.

(6) The declarant may begin improvements or rehabilitation to the common property as defined in the declaration during the period described in ORS 90.630 (6).

(7) Nothing in this section prevents the declarant from terminating a tenancy in the park in compliance with ORS 90.630, 90.632 and 90.635. However, the declarant shall make the offer required under subsection (2) of this section to a tenant whose tenancy is terminated after approval of the tentative plan unless the termination is for cause under ORS 90.400, 90.630 (1) or (13) or 90.632.

SECTION 5. (1) A subdivision created in a manufactured dwelling park or mobile home park under sections 1 to 5 of this 2001 Act:

(a) Is subject to ORS 94.550 to 94.783; and

(b) May not be subject to system development charges or other similar charges that are based on approval of the subdivision.

(2) The declarant of a subdivision under sections 1 to 5 of this 2001 Act shall comply with the applicable provisions of ORS 92.305 to 92.495.

SECTION 6. ORS 92.427 is amended to read:

92.427. (1) A purchaser of a lot, parcel or interest in a subdivision or series partition may cancel, for any reason, any contract, agreement or any evidence of indebtedness associated with the sale of the lot, parcel or interest in the subdivision or series partition within three business days from the date of signing by the purchaser of the first written offer or contract to purchase.

(2) Cancellation, under subsection (1) of this section, occurs when the purchaser of a lot, parcel or interest gives written notice to the seller at the seller's address. The three business days cancellation period in subsection (1) of this section does not begin until the seller provides the purchaser with seller's address for cancellation purposes.

(3) A notice of cancellation given by a purchaser of a lot, parcel or interest in a subdivision or series partition need not take a particular form and is sufficient if it indicates by any form of written expression the intention of the purchaser not to be bound by the contract or evidence of indebtedness.

(4) Notice of cancellation, if given by mail, shall be given by certified mail, return receipt requested, and is effective on the date that such notice is deposited with the United States Postal Service, properly addressed and postage prepaid.

(5) Upon receipt of a timely notice of cancellation, the seller shall immediately return to the purchaser all payments received from the purchaser. In case of payments made by check, the seller shall not be required to return the payment to a purchaser until the check is finally paid as provided in ORS 74.2130. Upon return of all such payments the purchaser shall immediately transfer the purchaser's rights in the lot, parcel or interest to the seller, not subject to any encumbrance created or suffered by the purchaser. In the case of cancellation by a purchaser of any evidence of indebtedness, the purchaser shall return the purchaser's copy of the executed evidence of indebtedness to the seller, and the seller shall cancel the evidence of indebtedness. Any encumbrances against the purchaser's interest in the lot, parcel or interest arising by operation of law from an obligation of the purchaser existing prior to transfer of the lot, parcel or interest to the purchaser shall be extinguished by the reconveyance.

(6) No act of a purchaser shall be effective to waive the right of cancellation granted by subsection (1) of this section. A subdivider, series partitioner or developer may require that a purchaser of a lot, parcel or interest in a subdivision or series partition execute and deliver to the subdivider, series partitioner or developer, after the expiration of the three-day cancellation period, a signed statement disclaiming any notice of cancellation that may have been made by the purchaser prior to expiration of the three-day cancellation period for the offer under subsection (1) of this section, that may have been timely and properly done under this section and that has not been received by the subdivider, series partitioner or developer. In case of execution of any such statement by the purchaser, the statement shall be sufficient to rescind the notice of cancellation.

(7) This section [shall] does not apply to:

(a) The sale of a lot in a subdivision or a parcel in a series partition that has a residential dwelling upon it at the time of sale;

(b) The sale of a lot in a subdivision or a parcel in a series partition when, at the time of sale, the seller has contracted with the purchaser to build a residential dwelling upon the lot or parcel; or

(c) The sale of a lot in a subdivision or a parcel in a series partition to a person who derives a substantial portion of income from the development or purchase and sale of real property.

(8) As used in this section, “residential dwelling” does not include a manufactured dwelling.

SECTION 7. Sections 1 to 5 of this 2001 Act and the amendments to ORS 92.427 by section 6 of this 2001 Act apply to a manufactured dwelling park or a mobile home park lawfully established before the effective date of this 2001 Act.

SECTION 8. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

Approved by the Governor July 2, 2001

Filed in the office of Secretary of State July 2, 2001

Effective date July 2, 2001

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