71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2125
A-Engrossed
House Bill 2847
Ordered by the House March 26
Including House Amendments dated March 26
Sponsored by Representative MERKLEY; Representatives BACKLUND,
BARNHART, BATES, BOWMAN, BROWN, CARLSON, DOYLE, GARDNER,
GARRARD, HANSEN, HASS, HILL, HOPSON, JENSON, KAFOURY, KNOPP,
KRIEGER, KROPF, KRUMMEL, KRUSE, LEE, LOWE, MARCH, MONNES
ANDERSON, MORGAN, MORRISETTE, NOLAN, RINGO, ROSENBAUM,
SCHRADER, SHETTERLY, G SMITH, T SMITH, TOMEI, VERGER, C WALKER,
V WALKER, WILLIAMS, WILSON, WINTERS, WIRTH, WITT, ZAUNER,
Senators FERRIOLI, METSGER, SHIELDS
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ + Specifies required content of purchase agreement for
manufactured dwelling.
Provides that sale of manufactured dwelling intended to be
placed or remain in manufactured dwelling park is rescinded or
may be voided under specified conditions. + }
{ - Allows purchaser of certain manufactured dwellings to
rescind purchase within three days. - } Prohibits financial
institution from closing loan for purchase of manufactured
dwelling while purchaser has power to rescind purchase.
Allows renter of space in manufactured dwelling park to rescind
rental agreement within three { + business + } days after
signing agreement. { + Requires Manufactured Dwelling Park
Ombudsman to develop rental agreement rescission notice. + }
{ - Requires Housing and Community Services Department to
develop and offer class concerning manufactured dwellings and
parks. Allows purchaser of manufactured dwelling or renter of
space to waive or reduce three-day rescission period after
attending class. - }
{ + Requires ombudsman to make specified information
available to public regarding rights of person renting space in
manufactured dwelling park or purchasing manufactured dwelling.
Prohibits affiliation of ombudsman with manufactured dwelling
park. + }
A BILL FOR AN ACT
Relating to housing; creating new provisions; and amending ORS
446.543.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2001 Act are added to
and made a part of ORS 90.505 to 90.840. + }
SECTION 2. { + (1) An application to rent space in a
manufactured dwelling park must be a separate document from the
rental agreement. The prospective tenant must sign and date the
application.
(2) A landlord who signs a rental agreement for space in a
manufactured dwelling park must date the signature. The landlord
may not sign the rental agreement prior to the date that the
prospective tenant submits the application to rent space.
(3) A prospective tenant may not sign a rental agreement for
space in a manufactured dwelling park until after the landlord
has signed the rental agreement. At the time that the prospective
tenant signs the rental agreement, the landlord shall provide the
prospective tenant with two copies of the rescission right notice
described in section 7 of this 2001 Act. The landlord must
complete all required information in the rescission right notice
prior to providing the notice to the prospective tenant.
(4) This section does not apply to the renewal or replacement
of a rental agreement between the same parties if the rental
agreement being renewed or replaced was in effect for 30 days or
more. + }
SECTION 3. { + (1) As used in this section, 'business day '
means a day other than a Saturday or legal holiday.
(2) A person who rents space in a manufactured dwelling park
may rescind the rental agreement on or before 12 midnight of the
third business day following the date that the person signs the
rental agreement. The rescission must be on the rescission form
described in section 7 of this 2001 Act sent to the landlord's
designated place of business. The rescission form may be sent by
personal delivery, mail or facsimile. A rescission sent by mail
or facsimile is effective when sent.
(3) If more than one person is listed on the rental agreement
as a tenant, rescission in accordance with this section by one of
the persons constitutes a rescission of the rental agreement by
all of the persons.
(4) Except as provided in this subsection, notwithstanding ORS
90.300 and 90.302, on or before the 15th day after the landlord
actually receives a rescission form under this section, the
landlord shall return deposits, rents, fees or other amounts paid
under the rental agreement to the person who sent the rescission
form. The landlord may retain an application fee paid by the
person if the fee does not exceed $100 and the person received
written notice at the time of fee payment that the fee was
nonrefundable.
(5) If more than one person is listed on the rental agreement
as a tenant, a landlord has no liability to the other tenants for
amounts paid under subsection (4) of this section to the person
who sent the rescission form.
(6) This section does not apply to the renewal or replacement
of a rental agreement between the same parties if the rental
agreement being renewed or replaced was in effect for 30 days or
more. + }
SECTION 4. { + As used in sections 5 and 6 of this 2001 Act:
(1) 'Business day' means a day other than a Saturday or legal
holiday.
(2) 'Manufactured dwelling' has the meaning given that term in
ORS 446.003.
(3) 'Manufactured dwelling park' has the meaning given that
term in ORS 446.003. + }
SECTION 5. { + (1) A purchase agreement for a new or used
manufactured dwelling must:
(a)(A) Provide that the purchase is contingent upon the
purchaser securing acceptable financing if necessary; and
(B) Provide that the purchase is contingent upon the purchaser
securing a rental agreement for space in a manufactured dwelling
park, if applicable.
(b)(A) Include a place for the purchaser to indicate whether
the dwelling is being purchased for placement on rented space in
a manufactured dwelling park; or
(B) Include a place for the purchaser to indicate whether a
dwelling located in a manufactured dwelling park is being
purchased with the intention that the dwelling remain where it is
located.
(2) If a new or used manufactured dwelling is purchased for
placement in a manufactured dwelling park or with the intention
that the dwelling remain at a manufactured dwelling park
location, the purchase agreement must:
(a) Specify the time available for the purchaser to secure and
sign a rental agreement, not to exceed 90 calendar days.
(b) Provide that failure of the purchaser to secure and sign a
rental agreement within the specified time terminates the
purchase agreement.
(c) Inform the purchaser that the purchaser may rescind a
rental agreement for space in a manufactured dwelling park on or
before 12 midnight of the third day after the purchaser signs the
rental agreement.
(d) Provide that if the purchaser rescinds the rental agreement
within the time allowed under paragraph (c) of this subsection,
the purchase agreement for the manufactured dwelling is also
rescinded.
(e) Provide that if the purchase of a manufactured dwelling
closes prior to expiration of the purchaser's right to rescind a
rental agreement as described in paragraph (c) of this
subsection, the purchaser may void the purchase agreement on or
before the 60th day following the closing.
(f) Inform the purchaser how to contact the Manufactured
Dwelling Park Ombudsman to obtain additional general information
regarding the rescission right or other consumer information
regarding manufactured dwelling parks.
(3) A purchase agreement subject to subsection (2) of this
section must state the required provisions of subsection (2)(c)
and (f) of this section in bold print with at least a 14-point
font.
(4) If the sale of a manufactured dwelling is contingent upon
the purchaser securing a rental agreement for space in a
manufactured dwelling park, the seller of the dwelling may
require the purchaser to provide a copy of the secured rental
agreement. If the purchaser's right to rescind the rental
agreement has expired, the seller may require the purchaser to
provide an affidavit stating that the purchaser did not exercise
the right to rescind the rental agreement. Provision of the
affidavit by the purchaser is conclusive proof that the
contingency described in subsection (1)(a)(B) of this section has
been satisfied and that the purchase agreement is not subject to
rescission under subsection (2)(d) of this section or voidable
under subsection (2)(e) of this section. + }
SECTION 6. { + (1) A financial institution doing business in
this state may not close a loan for the purchase of a
manufactured dwelling while the purchaser has a right to rescind
the purchase under section 5 (2)(d) of this 2001 Act. Any loan
made while the purchaser has the right under section 5 (2)(d) of
this 2001 Act to rescind the purchase agreement is voidable by
the purchaser on or before the 60th day following the closing.
(2) If a financial institution provides financing for a
manufactured dwelling purchase and the purchase is contingent
upon the purchaser securing a rental agreement for space in a
manufactured dwelling park, the financial institution may require
the purchaser to provide a copy of the secured rental agreement.
If the purchaser's right to rescind the rental agreement has
expired, the financial institution may require the purchaser to
provide an affidavit stating that the purchaser did not exercise
the right to rescind the rental agreement. Provision of the
affidavit by the purchaser is conclusive proof that the
contingency described in section 5 (1)(a)(B) of this 2001 Act has
been satisfied, that the purchase agreement is not subject to
rescission under section 5 (2)(d) of this 2001 Act or voidable by
the purchaser under section 5 (2)(e) of this 2001 Act and that
the loan for purchase of the dwelling is not voidable by the
purchaser under subsection (1) of this section. + }
SECTION 7. { + The Manufactured Dwelling Park Ombudsman shall
develop a rental agreement rescission right notice for delivery
by a landlord to a prospective manufactured dwelling park tenant
as provided in section 2 (3) of this 2001 Act. The notice must
include the following:
(1) A clear and conspicuous statement that the tenant may
rescind the rental agreement on or before 12 midnight of the
third business day following the day the tenant signs the
agreement.
(2) A place for the landlord to fill in the date and day of the
week on which the rescission right expires.
(3) A detachable rescission form for use by a tenant in
exercising the right of rescission. The form must provide space
for the landlord to fill in the name of the tenant, the name of
the manufactured dwelling park and the address and number of the
rental space, and space for the tenant to sign and date the
notice.
(4) A place for the landlord to fill in specific instructions
regarding the manner in which the tenant may exercise the right
to rescind the agreement, including but not limited to addresses
for mail delivery and personal delivery of the rescission form
and, if available, a facsimile number for electronic delivery of
the form.
(5) Information regarding how the tenant may contact the
Manufactured Dwelling Park Ombudsman for additional general
information regarding the rescission right or other consumer
information regarding manufactured dwelling parks. + }
SECTION 8. ORS 446.543 is amended to read:
446.543. (1) A Manufactured Dwelling Park Ombudsman is
established in the Housing and Community Services Department.
(2) The ombudsman shall:
(a) Undertake, participate in or cooperate with persons and
agencies in such conferences, inquiries, meetings or studies as
might lead to improvements in manufactured dwelling park landlord
and tenant relationships;
(b) Develop and implement a centralized resource referral
program for tenants and landlords to encourage the voluntary
resolution of disputes;
(c) Maintain a current list of manufactured dwelling parks in
the state, indicating the total number of spaces;
{ - (d) Not be directly affiliated, currently or previously,
in any way with a manufactured dwelling park within the preceding
two years; and - }
{ - (e) - } { + (d) + } Take other actions or perform such
other duties as the Director of the Housing and Community
Services Department deems necessary or appropriate { - . - }
{ + ; and
(e) Make general information available to the public regarding
the rescission rights of manufactured dwelling purchasers and
persons renting space in manufactured dwelling parks and other
consumer information regarding manufactured dwelling parks.
(3) The ombudsman may not be directly affiliated, currently or
previously, in any way with a manufactured dwelling park within
the preceding two years. + }
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