Chapter 474 Oregon Laws 2003

AN ACT

HB 3245

Relating to subdivisions; creating new provisions; amending ORS 92.427, 92.830, 92.832, 92.835, 92.840 and 92.845; repealing section 7, chapter 711, Oregon Laws 2001; and declaring an emergency.

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

SECTION 1. Sections 2 and 3 of this 2003 Act are added to and made a part of ORS 92.830 to 92.845.

SECTION 2. (1) Except as provided in subsection (2) of this section, city or county comprehensive plans and land use regulations that applied at the time the manufactured dwelling park or mobile home park was approved continue to apply to park land that is converted to a subdivision pursuant to ORS 92.830 to 92.845 until the earlier of:

(a) The sale of all of the newly created lots in accordance with ORS 92.840 and the issuance of permits to allow the placement of a manufactured dwelling on each of those lots; or

(b) Ten years after conversion of the manufactured dwelling park or mobile home park to a subdivision.

(2) An original or replacement manufactured dwelling may be placed on a park space that has been converted to a subdivision lot under ORS 92.835 if:

(a) The manufactured dwelling is constructed and installed in accordance with state and federal standards; and

(b) The owner of the lot has signed and recorded a waiver of the right of remonstrance, in a form approved by the city or county, for the formation of a local improvement district by a city or county. A local improvement district described in this paragraph must be for the construction of a capital improvement described in ORS 223.299 (1)(a)(A) to (C).

(3) Notwithstanding subsection (2)(b) of this section, a waiver of the right of remonstrance may not be required of the owner of a lot in a manufactured dwelling park or mobile home park if the park was served for water, sewer and irrigation by a private utility company prior to an acquisition of that company by municipal condemnation commenced prior to January 1, 2003.

SECTION 3. (1) A declaration made pursuant to ORS 92.845, or an amendment to the declaration, may not be recorded unless first approved by the tax collector for the county where the property is located and the Real Estate Commissioner.

(2) A tax collector shall approve a declaration or amendment submitted under this section if:

(a) All ad valorem taxes, special assessments, fees and other charges required by law to be placed on the tax roll that are or will become a lien on the property during the tax year have been paid as required by ORS 92.095; and

(b) Any additional taxes or penalties, and interest on taxes or penalties, resulting from a disqualification of the property from special assessment have been paid.

(3) The commissioner shall approve a declaration or amendment submitted under this section if:

(a) The declaration or amendment complies with ORS 92.835, 92.845 and 94.580; and

(b) The plat executed by the declarant is in conformance with ORS 92.835 (2).

(4) The commissioner’s approval of a declaration or amendment under this section expires after two years if the declaration or amendment has not been recorded. The commissioner shall specify the expiration date when approving the declaration or amendment. A declaration or amendment may not be reapproved after an approval expires unless the declaration or amendment is resubmitted and new determinations are made under subsections (2) and (3) of this section.

SECTION 4. 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] is 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] An act of a purchaser [shall be] is not 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 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.] Notwithstanding subsection (7) of this section, this section applies to a planned community subdivision of manufactured dwellings created under ORS 92.830 to 92.845.

SECTION 5. ORS 92.830 is amended to read:

92.830. As used in ORS 92.830 to 92.845, unless the context requires otherwise:

(1) “Declarant” means a person who makes a declaration pursuant to ORS 92.845.

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

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

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

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

SECTION 6. ORS 92.832 is amended to read:

92.832. 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 owners of manufactured dwellings to ensure that local jurisdictions do not place unreasonable constraints on the conversion of [an existing park into a subdivision.] existing parks into planned community subdivisions of manufactured dwellings; and

(4) The orderly conversion of manufactured dwelling parks and mobile home parks to subdivisions has effects on infrastructure and access that make it appropriate to require assurances that public health and safety standards are met by persons buying or selling lots converted from a park.

SECTION 7. ORS 92.835 is amended to read:

92.835. 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 that was lawfully approved before July 2, 2001, 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 or before July 2, 2001; [and]

(b) Except as provided in this paragraph, 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] make changes from the approved manufactured dwelling park or mobile home park development, including but not limited to increasing or decreasing the number of lots as defined in ORS 446.003 or changing the external boundary lines or setback requirements. The tentative plan may provide for a reduction in the number of lots, if the reduction involves only lots that have never been used for placement of manufactured dwellings;

(c) The tentative plan restricts the use of lots in the subdivision to the installation of manufactured dwellings and restricts any other property in the subdivision to use as common property as defined in ORS 94.550 or for public purposes;

(d) The tentative plan does not contain conditions of approval or require development agreements except the original conditions of approval and development agreements contained in the original approval for the park or conditions required by ORS 92.830 to 92.845; and

(e) The property owners applying for the conversion have signed and recorded a waiver of the right of remonstrance, in a form approved by the city or county, for the formation of a local improvement district by a city or county. A waiver described in this paragraph must be in regard only to sanitary and storm sewers or water facilities and be operative only if the city or county determines after a hearing that the absence or inadequacy of those sewers or facilities is an immediate danger to life, health or safety. However, a waiver of the right of remonstrance may not be required of the owner of a lot in a manufactured dwelling park or mobile home park if the park was served for water, sewer and irrigation by a private utility company prior to an acquisition of that company by municipal condemnation commenced prior to January 1, 2003.

(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. The plat may not contain conditions of approval or require development agreements except the original conditions of approval and development agreements contained in the original plat for the park or conditions required by ORS 92.830 to 92.845.

SECTION 8. ORS 92.840 is amended to read:

92.840. (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 ORS 92.830 to 92.845.

(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 ORS 92.830 to 92.845 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) Prior to any sale of a lot in a subdivision created in the park, the declarant must provide the tenant or other potential purchaser of the lot with information about the homeowners association formed by the declarant as required by ORS 94.625. The information must, at a minimum, include the association name and type and any rights set forth in the declaration required by ORS 94.580.

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

[(6)] (7) The declarant may begin improvements or rehabilitation to the common property as defined in the declaration during the period described in ORS 90.630 (5).

[(7)] (8) 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 (12) or 90.632.

SECTION 9. ORS 92.845 is amended to read:

92.845. (1) A planned community subdivision of manufactured dwellings created in a manufactured dwelling park or mobile home park under ORS 92.830 to 92.845:

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

(b) [May not be] Is not subject to system development charges or other similar charges that are based on approval of the subdivision; and

(c) Remains subject to system development charges that are based on the prior approval of the manufactured dwelling park or mobile home park.

(2) The declarant of a planned community subdivision of manufactured dwellings under ORS 92.830 to 92.845 shall:

(a) Comply with the [applicable] provisions of ORS 92.305 to 92.495, except ORS 92.337 and 92.395; and

(b) Include in the declaration described in ORS 94.580 a statement that the subdivision will comply with the conditions required by ORS 92.835 and subsections (1)(b) and (c) of this section.

SECTION 10. Section 7, chapter 711, Oregon Laws 2001, is repealed.

SECTION 11. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor June 24, 2003

Filed in the office of Secretary of State June 24, 2003

Effective date June 24, 2003

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