72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 1896
 
                           B-Engrossed
 
                         House Bill 3245
                  Ordered by the Senate June 5
 Including House Amendments dated April 22 and Senate Amendments
                          dated June 5
 
Sponsored by Representatives G SMITH, MERKLEY, Senator NELSON
 
 
                             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.
 
    { - Exempts manufactured dwelling park or mobile home park
conversion to planned community subdivision from certain city,
county and land use regulations. - }
   { +  Continues application of city or county comprehensive
plans and land use regulations in effect when manufactured
dwelling park or mobile home park was approved until certain
conditions occur after conversion to subdivision.
  Requires developer to provide purchaser with homeowners
association information. + }
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
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. + }
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