75th OREGON LEGISLATIVE ASSEMBLY--2009 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 781
A-Engrossed
House Bill 2255
Ordered by the House April 8
Including House Amendments dated April 8
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Housing and Community Services Department)
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.
Prohibits manufactured dwelling park nonprofit cooperative from
issuing stock. { - Exempts membership in manufactured dwelling
park nonprofit cooperative from security registration
requirement. - }
Prohibits member of manufactured dwelling park nonprofit
cooperative from selling or redeeming membership at profit.
Limits number of manufactured dwelling park nonprofit cooperative
memberships to number of sites in manufactured dwelling park of
cooperative.
Specifies rights of lienholder acquiring manufactured dwelling
located in manufactured dwelling park of cooperative.
Establishes { - deadline for buyer of - } { + deadlines for
buyer of, or person who acquires from lienholder title to, + }
manufactured dwelling in park of cooperative to join cooperative
or move manufactured dwelling.
Makes membership in manufactured dwelling park nonprofit
cooperative mandatory for residents if newly created park
originates as cooperative.
Allows manufactured dwelling park nonprofit cooperative to be
sponsoring entity for purposes of tax credit for loans used to
finance construction, development, acquisition or acquisition and
rehabilitation of manufactured dwelling park. Limits types of
sponsoring entity that may be qualified borrower on loans for
manufactured dwelling parks.
A BILL FOR AN ACT
Relating to manufactured dwelling park nonprofit cooperatives;
creating new provisions; and amending ORS 62.803, 62.809,
62.812, 62.815, 317.097 and 446.626.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 and 3 of this 2009 Act are added to
and made a part of ORS 62.800 to 62.815. + }
SECTION 2. { + A manufactured dwelling park nonprofit
cooperative may record notices, restrictive covenants, leases,
memoranda and other documents relating to the cooperative in the
deed records of the county in which the manufactured dwelling
park of the cooperative is located. + }
SECTION 3. { + (1) If a lienholder provides a manufactured
dwelling park nonprofit cooperative with a written request for
notification regarding a manufactured dwelling on which the
lienholder has a lien, the cooperative shall provide the
lienholder with written notice of a termination of occupancy or
membership if:
(a) A member of the cooperative who is identified in the
lienholder request for notification terminates occupancy in the
manufactured dwelling park of the cooperative and the cooperative
knows of the termination;
(b) A member of the cooperative who is identified in the
lienholder request for notification terminates membership in the
cooperative; or
(c) The cooperative terminates, or gives notice of cause for
terminating, the occupancy or membership of a member of the
cooperative who is identified in the lienholder request for
notification.
(2) If a member or the cooperative terminates the member's
occupancy in the park or membership in the cooperative, and the
member fails to move or sell the manufactured dwelling, a
lienholder that has foreclosed on the lien on the manufactured
dwelling may:
(a) Remove the manufactured dwelling from the park after
satisfying any obligation to the cooperative;
(b) Subject to subsection (3) of this section, sell the
manufactured dwelling; or
(c) Require the cooperative to enter into a storage agreement
that allows the lienholder to store the manufactured dwelling on
the space for up to 12 months if the lienholder pays the space
rent and reasonably maintains the manufactured dwelling and
space.
(3) The buyer of a manufactured dwelling sold by a lienholder
under subsection (2)(b) of this section takes possession of the
manufactured dwelling subject to ORS 62.809 (8) and any
obligation to the cooperative. During the term of a storage
agreement described in subsection (2)(c) of this section, the
lienholder may remove or sell the manufactured dwelling as
provided in subsection (2)(a) or (b) of this section.
(4) If the member of the cooperative terminated occupancy in
the park without terminating membership in the cooperative, an
application for membership by the buyer or moving of the
manufactured dwelling shall act to transfer the membership of the
terminating owner to the cooperative. + }
SECTION 4. ORS 62.803 is amended to read:
62.803. As used in ORS 62.800 to 62.815, unless the context
requires otherwise:
{ + (1) 'Lienholder' means the holder of a manufactured
dwelling lien:
(a) That is recorded in the deed records of the county in which
the manufactured dwelling is located; or
(b) Of which a manufactured dwelling park nonprofit cooperative
has actual knowledge. + }
{ - (1) - } { + (2) + } 'Manufactured dwelling' has the
meaning given that term in ORS 446.003.
{ - (2) - } { + (3) + } 'Manufactured dwelling park' has
the meaning given that term in ORS 446.003.
{ - (3) - } { + (4) + } 'Manufactured dwelling park
nonprofit cooperative' means a cooperative corporation that:
(a) Is organized to acquire or develop, and to own, an interest
in one or more manufactured dwelling parks that are primarily
used for the siting of manufactured dwellings owned and occupied
by members of the cooperative;
(b) Limits the use of all income and earnings to use by the
cooperative and not for the benefit or profit of any individual;
and
(c) Elects to be governed by ORS 62.800 to 62.815.
SECTION 5. ORS 62.809 is amended to read:
62.809. (1) A person may become a member of a manufactured
dwelling park nonprofit cooperative if the person:
(a) Is a natural person;
(b) Owns a manufactured dwelling that is, or is to be, located
in a manufactured dwelling park of the cooperative and occupied
by the person;
(c) { - (A) - } Pays the membership fee required by the
cooperative;
{ - or - } { + and + }
{ - (B) Purchases a share of membership stock issued by the
cooperative; and - }
(d) Meets any additional membership qualifications established
in the articles of incorporation or bylaws of the cooperative.
(2) A manufactured dwelling park nonprofit cooperative shall
accept as a member any person who meets the qualifications
described in subsection (1) of this section.
(3) Membership in a manufactured dwelling park nonprofit
cooperative entitles the member to rent space for a manufactured
dwelling in a manufactured dwelling park of the cooperative and
to occupy the manufactured dwelling.
(4) { + The total number of memberships available for issuance
by a manufactured dwelling park nonprofit cooperative may not
exceed the number of manufactured dwelling spaces in the
manufactured dwelling park of the cooperative. + } A cooperative
shall create or issue one membership { - or share of membership
stock - } for each manufactured dwelling that is, or is to be,
located in a manufactured dwelling park of the cooperative and
occupied by the dwelling owner. A person may not own more than
one membership { - or share of membership stock - } in the
same cooperative. A membership
{ - or membership stock - } may not be issued { - or
transferred - } to a person unless the person meets the
qualifications for membership described in subsection (1) of this
section.
(5) A cooperative shall issue memberships { - or shares of
membership stock - } for a fee determined by the directors of
the cooperative. The directors may periodically adjust the fee
amount as provided in the articles of incorporation or bylaws of
the cooperative. Except for periodic adjustments, the membership
fee
{ - or membership stock price - } charged by the cooperative
shall be the same for all members. { - A member may not sell,
transfer or redeem a membership for more than the amount the
member paid for the membership plus any adjustments approved by
the directors to reflect cost-of-living increases. - }
{ + (6) A member may sell or redeem membership in the
cooperative only to the cooperative. A member may not sell or
redeem membership to the cooperative for more than the price the
member paid for the membership. + }
{ - (6) - } { + (7) Except as provided in this section, + }
the articles of incorporation or bylaws of the cooperative shall
establish the methods for accepting and terminating membership
and for the sale { - , transfer - } or redemption of a
membership { - or share of membership stock - } .
{ + (8)(a) A member may sell to another person the member's
manufactured dwelling located in the manufactured dwelling park
of a cooperative. The member selling the manufactured dwelling
must arrange to sell or redeem the membership to the cooperative
as described in subsection (6) of this section.
(b) A person that buys a manufactured dwelling located in the
park of a cooperative from any person may apply to become a
member of the cooperative. If a member of the cooperative
transfers title to a manufactured dwelling to a person other than
a lienholder, and no buyer of the manufactured dwelling from the
member or from another person becomes a member of the cooperative
within six months after the member transfers title, the owner of
the manufactured dwelling must remove the manufactured dwelling
from the park of the cooperative. If title to a manufactured
dwelling located in the park of a cooperative is transferred to a
lienholder, and no buyer of the manufactured dwelling from the
lienholder or from a person that acquired title from the
lienholder becomes a member of the cooperative within 12 months
after title is transferred to the lienholder, the owner of the
manufactured dwelling must remove the manufactured dwelling from
the park of the cooperative.
(c) Notwithstanding ORS 446.626, if a manufactured dwelling
located in a manufactured dwelling park of a cooperative was
recorded in the county deed records before title to the
manufactured dwelling was transferred from the record owner of
the manufactured dwelling, the county shall continue to list the
manufactured dwelling in the deed records until the earlier of:
(A) Twelve months after title is transferred from the record
owner to a person other than a lienholder shown on the deed
record for the manufactured dwelling, unless the county is
notified that a subsequent buyer of the manufactured dwelling has
become a member of the cooperative;
(B) Twelve months after title is transferred to a lienholder
shown on the deed record for the manufactured dwelling, unless
the county is notified that a subsequent buyer of the
manufactured dwelling has become a member of the cooperative; or
(C) Issuance of a trip permit under ORS 446.631 for moving the
dwelling.
(9) If a newly created manufactured dwelling park originates as
a manufactured dwelling park nonprofit cooperative, a
manufactured dwelling owner must become a member of the
cooperative before residing in the park. + }
SECTION 6. ORS 62.812 is amended to read:
62.812. (1) As used in this section, 'debts, liabilities and
obligations' includes, but is not limited to, the repurchase of
each membership in the cooperative for the amount { - last - }
{ + that was + } charged by the cooperative as a membership fee
{ - or as the purchase price of membership stock - } .
(2) If a manufactured dwelling park nonprofit cooperative
dissolves, after payment or provision for all debts, liabilities
and obligations of the cooperative, the cooperative shall
distribute the assets of the cooperative to:
(a) Another manufactured dwelling park nonprofit cooperative;
(b) An organization organized for a public or charitable
purpose;
(c) A religious corporation;
(d) The United States;
(e) This state;
(f) A local government in this state;
(g) A housing authority created under ORS 456.055 to 456.235;
or
(h) A person that is recognized as tax exempt under section
501(c)(3) of the Internal Revenue Code.
SECTION 7. ORS 62.815 is amended to read:
62.815. (1) As used in this section, 'business entity' has the
meaning given that term in ORS 62.605.
(2) A manufactured dwelling park nonprofit cooperative may not:
{ - (a) Notwithstanding ORS 62.225, pay a dividend on stock
to members. - }
{ + (a) Issue stock in the cooperative. + }
(b) Apportion, distribute or pay net proceeds or savings to
members.
(c) Make payments in redemption or refund of capital credits or
retains to an heir of a member.
(d) Merge with a business entity other than another
manufactured dwelling park nonprofit cooperative.
(e) Convert to another type of business entity.
SECTION 8. ORS 317.097, as amended by section 6, chapter 29,
Oregon Laws 2008, and section 15, chapter 45, Oregon Laws 2008,
is amended to read:
317.097. (1) A credit against taxes otherwise due under this
chapter for the taxable year shall be allowed to a lending
institution in an amount equal to the difference between:
(a) The amount of finance charge charged by the lending
institution during the taxable year at an annual rate less than
the market rate for a loan that is made before January 1, 2020,
that complies with the requirements of this section; and
(b) The amount of finance charge that would have been charged
during the taxable year by the lending institution for the loan
for housing construction, development, acquisition or
rehabilitation measured at the annual rate charged by the lending
institution for nonsubsidized loans made under like terms and
conditions at the time the loan for housing construction,
development, acquisition or rehabilitation is made.
(2) The maximum amount of credit for the difference between the
amounts described in subsection (1)(a) and (b) of this section
may not exceed four percent of the average unpaid balance of the
loan during the tax year for which the credit is claimed.
(3) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise, any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, and any credit not used in that third
succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax
year thereafter.
(4) In order to be eligible for the tax credit allowed under
subsection (1) of this section, the loan shall { - be - } :
(a) { + Be + } made to an individual or individuals who own
the dwelling, participate in an owner-occupied community
rehabilitation program and are certified by the local government
or its designated agent as having an income level at the time the
loan is made of less than 80 percent of the area median income;
(b)(A) { + Be + } made to a qualified borrower;
(B) Used to finance construction, development, acquisition or
rehabilitation of housing; and
(C) Accompanied by a written certification by the Housing and
Community Services Department that the:
(i) Housing created by the loan is or will be occupied by
households earning less than 80 percent of the area median
income; and
(ii) Full amount of savings from the reduced interest rate
provided by the lending institution is or will be passed on to
the tenants in the form of reduced housing payments, regardless
of other subsidies provided to the housing project;
(c)(A) { + Subject to subsection (13) of this section, be
+ }made to a qualified borrower;
(B) Used to finance construction, development, acquisition, or
acquisition and rehabilitation of housing consisting of a
manufactured dwelling park; and
(C) Accompanied by a written certification by the Housing and
Community Services Department that the housing will continue to
be operated as a manufactured dwelling park during the period for
which the tax credit is allowed; or
(d)(A) { + Be + } made to a qualified borrower;
(B) Used to finance acquisition, or acquisition and
rehabilitation, of housing consisting of a preservation project;
and
(C) Accompanied by a written certification by the Housing and
Community Services Department that the housing preserved by the
loan:
(i) Is or will be occupied by households earning less than 80
percent of the area median income; and
(ii) Has a rent assistance contract with the United States
Department of Housing and Urban Development or the United States
Department of Agriculture that will be maintained by the
qualified borrower.
(5) A loan made to refinance a loan that meets the criteria
stated in subsection (4) of this section shall be treated the
same as a loan that meets the criteria stated in subsection (4)
of this section.
(6) In order to be eligible for the tax credit allowed under
subsection (1) of this section, the loan also shall be
accompanied by a written certification by the Housing and
Community Services Department that:
(a) Specifies the period, as determined by the Housing and
Community Services Department, during which the loan is eligible
for the tax credit under subsection (1) of this section; and
(b) States that the loan is within the limitation imposed by
subsection (7) of this section.
(7)(a) The Housing and Community Services Department may
certify loans that are eligible under subsection (4) of this
section if the total credits attributable to all loans eligible
for credits under subsection (1) of this section and then
outstanding do not exceed $17 million for any fiscal year. In
making loan certifications, the Housing and Community Services
Department shall attempt to distribute the tax credits statewide,
but shall concentrate the tax credits in those areas of the state
that are determined by the State Housing Council to have the
greatest need for affordable housing.
(b) The certification under subsection (6) of this section
shall state the period for which the credit will be allowed,
which may not exceed 20 years.
(8) The applicant's receipt of a credit under section 42 of the
Internal Revenue Code does not affect the credit allowed under
this section.
(9) A loan meeting the requirements of subsections (4) and (6)
of this section may be sold to a qualified assignee with or
without the lending institution's retaining servicing of the loan
so long as a designated lending institution maintains records
annually verified by a loan servicer that establish the amount of
tax credit earned by the taxpayer throughout each year of
eligibility.
(10) As used in this section:
(a) 'Annual rate' means the yearly interest rate specified on
the note, and not the annual percentage rate, if any, disclosed
to the applicant to comply with the federal Truth in Lending Act.
(b) 'Finance charge' means the total of all interest, loan
fees, interest on any loan fees financed by the lending
institution, and other charges related to the cost of obtaining
credit.
(c) 'Lending institution' means any insured institution, as
that term is defined in ORS 706.008, any mortgage banking company
that maintains an office in this state or any community
development corporation that is organized under the Oregon
Nonprofit Corporation Law.
(d) 'Manufactured dwelling park' has the meaning given that
term in ORS 446.003.
(e) 'Nonprofit corporation' means a corporation that is exempt
from income taxes under section 501(c)(3) or (4) of the Internal
Revenue Code as amended and in effect on December 31, 2007.
(f) 'Preservation project' means housing that was previously
developed as affordable housing with a contract for rent
assistance from the United States Department of Housing and Urban
Development or the United States Department of Agriculture and
that is being acquired by a sponsoring entity.
(g) 'Qualified assignee' means any investor participating in
the secondary market for real estate loans.
(h) 'Qualified borrower' means any borrower that is a
sponsoring entity that has a controlling interest in the real
property that is financed by the loan described in subsection (4)
of this section. Such a controlling interest includes, but is not
limited to, a controlling interest in the general partner of a
limited partnership that owns the real property.
(i) 'Sponsoring entity' means a nonprofit corporation,
nonprofit cooperative, state governmental entity, local unit of
government as defined in ORS 466.706, housing authority or any
other person, provided that the person has agreed to restrictive
covenants imposed by a nonprofit corporation, nonprofit
cooperative, state governmental entity, local unit of government
or housing authority.
(11) Notwithstanding any other provision of law, a lending
institution that is a community development corporation organized
under the Oregon Nonprofit Corporation Law may transfer any part
or all of any tax credit arising under subsection (1) of this
section to one or more other lending institutions that are
stockholders or members of the community development corporation
or that otherwise participate through the community development
corporation in the making of one or more loans that generate the
tax credit under subsection (1) of this section.
(12) The lending institution shall file an annual statement
with the Housing and Community Services Department, specifying
that it has conformed with all requirements imposed by law to
qualify for this tax credit.
{ + (13) Notwithstanding subsection (10)(h) and (i) of this
section, a qualified borrower on a loan to finance the
construction, development, acquisition or acquisition and
rehabilitation of a manufactured dwelling park under subsection
(4)(c) of this section must be a nonprofit corporation,
manufactured dwelling park nonprofit cooperative, state
governmental entity, local unit of government as defined in ORS
466.706 or housing authority. + }
{ - (13) - } { + (14) + } The Housing and Community
Services Department and the Department of Revenue may adopt rules
to carry out the provisions of this section.
SECTION 9. ORS 446.626 is amended to read:
446.626. (1) The owner of a manufactured structure that
qualifies under this subsection may apply to the county assessor
to have the structure recorded in the deed records of the county.
The application must be on a form approved by the Department of
Consumer and Business Services. The application must include a
description of the location of the real property on which the
manufactured structure is or will be sited. If the structure is
being sold by a manufactured structure dealer, the dealer may
file the application on behalf of the owner within the time
described in ORS 446.736 (7). A manufactured structure qualifies
for recording in the deed records if the owner of the structure:
(a) Also owns the land on which the manufactured structure is
located; { - or - }
(b) Is the holder of a recorded leasehold estate of 20 years or
more if the lease specifically permits the manufactured structure
owner to record the structure under this section { - . - }
{ + ; or
(c) Is a member of a manufactured dwelling park nonprofit
cooperative formed under ORS 62.800 to 62.815 that owns the land
on which the manufactured structure is located. + }
(2) If the assessor, as agent for the department, determines
that the manufactured structure qualifies for recording in the
deed records of the county, the assessor shall cause the
structure to be recorded in the deed records. The deed records
must contain any unreleased security interest in the manufactured
structure. If the department has issued an ownership document for
the manufactured structure, the owner must submit the ownership
document to the assessor with the application described in
subsection (1) of this section. Upon recording the manufactured
structure in the deed records, the assessor shall send the
ownership document to the department for cancellation. The
department shall cancel the ownership document and send
confirmation of the cancellation to the assessor and the owner.
(3) The recording of a security interest in the deed records of
the county under this section satisfies the requirements for
filing a financing statement for a fixture to real property under
ORS 79.0502. The recording of a manufactured structure in the
deed records of the county is independent of the assessment and
taxation of the structure as real property under ORS 308.875. The
recording of a manufactured structure in the deed records of the
county makes the structure subject to the same provisions of law
applicable to any other building, housing or structure on the
land. However, the manufactured structure may not be sold
separately from the land or leasehold estate unless the owner
complies with subsection (4) of this section.
(4) The owner of a manufactured structure that is recorded in
the deed records of the county may apply to have the structure
removed from the deed records and an ownership document issued
for the structure. Unless the manufactured structure is subject
to ORS 446.631, the owner must apply to the county assessor, as
agent for the department, for an ownership document as provided
in ORS 446.571. Upon approval of the application, the assessor
shall terminate the recording of the manufactured structure in
the deed records.
(5) If a manufactured structure described in
{ - paragraph - } { + subsection + } (1)(b) { + or (c) + } of
this section is recorded in the deed records, the owner of the
structure has a real property interest in the manufactured
structure for purposes of:
(a) Recordation of documents pursuant to ORS 93.600 to 93.800,
93.802, 93.804, 93.806 and 93.808;
(b) Deed forms pursuant to ORS 93.850 to 93.870;
(c) Mortgages, trust deeds and other liens pursuant to ORS
86.010 to 86.990 and ORS chapters 87 and 88; and
(d) Real property tax collection pursuant to ORS chapters 311
and 312. The structure owner is considered the owner of the real
property for purposes of assessing the structure under ORS
308.875.
SECTION 10. { + (1) Section 2 of this 2009 Act applies to
notices, restrictive covenants, leases, memoranda and other
documents created before, on or after the effective date of this
2009 Act.
(2) Section 3 of this 2009 Act applies to a lienholder whose
written notice is received by a manufactured dwelling park
nonprofit cooperative on or after the effective date of this 2009
Act.
(3) The amendments to ORS 62.809 by section 5 of this 2009 Act
apply to:
(a) The sale or redemption of a membership issued before, on or
after the effective date of this 2009 Act, except to the extent
of any vested contractual right to membership value increases
accruing before the effective date of this 2009 Act; and
(b) A transfer of title to a manufactured dwelling located in
the park of a cooperative occurring on or after the effective
date of this 2009 Act.
(4) The amendments to ORS 317.097 by section 8 of this 2009 Act
apply to loans made on or after the effective date of this 2009
Act. + }
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