Chapter 222 Oregon Laws 1999

Session Law

AN ACT

HB 2085

Relating to dwelling facilities; amending ORS 90.820, 90.830 and 456.581; and declaring an emergency.

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

SECTION 1. ORS 90.820 is amended to read:

90.820. (1) Within 14 days of receipt of the notice required by ORS 90.760 (2) or 90.810, a tenants' association or facility purchase association may notify the [facility] owner of the facility in which the tenants reside by certified mail or personal service at the address disclosed to the tenants under ORS 90.305 (1)(a) that [it] the association, or a tenants' association supported nonprofit organization, is interested in purchasing the facility.

(2) Upon receipt of the notice required by subsection (1) of this section, the owner shall negotiate in good faith with the association or organization and provide it [a reasonable] an opportunity to purchase the facility as the owner would any bona fide third party potential purchaser.

(3) A facility purchase association[,] or tenants' association actively involved in negotiations with a facility owner may waive or reduce the time periods for notice described in this section. A facility purchase association or tenants' association may authorize a tenants' association supported nonprofit organization to waive notice on behalf of the association.

(4) This section, ORS 90.760 (2) and 90.810 do not apply to:

(a) Any sale or transfer to a person who would be included within the table of descent and distribution if the facility owner were to die intestate.

(b) Any transfer by gift, devise or operation of law.

(c) Any transfer by a corporation to an affiliate. As used in this paragraph, "affiliate" means any shareholder of the transferring corporation, any corporation or entity owned or controlled, directly or indirectly, by the transferring corporation or any other corporation or entity owned or controlled, directly or indirectly, by any shareholder of the transferring corporation.

(d) Any transfer by a partnership to any of its partners.

(e) Any conveyance of an interest in a facility incidental to the financing of [such] the facility.

(f) Any conveyance resulting from the foreclosure of a mortgage, deed of trust or other instrument encumbering a facility or any deed given in lieu of [such] a foreclosure.

(g) Any sale or transfer between or among joint tenants or tenants in common owning a facility.

(h) Any exchange of a facility for other real property, whether or not [such] the exchange also involves the payment of cash or other boot.

(i) The purchase of a facility by a governmental entity under [its] that entity's powers of eminent domain.

SECTION 2. ORS 90.830 is amended to read:

90.830. (1) A facility owner may at any time record, in the County Clerk Lien Record of the county where a facility is situated, an affidavit in which the facility owner certifies that:

(a) With reference to an offer by the owner for the sale of [such] the facility, the owner has complied with the provisions of ORS 90.820;

(b) With reference to an offer received by the owner for the purchase of [such] the facility, or with reference to a counteroffer [which] that the owner intends to make, or has made, for the sale of [such] the facility, the owner has complied with the provisions of ORS 90.820;

(c) Notwithstanding compliance with the provisions of ORS 90.820, no contract [has been executed] for the sale of [such] the facility has been executed between the owner and [the] a facility purchase association, tenants' association or tenants' association supported nonprofit organization;

(d) The provisions of ORS 90.820 are inapplicable to a particular sale or transfer of [such] the facility by the owner, and compliance with [such] those subsections is not required; or

(e) A particular sale or transfer of [such] the facility is exempted from the provisions of this section and ORS 90.820.

(2) Any party acquiring an interest in a facility, and any and all title insurance companies and attorneys preparing, furnishing or examining any evidence of title, have the absolute right to rely on the truth and accuracy of all statements appearing in [such] the affidavit and are under no obligation to inquire further as to any matter or fact relating to the facility owner's compliance with the provisions of ORS 90.820.

(3) It is the purpose and intention of this section to preserve the marketability of title to facilities, and, accordingly, the provisions of this section shall be liberally construed in order that all persons may rely on the record title to facilities.

SECTION 3. ORS 456.581 is amended to read:

456.581. The Mobile Home Parks Purchase Account established in ORS 456.579 shall be used by the Housing and Community Services Department to provide:

(1) Technical assistance to tenants' associations, tenants' association supported nonprofit organizations and [park] facility purchase associations, as defined in ORS 90.100, to assist tenants in activities related to the purchase of a mobile home and manufactured dwelling park by a tenants' association, tenants' association supported nonprofit organization or facility purchase association.

(2) By rule, loans for initial costs for purchasing a mobile home and manufactured dwelling park predominantly occupied by lower income persons. Loans provided under this section may be made only if the department is of the opinion that the purchase is economically feasible and only to:

(a) A tenants' association or a tenants' association supported nonprofit organization; or

(b) A [park] facility purchase association established pursuant to ORS 90.815 [which] that includes more than 50 percent of the tenants residing in the park [and for which in the opinion of the department such purchase is economically feasible].

SECTION 4. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect on its passage.

Approved by the Governor June 7, 1999

Filed in the office of Secretary of State June 7, 1999

Effective date June 7, 1999

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