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HomeMy WebLinkAboutItem 04 Mobile Manufactured Home Park Closure Information AGENDA ITEM SUMMARY Meeting Date: 6/25/2012 Meeting Type:Work Session Staff Contact/Dept.: Courtney Griesel, Economic Development Kevin Ko, Housing Staff Phone No: 726-4585 Estimated Time: 30 minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Community and Economic Development and Revitalization ITEM TITLE: MOBILE/MANUFACTURED HOME PARK CLOSURE INFORMATION ACTION REQUESTED: Staff seeks Council’s direction re: possible activities the City should explore in an effort to respond to concerns of mobile home park closure. ISSUE STATEMENT: Although the City is not legally responsible for providing relocation benefits to park residents affected by private closure, with changing ownership or possible nearby development, residents have become increasingly concerned about the future of their parks and understanding their rights. Staff provides here, in advance of any closure notifications, a range of possible ways the City might address future park closures. ATTACHMENTS: 1. Mobile/Manufactured Home Park Closure Information and Action Items 2. Mobile Home Park Closure Fact Sheet 3. Springfield/Eugene Area Mobile Home Park Map and Statistics 4. City of Eugene Additional Adopted Protections DISCUSSION/ FINANCIAL IMPACT: Since 2004, city staff has on several occasions visited with mobile home park residents to discuss issues related to potential park closures. Although no notices of closure have been issued and no parks have closed within Springfield’s UGB during this time, Staff feels that it would be beneficial to provide Council and City leadership with up-to-date information about resident rights as tenants of a mobile home park. The information presented here was compiled from multiple sources including the State of Oregon, the Manufactured Home Owners of Oregon (MHOO), and the Oregon Housing and Community Services Department. In addition, Karen Clearwater, the State of Oregon Regional Advisor to the Department of Oregon Housing and Community Services, will present to Council the most current housing program and resource information. M E M O R A N D U M City of Springfield Date: June 25, 2012 To: Gino Grimaldi, City Manager From: Courtney Griesel, UR Planner Kevin Ko, Community Development Specialist Subject: MOBILE/MANUFACTURED HOME PARK CLOSURE INFORMATION ISSUE: In response to proposed and recent updates in the Glenwood area refinement plan, issues and concerns regarding mobile home park closures are being examined by City staff. In addition, City staff are working with local and state officials to understand and discuss further the possible effects, rights, and options for residents in Springfield-area parks, including those in Glenwood. With change of ownership or possible nearby development, residents and City Council members have been concerned about plans for the parks as well as the rights and available resources for residents dealing with potential impacts to their homes. BACKGROUND: Since 2004, city staff has on several occasions visited with mobile home park residents to discuss issues related to potential park closures. Although no notices of closure have been issued and no parks have closed within Springfield’s UGB during this time, Staff feels that it would be beneficial to provide Council and City leadership with up-to-date information about resident rights as tenants of a mobile home park. The information presented here was compiled from multiple sources including the State of Oregon, the Manufactured Home Owners of Oregon (MHOO), and the Oregon Housing and Community Services Department. Note that Mobile Homes are typically those housing units (sometimes including trailers and RVs) manufactured off-site before mid-1976 and do not meet long-term construction standards as housing. Manufactured Homes are typically manufactured off-site after mid-1976 and meet the minimum standards for construction set by the U.S. Department of Housing and Urban Development (HUD). Not all ‘mobile home parks’ or ‘manufactured home parks’ will accept the older mobile homes. Manufactured homes encounter fewer restrictions on their placement and could even be located on single-family lots within Springfield, with proper foundations, utility connections, structural construction and permitting. Within a mobile home park, residents may lease a mobile home or own a home on a leased space and pay fees and utilities. Between 1997 and 2008, sixty-five manufactured home parks were closed in Oregon resulting in a loss of 2,629 individual spaces. Legislation passed by the Oregon Legislature in 2007 provided a number of protections for manufactured home owners in the event that their park was being redeveloped to another use. The essential changes require: 1. The landlord/park owner must issue park residents written notice not less than 365 days before the date stated in the notice for termination of rental agreements and the closure of the park; ATTACHMENT 1, PAGE 1 OF 4 2. The landlord/park owner must pay each tenant homeowner $5,000, $7,000 or $9,000 based on the size of the manufactured home (single-wide, double-wide, or triple-wide dwelling respectively). This payment is exempt from State taxes and must be made in full regardless if the tenant relocates or abandons the mobile/manufactured dwelling unit. The landlord shall pay at least half of the payment amount within seven days after receiving written notice from the tenant of the date, within the 365-day period, on which the tenant plans to cease tenancy. Tenants must provide at least thirty days notice and not more than sixty days notice to the landlord of when they expect to cease being tenants. Landlords must pay the remaining balance to the tenant no later than seven days after the tenant ceases to occupy the space. Landlords/park owners cannot increase rents to offset the above payments required by the State of Oregon before or after the notice of termination has been issued. Landlords/park owners may, however, provide a greater financial incentive to encourage the tenant to accept an earlier termination date than 365 days or contract with tenants for mutually acceptable arrangements to assist the tenant’s move. Landlords/park owners cannot charge a tenant rent after a tenant leaves even if the tenant abandons the mobile/manufactured dwelling unit. 3. In addition to State requirements, park residents may be eligible for the “mobile home park closure tax credit” of $5,000 from the Oregon Department of Revenue, which requires the resident to own and occupy their mobile/manufactured home and to have received notice that the park in which the dwelling unit is located is closing. The home owner is not required to move their mobile/manufactured home to qualify for this credit. It is not based on household income, value of the structure, or moving expenses. The credit is refundable to all qualifying taxpayers. The legislature, to help ensure uniformity statewide, provided a brief window of opportunity in 2007 when local jurisdictions could modify or make local rules more stringent/demanding regarding mobile/manufactured home park closures. This area’s Intergovernmental Housing Policy Board, advising Lane County, Springfield, and Eugene, recommended additional regulations and compensation above those approved by the legislature and some were approved by the Eugene City Council [See Attachment 4]. Springfield did not make any local changes to the new State rules and this window for modifications is now closed. The State provides information through the Office of Manufactured Dwelling Park Community Relations to tenants and park owners and operators. That office also becomes an advocate for the park residents whenever a notice of park closure is issued to park residents. DISCUSSION: While no park closures in Springfield are currently identified, City staff remains concerned about future relocation options and the limited City resources available to assist residents should park closures occur. Staff is interested in partnering with local and state officials to explore other resources and state programs that may be available. While the City is not legally responsible for providing relocation benefits to park residents affected by private closure, the Council may choose to help mitigate the burden of relocation by considering one or more of the following: ATTACHMENT 1, PAGE 2 OF 4 • City could explore opportunities to obtain land on which to assist in developing its infrastructure and sell the land to a developer for the construction of a new mobile/manufactured home park or residential development for relocation. o Benefits: The City has leverage to specify mobile home park requirements to the developer/owner. This option could include a combination of public, private or non- profit ownership and operation responsibility. o Drawbacks: Cost of assembling a suitable, large enough, parcel of land; Scarcity of low density residential land; A newly developed park may not be able to site older mobile homes; Extended timeline to develop a park (2-5 years); The arrangements might become complex with multiple partners. • City could explore opportunities to obtain land on which to assist in the development of an alternative replacement housing option such as apartments, hi-rises, or other multi-family designs. o Benefits: Allows for more flexibility in type and location of replacement housing; Possibility of several scattered sites; replacement housing will likely be constructed to higher livability standards including energy usage and accessibility. o Drawbacks: Apartment living may not be a preference of current mobile/manufactured home residents; High cost of development; extended timeline to develop (2-5 years). • City could explore opportunities and incentives other than land acquisition that would encourage the development of replacement housing by private and non-profit housing developers. These may include, fee and SDC waivers, federal grants and loans, density bonuses and other development allowances. o Benefits: Potentially lower cost to the City; actions may benefit multiple sites instead of being site specific; provides high degree of flexibility. o Drawbacks: May require changes to the development code; federal grants have limitations (see discussion below); does not solve the issue of limited land availability; the use of SDC waivers may adversely impact the city’s capital program. This may be mitigated by using other funding sources such as urban renewal funds to pay the SDCs. In reviewing the above potential options, it would be possible, and likely advantageous to use a combination of the above options, depending on the role that the city wants to have and the situation of the individual displaced owner. Urban Renewal dollars may be used in the Glenwood area to assist in providing new housing alternatives to help relocate displaced mobile home park tenants. It is also possible to use Community Development Block Grant (CDBG) and HOME funds for some of these activities. Of course, use of these funds requires compliance with programmatic rules and regulations. Here are brief descriptions of the primary federal requirements pertaining to housing and relocation activities: 1) All housing assisted with CDBG and/or HOME funds must be for low-moderate income households. HOME also carries a prescribed period of affordability. ATTACHMENT 1, PAGE 3 OF 4 ATTACHMENT 1, PAGE 4 OF 4 2) CDBG funding cannot be used for new housing construction, but may be used for land acquisition and professional services associated with new housing development. 3) The use of CDBG or HOME funds to acquire existing housing (mobile home parks or apartments) will trigger URA prescribed relocation assistance and federal “one for one” replacement of affordable housing units. Both CDBG and HOME have minimum Housing Quality Standards. Some of the MH units to be relocated may not meet the minimum HQS and cannot be re-sited into a CDBG or HOME assisted development. 4) CDBG/HOME funds may pay for “optional” relocation assistance, with the adoption of written policy stating why and under what circumstances the assistance is being offered. 5) The amount of CDBG and HOME funds are limited. It may take several years to adequately fund an acquisition/rehab or new construction project as described in the options above. ACTION REQUESTED: Staff is requesting that Council provide direction regarding the preferred course of action that the city should take, including the level of assistance that the city is willing to provide. Staff will use Council’s direction to further engage park residents, park owners and affordable housing developers in discussions regarding available options and opportunities. Council direction will also help staff as we continue to meet with staff from other jurisdictions and government agencies over the regional issues and impacts of mobile home park closures. 1 Oregon Housing and Community Services Department Manufactured Communities Resource Center (MCRC) For More Information Salem: 503.986.2145 Toll Free: 1.800.453.5511 Email: mcrcweb@hcs.state.or.us MANUFACTURED DWELLING PARK CLOSURE RULES 1) The landlord of a park may terminate a month to month or fixed term rental agreement for a manufactured dwelling park space by: A) Providing the tenants with a 365 day notice which shall state; at a minimum: a) That the landlord is closing the park, or a portion of the park, and converting the land to a different use; b) Designate the date of closure; and c) Include the tax credit notice: (1) Stating the eligibility requirements for the credit; (2) Information on how to apply for the credit; (3) Any other information required by the Office of Manufactured Dwelling Park Community Relations; and (4) State that the closure may allow the taxpayer to appeal the property tax assessment on the manufactured dwelling. 2) Paying the tenant for each space one of the following amounts A) $5,000 if the manufactured dwelling is a single wide; B) $7,000 if the manufactured dwelling is a double wide; or C) $9,000 if the manufactured dwelling is a triple wide. The landlord shall pay at least one-half of the payment amount to the tenant within seven days after receiving from the tenant the following notice: (1) The tenant gives the landlord not less than 30 days’ and not more than 60 days’ written notice of the date within the 365-day period on which the tenant will cease tenancy, whether by relocation or abandonment of the manufactured dwelling. (2) The landlord is not required to pay the tenants the amounts under A, B, and C unless the tenant gives the landlord the notice as described under (1). (3) The landlord must pay the tenant the full amount regardless of whether the tenant relocates or abandons the manufactured dwelling. 3) If the manufactured dwelling is abandoned; A) The landlord may condition the payment required under 2 upon the tenant waiving any right to receive payment under ORS 90.425 (abandonment) or ORS 90.675 (ownership change). ATTACHMENT 2, PAGE 1 OF 2 2 MANUFACTURED DWELLING PARK CLOSURE RULES 4) The landlord may not charge the tenant to store, sell or dispose of the abandoned manufactured dwelling. 5) The landlord may not charge a tenant any penalty, fee or unaccrued rent for moving out of the manufactured dwelling park prior to the end of the 365 day notice period. 6) A landlord may charge a tenant for rent for any period during which the tenant occupies the space and may deduct from the payment amount required under 2 any unpaid moneys owed by the tenant to the landlord. 7) The landlord may not increase the rent for a manufactured dwelling park space after giving a notice of termination to the tenant of the space. 8) The landlord is not limited by the closure notice to his right to terminate a tenancy for non payment of rent or for other causes provided by statute. 9) Closure of the park may allow the tenant to appeal the property tax assessment on the manufactured home. 10) The tenant may be eligible for a tax credit of up to $5,000 if the tenancy in a manufactured dwelling park ended in a tax year that begins on or after January 1, 2007, and before January, 2013 To be eligible the tenant must meet all of the following requirements: A) Own the manufactured home; B) Rent space in a manufactured dwelling park that is closing; C) Occupy the manufactured dwelling home as the principal residence; D) Receive notice that the park is closing; and E) Move out (and all members of the household) of the mobile home park on or after January 1, 2007 because of the park closure notice. ATTACHMENT 2, PAGE 2 OF 2 !( !(!( !(!(!( !( !(!(!(!( !( !( !( !( !( !(!( !( !( !( !( !( !( !(!( !( !(!(!(!( !( !(!(!(!( !(!( !(!( !( !(!( !( !(!( !( ¬«30 ¬«33 ¬«44 ¬«27¬«37 ¬«42 ¬«18 ¬«4 ¬«50 ¬«43 ¬«10¬«9 ¬«8¬«7¬«6 ¬«5 ¬«3 ¬«49 ¬«48¬«47 ¬«46 ¬«45¬«41¬«40¬«39¬«38¬«36¬«35 ¬«34 ¬«32¬«31¬«29¬«28 ¬«26¬«25 ¬«24 ¬«23 ¬«22¬«21 ¬«20 ¬«17 ¬«16 ¬«15¬«14¬«13¬«12¬«11 §¨¦I-5 MAIN I-105 A 11TH Q HWY 99N MARCOLA I-5 LORANE B 7TH6TH DPOLK RIVER CA MP CREE K 1ST PRAIRIE E FOX HOLLOW DELTA 2ND G21ST ENID BAILEY HILL AWBREY BELTLINE CLEAR LAKE 24TH 58TH 28TH COBURG 10TH CHAD 69THCITY VIEWGREEN HILL WILLAMETTE CR ES T WILKES 31ST JASPER LOWELL 70TH GARDEN DIVISION 67THDAISY DILLARD 19TH 66TH JEFFERSON GARFIELD 40TH ASPEN SPENCER CREEK FRANKLIN ALDER 4TH 36TH 5TH DONALD THU RSTO N HAYDEN BRIDGE HUNSAKER CHAMBERS SILVER HAWKINS ED CONE 18TH OLIVE COUNTY FARM LEGACYW I LLA KE N ZI E LEO HARRIS INTE RNA TIONAL MT VERNON GONYEA RAINBOW I-5 ONRAMP 27TH MCKINLEY CUBIT MC KE N ZI E OAKMONTGAME FARM MILLMILL PRAIRIE E G 1ST A COBURG 19TH I-5 I-105 2ND I-105 5TH 101Miles N There are no warranties that accompany this product. Users assume all responsibility for any loss or damage arising from any error, omission or positional inaccuracy of this product. !( Manufactured Park LocationsEugene UGBSpringfield UGB Eugene & Springfield Available Manufactured Dwelling Park Locations !( Parks within the City of Springfield MAP ID Name Total Spaces Avail '12 23 Patrician Mobile Home Pare80 0 25 Monta Loma Mobile Home Park1431 26 Fairview Mobile Home Park64 3 27 Spring-Lane Mobile Home Village 80 3 28 Ponderosa Mobile Village480 29 Springfield Mobile Park713 30 Seaver's Mobile Home Park161 31 Midway Mobile Manor890 32 River Bank Trailer Park470 33 Shamrock Trailer Village160 0 34 Welcome West Mobile Home Park850 35 Golden Oaks1090 36 Thurston Oaks210 37 Red Bird Trailer Court160 38 Mar-shell Court140 39 Parklane Mobile Park 68 3 40 Applewood Mobile Home Park45 1 41 Santiago Estates Granada137 0 42 Chalet Village Mobile Park121 3 43 Twin Totem3810 44 Eugene Mobile Village13717 45 Riverside Trailer/Mobile Home Court7012 46 Oaks Mobile Home Park773 47 Country Manor Mobile Park133 0 48 Emerald Isle Mobile Home Park980 Parks within the City of Eugene MAP ID Name Total Spaces Avail '12 3 Trailer Haven134 4 Rosewood Mobile Home Park1190 5 Rowan Oak Estates502 6 Woodland Park Estates39919 7 Briarwood24912 8 Lakewood Mobile Home Park1811 9 Songbrook140 0 10 Camellia Apartment & Mobile Hm. PK343 11 Westlake Mobile Home Park260 12 Mobile Towne West1560 13 Royal Oaks Mobile Park1080 14 Roosevelt Acres411 15 Royal Trailer Court330 16 Plaza West212 17 Churchill Meadows MHC14910 18 Parkside Mobile Home Park820 20 Idle Wheels640 21 Lakeridge of Eugene1920 22 Falcon Wood Village18318 24 Camelot Mobile/MFH Home Village1554 49 Gainsborough730 50Hidden Meadows11513 ATTACHMENT 3, PAGE 1 OF 1 * Notice: This handout is general in nature and is not meant as legal or tax advice for your specific situation. Please consult your own attorney or tax advisor. ATTACHMENT 4, PAGE 1 OF 1 MANUFACTURED DWELLING PARK CLOSURES IN EUGENE WHAT HAVE OTHER JURISDICTIONS DONE? In 2007 there was a short window in which local jurisdictions could modify their own rules and regulations regarding mobile home park closures. During this time, the Intergovernmental Housing Policy Board, advising to Lane County, Springfield, and Eugene, made a recommendation of rules and regulations in addition to those required by the State regarding park closures. These additional recommendations, listed below, only establish protections for residents of mobile home parks in the case of voluntary closure or convert. These protections do not apply when the park is closed due to condemnation or foreclosure. Additional Park Closure Requirements Adopted by the City of Eugene: The owner of the closing park should be required to hire a housing counselor to assist residents with moving and with any relocation assistance claims; If the Manufactured Home can be moved from the park, the resident shall receive, at the resident’s option, either: o Actual moving costs for a location within 60 miles, using the most direct economical route (retroactive payment, after moving); or o A flat amount (paid in advance of the closing) at the following rate: $11,000 for a single wide home, $17,000 for a double wide home, and $21,000 for a triple wide home. These amounts shall be periodically adjusted by the City Manager or the Lane County Administrator to reflect changes in the Consumer Price Index. If the Manufactured Home cannot be moved, for whatever reason, the resident shall receive (paid in advance of closing), at the resident’s option, either: o A payment equal to the real market value, of the Manufactured Home, as determined by the assessor plus a flat amount for moving costs of personal property (set by the HPB and adjusted by the City Manager or County Administrator for inflation); or o A flat amount will be the same as determined by the federal government for relocation compensation. A single wide will be considered equivalent to a two room home, a double wide will be equivalent to a three room home, and a triple wide equivalent to a four room home o Payment shall, in either case, be paid after deduction a portion of the owner’s costs to dispose of the abandoned Manufactured Home. The deduction payment for disposing of a single wide shall be $1,000; double wide, $2,000 and triple wide, $3,000. The City Manager or County administrator can periodically adjust these amounts to reflect changes in the Consumer Price Index. The closing park owner should pay the compensation required (listed above), minus any state subsidy (primarily the state “mobile park closure credit” discussed previously). o In addition, the City of Eugene shall give the owner credit for System Development Charges (SDC’s); o Also, it is assumed that the compensation identified previously will not cover 100 percent of the resident’s loss, so in that sense the resident is also making a major “contribution.” Residents of parks in industrial or commercial zones or flood plains are entitled to 50 percent of the assistance received by owners in residentially zoned parks because those parks have long been anticipated to close and convert to other uses.