HomeMy WebLinkAboutItem 01 Mobile Manufactured Home Park Closure Information AGENDA ITEM SUMMARY Meeting Date: 9/24/2012
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 requests that Council consider the recommendation to pursue a combination of
options, which would include the design of, and funding options for an assistance
program specific to the displacement of mobile home park residents.
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: September 17, 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 1-1
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 1-2
1. 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.
2. 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).
3. 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.
4. Explore the applicability of a MH resident assistance program similar to the program that
the City of Eugene has adopted (see attachment 4). This may include flat or sliding scale
assistance to park residents depending on type, age and condition of the mobile home. A
possible source of program funding is Glenwood Urban Renewal funds.
o Benefits: Direct monetary benefit to affected MH park residents; may provide more
options to residents regarding where they will live; potentially lower cost to the City than
incentivizing new housing development; actions may benefit multiple sites instead of
being site specific.
o
Drawbacks: May be difficult to contain costs; amounts of assistance may not be
satisfactory to residents faced with losing their homes; potentially high costs to the City if
paired with incentivizing new housing development.
RECOMMENDATION:
In reviewing the above potential options, Staff recommends pursuing option 4 in combination with option
3. There are many issues that must be considered when designing a resident assistance program. Among
the most significant:
Attachment 1-3
• How much will the program cost? A rough estimate (based on Eugene’s program) is $10,000 per
movable home, in addition to state mandated payments from the park owner. The City’s
potential cost would be roughly $500,000 to relocate 50 homes.
•
What potential sources of funds are there to pay for the program? Depending on where the
affected park is located, sources could include, but are not limited to, urban renewal funds, room
tax revenue, city general fund, CDBG and additional payments by the park owner, and other
sources specific to the site.
•
What MH parks will be covered under the program, and what is the rational for including some
and excluding others? The program may be limited to MH parks within the two urban renewal
districts, or it may be expanded to include parks in other areas under Springfield’s jurisdiction.
In order for a MH park to be covered under the program, it must be in a location identified for
future redevelopment and a source of funding must be identified. Potential sources of funding
may be determined based on the specific economic and development situation.
•
How will the program be designed? At Council’s direction, staff will seek input from concerned
MH park residents, housing advocates, City of Eugene and State housing staff and other
stakeholders. Staff may review plans and programs from other jurisdictions. The program will
be reviewed by staff of other city departments including Finance, DPW and CMO. The program
will also be reviewed by SEDA.
ACTION REQUESTED:
Staff is requesting that Council consider staff’s recommendation to pursue option 4 in combination with
option 3, designing an assistance program specific to the displacement of mobile home park residents.
Council direction will 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.
Attachment 1-4
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 2-1
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 2-2
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Manufactured Park LocationsEugene UGBSpringfield UGB
Eugene & Springfield Available Manufactured Dwelling Park Locations
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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 3-1
* 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.
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.
Attachment 4-1