2012-Spring - Manufactured Housing Communities of Washington

The Official Publication of Manufactured Housing Communities of Washington
EYE ON OLYMPIA
We Are Affordable Housing
The Path To The
2012 Annual Convention
and Seminars
May 15th-16th, 2012 at
Southcenter
Inside This Issue
• MHCW2012AnnualConvention&Seminars
• MHCW2012LegislativeReceptionPhotos
Spring 2012
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MANUFACTURED HOUSING
COMMUNITIES OF WASHINGTON
We Are Affordable Housing
President’s Message
509 12th Ave. SE • Ste #7
Olympia, WA 98501
(360) 753-8730
(800) 345-5608
Fax (360) 753-8731
www.mhcw.org
State Executive Officers 2011-2012
PRESIDENT ..................................Craig Rongey
TREASURER ................................Edlee Quesnell
SECRETARY ............................... Theresa Janzen
GOVERNMENT
RELATIONS CHAIR .................. Robert Cochran
MEMBER-AT-LARGE............................. Rick Jiles
MEMBER-AT-LARGE.................. Debra Goethals
MEMBER-AT-LARGE......................Ross Rongner
EXECUTIVE DIRECTOR .................. Ken Spencer
STATE OFFICE
ADMINISTRATOR...............Theresa Hermanson
Unit Presidents 2011-2012
Ross Rongner............................... Cascade Unit
Judy Lynn ....................... Clallam-Jefferson Unit
Robert Cochran .................. Inland Empire Unit
TBA .................................................Island Unit
Joel Erlitz.......... King County/Puget Sound Unit
Edlee Quesnell .................................Kitsap Unit
Debra Goethals................................Pierce Unit
Rick Jiles........................Snohomish/Skagit Unit
Craig Rongey.............................Southeast Unit
Scott Hess.................................Southwest Unit
Theresa Janzen................ Thurston/Mason Unit
Darrell Peoples......................... Twin Cities Unit
TBA ............................................... Yakima Unit
Public Relations & Publisher:
Joyce Willms, Managing Editor
Adriane Wolfe, Creative Director,
Graphic Design & Co Editor
Articles or advertising for future
publications can be emailed to
[email protected] or call
360.754.4543.
MHCW Disclaimer:
Articles in this newsletter
are intended for a wide audience. Opinions, interpretations,
assumptions and predictions of the authors are not intended as
legal advice from MHCW. MHCW members should consult
their own attorneys, accountants and insurance agents for
advice on their specific situation. Appearance of an ad in the
Eye on Olympia or on MHCW’s website (www.mhcw.org)
does not constitute a recommendation or endorsement by
MHCW of goods or services offered therein. Prices subject
to change without warning. MHCW, Washington Media
Services, Inc. and its management do not make warranties
with respect to accuracy, reliability, or completeness of the
content in this newsletter.
By Craig Rongey
MHCW State President
A
s the legislature churns through as many other informative and educational
its budget-centric session, two opportunities. This is your one opportunity
bills have been passed that have of the year to meet with MHCW’s staff,
a direct impact on manufactured housing volunteers, lobbyists, attorneys, associate
communities. The first, Senate Bill 6315 members and vendors, all in one place
(SB 6315) adds some specific require- along with your fellow community owners
ments to the tenant screening process, and managers.
and the second, House Bill 2194 (HB
Some of the primary benefits of
2194), is the bill MHCW supported and membership in MHCW are the ongohelped create through the consensus ing educational opportunities available
meetings we attended
through our convenlast summer and fall Some of the primary benefits tions and regional
with Representatraining seminars.
of membership in MHCW
tive Pederson and
For many years, a
other stakeholders. are the ongoing educational frequent comment by
The process through opportunities available through legislators has been
which HB 2194 was our conventions and regional that the communities
created demonstrated
that seem have the
training seminars.
that with cooperation
most conflict with
and communication,
residents (usually
it is possible to achieve results that are evidenced by the numbers of residents
beneficial to MHC operators and resi- testifying at legislative hearings) are
dents alike. While no one got everything not members of MHCW. An obvious
they wanted, through discussion and conclusion is that our members are better
compromise we all gained something. informed and better trained in operatThis was a more positive experience than ing MHC’s. One of our Inland Empire
the automatic “if they support it, we op- members recently attended a meeting
pose it!” mentality we have faced in the in Spokane Valley that was promoted
last few years. There is much common throughout the area and presented by
ground between community operators AMHO (Association of Manufactured
and residents, after all, we would be Home Owners). Tenants from four lonothing without each other.
cal MHC’s were in attendance to learn
I will leave it to our legislative and about their rights and protections under
legal experts to provide the details of the the MHLTA, and none of those four
statutory changes, and they will certainly be communities are members of MHCW.
doing that at MHCW’s annual convention To me, that is rather telling. Memberand seminars May 15th and 16th! I strongly ship in MHCW is important, and it is
encourage all members (and potential beneficial.
members) to attend for complete updates
I hope to see you at the MHCW Anon new legislation from this session, as well nual Convention in May! n
The Forms are Currently Being Updated!
They will be available on Disc and Hard Copy Versions.
Make sure you are using the latest forms!
Visit MHCW’s website at www.mhcw.org and print out the forms order form.
The current forms order form code 6/09 is located in the bottom right corner. Call
360-753-8730 or 1-800-345-5608 and check with the MHCW Office to make sure
you are using the most updated forms. Remember, MHCW forms are for current
paid members ONLY.
2
MHCW’S Annual Convention –
May 15th & 16th.
A
By Ken Spencer
MHCW Executive Director
tors. It is an excellent chance to explain your business and
how various legislative proposals would impact your efforts
to provide safe, affordable housing. You get the legislator’s
undivided attention, a rare opportunity during the session.
Please make an effort to attend these luncheon events.
If you cannot participate
in the lunches, try to visit with
your legislators over the sum
summer and early fall. Volunteer to
help with their campaigns. Ev
Everyone running for office needs
donations, but they also need
help with phone calls, door
doorbelling, and signage. Find out
what you are able to contribute
in support. You will establish a
bond with your legislator that
will pay huge dividends later.
If you are unhappy with
legislative actions, the only way to effectively alter current
tendencies is to change the occupants of the House, Senate,
Governor’s office, or all three. Find legislative candidates
who support your positions and do your best to help them
get elected. Resident groups will make every effort to influence legislators, we had better do the same. n
s we move into spring we are coming up on MHCW’s
annual convention and seminars. I hope you have
considered attending. It is a great opportunity to
catch up on the latest going on in the industry, visit with your
peers, and have some fun in the process. See the schedule
of seminars on page 4. Oh, and
don’t forget our Silent Auction
and Annual Awards Banquet on
Tuesday, the 15th.We hope you
will join us for some learning
and some laughter.
ELECTIONS LOOM
LARGE: The headlines and
media attention will certainly focus on the national races. While
they are important and dominate
the news, our state races will
decide the next governor and
make up of the state legislature.
These elections will potentially have a far greater impact
on our industry and your ability to run your business as you
would choose to.
Mark Gjurasic will be hosting lunches throughout the
summer and fall, providing the opportunity for attendees (YOU
hopefully) to spend some face-to-face time with their legisla-
L
Lois Gaddy, Long-Time Member, Passes
by serving on various state agency
ois Gaddy, a MHCW member
boards important to the industry.
for over 30 years , passed away
Always eager to participate,
March 20, 2012, following an
Lois was a frequent presence before
extended stay in an assisted living
legislative committees testifying
facility. Lois’ career in the industry
on a myriad of issues important to
spanned five decades. She began
MHCW. Lois’ testimony backed
managing Golden West Estates in
by a thorough statistical analysis
Walla Walla in the late 60’s and
was critical in defeating efforts to
did so for some 35 years, retiring
require landlords to return interest
in 2003.
on security deposits. Her testimony
Lois held virtually every office
and analysis are still cited today. A
with MHCW including President
member from early on, Lois helped
of the association and long time
Lois Gaddy, Front Right
grow the association to the mature
president of the Southeast unit.
industry representative it is today.
She contributed to the growth and
We all owe her a true debt of gratitude. n
influence of the association as an active member, and
3
MHCW Seminar
Schedule 2012
You Don’t Want To Miss
Out on These Great Seminars
Tuesday, May 15th
Wednesday, May 16th
8:00-9:00
8:00-9:00
Light Continental Breakfast
Visit Vendor Tables
9:00-10:00 Introductions & Overview
Rick Jiles/Ken Spencer/Walt Olsen
Kyle Woodring/Chet Baldwin
9:00-10:30 Seminar: Choice of Two
A: Screening Applicants/Understanding
Credit Reports
Julie Johnson – Phillips Real Estate Services
10:00-10:15 Break/Visit Vendors
10:15-11:45 Seminars: Choice of Two
A: How SECURE Is Your Retirement Income?
B: Plant the Seeds for Your Community Needs
Tips for Property Maintenance and Resident Relations
Commonwealth Real Estate Services
Tips for Successful Property Ownership and Management
Joel Erlitz – First Commercial Property Corp.
Ross Rongner – First Commercial Property Corp.
B: Writing Community Guidelines
Marlene Kaplan – Attorney
12:00-1:30 Lunch
Speakers: MHOA/AMHO Resident Reps.
Andy Bergman, MHOA – President
Don Carlson, AMHO – Gov. Relations Rep.
1:30-3:00
Seminar: Choice of Two
A: Common Mistakes Managers Make
Marlene Kaplan – Attorney
B: Resident Purchase of Communities
Ben Gus – Northwest Co-Op Development Center
Community Sale & Purchase
Vic Baker – Baker Mortgage C. LLC.
3:00-3:15
Break: Visit Vendors
3:15-4:45
Seminar: Choice of Three
A: Park Financing: What Does It Take To Get It?
Rob Braun, CCIM – Braun Corporation
Brandon J. Bemis – Union Bank
Light Continental Breakfast
Visit Vendor Tables
B: Insurance
Shawn Parthemer – Totem Agencies Inc.
Cover Your Families with Legal Shield &
Identity Theft Shield
Real LeBeuf
C: Crime & Drugs in Your Community
Evicting “BAD” Tenants
Tony Branson – Attorney
Gangs 101
Police Officer & Gang Investigator Brian O’Neill
6:00
Social hour – Networking Vendor area
7:00
Awards Dinner – Silent Auction – Great Gifts!
4
10:30-10:45 Break: Visit Vendors
10:45-12:15 Seminar: Choice of Two
A: Financial Planning
Bjorn Hess – Attorney
Security Cameras & Your Community
Robert Cochran
B: Insurance Q&A Session
Pat Flynn – Propel Insurance
Community Crime Prevention
Officer Cyndie Parks, Renton Police Dept.
12:15-1:30
Lunch
1:30-3:00
Seminar: Survey of Current Legal Issues
and Trends Facing MHCs. OPEN Q&A (e.g.
SAFE Act, LOSS Septic Systems, Appealing
Property Taxes, Land Use, Maintenance of
Permanent Structures, Status of Single-Use
MHC Zoning in Tumwater and Washington,
Landlord/Tenant Relations)
Walt Olsen – Deric Young – Tony Branson,
Attorney Panel
GRAND PRIZE GIVEAWAY
GIVEAWAY
www.mhcw.org
2012 MHCW Annual Convention &
Seminars, May 15-16, 2012 – Southcenter
Come Join Us!
Annual Convention & Seminars
Monday, May 14
• Executive Committee Meeting
• Board Meeting
Double Tree Guest Suites
16500 Southcenter Parkway
Seattle, WA 98188-3388
Tuesday, May 15
•
•
•
•
•
Annual Convention
Training seminars
Vendor booths
Silent auction
Awards banquet and prizes
206-575-8220
Please RSVP
ByMay3rd
Wednesday, May 16
• 3/4 day training seminars
Seminars, Prizes & Networking
Please fill out the registration form below.
Reserve your room by April 18, 2012!
All officers will be considered registered for all board meeting and seminars. If unable to attend, they will arrange for a substitute. If no
substitute is available, the state office must be notified one week in advance of the meetings, or the director will be responsible for the applicable
hotel and meal charges.
(clip and mail)
Registration Form
Both days include light continental breakfast; lunches and dinner on Tuesday night
1. q Sign up by April 11 – 1st Member $235
4. q Sign up after April 11 – 2nd Member $235
2. q 2nd from same community $205
(Must be registered at same time as 1st Member)
5. q Non-member $315
(Must be registered at same time as 1st Member)
3. q Sign up after April 11 – 1st Member $265
NOTE: NO SINGLE DAY TRAINING
TOTAL AMOUNT ENCLOSED
$ ________________
Name(s)_________________________________________________________________________________
Community ___________________________________ City _______________________________________
(
)
(
)
(
)
Phone _____________
Cell_______________
Cell
FAX _______________
Email: __________________________
Please bill my credit card: Mastercard
Visa Discover (circle one)
Card #
Exp. Date __________________________________
Signature ______________________________
q Credit Card Billing Address the Same as Above
Please Include Complete Credit Card Billing Address if Different form Address Above
Address _________________________________________________________________________________
City ____________________________________ State ________ Zip ______________________________
Please return with your check made out to: Manufactured Housing Communities of Washington
509 12th Ave SE, Suite #7, Olympia, WA 98501 • (360) 753-8730 • [email protected]
5
Annual Convention
Sponsors
Don’t forget to check out the vendor booths!
Northwest
Cooperative
Development
Center
Andrew Gunia & Joshua Gunia
1063 S. Capitol Way #211 • Olympia, WA 98501
p. 360.943.4241 • f. 360.570.8415
www.nwcdc.coop
11603 Canyon Rd E | Puyallup, WA 98373
(253) 435-9999 | www.aadvancedservices.com
Please support these
businesses
by purchasing
from them!
6
2012 Legislative Recap
By Chester Baldwin
Attorney at Law
By Kyle Woodring
T
pushed legislation regulating the industry in three main areas:
sealing of criminal and civil court records; regulation of the
information credit bureau and consumer screening companies
can report; and regulating what a landlord can use to evict or
deny tenancy.
Originally SB 6315, the tenant advocate bill sought to
create a portable screening report and restrict screening information available to landlords. We were able to amend this
legislation significantly. The bill now will require a landlord
to notify the tenant in writing of screening criteria used and
denial criteria. Also, the bill will require a written adverse
action report giving reason for denial. While the final bill
requires landlords to give screening criteria and reasons for a
denial, we preserve our right to criminal and civil information
and ensure that landlords are not pigeon-holed into adverse
action criteria by ensuring that “other” will be a checkbox
in the adverse action report. Additionally, there will be a
stakeholder group meeting to further discuss these issues.
SSB 6315 was signed by the Governor.
Additionally, SB 6321, prime sponsored by Senator KohlWelles, started as a bill seeking to seal certain records, but
was eventually amended to prohibit a landlord from using
any unlawful detainer records where the tenant wasn’t found
guilty. This is dangerous for two reasons: First, between 80%
– 90% of all unlawful detainers filed in the state are settled
before a formal hearing; these would have been considered
prejudicial and prohibited from disclosure. Second, SSB 6321,
as amended, sought to regulate the landlord/tenant relationships by impeding landlords’ rights to information. We were
able to defeat SSB 6321, but these issues will continue to be
on the minds of lawmakers and championed by tenant advocates. We will continue to educate lawmakers on the dangers
of restricting access to civil and criminal information. n
he 62nd Washington State Legislature is coming to a
close. John Woodring, Mark Gjurasic, Chester Baldwin,
and Kyle Woodring have been hard at work with Ken
Spencer representing the interests of Manufactured Housing
Community Owners. The 2012 Legislative session, while
short and hectic, contained a few important property owners’
issues worth highlighting.
The economic insecurity of Washington continues to
dominate the culture of Olympia. For the second consecutive
year, the Legislature was not able to reach an agreement on
a budget in the allotted time and was forced to convene a
Special Session to complete negotiations. Democrats (Tom,
Kastama & Sheldon) crossed the aisle and joined Republicans
to pass a budget out of the Senate. This type of coup has not
happened since 1987.
Because of the shorter 60-day session and the overwhelming budget problems, the legislative committees spent
significantly less time this year considering policy issues.
We were able to dismiss rent control legislation, community
closure notice extension, and many of the other commonly
contested bills early in the session.
Two major issues dominated the lobbying agenda for
Manufactured Housing Communities Owners.
First, MHCW, tenant advocates, and the Attorney General
were able to join together to support passage of HB 2194
with no significant amendments. This Legislation will require
rental agreements to include maps of lot boundaries and utility hook-ups; allow a tenant to post a reasonable “for sale”
sign; establish tenants’ rights to meet in homes and discuss
or distribute manufactured housing living affairs literature;
and replaces the term “heat” with “electricity, sewer & septic
services” in the requirement for landlord remedial action
within 48 hours. Also, technical definitions in the MHLTA
and the AG Manufactured Home Dispute Resolution Program
were brought into harmony. Hopefully, this will prevent the
AG from charging fees and enforcing programs on properties
that are not Manufactured Housing Communities. MHCW
staff, attorneys, lobbyists and members put in a lot of hard
work to make sure that we held the line on unreasonable
requests. Representative Jamie Pederson and Senator Steve
Hobbs were both instrumental in pushing the bill through.
The Second important issue for MHCW was tenant
screening. Tenant advocates have been pushing regulation and
reform of this industry for several years. Their claims include
prejudicial and inaccurate information in reports, affordability,
and portability of screening reports. Tenant advocates have
MHCW Board Actions, January 27, 2012
1. APPROVED the minutes of the Quarterly Board Meeting held October 20, 2011, as presented.
2. APPROVED the Treasurer’s Report with alterations to
the operating budget as discussed.
3. APPROVED that there shall be no Executive Board
meeting held the day of the Quarterly Board meetings
in the future. The Executive Board shall meet in the
days prior to the date of the Quarterly Board meeting.
Respectfully Submitted – Theresa Janzen, Secretary
7
MHCW 2012
MHCW members actively engaged legislators
at the 2012 Legislative Reception. Members are
seen explaining the day-to-day operations of their
Communities and the impact on their efforts of
legislative initiatives. Participating members
deserve to be applauded for their efforts. Those
who show up, help form the image of our industry
legislators leave with. Were you there?
Photos by Charlie Kirry
8
Legislative Reception
9
With Life, Liberty, Freedom of Contract,
and the Same Anniversary Date for All
3 Methods to the Madness of Holiday Resort
A
By Walt Olsen, Attorney for MHCW
Associate, Olsen Law Firm PLLC
s you may know, Columbia Legal Services sued
MHCW for less than $100 in interest arising from a
nonmember’s failure to adjust rents upon each tenant’s anniversary date and renewal of their tenancy, which
is presumed to be a one-year tenancy unless the landlord
obtains a written waiver from the tenant that is separate
from the rental agreement.
For many communities, this decision has caused owners to change the way they adjust rents from once a year
for all tenants, to once each month for those tenants with
anniversary dates three months later (e.g. a notice of rent
increase properly served in March would adjust rents for
tenants with anniversary dates of July 1). This is the most
conservative approach under the law.
But, for those of you who want to keep adjusting rents
once a year for all tenants, the below three solutions may be
implemented in your community, depending on the facts and
circumstances of your file for each tenant, which you should
review with your legal counsel to identify a tailored strategy
for your community:
1. After offering a One-Year Lease, offer each tenant
MHCW’s form Month-to-Month Rental Agreement
and MHCW’s Waiver of Tenant’s Right to One-Year
Rental Agreement. Often times, tenants prefer the
shorter term lease so as to not be responsible for the
remainder of any one-year term when they move-out.
This solution was tacitly approved by the Court of Appeals in its Holiday Resort decision.
2. Offer tenants a new 12-23 month lease, each of which
ends on the same community-wide anniversary date.
This solution results in freezing your rents for up to 23
months depending on each tenant’s prior anniversary
date. The key to this approach is adding a sentence
(continued on page 11)
Olsen Law Firm PLLC
Attorneys at Law
Walter H. Olsen, Jr. – Attorney
[email protected]
B. Tony Branson – Attorney
[email protected]
Deric Young – Attorney
[email protected]
Jan Munson – Paralegal
[email protected]
Cynthia L. Thompson – Paralegal
[email protected]
Danni Allen – Paralegal
[email protected]
Doug Scharnhorst – Paralegal
[email protected]
Kelley Gilbertson – Admin. Asst.
[email protected]
Walter H. Olsen, Jr.
B. Tony Branson
Deric Young
Our firm is proud to serve the manufactured housing industry
throughout Washington since 1994.
•
•
•
•
Real Estate Litigation
Landlord/Tenant Relations
Attorney General Complaints
Fair Housing Act
• Land Use/Municipal Law
• New Community Development
• Community Formation/Purchase/
Sale/Financing
We look forward to serving you in 2012!
Olsen Law Firm PLLC: 205 S. Meridian • Puyallup, Washington 98371
Phone: (253) 200-2288 • Fax: (253) 200-2289
10
With Life, Liberty, Freedom of Contract
(continued from page 10)
3. Offer your tenants a separate written Waiver of AnniAnni
versary Date that is prepared or approved by your legal
counsel, and provides for a community-wide anniveranniver
sary date. If you would like a complimentary copy
of our form Waiver, and you are an MHCW member,
email me at [email protected].
to your lease which confirms that the lease renews for
12 months and not 12-23 months depending on the
length of their lease ending on the community-wide
anniversary date. The sentence we use with clients
is: “Upon the initial anniversary date, this Agreement
shall automatically renew for successive terms of one
year.” This solution has been approved by the Attorney General’s Manufactured Housing Dispute Resolution Program.
In addition, after this second solution is implemented, the landlord should also have any new tenant
sign MHCW’s Assignment of Rental Agreement form
upon any sale of the home. By doing so, you also assign the prior tenant’s community-wide anniversary
date to the new tenant. To complete your file with the
new tenant, you should also have the new tenant sign
a new one-year rental agreement before they move in
that commences on your next community-wide anniversary date, and automatically renews for successive
one-year periods that end on your anniversary date.
If you have any questions, or wish to discuss this legal
issue or any other legal issue involving your community, feel
free to call MHCW’s Legal Hotline which entitles its members to one complimentary call to MHCW’s attorneys, after a
first call or email to MHCW’s Executive Director, Ken Spencer, 1-800-345-5608 who may be able to answer your question that does not require legal advice. n
Walt Olsen and his law firm are associate members of MHCW,
and council for MHCW. This article contains his own personal
observations and opinions, and is not intended as legal advice or
the opinions of MHCW.
Protecting the Good Residents and
Dealing with the Bad
T
By Tony Branson
Attorney at Law, Associate Member
not the eviction business. Other options to obtain behavioral change may be law enforcement involvement, direct
communication with the tenants, community (other tenants)
involvement, and the involvement of other government
agencies including the Attorney General’s Manufactured
Home Dispute Resolution Program at times.
In cases where behavior change is not feasible, eviction
is your remedy to remove a problem tenant. When a tenant
or occupant engages in criminal activity, the M/MHLTA provides for the termination of any tenancy or occupancy without
notice under the authority of RCW 59.20.080(f). The criminal
act must be defined by statute or ordinance that threatens the
health, safety or welfare of other tenants. Criminal conviction
is not required. Notice from law enforcement is a sufficient
basis to proceed but not the only evidence that a landlord
may use. (It should also be noted that the landlord bears the
burden of proof at a hearing to terminate a tenancy and such
notice may also not be enough to terminate a tenancy.) In
here is a saying, “One bad apple spoils the barrel.” This
saying can sometimes be applied to problem tenants in a
community. Most tenants are good residents, have pride
in ownership of their manufactured homes, and generally do the
right thing. But, then most communities seem to have at least
one tenant or an occupant who engages in activities, behavior,
and even criminal acts which threaten the health, safety, and
welfare of your residents. The behavior may spread to other
residents and lots in your community. The result can be harmful to the other tenants’ quiet enjoyment of their lot, and to the
overall success of the community.
Active management is imperative in the operation of any
successful community and a landlord’s careful attention to
his or her community helps to avoid the spread of problems
related to a “bad” tenant. Washington’s Manufactured/Mobile Home Landlord/Tenant Act provides some ways, but
not all the ways that a landlord can address these situations.
Behavioral change is what you want more than legal fees to
evict a problem tenant, as you are in the rental business and
(continued on page 12)
11
of a crime that threatens the health, safety, and welfare of
other residents. Conviction includes pleading guilty. Once an
owner or manager discovers a tenant’s or occupant’s criminal
conviction, they should promptly take action to terminate
the tenancy of the guilty tenant if the facts warrant it. If a
landlord waits too long after discovery of the conviction, a
court may view a delay as a community’s waiver of their
right to terminate the criminal’s tenancy. Consult with your
legal counsel as soon as you discover such a situation if you
are unsure whether you should take action.
Many times your “bad apple” is not a criminal. There
are other ways to address problem tenancies. Besides evicevic
tions, there are direct approaches to working with tenants
who are causing problems in a community. Sometimes a
manager or owner can simply communicate the problem to
the tenant and what needs to be done to correct the problem.
Sometimes, the problem is not necessarily a law enforcement problem, but maybe a situation that an agency like
DSHS or Adult Protective Services should be involved in.
Involving those agencies may help you avoid the risk and
expense of an eviction.
At this year’s MHCW Convention seminars in May,
I will discuss further how to deal with your “bad apples”,
criminal activity, and other situations. So, bring your questions and I look forward to seeing you there. n
Protecting the Good Residents
(continued from page 11)
many jurisdictions in Washington, local law enforcement
now routinely sends notices to property owners in rental
housing and manufactured housing communities when law
enforcement responds to reports of criminal activity. Do not
ignore the notices! Take time to determine what happened,
who was involved and, if necessary, take action to deal with
the problem. The longer a bad apple is in the community the
more likely it is to spoil the barrel.
Other times, an owner or manager suspects criminal
activity because they have seen law enforcement respond to
a space in their community, but no notice or information is
received from law enforcement. One way to try to find out
whether or not criminal activity is occurring on community
property is to make a public disclosure request of the law
enforcement agency that responded at the premises, and
request a copy of the incident report to confirm the nature
of the incident and whether it threatens the health, safety,
or welfare of the other residents.
If you determine that criminal activity occurred on
community property, it is time to consult with your attorney to consider whether the criminal activity would justify
beginning an eviction.
In addition to the criminal activity, RCW 59.20.080(c)
provides that a landlord may evict for criminal conviction.
That statute provides for termination upon 15 days’ notice
in a situation where a tenant or occupant has been convicted
Tony Branson is a partner at Olsen Law Firm PLLC, and are associate
members of MHCW, and council for MHCW. This article contains his own
personal observations and opinions, and is not intended as legal advice
or the opinions of MHCW.
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the possibilies.
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Kian Wagner, 847-582-9411
[email protected]
12
Ten Things You Will Be
Thankful to Know, Part 2
This article is Part Two; Part One ran in Eye On Olympia Winter 2012 Issue.
By Marlene Kaplan
Attorney at Law, Associate Member
There is virtually no excuse for non-payment of rent.
As stated above, it is a legal duty of residents to timely pay
rent as set forth in RCW 59.20.140 (“It shall be the duty
of the tenant to pay the rental amount at such times and in such
amounts as provided for in the rental agreement”).
6
You can evict for non-payment of rent after one
notice (which is not timely cured) pursuant to RCW
59.20.080 (1)(b).
RCW 59.20.240 provides that the tenant must be current in
the payment of rent including all utilities which the tenant has
agreed in the rental agreement to pay before exercising remedies
according the tenant under the provisions of the MHLTA.
7
You can contest laws that only impact manufactured
housing community owners.
In the landmark Washington Supreme Court of
Guimont v. Clarke, the court held that the relocation
assistance laws which mandated that manufactured housing
community owners relocate residents at the manufactured
housing community owner’s expense in the event of closure of
a manufactured housing community was unconstitutional.
The reasoning of the court in holding that the statute was
unconstitutional was that the law imposed a burden on select
property owners and was “unduly oppressive” to manufactured
housing community owners.
This reasoning should be more used as precedent in arguing that any law that only imposes a burden on manufactured
housing community owners is “unduly oppressive” such as
laws that create a moratorium on conversion of manufactured
housing communities or other such laws. n
10
You can create legally binding documents without
an attorney.
Although attorneys have some value (limited), you can
enter into legally binding documents with residents to
assure that agreements are clear and contain consequences for Marlene Kaplan is a licensed attorney in the state of Washington and is an
non-compliance. A suggested general agreement form is avail- associate member of MHCW. Her article contains her own analysis and
opinions, and is not intended as legal advice or the opinions of MHCW.
able, contact me for more information: (206) 923-0079.
If management agrees to a payout schedule with a resident
or agrees to allow a resident additional time to comply with
a violation, such agreement should be set forth in a writing
to prove the agreement if necessary and to set out deadlines
With the best selection of loan programs for your property.
for compliance and consequences.
Once management gets used to memorializing agreements
in writing, and assuring that a copy is contained in the resident’s file, it will create a “paper chain” that is critical to obtain
Types of Loans: Recourse, Non-Recourse,
Fixed and Adjustable Rate loans.
better compliance while at the same time offer some latitude
to the resident, if deserved. This “paper chain” is equally as
Loan Size:
$200,000 and up
valuable if management wants to terminate and evict, but is
Loan to Value: 80%
NOT a substitute for delivery of statutory notices, if statutory
notice is the pre-condition for termination.
Term:
Up to 30 years.
You can use the court system very inexpensively.
Interest Rates: Spreads priced over comparable
It only costs $75.00 to file an eviction suit in court. There
termed Treasury yields
are eviction services which file easy evictions for set
Other:
Private Utilities Accepted
prices (LT Services).
One effective way to use the court system is, if needed,
to file suit for eviction if delivery of notices has not impacted
on the resident’s actions. An eviction is a dramatic means of
getting the attention of the resident.
Baker Mortgage Co., LLC
Another advantage of the court system is use of agreed
Victor M. Baker
orders to evidence an agreement with the resident which then
[email protected]
can be enforced by the court, including entry of a writ of
restitution for non-compliance with the agreed order (which
503.390.4914
consequence must be stated in the agreed order to be available
as a consequence for non-compliance).
13
8
Serving the Manufactured
Housing Industr y Since 1983
9
SAFE Act Exemptions
By Deric N. Young
Attorney at Law, Associate Member
T
loan originator. Washington, however,
does not currently have a similar exempexemp
tion. Pursuant to WAC 208-620-230,
the Washington Consumer Loan Act
does not provide an exemption for a de
minimis number of loans; thus, it would
not allow a person to make one or two
loans without being licensed.
But, the good news is that Washington allows the DFI director to waive
the above requirements on a case by
case basis. We have had several clients
successfully use this process. Here is a
recent excerpt from correspondence with DFI concerning
the request for exemption:
A community owner must contact us to receive a licensing waiver for each transaction. The community
he saga of the Federal SAFE
Act and the Dodd Frank Act
amendments continues to
unfold. By way of review of our
prior article on this subject last fall,
these federal laws are clear that if
a community owner is making a
secured loan on a manufactured
home residence, a licensed mortgage loan originator needs to be
employed to “originate” the loan.
Under the HUD rules, an individual
engages in the business of a loan
originator if the individual, in a commercial context and
“habitually or repeatedly” takes a residential mortgage loan
application and offers or negotiates terms of a residential
mortgage loan for compensation or gain. However, HUD
also stated that if the seller financing is not habitual or repetitious, then the seller is not engaging in the business of a
(continued on page 15)
14
SAFE Act Exemptions
(continued from page 14)
owner must represent that they are the owner of a manufactured housing community and are not engaged in the
business of selling or providing financing for the sales
of manufactured homes in a commercial context. They
must represent that they wish to finance the sale of the
unit for the purpose of populating the community and
do not do so solely to gain a profit from the sale of the
unit. The community owner must represent they do not
engage in these transactions repeatedly. Based on these
representations the owner may be outside of the scope
of the licensing requirement of the federal SAFE Act
as that behavior is described in HUD’s final rules and
commentary implementing the SAFE Act. Because the
owner is not subject to the SAFE Act, they are eligible
for the licensing waiver from the Consumer Loan Act
found at RCW 31.04.025(3).
DFI will grant a licensing waiver on a transaction by
transaction basis based on the community owner’s representations above and with the following conditions:
1. The community owner must provide the buyer with
the one page disclosure summary required by RCW
19.144.020. Here it is: http://www.dfi.wa.gov/resources/
pdf/disclosure-summary-fixed-rate.pdf. If a section is
not applicable, mark “N/A”.
2. The community owner must hold the note and not sell it
into the secondary market.
3. If the community owner forecloses, they must follow a specific foreclosure process set forth in RCW
60.10.020. [The summary foreclosure procedures are
similar to the process used for Landlord Rent Lien
Foreclosure sales. You can read that here: http://apps.
leg.wa.gov/rcw/default.aspx?cite=60.10&full=true
15
If you are only doing one or two loans a year, requesting
a waiver and following the guidance provided by DFI should
minimize your risk.1 Remember, these laws arose out of
the predatory practices of lenders, and you do not want to
be viewed in the same category. Verify the ability of the
buyer to pay, keep interest rates reasonable, do not impose
loan or servicing fees, and avoid penalties and unreasonable
late fees. You are not in the business of financing homes.
You are in the rental business of providing affordable and
safe housing for your tenants.
Also, keep in mind that the SAFE Act and Dodd Frank
Amendments are only the tip of the iceberg. The Homeowners
Equity Protection Act (HOEPA), the Truth in Lending Act
(TILA), Real Estate Settlement Procedures Act (RESPA),
and our state’s other laws are among others that impact seller
financing. The new Consumer Finance Protection Bureau
(CFPB), which regulates consumer loan practices, has stated
its intention to regulate the manufactured housing industry.
For anyone contemplating more than a couple of sales
a year, we strongly suggest that you develop a relationship
with a licensed mortgage broker or loan originator to correctly navigate this procedural minefield for the unwary. If
you fail to comply with the above laws, or receive a waiver
from DFI, the remedy gives your buyer a right to rescind
your purchase contract at anytime, which would require that
you retake ownership of the home and reimburse the buyer
for any prior mortgage payments made. n
Deric Young is an attorney at Olsen Law Firm PLLC, which is an associate members of MHCW, and council for MHCW. This article contains
his own personal observations and opinions, and is not intended as legal
advice or the opinions of MHCW.
1 Contacts at the Washington State Department of Financial Institutions:
Deborah Bortner, Director, Division of Consumer Services,
(360) 902-0511, [email protected]
Cindy Fazio, Division Counsel, (360) 902-8800 Division of Consumer
Your Financial Health: To Plan or
Not to Plan
By Bjorn A. Hess
J.D., MS Personal Financial Planning
B
enjamin Franklin once remarked, “In this world nothing can be said to be certain, except death and taxes.”
Estate planning is often a difficult subject to approach
with clients because most people like to think as little as
possible about what will happen after they die. Creating an
estate plan makes us look at the financial consequences of
our death and the impact it will have on the people we care
about the most. Eventually everyone’s assets will be divided
and disbursed. We’re all mortal, right? The real question is:
Who will have a say in where your money goes?
Estate Plan:
You or the State…
Estate planning is a privilege here in the State of Washington.
To make sure clients’ wishes are effectuated we have to adhere to
stringent laws governing probate and taxes. Most often, people
have just a few questions they want addressed when they come
in to create an estate plan. Common desires include:
Take the case of Elvis Presley - I know there is still some
conjecture over whether he is dead, but his estate is a “casein-point” for why everyone should create and review their
estate plan. Of his 10.1 million dollar estate, his heirs paid out
73% when his estate went through probate in 1977, leaving
his family with less than 2.8 million dollars. J.P. Morgan, a
mogul of the financial industry, paid two-thirds of his estate
to taxes. So how can you protect your wealth? Here are a
few ideas to help get you on the right path:
Create a properly executed trust so assets can pass to
your loved ones without having to go through probate.
Probate can take many years.
•
Review the beneficiaries on various accounts you might
already have in place. These include your life insurance
policies, your 401(k), and your Individual Retirement
Accounts. All are financial vehicles used to transfer
wealth to your designees and avoid paying estate taxes
upon your death.
•
Avoid paying taxes on an estate
•
Simple and cost effective for family and loved ones to
move an estate through probate
•
Determine who/where/how/when money or assets will
be distributed to heirs and/or beneficiaries
Other Considerations:
A Medical Directive to Physicians, for example, can ensure
you are not subjected to shock treatment therapies if for some
reason you are adjudicated as incompetent and are no longer
able to make decisions regarding your health care.
HIPAA Authorizations can assure a parent the right to
know what has happened to their children or any other loved
person without first gaining consent of that injured or incapacitated person.
There are many ways your financial planner, adviser,
or estate planning attorney can help you get your finances
in order and help you reach your goals. Even though it may
not be the most enjoyable area to think about, just imagine:
Will one of your heirs have to climb Mt. Everest to get their
inheritance?
Bjorn Hess will be presenting at the upcoming MHCW
annual convention in May 2012. n
Trusts
•
•
*Bjorn A. Hess is a licensed attorney in the state of Washington and is an
associate member of MHCW. This article contains his own personal
observations and opinions, and is not intended as legal advice or the
opinions of MHCW.
Take advantage of the Annual Gift Tax Exclusion, this
year you can give up to $13,000 to any individual person
and neither of you pay tax on the transfer of wealth.
Rental Research, Inc.
www.researchinc.net
Tenant Screening
!
cial
MHCW members: 1/2 off 1st credit report.
Spe
Proud to be an MHCW member and Park Owner.
30504 Pacific Hwy. S. • Federal Way, WA 98003
253-838-9545 • 800-654-4936 • Fax 253-838-9445
16
The Following is a Partial Listing of MHCW Associate Members:
Let’s Support Them as They Support Us!
Attorneys
Screening Services
Lobbying
Public Relations
Agency
MARLENE KAPLAN
K
Attorney at Law
5745 Wilson Ave. S.
Seattle, WA 98118
(206) 923-0079
Fax (206) 923-0150
DATA NOW
SCREENING SERVICE
Olympia, WA 98507
(800) 597-3739
[email protected]
www.datanowscreening.com
PUBLIC AFFAIRS OF
WASHINGTON, LLC
Mark Gjurasic
Olympia, WA 98503
(360) 705-0113
[email protected]
WA MEDIA SERVICES
Joyce Willms
Olympia, WA 98507
(360) 754-4543
[email protected]
www.wamedia.com
OLSEN LAW FIRM PLLC
205 S. Meridian
Puyallup, WA 98371
(253) 200-2288
Fax (253) 200-2289
PHILIP FOSTER P.S.
Attorney at Law
2011 St. Johns Blvd.
Vancouver, WA 98661
(360) 258-0444
HESS LAW FIRM LLC
Bjorn Hess
2001 Main Street
Vancouver, WA 98660
(360) 553-9009
[email protected]
Other Services
CANNON
CONSTRUCTION, INC.
406 Porter Way
Milton, WA 98354
(253) 922-2787
GREEN COURTE PARTNERS
560 Oakwood Ave.
Lake Forest, IL 60045
(847) 582-9400
A -ADVANCED SEPTIC
SERVICES, INC.
Andrew Gunia & Joshua Gunia
11603 Canyon Rd E
Puyallup, WA 98373
(253) 435-9999
LOWERIDGE ON SITE
TECHNOLOGIES
PO Box 1179
Lake Stevens, WA 98258
(877) 476-8823
SUBMETER SOLUTIONS, INC.
Kelly Koontz
1451 West Valley Hwy. N
Auburn, WA 98001
(425) 228-6831
[email protected]
RENTAL
ENTAL RESEARCH INC.
Zaran Sayre
30504 Pacific Hwy South
Federal Way, WA 98003
(253)838-9545
[email protected]
[email protected]
Management
Services
Financing
FIRST COMMERCIAL
PROPERTY CORP.
Joel Erlitz & Ross Rongner
PMB 701, 4616 25th NE
Seattle, WA 98105
(206) 985-PARK (7275)
[email protected]
[email protected]
www.firstcommercialpropertycorp.com
BAKER
AKER MORTGAGE Co. LLC
Victor M. Baker
P.O. Box 12964
Salem, OR 97309-0964
(503) 390-4914,
Fax (503) 390-8386
MHC Sales/
Purchases
FIRST COMMERCIAL
PROPERTY CORP.
Joel Erlitz & Ross Rongner
PMB 701, 4616 25th NE
Seattle, WA 98105
(206) 985-PARK (7275)
[email protected]
[email protected]
www.firstcommercialpropertycorp.com
NORTHWEST CO-OP
DEVELOPMENT CENTER
Ben Guss
1063 Capitol Way S., #211
Olympia, WA 98501
(360) 943-4241
[email protected]
PROACTIVE
LENDING LLC
Jim Swaim
14818 221 Ave. N.E.
Woodinville, WA 98077
(425) 788-8646
CU FACTORY BUILT
LENDING
Deanna Imhof
33801 1st Way S, Ste. 100
Federal Way, WA 98003
(866) 595-7288
UNION BANK
Tammy Linden
206-698-3632
901 5th Ave #1200
Seattle, WA 98146
TOMAS M. GOTTLIEB,
BROKER & PRESIDENT
GOTTLIEB PROPERTIES, INC.
12334 Northup Way, Suite C
Bellevue, WA 98005
(425) 442-7011
Fax (888) 502-0991
[email protected]
www.gottliebproperties.com
NW PARK BROKERAGE
William Jackson
7638 SE 27th St, Suite 315
Mercer Island, WA 98040
(206) 652-4100
Fax (206) 652-4540
[email protected]
www.nwparks.com
Insurance
PROPEL INSURANCE
925 4th Ave #3200
Seattle, WA 98104
206.676.4200
800.499.0933
Pat Flynn
[email protected]
www. propelinsurance.com
TOTEM AGENCIES, INC.
Shaun Parthemer
10526 NE 68th Street
Kirkland, WA 98036
(800) 347-8774
shaunp@ totemagencies.com
www.totemagencies.com
PARK PRESERVATIONISTS
Jeremy Millard
21145 – 212 Ave. SE
Maple Valley, WA 98038
(425) 235-8100
17
PHILLIPS MANAGEMENT
SERVICES
Paul Hanken
223 Taylor Avenue North, Suite 200
Seattle, WA 98109-5026
(206) 622-8600
[email protected]
www.phillipsre.com
MARCUS REAL ESTATE
SERVICES, INC.
1441 West Bay Dr. NW #102
Olympia, WA 98502
(360) 528-3288
COMMONWEALTH
REAL ESTATE SERVICES
12301 NE 10th Place, Ste. 102
Bellevue, WA 98005
(425) 881-9890
[email protected]
[email protected]
[email protected]
www.cwres.com
RENEE’ ROULEAU
11120 Gravelly Lake Drive SW #1
Lakewood, WA 98411
Appraisers
RPM APPRAISALS
Rick Mellen, MAI
925 N 130th Street
Seattle, WA 98133
(206) 363-6611
[email protected]
Would You Like Your Name on the
Associate Member List? Call Crissy at
360.754.4543 and Check Out Our Website
at www.mhcw.org
Manufactured Housing Communities of Washington
PRESORTED
STANDARD
U.S. POSTAGE PAID
OLYMPIA, WA
PERMIT NO. 537
509 12th Ave. SE, Suite #7
Olympia, Washington 98501
CHANGE SERVICE REQUESTED
w w w. m h cw. or g
MHCW’s Annual Convention
May 15-16, 2012
Auction Donations Needed!
Donation Items already
committed to are:
• Brown & White Pearl Earrings & Necklace –
Rachelle Woodcook, PFC Management Services
• Money Jar – Joyce Willms, Washington Media
Services
• Themed Dinner Baskets – Ken Spencer,
MHCW Executive Director & Linda Spencer
• Fishing Trip – Walt Olsen & Tony Branson,
Attorneys, Olsen Law Firm PLLC
• Money Jar – Marlene Kaplan, Attorney at Law
• Regional Theme Gift Basket – Inland Empire Unit
• Regional Theme Gift Basket – Tri-Cities Unit
• $100 Gift Certificate for services by Rental Research Inc. – Zaran Sayre, Rental Research Inc.
Proceeds from the
Auction Go to Our
Legal Defense Fund.
MeadowdaleMHP
Lynnwood
• 2 night stay at the Lake View Hotel in Chelan
Washington. Complementary dinner, two bottles
of wine from local winery and 2 glasses.- Paul
and Debbie Lombardi
• Leonard’s Landing Lodge Offers – A 4 Night
Stay in Beautiful Waterfront Setting in YakutatAlaska,
One day use of ocean skiff, or river drift boat, Discounted extra guests and excellent fishing!
• Flat Screen TV – HD with DVD Player – Pierce
County Unit
• Gold and Silver Earrings and Necklace– Thurston/Mason Unit
• A Day By The Pool– Theresa Janzen
• Assorted Gift Baskets
It is Not too Late to Make a
Donation by Contacting Ken with
MHCW at (360) 753-8730 or
[email protected]
Welcome New Members
AirwayExpressInn
Spokane
ErinApartments&RVPark
Westport
OakAcreEstates
Elma
SkylineMobileEstates
Yakima
Golden’sMHP
Bremerton
BayRidgeEstates
Port Angeles
CottonwoodCourt
West Richland
BowmanHiltonMHP
Puyallup
SkylarkVillage
Auburn
Welcome New Associate Members
UnionBank
Seattle
Renee’Rouleau
Lakewood