Oregon Statutes 90.844 – Procedures for purchase of facility by tenants; financial information; deadlines
(1) Within 15 days after delivery of the notice described in ORS § 90.842, if the tenants choose to compete to purchase the facility in which the tenants reside, the tenants must notify the owner in writing of:
Terms Used In Oregon Statutes 90.844
- Action: includes recoupment, counterclaim, setoff, suit in equity and any other proceeding in which rights are determined, including an action for possession. See Oregon Statutes 90.100
- Attorney: includes an associate member of the Oregon State Bar practicing law within the member's approved scope of practice. See Oregon Statutes 90.100
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Facility: means a manufactured dwelling park or a marina. See Oregon Statutes 90.100
- Landlord: includes a person who is authorized by the owner, lessor or sublessor to manage the premises or to enter into a rental agreement. See Oregon Statutes 90.100
- Organization: includes a corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, and any other legal or commercial entity. See Oregon Statutes 90.100
- Owner: includes a mortgagee in possession and means one or more persons, jointly or severally, in whom is vested:
(a) All or part of the legal title to property; or
(b) All or part of the beneficial ownership and a right to present use and enjoyment of the premises. See Oregon Statutes 90.100
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Violate: includes failure to comply. See Oregon Statutes 174.100
(a) The tenants’ interest in competing to purchase the facility;
(b) The formation or identification of a single tenants committee formed for the purpose of purchasing the facility; and
(c) The name and contact information of the representative of the tenants committee with whom the owner may communicate about the purchase.
(2) During the 15-day period, in order to perform a due diligence evaluation of the opportunity to compete to purchase the facility, the representative of the tenants committee may make a written request for the kind of financial information that a seller of a facility would customarily provide to a prospective purchaser.
(3) Of the financial information described in subsection (2) of this section, the owner shall provide the following information within 14 days after delivery of the request by the tenants committee for the information:
(a) The asking price, if any, for the facility;
(b) The total income collected from the facility and related profit centers, including storage and laundry, in the calendar year before delivery of the notice required by ORS § 90.842;
(c) The total operating expenses for the facility paid by the owner or landlord in the calendar year before delivery of the notice required by ORS § 90.842;
(d) The cost of all utilities for the facility that were paid by the owner in the calendar year before delivery of the notice required by ORS § 90.842;
(e) The annual cost of all insurance policies for the facility that were paid by the owner, as shown by the most recent premium;
(f) The number of homes in the facility owned by the owner; and
(g) The number of vacant spaces and homes in the facility.
(4) The owner may:
(a) Designate all or part of the financial information provided pursuant to this section as confidential.
(b) If the owner designates financial information as confidential, establish, in cooperation with the representative of the tenants committee, a list of persons with whom the tenants may share the information, including any of the following persons that are either seeking to purchase the facility on behalf of the tenants committee or assisting the tenants committee in evaluating or purchasing the facility:
(A) A nonprofit organization or a housing authority.
(B) An attorney or other licensed professional or adviser.
(C) A financial institution.
(c) Require that persons authorized to receive the confidential information:
(A) Sign a confidentiality agreement before receiving the information;
(B) Refrain from copying any of the information; and
(C) Return the information to the owner when the negotiations to purchase the facility are completed or terminated.
(5) Within 45 days after delivery of the financial information described in subsection (3) of this section, or within 45 days after the end of the 15-day period described in subsection (1) of this section when the representative of the tenants committee does not request financial information under subsection (2) of this section, if the tenants choose to continue competing to purchase the facility, the tenants committee must:
(a) Form a corporate entity under ORS Chapter 60, 62 or 65 that is legally capable of purchasing real property or associate with a nonprofit corporation or housing authority that is legally capable of purchasing real property or that is advising the tenants about purchasing the facility in which the tenants reside.
(b) Submit to the owner a written offer to purchase the facility, in the form of a proposed purchase and sale agreement, and either a copy of the articles of incorporation of the corporate entity or other evidence of the legal capacity of the formed or associated corporate entity to purchase real property.
(6)(a) The owner may accept the offer to purchase in the tenants committee’s purchase and sale agreement, reject the offer or submit a counteroffer.
(b) If the parties reach agreement on the purchase, the purchase and sale agreement must specify the price, due diligence duties, schedules, timelines, conditions and any extensions.
(c) If the tenants do not act as required within the time periods described in this section and ORS § 90.842, if the tenants violate the confidentiality agreement described in this section or if the parties do not reach agreement on a purchase, the owner is not obligated to take additional action under ORS § 90.842 to 90.850. [2014 c.89 § 2; 2015 c.217 § 11; 2019 c.625 § 27; 2021 c.292 § 2]