SB 608 Rent Control Bill Hearing is Monday 2/4 at 3 pm at the Oregon State Capitol

The Oregon Legislature will have its first committee hearing on Rent Control bill SB 608 on Monday, February 4th beginning at 3 pm in Hearing Room B.

The bill makes major changes to Oregon Landlord/Tenant law -- more than any such changes in the last 20 years.

The implications of this legislation are listed below.


 Rent Control

• The bill limits rent increases in buildings that are more than 15 years old to 7% plus inflation and restricts no cause evictions after a tenant's first 12 months in a rental.
  
• The allowable percentage for rent increases in a given year will be calculated and released by September 30th the previous year by the Oregon Department of Administrative Services. If a landlord raises rent by more than that amount, the landlord will be required to compensate the tenant with the equivalent of 3 months’ rent plus damages.

No-Cause Evictions

• No-cause evictions can still be issued with 30 days’ notice during the first year of tenancy or with 10 days’ notice during a week to week tenancy. After the first year of a fixed-term tenancy, there are specific cases where a landlord can issue a no-cause eviction, as long as the landlord provides 30 days’ notice accompanied by the equivalent of one month’s rent.

The landlord may do this if they:

• Intend to demolish a unit or convert it to a nonresidential use;
• If the unit is unsafe for occupancy;
• If the unit cannot be occupied during necessary repairs or renovations;
• If the landlord or a member of their immediate family plans to live in the unit and no other similar unit is available; or
• If the landlord has received an offer from someone who intends to buy the unit and use it as a primary residence.

There are also provisions for no-cause evictions with a 90-day notice for a fixed-term tenancy, as well as for no-cause evictions pertaining to month-to-month tenancies.

Wrongful Eviction Claims
If a tenant makes a claim of being wrongfully evicted within one year, the landlord must pay three months’ rent plus damages.

After the landlord issues an allowable no-cause eviction, they cannot raise the rent more than 7% plus CPI prior to renting the unit to a new tenant.

Preview and Download a copy of SB 608 Here

What Now?

• Give formal testimony on February 4th beginning at 3 pm in Salem at the Capitol Building in Hearing Room B. Note that this location may change - check in with the information booth in the Capitol rotunda lobby. Parking for your visit to the Capitol can be found by checking this website.

• Provide written testimony on how this bill will affect your business by 3 pm Friday to this email address: shous.exhibits@oregonlegislature.gov and reference SB 608.

Use this tool to locate and email your Oregon Representatives in the House and Senate and send them an email copy of your concerns.

Up For Growth Report: Housing Underproduction in Oregon

The Up For Growth coalition has released a report on Housing Underproduction in Oregon. The report indicates that Oregon's housing shortfall from 2000 to 2015 was a total of 155,156 units. Read the Report.

Oregon House Bill 2683 Would Outlaw Pet Rent

Oregon Representatives Rob Nosse, Karin Power, and Tawna Sanchez filed a bill that would outlaw pet rent. According to Power, "pet rent unfairly increases a tenant's cost to rent without any causal relationship to the impact that their pet may or may not have on the premises." House Bill 2683 would prohibit "landlords that allow pets from charging tenants additional rent or fees based on the possession of pets." Read more.

BISNOW: "Global Recession Looms but Seattle May Be Spared Its Wrath"

Citing sources indicating that "things may have already turned south" BISNOW reports that Urban Renaissance Group's CEO Pat Callahan said Seattle may escape largely unscathed due to its focus on technology jobs. Read the full story.

HFO's Greg Frick Joins as Moderator of Bisnow's February Multifamily Update

HFO is pleased to announce that partner Greg Frick will moderate at the Bisnow Portland Multifamily Update for 2019.

The event will occur on Tuesday, February 26th from 7:30-10:30 am at the Sentinel Hotel in downtown Portland. Tickets are available for $99 and include coffee, breakfast & networking.

The event begins with a keynote address by Homer Williams of Williams and Dame, followed by moderated discussion panels featuring many of today's leaders in multifamily real estate.

Register and learn more about this event here. 

Portland's Opportunity Zones Have Seen 40% of RE Investment Since 2015

As the development community awaits further guidance from the IRS regarding the Opportunity Zone program, Bloomberg reports that Portland's opportunity zones are located in areas that have seen a massive share of development over the past few years. Portland's opportunity zones include Downtown, Old Town, the Pearl District, and the Central Eastside. Between 2015 and 2018, 40% of real estate investment in Portland occurred in areas that are now Opportunity Zones - a higher percentage than any other city. Read more.

Report: Rent Control Appears Set to "Sail Through" Oregon Legislature in 2019

Willamette Week reports that Senate Bill 608 appears likely to pass this year.

Rent Increase Restrictions 
The bill limits rent increases in buildings that are more than 15 years old to 7% plus inflation and restricts no cause evictions after a tenant's first 12 months in a rental.

The allowable percentage for rent increases in a given year will be calculated and released by September 30th the previous year by the Oregon Department of Administrative Services. If a landlord raises rent by more than that amount, the landlord will be required to compensate the tenant with the equivalent of 3 months’ rent plus damages.

No-Cause Evictions
No-cause evictions can still be issued with 30 days’ notice during the first year of tenancy or with 10 days’ notice during a week to week tenancy. After the first year of a fixed-term tenancy, there are specific cases where a landlord can issue a no-cause eviction, as long as the landlord provides 30 days’ notice accompanied by the equivalent of one month’s rent.

The landlord may do this if they:

• Intend to demolish a unit or convert it to a nonresidential use;
• If the unit is unsafe for occupancy;
• If the unit cannot be occupied during necessary repairs or renovations;
• If the landlord or a member of their immediate family plans to live in the unit and no other similar unit is available; or 
• If the landlord has received an offer from someone who intends to buy the unit and use it as a primary residence. 

There are also provisions for no-cause evictions with a 90-day notice for a fixed-term tenancy, as well as for no-cause evictions pertaining to month-to-month tenancies.

Wrongful Eviction Claims
If a tenant makes a claim of being wrongfully evicted within one year, the landlord must pay three months’ rent plus damages.

After the landlord issues an allowable no-cause eviction, they cannot raise the rent more than 7% plus CPI prior to renting the unit to a new tenant.

Senate Bill 608 Timeline
Legislators are eager to hold hearings on this legislation early on in the session, but a timeline has not yet been set.

Tenant Committees (not new, just a reminder)The bill does not call for a change to the existing requirement regarding tenant committees. Those committees. Tenants are allowed to have a committee made up of no more than seven residents who may request to meet with landlord representatives up to twice each year.

• The landlord of a representative must meet with the committee within 10-30 days of receiving a request.
• The landlord must respond in writing to a tenant committee within 60 days of receiving a written summary of the meeting outcome. 

City of Portland Plans Enormous Fines for URM Placard Violations

In response to an inquiry by unreinforced masonry owners, the City of Portland Bureau of Development Services said it would use building code enforcement against owners who fail to place an encumbrance on their titles and deeds or hang a sign. According to Angie Even of Save Portland Buildings, that equates to $12,860 per month for a 20-unit apartment building.

In December, Save Portland Buildings filed a lawsuit in federal court for a preliminary injunction against the city, in hopes of holding off the current enforcement deadline of March 1, 2019. Depositions in that lawsuit are being scheduled, and the plan is to have a preliminary injunction in place before March 1st.

BDS EMAIL REGARDING FINES
The City's response to a request for enforcement information by Save Portland Buildings contained the following details:

BDS plans to post “Admin. Rules” clarifying the enforcement portion of the ordinance. It indicated these rules were still in the process of being developed and would hopefully be ready by the end of January. Tentatively these rules were explained as follows:

• If placards are not posted and the agreement form not recorded within 30 days after they were due, a reminder letter will be sent out, and the Fire Marshall’s office will be informed.
• The Fire inspector will put these non-compliant buildings on their list for inspections.
• When the Fire inspector inspects these buildings and the placards and tenant notification is not complete, they will inform the owners of the requirements and ask that they comply. The owner has 40 days after that to comply or the Fire inspectors will charge a re-inspection fee and then turn the case over to BDS compliance section.
• BDS compliance will then send out another violation letter detailing the fines and process for compliance. The city's compliance division would work with property owners to comply.

______________________________________

Code Enforcement Fees

• 1-2 Units $257 per month, per unit
• 3-10 Units $386 per month, per unit
• 11-19 Units $515 per month, per unit
• 20 or more Units $643 per month, per unit
• Properties With Only Non-Residential Use $643 per month
• Properties in violation for 3 months Twice the amount stated above.
• Enforcement Re-inspection Fee $159

Owners may obtain additional information on this issue and the lawsuit by visiting saveportlandbuildings.com or emailing saveportlandbuildings@gmail.com.

Commissioner Eudaly Bummer: State May Limit City Control of Rents

City Commissioner Chloe Eudaly tells Willamette Week she's disappointed that the Oregon State Legislature may not allow municipalities to limit rents. Read more.

7% Cap on Rent Increases, No-Cause Eviction Ban Included in Proposed Legislation

The Willamette Week reports that Oregon Senate Majority Leader Ginny Burdick, House Speaker Tina Kotek, and Senator Laurie Monnes Anderson plan to propose legislation at the upcoming session that would cap rent increases at 7% per year (plus inflation) and ban no-cause evictions after the first year of tenancy. The new rent cap would only apply to buildings that are at least 15 years old. Read more.

Portland NAACP Speaks Out against URM Placards

The Portland branch of the NAACP is planning to hold a rally on Saturday, January 5th to protest the ordinance passed late last year requiring unreinforced masonry buildings to post placards stating they are unsafe in the event of an earthquake. According to the NAACP, the URM placarding policy "exacerbates a long history of systemic and structural betrayals of trust and policies of displacement, demolition, and dispossession predicated on classism, racism, and white supremacy." The NAACP believes, like other URM building owners, that the ordinance would likely force owners to sell the historic buildings for redevelopment. According to Rev. E.D. Mondainé, the ordinance would adversely affect houses of worship and other spaces important to the black community in North and Northeast Portland. MusicPortland recently posted a list of 30 venues it says are under threat, and plans to attend the NAACP rally in front of City Hall on Saturday. Read more.