Rental owners face a slew of proposed permanent changes that have taken effect already on an interim basis. It was July 29th when the Portland Housing Bureau released its interim rules--which became effective the same day.
The proposed permanent rules for applications and screenings, as well as security deposits, are available online. However, if you just want to read the interim rules, which are the same as the proposed permanent rules without the redlining to indicate the difference, you can find current rules for application and screenings here, and security deposits here.
Multifamily NW has posted a summary of these changes on its website which is reposted here.
Training: Multifamily NW will have webinar training on August 11th, 18th, and 20th (scroll to the bottom of this post for links to training information).
Testimony on these changes is being accepted by the city through September 30th and information on how to submit that is included at the bottom of this post.
Fair Access in Renting (FAIR) Ordinance: New Interim Administrative Rules
Applications and Screening
Clarification was provided in the following areas:
Advertising
- Notice Requirements. When advertising, Landlords are required to make disclosures about accessible dwelling units, the date applications will be accepted, screening criteria, and, in cases of advertising for multiple units, additional information about such things as number of units available, size of units and pricing. This rule was further expanded to state that all published advertising must have the above disclosures, including but not limited to: outdoor signage such as sandwich boards or banners, flyers, printed materials, audio recordings, video media, or online platforms. This information can be provided directly or by providing an address, website address, internet link, or other method of communicating to prospective Tenants.
- Publishing Notices. If a Landlord publishes multiple notices at different times or though different methods for the same availability of the same dwelling unit, the open application period (when Landlord may begin “accepting” applications) must be at least 72 hours after the initial notice.
During the application process, in the event, a unit is no longer available due to a vacancy being filled, or because a Landlord no longer wishes to rent the unit, the following apply:
- Landlords may refuse to process applications because a unit is no longer available. When this occurs, Landlords are not required to provide written communication to Applicants accepting, conditionally accepting or denying the Applicant, perform an individual assessment, or grant an appeal to the Applicant.
- If the unit is no longer available, but an Applicant has been screened, or their application has otherwise been processed, Landlords must provide written communication of a denial but not perform an individual assessment or grant an appeal to Applicant.
Optional changes to Application Language
Landlords may, at their discretion, include the following items in applications. Inquiries as to whether an Applicant is a current resident or has been a resident of Landlord in the last 365 days (applicable to owners of multiple properties in the City of Portland). Landlords may refuse to process the application of an Applicant who has “repeated and verifiable” violations of the rental agreement within 365 days of the application submission date.
“Repeated and verifiable” means:
- At least 3 violations have occurred within 1 year, and the most recent violation occurred within 365 days before the Applicant’s submission date;
- The Tenant received notice of each of the 3 violations in writing at the time each violation occurred. None of the 3 violations was dismissed, cured or resulted in a general judgment for the Applicant before the Applicant submitted the application; and
- The Landlord provides the Applicant with copies of the notices referenced above.
Disability-Related, Reasonable Modification Requests
- If an Applicant requests a reasonable modification of the property that is denied by a Landlord, the Applicant must first be provided two successive 24 hour periods to request alternative modifications before the denial is finalized. If no reasonable modification can be made, the Applicant, if otherwise eligible, can accept the dwelling unit without the modification.
- The Interim Rule clarifies that the 24 hour period begins to run for each of the two successive periods when a Landlord sends a notice to the Applicant denying the request for modification.
Approval of Applications Reviewed on Appeal
Applicants have 30 days to appeal denied applications during which time they may correct, refute, or explain negative information forming the basis for the denial. The interim rule addresses how to handle Applicants with appeals that have been granted, but that the unit applied for is no longer available.
- Applicants must be prequalified for any rental opportunities at Landlord’s properties at the same or lower rental rate for three months following the approval date.
- Applicants cannot be subject to additional screening, and Landlords must waive all screening fees for three months following the approved appeal. Applicants under these circumstances may be required to certify in writing that no conditions have materially changed from those described in the Landlord’s approved application.
- If a Landlord has prequalified Applicants through the appeal process, the Landlord must notify those Applicants of any available units for which they are prequalified before offering the units to the general public.
- The Landlord must issue the notification to the prequalified Applicant by email, phone, or certified mail, as provided on the application or subsequently updated by the Applicant.
- Prequalified Applicants must be given at least 48 hours after delivery of the notification by email or phone, or receipt of the notice by mail to respond and declare intent to enter into a rental agreement before a Landlord can offer the unit to the general public. Notifications must include the date and time the Landlord must receive the response and declaration of intent from Applicants. If there are multiple Prequalified Applicants, the offers must be made in order of appeal submission dates. Landlords are not required to rent to Prequalified Applicants responding after the deadline.
- Once notices of dwelling unit availability are published, Prequalified Applicants must submit an application and are subject to the general application process as outlined in the Ordinance, but will not be subject to screening fees or additional screening.
Security Deposits - Clarification was Provided in the Following Areas
Definition of “Termination Date”
- Within one week following the termination date, the Landlord must do a walk-through “Final Inspection” of the dwelling unit at the Tenant’s option, to document wear and tear. The Tenant does not need to be present but must be given at least 24 hours’ advance written notice of the Final Inspection.
- “Termination Date” has now been defined as the date the tenancy terminates, and the Landlord takes possession of the unit.
Condition Reports
- Landlords must provide Tenants with the Condition Report on the first day that the Tenants may take possession of the unit (first day of the lease). Tenants have 7 days to complete the form noting any damage.
- Unless Landlord disputes what is noted on the Condition Report and the Tenant and the Landlord jointly obtain third party validation of the condition of the dwelling unit, the Tenant’s description on the Condition Report is the baseline to be used for any future deductions from the security deposit. “Third-party” must be neutral, not a friend or family member of Landlord or Tenant.
Tenants are now required to participate in the validation process in good faith, but the Interim Rules do not specify any consequences for the Tenant for failure to do so.
Upcoming Training through Multifamily NW
Webinar training with Leah Sykes, Partner at the law firm of GreenspoonMarder LLPCost
Members: $45.00
Non-Member $60.00
Dates, Times, and Registration Links
Tuesday, August 11th, 10-11 am
Fair ordinance Update webinar
https://www.multifamilynw.org/events/fair-august-update
Tuesday, August 18th, 10-11:30 am
Application and Screening Rules webinar
https://www.multifamilynw.org/events/fair-august-update
Thursday, August 20th, 10-11:30 am
Security Deposit Update webinar
https://www.multifamilynw.org/events/fair-security-deposits-august
This update is not intended as legal advice. Please obtain the advice of an attorney for any policy change or decisions regarding residential and commercial landlord-tenant matters.
Testimony/Comments
Testimony may be submitted via email, fax, letter, or at the public hearing (details below). Written comments or testimony must be received by September 30, 2020, and must include a first and last name to be considered.
Email: RentalServices@portlandoregon.gov
Fax: 503-823-2387
Mail:
PHB c/o FAIR Administrative Rule Testimony
421 SW 6th Ave, Suite 500
Portland, Oregon 97204
Testify at the online public hearing:
FAIR Rules Hearing
Tuesday, August 11, 2020
3:00 - 5:00 pm
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