Oregon's unemployment rate has dropped to 6.9%, but legislators fear recent lockdowns could spur a new round of layoffs; the state of Oregon will provide free debris cleanup to all homes and businesses, including mobile home parks, in areas impacted by this year's fires; investors nationwide are buying up student housing from struggling universities and converting it into market rate units for young professionals.
Oregon’s unemployment rate fell to 6.9% in October, down from a high of 14.9% in April. But a sudden spike in COVID-19 cases statewide prompted Governor Kate Brown to announce a temporary freeze for bars, restaurants, museums, and other non-retail businesses, which some fear could result in another round of layoffs. 54,600 Oregonians have been out of work for at least six months, and restaurant industry jobs are down 20% from last year. A federal program that provided an extra $600 per week in unemployment benefits expired at the end of July, and the Pandemic Unemployment Assistance Program is slated to expire at the end of December. Oregon House Speaker Tina Kotek is calling on Governor Brown to convene a special legislative session under the catastrophic disaster provision, which was passed in 2012. She believes the state should spend $100 million to, quote, “keep Oregonians housed and stabilize the rental market.” But Senate President Peter Courtney believes the spike in COVID cases has made it too dangerous for legislators to return to the Capitol at this time. Governor Brown issued a statement that she would convene a session if lawmakers could agree on a list of priorities. Along with rental assistance, Kotek and Courtney both believe the state should do more to help businesses that are struggling due to the pandemic.
OPB – Oregon Lawmakers Considering First-Ever “Catastrophic” Special Session Next Month
Shortly after Governor Brown announced that there would be a full statewide freeze to control the spread of COVID in Oregon, Governor Inslee of Washington announced his own plan for a temporary shutdown. Since January, 2,500 Washingtonians have died of COVID-19, and like in Oregon the number of new cases across the state is beginning to spike. There were 2,286 new COVID cases reported the week ending November 13th, double the number of cases recorded two weeks prior. Much of that spread is due to community transmission rather than a single superspreader event. Governor Inslee’s order went into effect November 17th and will last until December 14th. Indoor bar and restaurant services are prohibited, though outdoor dining is still permitted. Inslee also shut down indoor movie theatres, museums, zoos, and acquariums and capped all retailers, including grocery stores, at 25% capacity. Religious organizations, offices, and personal services providers are also included in the 25% cap. The Governor’s order prohibits indoor gatherings with people from outside of one’s household and limits outdoor gatherings to 5 people. Childcare facilities, schools, and colleges do not fall under the order, and should continue using specific state guidance for schools. Inslee plans to direct $50 million to businesses that have been impacted by the pandemic.
OPB – Indoor Gatherings, Dining Banned in Washington as COVID-19 Cases Spike
Portland State University released new preliminary data showing that Oregon’s population continues to grow, though at a slower rate than in years past. Between 2019 and 2020, Oregon’s population grew by 0.7%. Deschutes is still the fastest growing county in the state – it saw a 2.1% increase in its population over the past year. The population continues to decline in some of the state’s most rural counties, and the number of deaths exceeded the number of births in 21 counties statewide. Washington County saw the highest population growth in the Portland metro area, at 1.1%, followed by Multnomah at 1% and Clackamas at 0.7%. Columbia County, just northeast of Portland, also saw its population increase by 1%. Harney County in Southeastern Oregon saw the biggest population decrease statewide at -1.1%. The state experienced net migration of more than 28,000 people over the past year.
PSU Population Research Center
The State of Oregon announced last week that it will provide free debris cleanup to all homes and businesses that have been impacted by this year’s wildfires, including mobile home parks. While the clearing of hazardous debris was already free, home and business owners have been left to deal with ash, rubble, burned vehicles and mobile home bases, damaged or fallen trees, and other difficult-to-clear objects. The state estimates that the full clean up effort will cost $621 million, but FEMA will cover most of the cost. Commissioners in Jackson County had written to the state asking for such a program, specifically urging state leaders to cover mobile home parks, which make up a large portion of the area’s affordable housing. Home and business owners must opt into the program, but will not be charged any up-front costs. In addition, contractors performing the work will not seek payment from insurance companies. To opt into the program, property owners must complete a Right of Entry form with their county. More information can be found on the state’s 2020 Oregon Wildfire Recovery website.
Oregon’s Occupational Safety and Health Administration issued new rules for employers to protect workers and customers from COVID-19. Most of the rules went into effect last Monday, though some will be phased in over time in order to give employers sufficient leeway for implementation. The rules are separate from Governor Brown’s temporary lockdown orders. Employers are now responsible for informing employees within 24 hours of a work-related infection, and must ensure that all employees, contractors, and customers wear a mask or other face covering. In addition, employers must provide masks to employees free of charge. If an employee chooses to wear a face covering where it would not normally be required, employers are not allowed to prohibit them from doing so. Employers are also required to incorporate employee feedback by December 7th in order to determine risks of exposure. They must also create an infection control plan by December 7th, and provide information and safety training to workers by December 21st.
Despite recent setbacks for the SW Corridor MAX Line, Portland’s Bureau of Planning and Sustainibility still plans to move forward on upzoning SW Portland to prepare for future growth. TriMet General Manger Doug Kelsey believes the MAX project could still come back in the future, though the agency plans to suspend work on the project after the conclusion of the Final Environmental Impact Statement. But BPS will still be accepting public comments on its upzoning plan for the West Portland Town Center until December 3rd, and the Portland City Council will vote on the plan in the Fall of 2021. West Portland Town Center is the area surrounding the Barbur Crossroads, at the intersection of Barbur Boulevard, Capitol Highway, and Taylors Ferry Road. The Crestwood Neighborhood and part of the Multnomah Neighborhood fall within the boundaries of the Town Center plan. James Peterson, Land Use Committee Chair of the Multnomah Neighborhood Association, believes the upzoning project should be put on hold until funding is found for the MAX line project. Marianne Fitzgerald, vice president of the Crestwood Neighborhood Association points out that the area lacks critical infrastructure beyond the proposed MAX line – including stormwater systems, bike lanes, sidewalks, and adequate bus service. The plan would allow for multi-story apartment buildings, mixed use businesses, and retail hubs, and the city hopes that it will bring more affordable housing to the area.
Portland Tribune – City Plans for SW Portland Growth Despite MAX Line Failure
In April of this year, Massachusetts enacted one of the first and most far reaching temporary eviction moratoriums in the nation in an effort to keep residents housed during the pandemic. Cities and states around the country followed suit, but in October Governor Charlie Baker allowed the moratorium to expire, stating that the longer the moratorium was in place the deeper in debt tenants and landlords would become. In anticipation of the moratorium’s October 17th end date, state legislators Mike Connolly and Kevin Honan introduced the Housing Stability Act, which would have extended the moratorium until the end of 2021 and provided economic support for tenants and landlords. But the bill languished in committee for months and was never brought to the floor for a vote, despite input from groups representing tenants and small landlords. The Housing Stability act was one of the boldest and most far reaching plans proposed in any state – it included a rent freeze that stabilized rents at pre-pandemic levels, a ban on foreclosures for homeowners and owner-occupant landlords, a mortgage deferment program for small landlords, and a state relief fund for landlords who owned 15 properties or fewer. But the bill faced significant headwinds both from some landlord lobbying organizations and from legislators opposed to the expansion of welfare programs. In addition, just before the eviction moratorium expired, Governor Baker announced a plan for a $171 million eviction diversion fund that would increase funding for the Rental Assistance for Families in Transition program. Still, state experts believe that without the moratorium between 60,000 and 100,000 Massachusetts residents could face eviction in the coming months.
Shelterforce – Massachusetts Showed States How to Create an Eviction Ban. Now It’s Backpedaling
Finally, the New York Times reports that over the past few years real estate investors have been purchasing student housing complexes from struggling universities and converting them into traditional market-rate units. In 2016, Pebb Capital purchased a housing property for students attending Yeshiva’s Cardozo Law School in Manhattan. Pebb renovated the former dormitory into furnished apartments and in 2020 sold the renovated building for nearly double what they had paid for it. A number of colleges and universities nationwide were already facing financial struggles prior to the pandemic, and the last several months have greatly exacerbated the problem. Experts expect that an increasing number of universities will choose to sell off assets, including student housing, in order to stay afloat. This year alone, Pebb has renovated two more student housing projects – The Cadence in Tuscon, Arizona and Monarch Heights in Manhattan. A large number of smaller colleges and universities have been forced to close over the past few years, and developers are now turning these properties into mixed-use campuses with housing and other amenities. Patrick Sentner, executive vice president at CBRE, argues that while occupancy is low due to the pandemic, marketing former dorms to young professionals is a smart financial move, because these tenants are more able to pay rent and less likely to cause wear and tear on a unit than typical student occupants.
NYTimes – As Occupancy Dwindles, College Dorms Go Beyond Students
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