HFO partner Greg Frick offers his thoughts on the changes over the years to the multifamily commercial real estate market in Oregon and Washington.
Sunday, January 31, 2021
Monday, January 25, 2021
HFO Multifamily Marketwatch - January 25, 2021
This week: Oregon Housing and Community Services plans to open the first application round for the state's landlord reimbursement fund by the end of January; Oregon's unemployment rates rose for the first time since April; President Biden's stimulus plan includes $350 billion in aid to municipal governments.
Wednesday, January 20, 2021
Washington State Multifamily Owners: Call for Action Before Tomorrow's Hearing on Rent Control Bill
According to the WMFHA, beginning at 8:00 am Thursday, January 21, the Senate Housing & Local Government Committee will consider SB 5139. The bill will prevent any rent increases for the six months following the end of the eviction moratorium and then permit only a 3 percent plus CPI (~4.9%) annually from rent on March 1, 2021.
The association issued the following statement and issued a call for action link:
This proposal will be devastating to the ability of housing providers to provide rental housing. It will create numerous artificial barriers to providing sufficient units to meet the demands of all who choose to call Washington home.
Use your voice to oppose rent control now by clicking the button below to send a message to your Senator urging them to oppose rent control.
This proposal will:
- Divert investment in housing to more favorable housing markets in other states
- Reduce the number of homes that will be built over the next 10 years by 11 percent
- Reduce investment in housing by more than $3.5 billion
- Reduce employment in skilled labor and trades
- Eliminate more than $200 million from property tax revenues
- Eliminate more than $301 million from sales tax revenues with significantly fewer apartments created
Take action now to oppose rent control!
Tuesday, January 19, 2021
Applications for Oregon's Landlord Compensation Program Should Open by End of January
According to the Portland Business Journal, officials at Oregon Housing and Community Services are working to open the application system for rental assistance and landlord compensation by the end of this month. The fund was authorized by the state legislature in December. Property owners can apply for funds covering 80% of lost rents as long as they forgive the remaining 20%. OHCS plans to do at least two application rounds. Read more (subscription required).
Monday, January 18, 2021
Washington Multifamily Association - Weekly Update for Rental Owners on the State Legislature
Your voice is more important than ever in 2021. This session provides you an easy opportunity to directly participate in the legislative process and lawmaking. From anywhere in the state, you can sign up to testify before the legislature on any piece of legislation in both the House of Representatives and the Senate.
We encourage you to provide your opinion on any of the bills before the legislature in 2021. If you’re interested in testifying, please let me know. I will work with you to prepare your testimony before the committee.
Also, look out for two calls to action this week to oppose legislation that will be harmful to the rental housing industry.
The legislative session began Monday, January 11, and ends April 20. The first policy cut-off is Monday, February 15, 2021, when any policy proposal must be voted out of its committee of origin or it is considered dead for the session.
High Priority Legislation we are Following:
Rental assistance is a critical component of this legislative session. While we await the arrival of federal rental assistance dollars, the state continues to propose investments in state-funded rental assistance.
- Senate Bill 5156 proposes to provide $100,000,000 from the state savings account to fund additional rental assistance to be used by June 30, 2021. These funds, if approved, would become available to housing providers directly on behalf of rental residents.
- House Bill 1093 / Senate Bill 5091 proposes more than $65 million in emergency rental assistance to be used by June 30, 2021, and available to rental residents earning less than 80 percent of Area Median Income.
- House Bill 1094 / Senate Bill 5092 proposes an additional $164 million towards emergency rental assistance beginning July 1, 2021.
Tenant Protections / COVID-19 Recovery:
The House and Senate are both likely to introduce tenant protection bills and some have already been introduced.
- Senate Bill 5139 implements rent control in Washington after the expiration of the eviction moratorium. It would prohibit any rent increases for the six months following the end eviction moratorium, and would further limit rent increases to three percent plus CPI for an additional six months. We strenuously OPPOSE Senate bill 5139. This proposal is scheduled for a hearing on Thursday, January 21, 2021 beginning at 8:00 am.
- Senate Bill 5160 proposes additional eviction protections that extend permanently beyond and well after the public health emergency ends, including the removal of carefully negotiated eviction protection provisions from 2019. It would drastically limit the ability of housing providers to adequately manage the health and safety of residents within their community. We OPPOSE Senate bill 5139. This proposal is scheduled for a hearing on Wednesday, January 20, 2021 beginning at 10:30 am.
- House Bill 1228, introduced by Representative Barkis, creates a gradual path towards normality that supports those who are directly impacted by the COVID-19 pandemic and provides necessary rental assistance to housing providers and tenants. By relying on existing programs and court practices, this Bill would assist everyone needing assistance without creating avenues of abuse of the program. We SUPPORT House Bill 1228.
- House Bill 1236 would implement just cause eviction across Washington, and require one of a limited number of reasons to terminate a rental agreement at the end of the tenancy. This bill also permits residents to add occupants to a lease agreement. We OPPOSE House Bill 1236.
Other Proposals affecting Rental Housing:
- Senate Bill 5096 proposes a 9 percent capital gains tax earned on long-term property or assets wherein the gain exceeds $25,000 per individual ($50,000 per couple) against individuals that reside in Washington.
- Senate Bill 5039 proposes limiting the Governor’s authority in a state of emergency and requires any action lasting longer than 30 days to have the consent of the House and Senate Democratic and Republican leadership.
- Senate Bill 5114 proposes safely moving the state to phase two of the Healthy Washington - Roadmap to Recovery plan. This bill is scheduled for a hearing on Wednesday at 8:00 AM.
By the Numbers: 2020 and the Pandemic's Effect on Portland Rents
Apartment List reported that rents in Portland declined 7.4% since the start of the pandemic, with downtown and Northwest Portland seeing the steepest declines while suburbs are less affected.
Cities around the country have suffered significant rent declines since the onset of the pandemic. Rent in San Francisco has declined 27%--the sharpest decline in the country, according to Apartment List. The company also reports that rents are down 22% in Seattle, 21% in Boston, and 20% in New York City, according to the company.
HFO Multifamily Marketwatch - January 18, 2021
This week: a Federal Judge in Washington State allows a statewide eviction moratorium to stand as a lawsuit against it moves forward; the Oregon legislature seeks ways to help renters and landlords as a potential eviction crisis looms.
Wednesday, January 13, 2021
Business Journal: "Legislature 2021: Balancing the needs of struggling renters and landlords" in Oregon
In fact, the Business Journal headline says a prospect for a positive outcome is "on the brink of collapse," although the article doesn't seem to support that conclusion. What the article does outline, however, is how barriers to development and a decades-long shortage of housing have led to a spectacular moment of crisis for housing in Oregon.
City of Portland Offers Free Rental Housing Provider Training on New State & City Laws
The Portland Housing Bureau Rental Services Division is offering training to rental housing providers on Senate Bill 608, federal Fair Housing laws, as well as the City of Portland's new Application & Screening, Security Deposit, and Relocation Assistance ordinances.
The training courses are free and are offered on a rotating schedule between Thursday, January 21, 2021, and May 27, 2021.
Training descriptions:
Fair Housing and Discrimination Laws:
This two-hour class will teach you everything you need to know about the Fair Housing and Discrimination laws that apply to the Landlord / Tenant relationship. You see the article headline far too often, “Landlord Sued for $150,000 for Fair Housing Violations!” Unfortunately, most landlords don’t intend to be discriminatory, but ignorance is not a defense. We will teach you about our Fair Housing Laws, the most common mistakes, and how to best protect yourself from Fair Housing violation claims.
State law SB608 - Tenant Protection Bill. This two-hour class will teach you everything you need to know about the state law SB608 that established a statewide rent increase limit and significantly restricted a landlord’s ability to use a No-Cause notice of termination. Landlords can still have a tenant move out with some specific qualifying reasons we will cover in detail.
City of Portland - Application and Screening Ordinance:
This two-hour class will teach you everything you need to know about the state law SB608 that established a statewide rent increase limit and significantly restricted a landlord’s ability to use a No-Cause notice of termination. Landlords can still have a tenant move out with some specific qualifying reasons we will cover in detail.
Portland's Security Deposit Laws:
This two-hour class will teach you everything you need to know about the city of Portland’s Security Deposit Laws, including how much you can charge, where you have to keep the money, required notifications, inspection requirements, what you can / can’t charge for, and proration requirements. We will also review Portland’s rental registration requirements, including the process and costs.
Portland Relocation Fee Ordinance:
This two-hour class will teach you everything you need to know about the Relocation Fee Ordinance in the city of Portland. We will cover how and when the relocation fee applies, the proper notices, and how to qualify for exemptions.
Register for your training here.
Legislature Back in Session in Olympia as Rental Association Clamors for Prioritization of Housing Creation
Here are some proven tools WMFHA is asking the Washington State legislature to consider:
Rental assistance: allocating significant resources to financial assistance programs for renters impacted financially by COVID-19. These programs have a proven track record of success in reducing poverty and supporting housing stability in the long run.
Multifamily tax aid: investing and expanding the state’s Multifamily Tax Exemption program, which incentivizes the creation of affordable housing by offering tax incentives for housing developers that keep rents below market rate. Since 2007, the program has created an estimated 7,325 affordable units and 27,560 market-rate units across Washington state.
Public private partnerships: supporting public investment and partnerships with the private sector that create a range of housing that fits the needs of more people. This can include coordinating the construction of transit-oriented affordable housing near future light rail stations, like in King County
Housing levies: supporting jurisdictional programs that develop and preserve affordable housing and provide direct assistance to families at immediate risk of eviction or homelessness. In Seattle, housing levies have enabled the construction of 12,500 apartments with below-market rents.
WMFHA is calling for the organization to avoid:
- Rent control
- Emergency orders without a plan
- Additional barriers to housing creation
Tuesday, January 12, 2021
Washington State and Seattle eviction moratoriums stand as rental owner lawsuit proceeds
The Seattle Times reports that a federal judge has rejected a call by rental owners to suspend a ban on evictions during COVID, leaving a court battle to play out while the bans remain in place. Read more.
Seattle Rents Fell in 2020 as Outlying Area Costs Climbed
The Seattle Times reports that rents in King, Pierce, and Snohomish counties dropped 3% - the most since the Great Recession. But although they fell as much as 14% near Lake Union, rents climbed 5.7% in Puyallup. Read more.
Monday, January 11, 2021
WA Legislature to Discuss COVID-19 Relief, Including $100 Million in Rental Assistance
The Washington Legislature is opening its 105-day session in person today, despite concerns over security at the Capitol. While they plan to meet virtually for most of the session, lawmakers must meet at the Capitol today in order to pass rules to facilitate the shift to virtual hearings. During the 2021 session, lawmakers plan to address COVID-19 relief, the state budget, the governor's emergency powers, police reform, and climate change. Governor Inslee is urging the legislature to approve $100 million in business grants as well as $100 million for rental assistance, in order to help those who have been impacted by pandemic-related closures. Read more.
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