Federal Trade Commission to Landlords: Do Not Evict Tenants in Violation of Moratoriums

On Monday, the Federal Trade Commission joined with the Consumer Financial Protection Bureau to issue a statement warning landlords against violating the moratoriums which expire June 30.

“Unfortunately, there are reports that major multistate landlords are forcing people out of their homes despite the government prohibitions or before tenants are aware of their rights. Depriving tenants of their rights is unacceptable. Many of the tenants at risk of eviction are older Americans and people of color, who already experience heightened risks from COVID-19.

“Staff at both agencies will be monitoring and investigating eviction practices, particularly by major multistate landlords, eviction management services, and private equity firms, to ensure that they are complying with the law. Evicting tenants in violation of the CDC, state, or local moratoria, or evicting or threatening to evict them without apprising them of their legal rights under such moratoria, may violate prohibitions against deceptive and unfair practices, including under the Fair Debt Collection Practices Act and the Federal Trade Commission Act. We will not tolerate illegal practices that displace families and expose them—and by extension all of us—to grave health risks.”

CDC Extends National Eviction Moratorium to June 30, 2021; National Apartment Associations Express Disappointment

The U.S. Centers for Disease Control issued a notice yesterday extending the eviction moratorium from March 31, 2021 to June 30, 2021. The order can be found here. 

The Oregon legislature and Washington Governor Jay Inslee previously extended statewide eviction moratoriums through June 30. 

The National Multifamily Housing Council and the National Apartment Association issued a joint statement regarding their deep disappointment with the extension:

"After grappling with the financial distress of the pandemic and eviction moratoriums for more than a year, housing providers have few resources left. Another extension only serves to exacerbate the challenges facing the rental housing industry and does not address the underlying financial stress of apartment residents, instead forcing households to accumulate insurmountable levels of debt. Furthermore, moratoriums do nothing to deal with the continuing housing affordability challenges that our country was already facing before the onset of COVID-19.

"Instead, direct financial assistance has been shown to be the most effective approach towards keeping apartment residents safely and securely housed and to preserving the stability of the rental housing industry. The almost $50 billion that has been allocated for rental assistance will prove critical in helping those in need as the country emerges from the pandemic, and we must shift focus from legally uncertain federal eviction moratoriums to swift distribution and continued rental assistance funding. NMHC and NAA applaud Congress for their efforts in securing these resources and look forward to working together on the program’s continued success.

"The tens of billions in rental assistance, as well as other critical financial support measures like expanded unemployment benefits, could only come through a comprehensive federal response. Now, NMHC and NAA encourage lawmakers at state and local levels of government to prioritize focus on swift and effective distribution of rental assistance funds. State and local jurisdictions have been and continue to be best-suited to craft the solutions that best fit their individual conditions."

Oregon legislative Update - Week 10

Tuesday, March 30th at 8:00am
HB 2761 would require rental agreements of manufactured housing to be available in five most commonly spoken languages other than English. Relating to clause restricts to manufactured dwellings, still, it sets an extensive precedent. A Work Session is scheduled in House Housing Committee. Multifamily NW opposes this bill. Staff Measure Summary

Tuesday, March 30th at 1:00pm
SB 282-4 is a gut and stuff bill that would extend the grace period from the current Eviction Moratorium for repayment of past rent arrearages till February 28, 2022. Among other notables in this bill is that it would create a presumption of retaliation should a landlord issue a termination for nonpayment of rent from April 1, 2020 through June 1, 2021, continues the 10-day notice requirement, prohibits housing providers from considering FEDS during the COVID period in screening applicants, and expands the current FED expungement process to include FEDs during the COVID period. It also proposes a prohibition on eviction for doubling up on occupancy/guest standards and extends the damages for violations enacted in HB 4401. SB 282-1 had public hearings on Thursday, March 4th and Tuesday, March 9th. Deborah Imse participated in an ad hoc work group organized by Senate Housing and Development Committee Chair Kayse Jama to discuss SB 282-1. As of the publishing of this document the negotiations continue. A Work Session is scheduled. Multifamily NW is neutral on this bill.

Thursday, April 1st at 8:00am
HB 3306 would allow landlord and tenant to agree to recurring charge in lieu of security deposit. A Public Hearing is scheduled April 1st in the House Housing Committee. Multifamily NW supports bill. 

HB 3113 would remove exemption from rent increase limits for landlords renting under government programs. A Public Hearing is scheduled. Multifamily NW supports bill. 

HB 2364 would require the owner of a manufactured housing/floating home facility to give first right of refusal to a tenants committee before the sale of the facility to a third party. A Work Session is scheduled for April 1st. Multifamily NW is tracking the intent of this bill. 

HB 2736 would require landlords to provide tenants with informational notice developed by Bureau of Labor and Industries regarding discrimination upon execution of rental agreement on or after January 1, 2022, or for existing rental agreements by February 1, 2022. There is a dash-1 amendment that would further impose posting of the notice in a common area if the building has 11 or more units. A Work Session is scheduled. Multifamily NW is neutral on this bill.

Thursday, April 1st at 1:00pm
SB 852 would disallow mortgage interest deduction for residence other than taxpayer's principal residence, unless taxpayer sells residence or actively markets residence for sale. A Public Hearing is scheduled in Senate Housing and Development committee. Multifamily NW opposes this bill.

SB 327 would allow landlord to bill a residential tenant for utilities based on submeter reading. Amends other utility billing requirements and calculation of damages for landlord violations. A Public Hearing is scheduled in Senate Housing and Development committee. Multifamily NW supports this bill. 

Download current Priority Bill List
Multifamily NW is watching hundreds of bills that have the potential to affect our industry. We have included a shorter list of approximately 50 bills that we are closely tracking and that most members will want to have on their radar too. This link will be updated every week as new bills are dropped. 

Next Chamber Deadline is Tuesday, April 13th
The 2nd "mile marker" of the Legislative Session, is Tuesday, April 13th - that's the date a Work Session must be held for a 1st Chamber bill to "stay alive."

You can support MultifamilyNW by becoming a member and supporting their advocacy efforts. Learn more at www.multifamilynw.org. 

HFO Multifamily Marketwatch - March 29, 2021

This week: Permits for new multifamily projects in Portland dropped precipitously in 2020; low housing inventory and higher lumber prices drive up new home costs; a bipartisan bill sponsored by US Senator Amy Klobuchar directs $1.5 billion to local governments that commit to increasing housing supply.

Listen to our latest podcast.

Oregonian Report: Portland's Attempt to Regulate Housing May Trigger Another Round of Skyrocketing Rents, Displaced Tenants, Homelessness

The Oregonian is reporting on local economists' warning that the City of Portland's decline in apartment permit applications may lead to another housing crunch, higher rents, and more homelessness. [Note: link access requires a subscription.]

In 2017, Portland implemented a forced inclusionary zoning policy, mandating that developers include affordable housing units in all developments of more than 20 units.

The Oregonian's reporting indicates that by ordering builders to include low-rent apartments in new projects, the incentive for developers is to avoid the requirements by constructing smaller buildings.

Permit applications fall off a cliff in 2020
The number of multifamily permits issued for construction dropped by 2/3 in Portland last year, with Portland issuing permits for fewer than 1,500 new units. For each of five years previous, the average was 4,600. 

Download the excel of permit Activity in Portland 2005-2020

Portland's permit applications fall despite continuing in-migration.
Compared to other cities in the West, the number of permit applications dropped 66% in Portland, 42% in Seattle, 26% in Salt Lake, and 23% in Denver. 

A State of Oregon economic report [See slide #4] released in early March indicates that net in-migration is expected to continue at a rate of 30,000-40,000 each year into Oregon. Historically, the vast majority of new residents relocate to the Portland metro area. 

The reporting comes on the heels of a report released earlier this week by the City of Portland Auditor's office indicating the city's building permit process remains riddled with time-consuming delays, shoddy customer service, and lack of accountability. 

 

Experiencing Glitches with Oregon's Landlord Compensation Fund Portal? You're Not Alone.

When the Oregon Legislature passed HB 4401 during the 3rd Special Session of 2020 on December 21st, it not only extended the Eviction Moratorium through June, and ushered in temporary extensions to nonpayment for rent notices, it also allocated $200 million to support emergency rental assistance and create a Landlord Compensation Fund. 

Unfortunately, the Landlord Compensation Fund application portal is still broken. Oregon housing providers have had a frustrating experience the last few weeks attempting in good faith to follow the instructions, read the FAQ, and attend various training sessions. 

The portal is still inoperable. 

State officials gave those diligently trying to apply an extension to submit their information directly to Oregon Housing and Community Services (OHCS) for staff to complete housing providers' applications on their behalf.

Subsequent application rounds for the Landlord Compensation Fund were already planned, and funds not disbursed in the first round of funding due to these glitches will be rolled forward. OHCS is continuing to work to fix the many bugs and coding errors so that applications will properly process in future rounds.

Get Involved!
Multifamily NW needs the advocacy and voice of Oregon's rental owners to support all efforts to remove barriers to housing supply.  As we look towards the future for Oregon’s housing, streamlining regulation and incentivizing investment into housing development will be pivotal to ensuring all Oregonians have a place to call home. Join the effort! Follow this link to get involved and engage your legislators with the Multifamily NW Government Affairs Team! 

Learn more about Multifamily NW and how to become a member at www.multifamilynw.org, or call (503) 213-1281. 

Latest Roundup of Oregon's Housing Legislation - Get All The Latest Here

Multifamily NW has provided the latest roundup of legislation in the Oregon senate that could potentially affect Oregon rental owners. Here's the status:

• March 19th was the deadline for bills to have at least a 1st chamber Public Hearing or Work Session scheduled. Most priority bills we’re tracking are currently safe. There are still many bills still in play. 
  
  
• The next deadline to anticipate is Tuesday, April 13th, the date most committees have to hold Work Sessions on 1st Chamber bills.
  
  

MULTIFAMILY NW IS NEUTRAL ON THE FOLLOWING BILL

SB 282-3 (Multifamily NW and other housing providers are currently neutral) redefines terms of the current Eviction Moratorium. It had a 3rd Public Hearing on Thursday, March 18th in the Senate Housing & Development Committee. A Work Session has been scheduled for Thursday, March 25th at 1:00pm. Sizable concessions were proposed to strike automatic presumption of retaliation and retain the ability to screen long-term guests. Chair Jama’s workgroup still in flux..The Grace Period for repayment would extend through February 2022. The Emergency Period of the moratorium would still end after June 30th.

MULTIFAMILY NW OPPOSES THE FOLLOWING BILLS

HB 2761 seeks to mandate forms be translated into five most commonly spoken languages other than English for manufactured housing facilities. It has a Work Session scheduled for Tuesday, March 30, 2021.

HB 2736 would require landlords to provide tenants with an informational notice to be developed by BOLI regarding discrimination. A Work Session is scheduled for Thursday, April 1, 2021. 

SB 291-4 seeks to limit tenant screening criteria that can be used to deny applicants and increases conditions under which landlords are required to provide applicants with certain information. The amended measure would prevent landlords from considering previous arrests if applicants are currently admitted into a diversion or deferral of judgment program entered post-conviction but prior to judgment. Before denying an applicant, landlords must conduct an individualized assessment of the applicant that includes supplemental evidence on incidents that would lead to a denial. If a landlord denies an applicant, the landlord must provide the applicant with a written statement explaining why within 14 days, including information such as the tenant screening and consumer credit companies used in the screening and the applicant’s right to appeal the denial. The current governing statute only requires landlords to furnish a written explanation of denial if applicants request one. The amended measure also requires landlords to provide applicants with written notice of any federal, state, or local nondiscrimination policies before accepting applications or payment. This bill passed out of the Senate Housing and Development Committee on March 11th and will have a Senate floor vote soon. 

HB 2427 would mandate a uniform rental application, to be created and maintained by the Oregon Housing and Community Services bureau. It has a Work Session scheduled for Tuesday, March 30, 2021.

HB 2372 would eliminate a landlord’s ability to terminate the residential tenancy without cause. Its last Public Hearing was on March 2nd. 

MULTIFAMILY NW SUPPORTS THE FOLLOWING BILLS

SB 327 makes necessary changes to allow landlords to bill residential tenants for utilities based on submeter reading. It has a Public Hearing scheduled for Thursday, April 1, 2021. 

SB 330 is Sen. Betsy Johnson's bill that would establish an income tax credit for forgiveness by the landlord of the tenant’s nonpayment of rent or other charges. Subtracts from federal taxable income tenant’s discharge of indebtedness income attributable to landlord’s forgiveness of nonpayment. This bill has a Public Hearing and Possible Work Session scheduled for Tuesday, March 30, 2021. 

HUNDREDS MORE BILLS ARE PENDING WITH POTENTIAL IMPLICATIONS FOR RENTAL HOUSING

Multifamily NW is watching hundreds of bills that have the potential to affect our industry. We have included a shorter list of approximately 50 bills that we are closely tracking and that most rental housing providers will want to have on their radar. This link will be updated every week.

Download current Priority Bill List

Get Involved!
Multifamily NW needs the advocacy and voice of Oregon's rental owners to support all efforts to remove barriers to housing supply.  As we look towards the future for Oregon’s housing, streamlining regulation and incentivizing investment into housing development will be pivotal to ensuring all Oregonians have a place to call home. Join the effort! Follow this link to get involved and engage your legislators with the Multifamily NW Government Affairs Team! 

Learn more about Multifamily NW and how to become a member at www.multifamilynw.org, or call (503) 213-1281. 

Portland's Slow, Fragmented Permitting Process Is Hindering Housing Production

Portland City Auditor Mary Hull Caballero released an audit showing that the city's building permit process is slow and suffers from poor customer service and a lack of accountability. In 2019, just 7% of residential projects and 27% of commercial projects received a timely first review. Problems within the process are exacerbated by the fragmentation of reviewing bodies, which are overseen by multiple agencies. According to the audit, these issues could slow the city's post-pandemic recovery efforts. Read more.

Portland Landlords: City Offering Free Eviction Moratorium, Screening & Security Deposit Training

New classes, sponsored by the City of Portland, are available for landlords to learn more about the statewide COVID-19 Eviction Moratorium. For tenants who have submitted declarations, the current moratorium is in effect until June 30, 2021. Learn more about what this means and how provisions of HB 4401 affect terminations for nonpayment by registering for a class with our community partner, RPM.

Click here to register. Classes are free if you register with the discount code: Free4PortLandlord. We encourage interested housing providers to register as soon as possible as space is limited. 

Other online classes covering topics such as Senate Bill 608, Application & Screening, and Security Deposits are available for registration as well.

HFO Multifamily Marketwatch - March 22, 2021

This week: a Federal Judge rules the CDC lacked authority to enact an eviction ban, opening the door for more legal challenges, and Twentysomethings are flocking to smaller, more affordable cities like Tacoma.

Listen to our latest podcast.

Washington State Legislative Update Week 10

The Washington Multifamily Housing Association: 

1. Continues to oppose the repeal of the fixed-term lease as proposed by House Bill 1236.
2. Is advocating for additional financial support for the Landlord Mitigation Fund seeking an additional $12 million over the next biennium. 
3. Has testified on SB 5160 regarding proposed changes before it is considered by the House of Representatives. SB 5160 would create post-moratorium policies to return to normality. 

There are less than 30 days remaining before final votes on these policies. WMFHA encourages the rental housing community to be patient and give rental assistance a chance while providing residents impacted by COVID-19 the opportunity to get back on their feet in their homes.

Washington Governor Extends Eviction Moratorium to June 30, 2021

Washington State Governor Jay Inslee extended the state's eviction moratorium through June 30, 2021. 

The Washington Multifamily Housing association released the following statement: 

"During his press conference he [Gov. Inslee] encouraged those who are able to pay their rent to pay their rent and assist in helping those who continue to experience hardship by making rental assistance dollars available to those that need it most. 

"As we have been working with the legislature to create a reasonable pathway and return to normality, we recognized this work would not be completed by the expiration of the moratorium and anticipated an extension of the moratorium. Both California and Oregon have also extended their moratoria to June 30. 

"As we continue to work on and finalize this pathway out of the moratorium, we've secured more than $1 billion in rental assistance to provide relief to our members and owners who are struggling to meet their existing operating expenses. The majority of these funds should become accessible within the next few weeks to meet the needs of housing providers and residents across the state."  

Watch coverage on King 5 News.

Federal Judge: Landlords do not have to Provide Free Housing

 

A Federal Judge in Ohio has ruled that the CDC overstepped its authority by issuing a nationwide eviction ban. 

The lawsuit was brought last October by a group of Ohio landlords and the National Association of Home Builders.

The CDC was held to lack the statutory authority to promulgate the eviction ban. A similar case challenging the moratorium is on appeal in the 5th Circuit.

At this point it is not clear whether the federal government will attempt to limit the decision only to the plaintiffs involved or to the entire state of Ohio. 

A federal judge in Memphis Tennessee ruled the government also overstepped its bounds when it put evictions on hold last year. He ruled the government's order unenforceable in West Tennessee and landlords involved in that case own more than 5,000 units in the area. 

One other case received a favorable district court judge and a fourth is on appeal in the 11th Circuit.

Oregon & SW Washington Submarket Data Published Today

Multifamily NW released its bi-annual Apartment Report at a meeting this morning. 

Click here to read our summary of today's Apartment Report submarket vacancy and rent data.

Oregon Housing and Economic Forecast - March 17, 2021

State of Oregon economist Josh Lehner provided a detailed update on Oregon's housing and economic forecast. The bottom line:

• Personal income is up sharply
• Savings will support spending
• Oregon has a comparative advantage over many states
• The bottom line on recession comparisons

See his slideshow here. 

HFO Multifamily Marketwatch - March 15, 2021

This week: The Oregon legislature prioritizes bills intended to address the state’s housing crisis; Economist Joe Cortright cites Inclusionary Zoning as the reason for the sharp decline in new multifamily building applications, and a new stimulus bill expands unemployment benefits but payments to Oregonians may be delayed.

Listen to our latest podcast.

The Bottom Line: Portland, Oregon's Inclusionary Zoning Regulation Caused Sharp Drop in New Apartments

City Observatory, whose director Joe Cortright was recently interviewed by HFO partner Greg Frick about the economy and housing observations, wrote this week about the direct connection between Portland's inclusionary housing requirement and a sharp decline in multifamily housing in Portland. 

More proof that the city's IZ / IH policy has been a complete failure during our housing emergency.  

Read the story. 

See our recent interview with Joe Cortright. 

Washington State Legislative Update - Next Cutoff: March 26th

Tuesday, March 9, 2021, marked the legislative session's theoretical midway point and the house of origin cutoff in the Washington legislature. The next important cutoff is March 26, when all proposals must be considered by the opposite chamber’s policy committee.

Overall, most landlord/tenant bills moved from their policy committee, as did additional tax-related proposals. There remain a few bills alive yesterday, but they are significant and require your continued advocacy on behalf of the industry. 

WMFHA continues to fight for reasonable policy to address the recovery from the extended moratorium and pandemic. This means:

• Creating a gradual pathway away from the eviction moratorium
• Providing sufficient rental assistance resources to those directly affected by the COVID19 pandemic
• Building opportunities for communication and productive resolution of nonpayment of rent issues

On rental assistance, Congress passed the American Recovery Act of 2021, which includes approximately $30 billion in additional rental assistance. We anticipate that on top of the approximately $650 million in rental assistance already provided or becoming available in the state, an additional $400 million will come to Washington.

The Department of Commerce is finalizing guidance on the distribution of rental assistance across the state. We anticipate the availability of rental assistance beginning this week through April. Two-thirds of existing rental assistance funds must be spent by September. Given estimated rental arrears, this should not be a problem.

Recap of bills currently moving forward:

House Bill 1236 was passed by the House of Representatives on Sunday by a vote of 54-44 after a two-day debate. The bill heads to the Senate Housing & Local Government Committee for its first hearing on Thursday, March 11, 2021.

1. This proposal would enact statewide just cause eviction requirements and, as drafted, would eliminate the fixed-term lease. Broadly speaking, just cause eviction creates adversarial relationships between housing providers and tenants, pits neighbor against neighbor, and makes it more difficult to address minor nuisance issues. More importantly, just cause eviction does not prevent evictions.
   

While WMFHA has provided suggested edits to this bill, it continues to need significant changes before we would consider changing our current opposed position. 

• Senate Bill 5160 passed the Senate 29-20 last week and has been referred to the House Housing, Human Services & Veterans Committee and will have its first hearing on Tuesday, March 16, 2021. Senate Bill 5260, which requires a report on the effectiveness of and improvements to the eviction resolution pilot program was added to this bill on the Senate floor.

• House Bill 1277 increases the document recording fee by $100 to fund a permanent rental assistance program, provides additional funding for affordable housing operations and maintenance, and provides additional financial support towards the Landlord Mitigation Fund. The policy is being considered by the House Appropriations Committee and remains alive despite no vote by the House of Representatives before the Tuesday cutoff. The fiscal note estimates this fee will generate approximately $292 million between July 1, 2021 and Jun 30, 2023.
  
  
• House Bill 1515 would statutorily permit security deposit waiver fees in place of a security deposit. The proposal was unanimously passed by the House of Representatives on Monday.
  
  
• Senate Bill 5287 was passed by the Senate 43-5 and moves to the House Finance Committee. A hearing has not yet been scheduled. Two important components: 

1. The bill permits a property with an expiring exemption within the next 18 months the opportunity to extend that exemption for an additional 12 years. 
   
   
2. The bill requires the property owner to offer the tenant relocation assistance upon the termination of the expiration and return the affordable units to the market rate. 
   

• Capital gains tax proposals continue to receive significant attention in both the House and Senate. Senate Bill 5096 was amended on the Senate floor and now taxes real estate gains where the gains result from a property where the individual is not the property's primary owner. The Senate passed this proposal 25-24 on Saturday, and it heads to the House for further consideration. 
  
  
• Other tax preferences under consideration by the legislature: 

1. House Bill 1035 would permit a limited property tax exemption in properties more than 25 years old in exchange for certain rent limitations. The policy remains in the House Finance Committee. 
   
   
2. House Bill 1189 would allow local governments to implement tax increment financing. This policy remains in the House Finance Committee. 
   

• Senate Bill 5191 would create a consumer protection act violation for excessive price increases during any state of emergency. It includes price controls on housing where housing prices cannot increase by more than 15 percent than the price at which the person sold, rented, or offered for sale or rent the same product or service immediately before the state of emergency.

The following have been defeated in 2021:

• Senate Bill 5139 would have enacted rent control in Washington state. The policy did not receive a vote in his policy committee of origin.
  
  
• House Bill 1228 was a common-sense gradual pathway towards normality receiving significant public interest. The policy did not receive a vote in its policy committee of origin.
  
  
• House Bill 1398 was another COVID-related recovery bill. The bill did not receive a hearing and is considered defeated.
  
  
• House Bill 1300, which would have reformed the return of the security deposit, failed to advance out of the House of Representatives.
  
  
• House Bill 1421 would have properly allocated the responsibility of unpaid utility charges to the resident and relieved the landlord of responsibility for the tenant’s unpaid utility costs.
  WMFHA supported this legislation.
  
  
• House Bill 1441, which would have prohibited the use of COVID-related rental debt, failed to advance out of the House of Representatives. We anticipate this proposal to be included in Senate Bill 5160.

Washington state rental owners can show their support for these ongoing updates by becoming a member of the Washington Multifamily Housing Association! Visit https://www.wmfha.org/ to sign up.

For more information about these proposals and others, please contact Brett Waller at

brett@wmfha.org.

Boom Times for Ahead for the Northwest?

Joe Cortright, Director of City Observatory, discusses numerous items, including America's K-shaped housing market; the diverging fortunes of low- and high-wage workers; the quick bounceback of the economy beginning this summer; and the coming return of workers in large numbers to the traditional office settings, restaurants, a sports venues.

Read more from Joe and subscribe for their weekly updates at City Observatory.

With Pending Money Influx from Feds, Oregon Dems Seeking to Delay Past-Due Rents for Rental Owners

 

Oregon Democrats are attempting to delay the payback deadline on past-due rents from July 1, 2021 to February 28, 2022. Representatives think they need the time to arrange to get the funds into the hands of renters before those payments are due. Landlords remain skeptical and many are concerned about having to wait another entire year for payment. Read more. 

Washington State Legislative Update (Parts 1 & 2)

Brett Waller, Government Affairs Director for the Washington Multifamily Housing Association, provides an update on Washington State's rental assistance, utility fee breaks for rental owners, potential property tax exemptions. 

See part two for a discussion on the current eviction moratorium law and the numerous rental housing bills under consideration in Washington State.

In part 2 of this interview with Washington Multifamily Housing Association's government affairs director Brett Waller, we get into substantial details about Washington's eviction protections followed by the significant number of proposed rental housing bills that must survive committees by March 9th to move forward in Washington State's 2021 Legislature.  

Note: The civil right to counsel SB 5160 passed the Washington State Senate on Monday, March 8th, and is on the way to the House of Representatives.

Meanwhile, HB 1236 limiting evictions in Washington was approved on Sunday, March 7th, by the House of Representatives and moves to the Senate.

HFO Multifamily Marketwatch Podcast - March 8, 2021

This week: Oregon's economy forecast to boom; problems plague Oregon Landlord Fund website; and legislatures in Oregon and Washington go wild with housing-related bills. 

Listen to our latest podcast.

Oregon Legislature Schedules Second Public Hearing 3/9 1 pm on Bill Allowing Tenants to Repay Back Rent by Feb. 2022

Action Alert: SECOND HEARING TOMORROW 3/9 at 1 pm ON SB 282-1 to Extend Repayment Grace Period for Past Due Rent to February 2022, Expand Excessive Penalties, and Rewrite Lease Agreements

The Senate Housing and Development Committee scheduled another last-minute hearing on a bill that will extend the State’s repayment grace period for past due rent to February 2022.

It is critical that rental owners oppose to this proposal. 

SB 282-1, the proposal before the committee, includes the following provisions:

• Extend the grace period for repayment of back-rent to February 2022
• Continue the temporary 10-day non-payment termination notice to February 2022
• Prohibit landlords from considering FEDs during the COVID period in screening applicants.
• Expand the current FED expungement process to include FEDs during the COVID period
• Permanently continue the prohibition on credit reports for rent debt protected by the moratorium or grace period.
• Prohibit landlords from screening tenants based on nonpayment during the eviction moratorium and grace period.
• Temporarily prevent the use of landlord-imposed occupancy/guest standards as a means for eviction (unless otherwise required by law).
• Extending HB 4401's increased damages provision for retaliation violations.
• Ensure that retaliation protections cover retaliation against tenants for having used the moratorium or grace period provisions.

You can read the bill here.


Hearing details:
Senate Committee on Housing and Development
Scheduled for March 9th, 2021 at 1:00 PM
Link to hearing page

How to testify: 
The best way to advocate for this policy is to share your personal story with the Senate Committee members and why you think they should oppose SB 282. 

We also encourage you to share the following messages:

• SB 282-1 does not address the root cause of the COVID-19 housing crisis: the inability to pay rent.
• This catastrophic emergency is being used to change laws unrelated to keeping people housed during this crisis.
• I ask you to oppose SB 282 and instead focus on the #1 issue driving housing instability right now: helping those struggling to pay past due rent.
• Support SB 330, a real solution for struggling renters who need help.

HOW TO TESTIFY

The most effective way to connect with the committee is to testify live virtually during the hearing, then submitting your testimony for the record in writing as well.

Testify Virtually:

1. All legislative public hearings are held on Microsoft Teams. If you have not testified remotely before, make sure to visit the Legislature’s “How to Testify Remotely” web page and review the instructions carefully.
   
   
2. Registration is required to testify by phone or video link. To sign up, use this online form. Requests to testify live are allowed until the hearing start time. Click here.   
   
   Registration closes at the time the meeting is scheduled to begin. Your testimony will be uploaded to OLIS as part of the public legislative record: more information.
   
   

Testify In writing submission due by 1 pm Monday, March 8:
Electronic: Click here. 

Apartment List Report: February Rent Index Jumps Most Since June 2019

The March Apartment List National Rent Report provides the clearest indication yet that rent prices are rebounding in markets across the country. The Apartment List national index increased by 0.7 percent over the past month, the largest monthly increase since the summer of 2019.

While there continues to be significant regional variation, it appears that the days of rents dropping in coastal markets appears to be coming to an end with cities like San Francisco and Seattle experiencing positive month-over-month growth for the first time since the start of the pandemic. Meanwhile, many mid-sized markets that had seen rents grow rapidly through the pandemic are demonstrating solid growth as well.

The national rent index grew up by 0.7 percent month-over-month, representing the second straight month of positive rent growth and the largest monthly increase since June 2019, when the market was in the middle of its summer boom. For comparison, in the previous three years, the average month-over-month rent growth in February was 0.3 percent. In other words, this month’s increase was more than double the prior-year average for this time of year. This is the second straight month that rent growth has outpaced the average of prior years. Year-over-year, rents are now down by 0.8 percent nationally, an increase from the 1.2 percent year-over-year decline that we reported last month.

Read more. 

Federal Judge Rules CDC Eviction Ban Unconstitutional: DOJ Appeals

News outlets report that in late February, a federal judge in the Eastern District of Texas ruled that the CDC’s moratorium on evictions was unconstitutional, writing in part: 

“The government’s argument would thus allow a nationwide eviction moratorium long after the COVID-19 pandemic ends,” he wrote. “The eviction remedy could be suspended at any time based on fairness as perceived by Congress or perhaps an agency official delegated that judgment. Such broad authority over state remedies begins to resemble, in operation, a prohibited federal police power….Although the COVID-19 pandemic persists, so does the Constitution…”

Within two days of the ruling, the Biden Administration’s Justice Department announced it would appeal the decision.  The AP is reporting that prosecutors said they disagreed with the judge’s ruling and said it only applied to parties in this case, not broadly across the nation.

The CDC's eviction ban expires March 31, 2021 and it is anticipated it will be extended further. 

(Sources: Real Estate Investing Today and Business Insider.)

Barry Apartment Report: After a Dark Year, Strong Economic Recovery in 2021

Portland-area appraiser Patrick O. Barry states in his latest apartment market report that after reaching a record 10-year job expansion in 2019, COVID-19 was a major setback. Today, Barry's report cites a State of Oregon employment forecast indicating "Economic growth in 2021 is shaping up to be one of the strongest years in decades, possibly generations." 

The State of Oregon anticipates half of all jobs lost in 2020 will be regained in 2021 and we will return to pre-COVID employment levels by early 2023.

Click here to read or download the full 2020 report and 2021 Portland-area apartment market forecast.

HFO Named CoStar Power Broker for 2020 - The 15th Time

Washington, D.C. – HFO Investment Real estate has been named a 2020 Power Broker for the Portland/Vancouver metro area by CoStar. CoStar is the leading provider of commercial real estate information, analytics, and online marketplaces. CoStar’s annual Power Broker Award recognizes professionals and firms who closed the highest transaction volume in commercial real estate deals in their respective markets.

HFO has received this prestigious industry award 15 times during its 21-year history. Its first award as a leading local dealmaker came in 2006.

13% of Oregon Renters Couldn't Pay in February

Multifamily NW collaborated with a broad group of housing professionals (management companies, private managers, housing authorities, nonprofits, state agencies) to collect surveys of conventional and affordable rental housing to establish the ongoing impact on rent payment of the COVID -19 crisis. 

The survey asked: How many occupied households could not pay full rent by the 15th day of the month? The survey adjusted for vacancy to arrive at the true percentage of occupied households impacted. 

• On average, 13.0% of Oregon households did not pay their rent by the 15th of the month, representing an overall decline from 11.7% in January. 
  
  
• Statewide, of renter households living in Affordable Tax Credit units, 15.4% were unable to pay rent, compared to the average of 9.2% in January.  (Note that the January results were favorably impacted by several rental assistance options that were targeted toward affordable housing in the 4th quarter of 2020) Overall, vacancy within the 14,880 affordable units reporting was only 2.7%, demonstrating the exceptional demand for this type of unit.
  
  
• Conventional “Class-C” workforce multifamily housing experienced a 16.1% inability to pay rent and showed virtually no improvement from 16.2 last month and the 16.8% average from 2020. There is cause for concern that rental assistance dollars are not reaching tenants in this asset class. 
  
  
• Responses from owners with nine or fewer units provided data on 403 units across Oregon. They showed 25.5% inability to pay, along with 12.4% vacancy. Last month, 483 units responded with 18.1% inability to pay and 7.2% vacancy.  We cannot explain the high variability in this asset class other than a change in sample size. This is also the asset class best positioned to receive funding through the Landlord Compensation Fund.
  
  
• Class A market-rate apartments now reflect a 10.5% vacancy rate on top of a 10.7% inability to pay. Inability to pay in this asset type averaged just 6.8% across Oregon in 2020.

 

HFO Multifamily Marketwatch - March 1, 2021

This week: Rental owners jam the State of Oregon Landlord Relief Fund website with hundreds of applications; a study by Redfin finds that increased housing density in Seattle has made it the most economically integrated city in the U.S. in just four years.

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