Wednesday, May 26, 2021

Implementation Details Emerge on Oregon House Bill 282 - Tenant Rent Repayment Extension to February 2022

On May 19, 2021, Senate Bill 282 (SB 282) was signed into law. SB 282 extends some Tenant protections while creating new ones, but more importantly, it functions as the “off-ramp” from Oregon’s eviction moratorium (HB 4401), requiring Tenants to begin paying rent on time for July and beyond. While this update summarizes the law, it is no substitute for legal advice on any particular issue.

Eviction Grace Period Extension
The existing rules governing the emergency period and grace period in HB 4401 remain in place through June 30, 2021. Landlords may continue to terminate Tenants for nonpayment if the emergency and grace period were not extended. The most common way that the extension is triggered is by a Tenant giving their Landlord the Declaration of Financial Hardship (authorizing Landlords to apply for the Landlord Compensation Fund).

Effective on July 1, 2021, the “emergency period” will cover debts accrued from April 1, 2020, through June 30, 2021 (“non-payment balance”), and the new grace period to pay the nonpayment balance will extend through February 28, 2022. 

All of the protections regarding nonpayment prior to the end of the grace period such as prohibitions on eviction for non-payment, assessing late fees on the non-payment balance or filing actions to recover the non-payment balance still apply. These protections last until February 28, 2022, regardless of whether the Tenant handed in a declaration before July 1, 2021.  

SB 282 will require that various forms be updated. The verbiage in Balance Reminders must be updated to reflect the new emergency and grace period. In addition, any 10-day or 13-day termination notices for nonpayment of rent must include a statement that: “Eviction for nonpayment of rent, charges, and fees that accrued on and after April 1, 2020, and before June 30, 2021, is not allowed before February 28, 2022, and information regarding Tenant resources is available at www.211info.org.” Legal edits to the Multifamily NW Forms Collection are already underway. The rules above expire automatically on March 1, 2022. 

Tenant Credit Reporting
A Landlord may not report or cause to be reported, to any consumer credit reporting agency a Tenant’s nonpayment of rent, charges, or fees that accrued on or after April 1, 2020, and before July 1, 2021.

Applicant Screening
When evaluating an applicant, a Landlord may not consider an eviction case that resulted in a general judgment against the applicant that was entered on claims that arose on or after April 1, 2020, and before March 1, 2022, even if those claims related to issues other than the non-payment balance. Additionally, a Landlord may not consider an applicant’s unpaid rent, including rent reflected in judgments or referrals of debt to a collection agency that accrued on or after April 1, 2020, and before March 1, 2022.

Expanded Tenant Right’s to Set Aside Judgment
An evicted Tenant may set aside (i.e. expunge) the eviction judgment if they have satisfied any money award included in the judgment and either (a) five years have passed from the date of the judgment; or (b) the judgment was based on claims that arose on or after April 1, 2020, and before March 1, 2022, regardless of the basis of the eviction. 

Restrictions on Guests Stays Unenforceable
Landlords may not enforce an occupancy restriction by any means, including assessing a fee or terminating the tenancy, if the restriction is based on a) occupancy limits lower than the amount required by federal, state, or local law or regulation or b) the maximum duration of a guest’s stay in the tenancy.

If a Tenant’s guest resides in the dwelling unit more than 15 days in any 12-month period, a Landlord may require:

  • The guest to satisfy the Tenant screening criteria other than criteria related to credit reports, credit references or income; and
  • The Tenant and the guest enter into a temporary occupancy agreement, except that the Landlord may not require that the agreement end prior to February 28, 2022.

While guests may now be able to stay in excess of prohibited timelines, Landlords may still assess fees or terminate the tenancy if the guest commits lease violations, refuses to be screened, fails a screening, or refuses to enter into a temporary occupancy agreement and fails to vacate. Acceptance of payment by a Landlord from the Tenant or guest does not make the guest a Tenant.

Termination Without Cause
On July 1, 2021, Landlords may terminate tenancies without cause for Tenants whose first year of occupancy was within the emergency period until August 31, 2021. Due to the protections afforded Tenants in HB 4401, Landlords should not issue no-cause notices without first consulting with an attorney.  

Training Opportunities & Forms Resources
SB 282 is yet another major change implicating many areas of property management and compliance but hopefully signals a shift away from the prior period of rapid and frequent law changes. Special attention should be paid to the required updates to forms and practices. 

As always, this post should not be construed as legal advice. Please consult your lawyer before making decisions regarding Landlord-Tenant matters. 

Source: Multifamily NW. HFO supports multifamily owner membership in Multifamily NW for legislative advocacy services and more. To learn more about membership visit www.multifamilynw.org. 

OSU Professor Develops Method to Predict Future Price Changes for Logs

An Oregon State University researcher has developed a new way to predict the future price of logs that uses readily available economic information. Read more.

Skyrocketing Lumber Prices Affecting Construction of New Multifamily Homes Nationwide

 

Lumber prices are skyrocketing, outpacing the price hikes in other materials. Nationally, lumber prices have increased 89.7 percent year over year April 2020-April 2021 and since December 2020, prices have risen 34.3 percent. 

Read more.

Multifamily Properties with Bulk Internet Services May Benefit From Federal Broadband Plan

 

The COVID-19 relief $3.4 billion Emergency Broadband Benefit Program administered by the FCC may provide assistance to multifamily providers with bulk internet service to low-income residents. Benefits would be paid directly to broadband providers. The application portal for these funds is open now. Learn more.  

Meanwhile, learn what President Biden's Broadband Infrastructure Plan Could Mean For Multifamily - Is it finally the silver bullet solution that multifamily has been looking for?

Portland, Oregon Metro-Area Real Estate Update with Dr. Gerard Mildner, PSU Center for Real Estate

Dr. Gerard Mildner, director of the Portland State University Center for Real Estate, gives a boots-on-the-ground update on the many machinations in the greater Portland, Oregon, real estate scene. Dr. Mildner covers the Urban Growth Boundary, the costs of new development in Greater Portland, and more. He calls upon the area's large real estate industry to design a new model for approaching the area's housing, development, transportation, and related needs.


Tuesday, May 25, 2021

The Difficulties of Rent Relief Payments and Collections During the COVID-19 Pandemic in the Portland, Oregon Area

In this video, HFO's Senior Broker Jack Stephens and Partner Greg Frick discuss the constant uncertainty and difficulties that both tenants and landlords have faced throughout the pandemic in collecting relief and rents.


 

Monday, May 24, 2021

HFO Multifamily Marketwatch - May 24, 2021

This week: Oregon's portal to apply for $204 million in funds for tenants (payable to landlords) for past-due rent is now open; Oregon Governor Kate Brown signs legislation giving tenants until Feb. 2022 to pay past-due rent, and Seattle has permitted tens of thousands of new units.



Listen to our latest podcast.

Wednesday, May 19, 2021

Oregon's $204 Million Tenant Rental Assistance Fund is Open

A rental assistance fund for tenants, operated independently of the landlord compensation fund, has opened for applications. 

The Oregon Emergency Rental Assistance Program has $204 million to provide renters assistance for past due rent. Renters with incomes below 80% of area median income and meeting additional program conditions can apply here. Applicants must be at risk of homelessness or housing instability and the funds can be used for past due rent and utilities.

Completely separate from the Landlord Compensation Fund, starting today Wednesday, May 19th, 2021 another option for Rental Assistance from the State of Oregon is now available. The Oregon Emergency Rental Assistance Program (OERAP) is funded with $204 million and is designed for tenants to apply for the funds directly. Renter households that have incomes less than 80% of Area Median Income, meeting additional program conditions (see below) can apply. Check out this link for tenants to apply as of May 19th and receive more information:

https://www.oregon.gov/ohcs/housing-assistance/Pages/emergency-rental-assistance.aspx

Oregon Housing and Community Services will distribute $204 million to qualified renters who have experienced financial hardship due to the coronavirus pandemic and are at risk of homelessness or housing instability. The allotted $204 million can be used for past due rent and utilities. 

How does it work?

  • OERAP will directly pay landlords for back rent from March 13, 2020 until present, and three months of future rent for qualifying households. 
  • Applications for OERAP funds must be initiated by renters. Landlords cannot apply directly. However, Landlords are encouraged to share information with renters about OERAP.  
  • After a renter applies for OERAP funds, their landlord will be contacted by email to review and confirm certain information in the application. Landlords will be asked to provide the following documents: 
  • W-9
  • Direct deposit or ACH payment information and a copy of a canceled check

Who is eligible?

The OERAP program can serve renter households that have incomes less than 80% of Area Median Income who meet the following conditions:

  • Individual(s) in the household has qualified for unemployment benefits or has experienced a reduction in household income, incurred significant costs, or has experienced other financial hardship due directly or indirectly to the coronavirus outbreak; and
  • Individual(s) in the household can demonstrate a risk of experiencing homelessness or housing instability evidenced by a past due utility or rent notice.

Management companies with multiple properties should develop and distribute guidance on what address and contact information property managers should share with renters to use in the OERAP application process. More information about the program is available at www.oregonrentalassistance.org. 



Monday, May 17, 2021

Washington State Housing Laws & New Mask Guidelines

The Washington Multifamily Housing Association provided the following advisory for rental owners in the State of Washington:

On Thursday, Governor Inslee announced Washington will fully reopen by June 30, 2021, if not sooner when the state reaches a 70% vaccination threshold.

Governor Inslee also announced that effective immediately, the state of Washington will adopt the CDC guidelines for fully vaccinated people regarding mask use. If an individual is fully vaccinated, there is no requirement to wear a mask outdoors or indoors. "Fully vaccinated" means two weeks after receiving the second dose of the Pfizer or Moderna vaccines, and 2 days after receiving the Johnson & Johnson vaccine. Mask requirements remain for those who are unvaccinated, or who have not yet been fully vaccinated. 

It is an individual business decision whether to require masks of all customers or to adopt the CDC guidelines permitting fully vaccinated individuals to go mask-less. Updated guidance for businesses will be published by the Governor's office regarding business compliance with mask mandates in the coming days and we will update our Reopening Guidance for Businesses Resource page accordingly.

Please note, under recently passed legislation, housing providers are prohibited from inquiring about, considering, or requiring disclosure of a tenant's or prospective tenant's medical records or history, unless such disclosure is necessary to evaluate a reasonable accommodation request or reasonable modification request. 

Property management professionals cannot require disclosure of the vaccination status of residents or prospective residents who no longer wear a mask within residential communities.  

Masks continue to be required on planes, trains, and automobiles and other forms of public transportation traveling into and within transportation hubs such as airports and stations.

Click to Enlarge

HFO Multifamily Marketwatch - May 17, 2021

Washington state will now require just cause evictions for month-to-month leases; lawmakers in Oregon approve legislation giving tenants until February 28, 2022, to pay overdue rent accumulated during the pandemic.



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Kate Brown Signs Oregon Lawmaker's Bill Allowing Tenants Until Feb. 2022 to Repay Rent

On Wednesday, Governor Kate Brown signed into law a bill approved by lawmakers extending the deadline for tenants in Oregon to pay back rent. 

The bill applies to overdue rent accumulated between April 2020 and June 2021 and rents will not be fully due until February 28, 2022. Read more. The Governor urged affected renters to apply to the state rental assistance fund, provided they qualify.

Read the bill here. 

[Updated Thursday, May 20, 2021]

Thursday, May 13, 2021

To Our Valued Blog Subscribers: Your Update Provider is Now follow.it

Dear Subscribers, 

Google has recently announced plans to eliminate Feedburner, which we were using to deliver our posts to you in a simple daily email. We have now switched to https://follow.it.

Follow.it has many features that were unavailable on Feedburner. 

By visiting this link: https://follow.it/hfo-s-news-blog-for-multifamily-investors-apartment-owners?action=followPub&filter you can now define filters and more delivery channels. 

New subscribers may still sign up by filling in an e-mail address in the upper right-hand corner of our blog.

Thanks for trusting HFO as your source for Multifamily News in the Pacific Northwest.

Aaron Kirk Douglas, 
Marketing Director | CCO

Wednesday, May 12, 2021

Portland Metro Economic, Housing, and Job Recovery Update from Dr. Michael Wilkerson, ECONorthwest

Dr. Michael Wilkerson is a well-known economist who studies numerous issues in the Pacific Northwest. In this segment, he discusses economic and housing problems in the Portland metro area. He specifically covers the extremely damaging news coverage of Portland over the past year as having a significant effect on the hospitality, housing, and travel industries.



Recently Enacted Washington Housing Legislation Explained For You

Brad Kraus of the law firm Warren Allen does a deep dive into the details of recently enacted Washington Senate Bill 5160 enacted 4/22/2021 and House Bill 1236 signed into law on May 11, 2021.


 

U.S. Census: Seattle, Portland see Q1 2021 Vacancy Rates Stable at 5%

Both Seattle and Portland now stand in the top 30% of U.S. metros with the lowest rental vacancy rates.

Of the top 75 metro areas, Portland ranked 28th with a vacancy rate of 5% for Q1 2021, down 0.2% from a year earlier. 

Seattle ranked 23rd among the top U.S. metro areas, with a 4.8% vacancy rate, up 1.1% from Q1 2020.

U.S. Rental Vacancies Tighten

The average national rental vacancy rate for Q1 2021 was 6.8 percent for multifamily dwellings of five or more units -- up from 6.6% a year earlier, likely due to COVID-19.

Year-over-year vacancy rates in the Western U.S. increased from 4.4% in Q4 2019 to 4.7% in 2020.

Click to Enlarge

U.S. Homeownership Rates

After falling to a 26-year low in 2016, the national homeownership rate now stands at 65.6%. 

Homeownership in the West has decreased in the past year from 60.1% to 59.7%.

Click to Enlarge




Tuesday, May 11, 2021

Gov Jay Inslee Signs "Just Cause" Eviction Bill into Law

A digital illustration of a white envelope with a card reading, "eviction notice" inside it

 OPB reports that Washington Governor Jay Inslee signed a bill requiring just cause evictions into law on Monday. Just causes include failure to pay rent, unlawful activity, and cases where a landlord plans to sell or move into a unit. No cause evictions are still allowed at the end of a lease if the term is between six and twelve months, as long as the landlord provides 60 days notice. Read more.

Monday, May 10, 2021

Landlord Compensation Fund ROUND 2 Closes Mon., 5/17 - $63 Million Still Unclaimed

In one week's time, the second round of the landlord compensation fund will close for applications.

Round 2 includes $70 million in assistance covering rent-owed by eligible tenants that was accrued from April 1st, 2020 through April 30th, 2021. Round 2 is the largest round of LCF funding of the three rounds. As of last Friday, May 7th, only $7 million of the $70 million allotted to Round 2 has been requested. 

Start your application today to claim your share of the LCF! Check out to new video explaining the Round 2 application process. It was also confirmed last week that the upcoming Round 3 of funding will be eligible for rent arrearages of past tenants. Round 1 and the current Round 2 of funding was exclusive to current tenants.

To review, the Legislature allocated $200 million in rent assistance to support tenants and housing providers, which includes $150 million for the LCF. This program was designed to provide relief to tenants living in their homes who have been unable to pay rent at any point since April 2020 due to a financial hardship.

Participating housing providers can receive funding for an amount equal to 80% of the rental debt owed by qualified residents from April 2020 through the month the application round they are applying in. They must agree to forgive the remaining 20% of the tenant's debt as part of the grant agreement, and as a condition of receiving payment.

For information on what you will need to apply, please review the Round Two Application Checklist!


A Recap and What's Up This Week in Oregon Rental Housing Legislation

Multifamily NW is providing the following legislative recap on bills related to rental housing as of the week ending May 7 2021. You can show your support for Oregon's largest rental housing association by joining today at www.multifamilynw.org

Multifamily NW invites you to get involved as an advocate and voice to support efforts to remove barriers to the housing supply. Multifamily NW seeks to look toward the future for Oregon’s housing by streamlining regulation and incentivizing investment into the development of housing. Join the effort today by following this link and engaging your legislators with the help of the Multifamily NW Government Affairs Team

May 7 2021 Update

The end of the 2021 Legislative session looms with 52 days left until the constitutionally mandated end of the session on June 27th. Friday, May 14th is the Second Chamber deadline for most bills to have been posted on a committee agenda for a work session. Policy committees, like the Senate and House housing committees, will be frantic scheduling hearings to meet the deadline next week. However, the deadline does not apply to Rule, Revenue, or Joint Committees. 

Priority bills with recent hearings 

SB 282A makes several tweaks to landlord/tenant statutes and more notably is set to extend the grace period for rent arrearages from HB 4401, previously passed December 2020. It was passed out of the House Committee on Housing May 6th and now heads to the House Chamber for a floor vote. The bill has already passed the Senate. Multifamily NW is neutral on this bill.

After passing the House with bipartisan support, HB 2761A which seeks to mandate manufactured housing parks to offer lease documents in five languages had a Public Hearing in the Senate Committee on Housing and Development on April 29th. Although this bill does not apply to standard apartment rentals, Multifamily NW strongly opposes this bill with the heavy burdens and pitfalls of translation mandates.

SB 291A seeks to limit housing providers' ability to screen applicants. Multifamily NW opposes this bill as the State of Oregon ought to maintain alignment with federal guidance from HUD. Although individualized assessments play an important role in the resident’s screening process, SB 291A creates confusion and impractical workflow for landlords in their due diligence to provide housing. The Public Hearing began on Thursday in the House Committee on Housing and will continue next Thursday, May 13th. This bill already passed the Senate and must have a Work Session posted by Friday, May 14th to continue.

SB 330A remains punted to the Joint Committee on Tax Expenditures after several hearings and amendments passed by the Senate Committee on Housing and Development, severely limiting its ability to address compensation strategies for housing providers with rent arrearages from the Eviction Moratorium. Multifamily NW supports amendments to reinstate the original language of SB 330.

SB 852 would disallow personal income tax mortgage interest deduction for residence other than the taxpayer’s principal residence. This bill was passed out of the Senate Committee on Housing and Development and was referred to the Senate Finance and Revenue committee by prior reference. A Public Hearing was scheduled and then canceled on May 3rd. Multifamily NW opposes this bill.

Priority bills defeated (so far)
  • SB 838 would have created a real property ownership registry across the State of Oregon. 
  • HB 2427 would have directed OHCS to establish and maintain a uniform rental application across the State of Oregon.
  • HB 3263 would have required owners of multifamily rental housing to offer a right of first refusal to tenants.
  • HB 2677 would have repealed Oregon’s prohibition on local rent control.
  • HB 2372 would have eliminated a housing provider’s ability to terminate any residential tenancy without a stated cause.

Looking Ahead

Tuesday, May 11th at 1:00pm
HB 2736A has a Public Hearing scheduled in the Senate Committee on Housing and Development on May 11th at 1:00pm. This bill seeks to have a BOLI-created fair housing disclosure be required at the signing of a new rental agreement. Amendments passed on the House side removed landlord penalty for noncompliance and required buildings with 11 or more units to post a copy of the disclosure in the common area. There is another dash amendment for consideration next week that would remove the disclosure signed at move-in and keep the posting in the common area for 11+ unit buildings. Multifamily NW is neutral on this bill.

Thursday, May 13th at 8:00am
SB 291A requires landlords to adopt certain written screening criteria, limiting ability for housing providers to screen potential residents. A Public Hearing continues on May 13th in the House Committee on Housing. Multifamily NW opposes the bill.


Multifamily NW has been watching hundreds of Oregon bills that have the potential to affect the rental housing 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. 

The next Chamber Deadline is Friday, May 14th
The 3rd "mile marker" of the Legislative Session, is Friday, May 14th - that's the date a Work Session must be posted on a committee agenda for a 2nd Chamber bill to "stay alive.


HFO Multifamily Marketwatch - May 10, 2021

Landlords and tenants are raising alarms about the fact that Oregon’s landlord and tenant relief fund is not covering back rent owed by tenants who have moved, and the DOJ seeks a stay of a federal judge’s ruling striking down the CDC’s eviction moratorium.



Listen to our latest podcast.

Wednesday, May 5, 2021

Federal Judge Vacates CDC Eviction Moratorium - DOJ Announces Appeal

 

A federal judge has ruled that the CDC's nationwide freeze on evictions exceeded the agency's authority. The ruling is a win for a coalition of property owners and realtors in one of the several challenges against the mandate. 

State and local government eviction freezes are not affected, as it concerns only the federal mandate.

The Department of Justice has announced it will appeal the judge's decision, which would effectively put a hold on the judge's ruling while it's under review. In the numerous cases filed by landlords against the federal government, landlords currently hold a slight edge in their favor. The DOJ says it will seek a block of the judges ruling while the case is pending in the Washington D.C. Circuit Court of Appeals.

Read more.

(Updated May 6, 2021)

Apartment List Reports Rents Showing Largest Monthly Jump Since 2017

In its latest report, Apartment List indicates apartment rents are up - significantly throughout the United States, including much of Oregon and Washington.


Month over month rent growth in Oregon and Washington from March to April 2021

OREGON
Portland - 1.8%
Gresham - 1.8%
Happy Valley - 2.6%
Beaverton - 2.3%
Hillsboro - 2.6%
Salem - 0.7%
Eugene - 0.9%

WASHINGTON
Vancouver - 1.9%
Spokane - 5.1%
Spokane Valley - 6.1%
Richland - 2.6%
Tacoma - 3.1%
Federal Way - 1.5%
Kent - 2.2%
Renton - 2.2%
Issaquah - 2.4%
Seattle - 3.5%
Bellevue - 2.6%
Redmond - 2.9%
Kirkland - 1.5%
Bothell - 3.2%
Lynnwood - 1.8%
Everett - 1.7%
Silverdale - 4.8% 

Year-over-year rent increases in Oregon and Washington- April 2020 - April 2021

OREGON
Portland - (-4%)
Gresham - 6.2%
Happy Valley - 9.1%
Beaverton - 2.5%
Hillsboro - 5.2%
Salem - 6.3%
Eugene - 6.1%

WASHINGTON
Vancouver - 9.6%
Spokane - 12.6%
Spokane Valley - 24.1% 
Richland - 9.1%
Tacoma - 11.4%
Federal Way - 5.1%
Kent - 2.4%
Renton - (-.5)
Issaquah - 1.2%
Seattle - (-14.6%)
Bellevue - (-8.1%)
Redmond - (-8.3%)
Kirkland - (-3.8%)
Bothell -1.5%
Lynnwood - (-0.2)
Everett - 4%
Silverdale - 10.2%

First Quarter Year-Over-Year Occupancy, Recovering Rents and Rent Growth for Seattle, Portland

The commercial real estate firm YardiMatrix has reported on vacancy trends and rental growth for Seattle and Portland in its latest report.

According to the company's research:

Year-Over-Year Occupancy Change (March 2020-2021)
Seattle: -7.6%
Portland:  -0.1%

Quarter that occupancy recovers to March, 2020 level
Seattle: 4th Qarter 2024
Portland: RECOVERED

Rent recovery quarter to Q1 2020 levels
Seattle: Q1 2023
Portland: RECOVERED

Forecast rent growth 2021-2023
Seattle: 10%
Portland: 9%

Cumulative rent growth 2021-2025
Seattle: 16.4%
Portland: 15.4%

Tuesday, May 4, 2021

HFO Multifamily Marketwatch - May 4, 2021

This week: An update on current rental housing legislation in Oregon and Washington, survey results from Multifamily NW on Oregon renters falling behind in rents, and a roundup of news related to homelessness.



Listen to our latest podcast.

Washington Multifamily End of Session Report #2 - SB 5160

Summary of Senate Bill 5160 - Partially vetoed by Governor Inslee and signed into law effective immediately on April 22, 2021. 

This summary was provided by the Washington Multifamily Housing Association.

From the start of the pandemic, it was clear some sort of legislative action would be necessary to address the return to normality. WMFHA worked throughout the past year with the Governor’s office and key lawmakers to express ongoing concerns our members had in making sure they could provide opportunities for quality and safe housing in Washington.

The ongoing payment of rent is the paramount issue affecting both housing providers and residents over the past year. Residents, for the most part, continued to make rental payments. For most of those that could not,  they reached out to seek assistance from the state and from numerous nonprofits. Still, rental delinquency averaged more than 7% in 2021. We anticipate that more than $750 million of rent is owing in our state as of March 2021.

Repeatedly, we asked to work with lawmakers to address issues present before and during the pandemic. We’re grateful to those lawmakers who worked collaboratively with WMFHA to reach a resolution on many issues during the legislative session and find a path forward to return to normality. These negotiations were not always easy, and we had to make decisions to obtain the best result for the industry as a whole. 

Senate Bill 5160 represents the pathway out of the moratorium. This bill ended up in a much different position than where it started and provides a clear return to normality. This is due to the work of the WMFHA Government Affairs team and our consistent interactions with the legislature to identify concerns and provide opportunities for compromise.

The bill provides a continuation of some temporary measures to assist residents struggling to recover while providing additional opportunities to obtain financial assistance to make housing providers whole for bearing the entirety of the burden for more than a year. We encourage you to sign up for and attend one of our upcoming webinars covering SB 5160 and the just cause eviction laws passed in this legislative session. 

Summary of key provisions of SB 5160:

  • The bill, except for the requirement to offer payment plans upon nonpayment of rent, extends temporary protections through December 31, 2021.  
    • WMFHA defeated efforts to extend protections through the public health emergency and to ANY future broadly defined public health emergency.
  • Late fees are prohibited through December 31, 2021.
  • Use of nonpayment of rent or an eviction related to nonpayment of rent through December 31, 2021, is prohibited in future housing decisions.
  • Requires a payment plan of three months for every one month behind, and permits eviction where default or failure to engage in a payment plan communication occurs. The requirement to offer a payment plan extends through the duration of the public health emergency.
  • Requires mediation-type services prior to the filing of an unlawful detainer action.
  • Permits indigent tenants (less than $16,000 income annually) the right to counsel.
  • Provides access to the Landlord Mitigation Fund and reimbursement of up to $15,000, where the tenant (1) voluntarily vacates the tenancy with a balance owing, or (2) defaults on a payment plan.
  • Provides an opportunity for the tenant to obtain rental assistance for past due rent and up to three months future rent at an eviction hearing to reinstate the tenancy.

Despite these temporary opportunities and restrictions, WMFHA defeated efforts to enact numerous proposals that would have added unnecessary costs to the operation of rental housing, including: 

  • Attempts to effectively extend the moratorium for two years after the expiration of the public health emergency, and to permit residents to terminate their tenancy at any time without penalty if they asserted a COVID nexus without any requirement of proof and limit any termination to sale or occupancy of the property only.
  • Efforts to eliminate the show cause hearing, increasing the cost of every eviction by more than 500% and extending the time frame to obtain a writ and judgment by multiple months.
  • Implementation of excessive penalties including the application of the consumer protection act for all violations and 4.5x times the rent penalties for violations of the law.
  • Automatic sealing of all eviction proceedings, prohibiting a future housing provider from considering a past eviction record of any kind.
  • Requirements to notify the local counsel for tenants of every notice provided to residents.
  • Efforts to separate possession of the rental property from a debt owing.
  • Efforts to repeal a law that prohibits the use of judicial discretion where resident received three or more 14-day notices in a 12-month period.

We appreciate all of our members who participated in calls to action, and provided testimony to the legislature this session in support of policies that provide real relief to both housing providers and residents. It is your voice that fuels our ability to obtain results on your behalf.

If you have questions about Senate bill 5160 or other legislative actions, please contact Brett Waller at brett@wmfha.org.  Washington Multifamily Housing Association.