Oregon SB 278 and 282 Summary for Landlords - Oregon's Eviction Extension and Grace Period for Repayment of Rents

 

The article below covers newly enacted Oregon Senate Bill 278, which requires landlords and courts to delay termination of residential tenancies for nonpayment for 60 days if the tenant provides documentation of application for rental assistance.

It also covers Oregon Senate Bill 282, which extends the grace period for repayment of residential rent accrued during the emergency period of April 1, 2020, to June 30, 2021, until February 28, 2022.

Courtesy of Kevin Eike, Eike Law PC

SB 278 and 282 Summary for Landlords 

Executive Summary: Extends grace period for repayment of residential rent accrued during the emergency period of April 1, 2020, to June 30, 2021, until February 28, 2022. Prohibits residential landlords from reporting nonpayment of rent accrued during the emergency period to credit bureaus. Prohibits residential landlords from screening prospective tenants based on nonpayment of rent accrued during the grace period. Allows certain defendants to set aside and seal judgments of evictions based on claims arising during the grace period. Limits certain restrictions on residential tenant's guests. SB 282 sunsets on March 1, 2022.  

SB 278 and 282 replacing and amending HB 4401 

We begin by reviewing our terms. “Emergency period” is the period during which tenants do not have to pay rent. The EP began on April 1, 2020 and ends on June 30, 2021. The “nonpayment balance” is the amount of unpaid rent, charges, or fees accrued during the EP. “Grace period” is the period during which tenants must eventually pay the nonpayment balance. The GP now ends on February 28, 2022. (SB 282 drops entirely the requirement of the “notice of eviction protection” and the “declaration of financial hardship,” for the sake of terminating a tenancy, but SB 278 still requires the declaration if a landlord applies for rental assistance.) 

What happens on July 1, 2021, with respect to rent? SB 278 § 2 (sunsets on February 28, 2022) 

1.Tenants must pay July's rent or be at risk for a 10-day nonpayment notice, subject to certainnotice requirements:

a. Additional language is required on the notice and any FED summons and complaint:“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. Informationregarding tenant resources is available at www.211info.org.”

b. A revised notice of eviction protection must be enclosed with the 10-day notice, as wellas attaching that notice of eviction protection to any FED summons or complaint. (Whilethe declaration of financial hardship has been eliminated for the sake of the notice, it is still required for the landlord to apply for rent assistance.)

2. If a tenant has provided documentation to the landlord from a rent assistance provider verifying the submission of an application for rental assistance, the landlord may not give a nonpayment notice and may not file or continue an FED. A tenant may supply this documentation (in any written form) up to and including the first appearance in an FED. In that case, the court will postpone the first appearance for 60 days. A tenant may invoke this 60-day mini-EP only once!

a. If 60 days now pass after the tenant gave such documentation, the landlord may give anonpayment notice without having to include the notice of eviction protection (becausethe tenant already knows). If a court has postponed first appearance because the tenantsupplied documentation at first appearance, the court will now set the matter for trial.

b. A court will dismiss an eviction complaint if it finds that:

i.a landlord did not include a notice of eviction protection with the nonpayment notice

ii.the landlord failed to reasonably participate in a rental assistance program

iii.the landlord receives the rent specified on the nonpayment notice (of course)

iv. a tenant supplied the required documentation before the landlord filed the complaint

3. A nonpayment-balance reminder notice must change the “can’t evict for that balance until” language to “can’t evict for that balance until” February 28, 2022.

4. Landlords can now serve any termination notice without cause under ORS 90.427. (HB 4401allowed only no-cause terminations with a landlord-qualifying reason under ORS 90.427(5).)However, for the sake of the first year of occupancy rule, if the first year would have expired between April 1, 2020, and August 31, 2021, the first year ends on August 31. This is the only substantive restraint on terminating for no cause under ORS 90.427. Thus, in order to terminate under ORS 90.427(3) or (4), the effective date of the notice must fall no later than August 31,2021, most landlords will have to resort to a 90-day notice.

5. Landlords can apply to the Housing and Community Services Department for 100 percent (not merely 80 percent) of tenants’ nonpayment balances. Landlords still need tenants to sign a declaration in order for landlords to apply. Tenants who have incomes at or below 80 percent of AMI can apply to the Oregon Emergency Rental Assistance Program and payments go directly to landlords in almost all cases. This sunsets on March 1, 2023.

What is extended until March 1, 2022, with respect to rent? 

1. The GP: Tenants have until March 1, 2022, to pay their nonpayment balance. If they do not payby then, they are at risk for a nonpayment notice, being sued for EP rent, and being referred to collections or reporting to a credit agency for unpaid EP rent.
   
   
2. Enhanced statutory damages of three times rent if a landlord retaliates (ORS 90.385). If a tenant has a nonpayment balance, a landlord cannot consider a tenant to be in default of rent under ORS 90.385 or ORS 90.390 (discrimination).
   
   
3. The changed order of payments under ORS 90.220(9) (first dollar landlord receives goes to current month’s rent).
   
   
4. If a landlord accepts partial rent for either a tenant or a guest (see below, “Non-Tenant Guests”), the landlord does not waive their right to terminate under ORS 90.412(2) (accepting rent with knowledge of violation) or ORS 90.417(4) (requirement of a separate agreement for accepting partial rent).
   
   
5. Revised notice of eviction protection must be enclosed with the 10-day notice, as well as the FED summons and complaint.
   
   
6. Ability of landlord to take EP accrued rent out of the deposit, but only after the tenancy terminates.
7. Finally, the statute of limitation of ORS 12.125, with respect to claims by a landlord based on a tenant's nonpayment or nonpayment balance, is tolled until March 1, 2022.

What happens on March 1, 2022? 

The tenant protection provisions of SB 278 and 282 are repealed, except for certain sections below. Nonpayment notices revert to 72 hours. A landlord may send a nonpayment notice on March 1, 2022, if the tenant does not pay the nonpayment balance by February 28, 2022. 

Tenant Reporting and Screening Amending ORS 90.303 (§ 8) 

A landlord may not report to any consumer credit reporting agency a tenant’s nonpayment balance. 

Landlords considering a prospective tenant may not consider an FED general judgment entered against that prospective tenant for any claims that arose during the EP and the GP. Nor may landlords consider an applicant’s unpaid rent during the EP and the GP.  

These amendments sunset on January 2, 2028. You heard that right—2028. 

Eviction Judgment Expungement Statute (ORS 105.163) Amended (§ 9) 

ORS 105.163 generally allows a tenant to have an eviction judgment set aside after five years and have the record sealed. SB 282 echoes the language of amended ORS 90.303: If the judgment was based on any claims for possession during the EP or GP, the tenant can have the judgment expunged.  

These amendments sunset on January 2, 2028. 

Non-Tenant Guests (§ 14) 

During COVID-19, landlords terminated tenancies for guests overstaying a limit on the number of days tenants had agreed to in the rental agreement. SB 282 reduces that likelihood by generally opening up occupancy, subject to certain limits. A landlord can still write into the rental agreement a max occupancy, but there are limits to enforcing that max: (1) If there is a federal, state, or local max occupancy, the rental agreement cannot go below that max for tenants or guests. (2) Setting (1) to one side, a rental agreement cannot set a maximum-duration limit for a guest.  

However, if the guest stays longer than 15 days in any 12-month period, a landlord may require the guest to satisfy the landlord’s screening criteria for tenants, except for financial criteria (because guests do not pay rent). A landlord may also require the tenant and guests to make a temporary occupancy agreement under ORS 90.275. But a landlord cannot require the end date of that agreement to be earlier than February 28, 2022.  

A tenant is not entirely off the hook, however. A landlord may assess a fee or terminate the tenancy if the guest misbehaves or violates the temporary occupancy agreement. This is consistent with termination for nonpayment now being available for landlords post-July 1. A guest may also pay “rent,” without making the guest a tenant.  

These amendments sunset on March 1, 2022. 

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Kevin Eike and the Eike Law team may be reached at info@eikelawpc.com or (503) 372-6755.

This article presents general information about various aspects of Oregon landlord-tenant law, is not intended as legal advice, and you should not consider it as legal advice. You should not act upon this information without seeking professional legal counsel. Please do not send Meyers Law, LLC, any information or documents until a formal attorney-client relationship has been established through an interview with a lawyer and you get authorization in the form of a fee agreement from Meyers Law, LLC. Any information or documents you send before your receipt of a fee agreement cannot be treated as confidences, secrets, or protected information of any nature. 

Sold! 26 Units in Portland, Oregon.

 

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Westview Terrace is a 26-unit community in Portland, Oregon.  The property offers an ideal unit mix of one- and two-bedrooms. The asset was marketed before the onset of the COVID-19 pandemic but went under contract during the ensuing shutdown. HFO demonstrated to potential buyers the upward opportunity for rents and leveraged our market force to generate multiple offers. HFO found a  buyer who understood the upside potential of the asset and could handle existing below-market rents and limited historical operations. 

See all our current listings at https://www.hfore.com. 

Multifamily NW: More Oregon Tenants Pay Rent in June than in Previous Month

Multifamily Northwest reports that on average, 12% of Oregonians did not pay their rent by June 15th, a significant improvement from 13.2% in May. 

Statewide, conventional housing showed moderate improvement between May and June, improving from 13.4% to 11.9% nonpayment. Improvements of 2-3% were recorded uniformly across each housing type. Various reasons were suggested: Households returning to work, some rental assistance being received at the properties, and elective non-payers beginning to return to their regular schedule of payments.

Note on Methodology: The survey asks “How many occupied households were unable to pay full rent by the 15th day of the month?” The survey then adjusts for vacancies to arrive at the true percentage of occupied households that are unable to pay their full rent.

Inclusionary Zoning No Cure for Exclusionary Zoning

A review of new research from Byan Graveline examines the impact of inclusionary housing/inclusionary zoning  (IH/IZ) on affordability and residential segregation. It finds IZ to be a poor tool to make progress on either issue.

According to City Observatory, both housing unaffordability and residential segregation are caused largely by exclusionary zoning, like single-family zoning and minimum lot sizes. However, despite its name, inclusionary zoning does not undo exclusionary zoning. Rather, it asks developers to set aside a percentage of units in each new development to be affordable to low-income renters.

While this policy may sound agreeable at first blush, the report finds that inclusionary zoning does not meaningfully address either of the problems it tries to solve and can actually worsen the housing affordability crisis. Graveline recommends that jurisdictions hoping to confront issues of housing affordability and residential segregation forgo inclusionary zoning and instead focus on repealing exclusionary zoning.

The report evaluates inclusionary zoning policies across four criteria:

1. Effect on the housing market. Inclusionary zoning increases the price of new market-rate housing and decreases its supply. And because would-be tenants of new buildings live in older buildings when new construction is constrained, inclusionary zoning affects all segments of the housing market.
   
   
2. Production of below-market-rate housing. Most inclusionary zoning programs create less than 100 affordable units per year. This is a drop in the bucket compared to the need for affordable housing in most cities.
   
   
3. Effect on residential segregation. This topic is understudied in the current literature, so it’s difficult to draw definitive conclusions. However, inclusionary zoning is only as effective at fighting segregation as the number of units it produces. Because it produces so few units, it likely does not have a meaningful effect on segregation.
   
   
4. Effect on exclusionary zoning. Inclusionary zoning does not undo exclusionary zoning. In fact, it can entrench current exclusionary policies. Many inclusionary programs try to coax developers into creating affordable units by offering to reduce costly exclusionary policies (such as density limits). Some jurisdictions thus enact strict exclusionary policies just to give themselves leverage over developers. 

Read more.

In Portland, Oregon, where the city government implemented inclusionary zoning in February of 2017, and leaders even in 2021 discuss the plan in rosy, optimistic terms, the largest daily newspaper in the state cites disastrous numbers and the potential for adding fuel to the fire of less affordability and increasing homelessness. 

HFO Multifamily Marketwatch Podcast - June 28, 2021

This week: Oregon passes legislation supporting tenant relief and landlord compensation, and eviction moratoriums are extended at the federal level and in Oregon and Washington state.

Listen to our latest podcast.

Sold! 20 Units in Hillsboro, Oregon

 

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HFO is pleased to announce the sale of Washington Street Station. This 20-unit community in the heart of downtown Hillsboro was originally built as condominiums. The asset features large floor plans that include townhome units and rooftop decks. Washington Street Station is just one block from the Hillsboro Central MAX station, and there is off-street parking for residents.

The property is newer construction, but at the time of sale, it was in the middle of a siding replacement and had endured excessive vacancy. The challenge was to find a buyer that could move forward with substandard historical operations. HFO demonstrated the upside potential of the asset relative to the underperforming historical operations and located an out-of-state exchange buyer looking for newer construction outside of Multnomah County and the city of Portland.  

See all our current listings at https://www.hfore.com. 

Eviction Crisis Puts Spotlight on New, National Bipartisan Housing Legislation

WASHINGTON, DC – U.S. Senators Rob Portman (R-OH), Michael Bennet (R-CO), Sherrod Brown (D-OH), and Todd Young (R-IN) have introduced the Eviction Crisis Act of 2021 to address the national housing crisis holding back millions of American families who are struggling to ascend into the middle class. This legislation will shed light on the root causes of the eviction crisis, reduce preventable evictions, and limit the devastation to families when eviction is unavoidable. 

According to Portman's office, the legislation would improve data and analysis on evictions, reduce preventable evictions, mitigate the consequences of evictions, support increased legal representation for tenants, and improve information on tenant screening reports.

Read more. 

White House Has No Plans to Extend Eviction Moratorium Past July 31

 

Today, the Biden Administration announced a one-month extension of the CDC’s federal eviction moratorium through July 31 (White House Fact Sheet).  Importantly, the White House announcement confirms their intention that this will be the last extension.   It was also announced, as NMHC has advocated, that the administration will undertake a government-wide effort to expedite the distribution of the $46 billion in emergency rental assistance (ERAP) appropriated by Congress to residents and housing providers. Chief among these measures are: Bulk Payments. Treasury will clarify how grantees can collect bulk data from housing providers covering multiple residents and then bundle payments for multiple eligible residents into a single disbursement. Reduce Confusion, Burdens, and Delays.  Recognizing that differences in locally imposed requirements operating in the same region are slowing the flow of rental aid, urging grantees in neighboring areas to collaborate to develop consistent or complementary policies to avoid unnecessary confusion or burdens for families or housing providers seeking aid. Identifying Grantee Best Practices. Treasury will highlight programs that are reducing documentation barriers that keep eligible families from benefiting from ERA. This could include automating application processing and approaches for verifying income to simplify and speed eligibility determinations, such as leveraging fact-specific proxies like area median incomes. CDC Order: Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 White House Fact Sheet: Biden-Harris Administration Announces Initiatives to Promote Housing Stability By Supporting Vulnerable Tenants and Preventing Foreclosures CDC Fact Sheet: Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19 NMHC Resource: Apartment Industry Issues Principles to Work with Residents as Eviction Moratorium Set to End NMHC Resource: Emergency Rental Assistance Program FAQ As NMHC noted in our statement today in response to the extension, the continuation of a nationwide, one-size-fits-all, federal eviction moratorium is out of step with the significant progress made in controlling COVID-19 and restoring the economy. Instead of this blanket federal policy, this pandemic has already shown that targeted, efficient relief works.   Following suit with a recent NMHC industry principles effort, the extension announcement has been paired with a number of eviction mitigation measures intended to keep renters stably housed.  NMHC looks forward to working with policymakers to implement workable solutions for both renters and housing providers.  Importantly, we will work to ensure eviction mitigation efforts are practical and economically viable while making certain that rental assistance funds remain focused on direct payments to those in need. And although this transition away from unstainable moratoriums is a step in the right direction in terms of ensuring the long-term health of the apartment industry and our renters, NMHC’s advocacy work is not yet done.   As our country emerges from the financial distress brought on by the COVID-19 pandemic, the stability of our sector has never been more critical. How our nation recovers will undoubtedly impact the country’s further exacerbated housing affordability crisis and overarching housing equity and opportunity goals.   We remain committed to working with officials to ensure the historic, $46 billion investment in ERAP makes it into the hands of those in need. Just as we successfully advocated for full funding of this program, we will continue to advocate for its timely disbursement.

Details emerge on Washington State's Moratorium Extension to September 30, 2021

The Washington Multifamily Housing Association provided the following additional details regarding Governor Jay Inslee's extension of the eviction moratorium.

The exact details of Governor Inslee's Proclamation are not yet available and we will provide those upon receipt. In an advance press release, the Governor's office indicated the "bridge" Proclamation will include the following: 

• For past rent due from Feb. 29, 2020, through July 31, 2021, landlords are prohibited from evicting a tenant until there is an operational rental assistance program and eviction resolution program in place in their county.
  
  
• In addition, for past rent owed, landlords are prohibited from treating any unpaid rent or other charges as an enforceable debt until the landlord and tenant have been provided with an opportunity to resolve nonpayment of rent through an eviction resolution pilot program.
  
  
• Starting August 1, renters are expected to pay full rent or pay less if they negotiate that with their landlord or actively seek rental assistance funding. If a renter is taking any of those actions, a landlord cannot evict that tenant. However, if a tenant is not paying or isn’t trying to obtain rental assistance from the appropriated funds, a landlord can take any action allowed by law, but also offer the tenant a reasonable repayment plan before starting the eviction process.
  
  
• Tenants must also be provided, in writing, services, and support available to them.
  
  
• Certain types of housing also will be removed from the order altogether, including hotels/motels, Air B&Bs, long-term care facilities, and other non-traditional housing.

The current moratorium expires at 11:59 pm on June 30.  No changes to management operations should occur before this date. 

We see that programs expanded by the legislature's actions as "ready to go" and other programs created not contingent on being available to end the moratorium. If the legislature intended for some programs to be available upon the termination of the moratorium, the bill would have expressed stated as much.  

Please note the following cities have enacted local moratoria further restricting property management operations. These more restrictive moratoria supersede the state's moratorium and any "bridge" extension.  

• City of Seattle
• City of Kenmore
• City of Kirkland
• City of Burien

The Washington Multifamily Housing Association will provide updated information as it becomes available before June 30th.

CDC Extends Eviction Moratorium to July 31, 2021

The Center for Disease Control has issued an eviction moratorium extension to July 31, 2021, citing "prevention of the further spread of COVID-19" as its reasoning.

Read more. 

Washington Governor Extends Eviction Ban Through September 30, 2021

The Seattle Times is reporting that Governor Jay Inslee has extended the eviction moratorium for Washington State through September 30, 2021. 

Read more. 

The City of Seattle extended the eviction ban through September 30th one week earlier.

Sold! 48 Units in Outer SE Portland

 

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HFO is pleased to announce the recent sale of Eaton Village. This 48-unit community in Portland offers an ideal unit mix of one- and two-bedrooms with on-site parking, additional storage, and a laundry care center. The property is nestled in the Centennial neighborhood, just off of SE Division Street. 

See all our current listings at https://www.hfore.com. 

Oregon Legislature Passes "Hopefully the Last" Bill to Prevent an Eviction Crisis

Previously this session, Senate Bill 282 extended the repayment period for rents accrued during the eviction moratorium until February 28, 2022. 

Yesterday, the Oregon legislature added additional protections by adding a provision that tenants may not be evicted within 60 days of filing for rental assistance. 

Further, the landlord compensation fund will retroactively and prospectively reimburse successful applicants at 100% of unpaid rents accrued due to the COVID-19 pandemic.

The bill will be sent to Governor Brown for her signature.

Read the release.

Today, the law firm Tonkin Torp posted a thoughtful chronology of the crisis in Oregon titled "Oregon’s Latest Residential Eviction Relief Bill Hopefully Will Be The Last."

Investment Groups Spend $23.45 Million Acquiring Apartments in Eugene and Gladstone

HFO has sold the 82-unit Fountain Villa Apartments in Eugene, Oregon. It has also sold the 64-unit Tall Oaks Apartments in Gladstone, Oregon for $10.15 million. Both assets are considered value-add opportunities by the new owners.

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Tall Oaks (1972 – Gladstone, OR) consists of 64 one- and two-bedroom units with an average of 844 square feet. Property amenities include a swimming pool and clubhouse. The property was in the process of a significant siding replacement project at the time of marketing. The extensive and intrusive construction and the COVID-19 pandemic led to higher vacancy and lower rent collections. HFO worked around those challenges to successfully market the asset for its upside opportunity and potential for value-add.

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Fountain Villa (1974) is 82-units and enjoys an exceptional Eugene location on Coburg Road within walking distance of retail centers anchored by a Market of Choice and Walgreens. Fountain Villa was positioned as a value-add opportunity. HFO’s familiarity with investors looking to place capital in tertiary markets within the Pacific Northwest allowed us to find a strong buyer that could provide certainty of closing in a short time frame. Our expertise in the market enabled HFO to demonstrate the potential upside of the property and help navigate the process of numerous tours and due diligence during the COVID pandemic.

HFO’s Greg Frick, Tyler Johnson, and Rob Marton represented the parties.

Multifamily Marketwatch Podcast - June 21, 2021

The Seattle City Council takes aim at landlord property rights; the national association of realtors reports the U.S. needs 6.8 million more homes, and jobless claims spike as America’s economic recovery slows.

Listen to our latest podcast.

Oregon House Passes Bill Aiming to Help Renters and Landlords; Possible Senate Vote Today on SB 278 Amendments

Oregon Public Broadcasting reported on Friday that a bill to provide safe harbor from evictions for Oregonians awaiting rental assistance cleared the Oregon House of Representatives Thursday. The bill also ensures landlords who are awaiting payment of past-due rent will receive it.

The amendments to SB 278 could receive a vote in the Senate as early as today. 

Read more.

Oregon Landlords: June 23 is Your Last Chance to Be Compensated for 100% of Past Due Rent

The Manufactured Housing Community of Oregon is the first to report the final details of  SB 278-15 which allows for Oregon landlords to receive 100% of past-due COVID-19 related rents, PROVIDED APPLICATIONS ARE RECEIVED BY WEDNESDAY, JUNE 23, 2021. 

Apply here.

Read the details here. 

Sold! 82 Units in Eugene, Oregon

We're happy to announce the sale of Fountain Villa in Eugene. 

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Fountain Villa had been owned by the same family for many years, leaving efficiencies and income opportunities to be more fully realized. HFO’s familiarity with investors looking to place capital in tertiary markets within the Pacific Northwest allowed us to find a strong buyer that could provide certainty of closing in a short time frame. We helped our client navigate the process of numerous tours and due diligence during the COVID pandemic. Call 503-241-5541 for additional information on this sale. 

HFO-TV: Real Estate Update with Dr. Gerard Mildner, PSU Center for Real Estate [Part II]

 

Dr. Gerard Mildner, director of the Portland State University Center for Real Estate, discusses zoning issues including inclusionary zoning, the change to eliminate single-family zoning statewide, and the many issues plaguing the development of more housing, including housing considered more affordable.

Seattle Goes Wild With Restrictions on Owner Rights

 

Seattle's City Council has passed the following new ordinances.

*If tenants do not pay rent, landlords cannot initiate evictions during the school if students or educators live in the home.

*Landlords are required to offer new leases to tenants before their existing lease expires and before seeking a new tenant.

*Finally, a third ordinance passed earlier this month allows a COVID-19 defense against eviction if tenants have a large unpaid rent debt incurred during the pandemic. 

Read more in the Rental Housing Journal.

Harvard Report: Millions of Households On the Brink of Eviction or Foreclosure

 

Even as the US economy continues to recover, the inequalities amplified by the pandemic remain front and center. 

Households that weathered the crisis without financial distress are snapping up the limited supply of homes for sale, pushing up prices, and further excluding less affluent buyers from homeownership. 

At the same time, millions of households that lost income are behind on their housing payments and on the brink of eviction or foreclosure. 

The Harvard Joint Center for Housing Studies released its 2021 State of the Nation's Housing Report today. Click to download the report. 

REPORTS: The U.S. Needs 6.8 Million More Homes

The US housing market is down at least 5.5 million units, the National Association of Realtors said. 

Accounting for losses of existing homes and underproduction brings that total to 6.8 million homes.

Read the story on Business Insider.

HFO Multifamily Marketwatch - Monday - June 14, 2021

This week: the potentially devastating economic impact of eliminating 1031 exchanges; inflation fears pick up, and the Oregon legislature takes steps to expand options for affordable housing.

Listen to our latest podcast.

HFO-TV: HFO Broker Stephen Wendt on Client Interest in Legacy and Estate Planning

 

Broker Stephen Wendt discusses the recent uptick in interest among clients on the topic of legacy and estate planning in light of the COVID-19 pandemic.

HFO-TV: Lee Fehrenbacher on Concessions in the Portland Metro Area Apartment Market.

 

HFO Senior Broker Lee Fehrenbacher discusses market concessions, the perception of the Portland market from outside investors, and the high premiums on recent sales for medium-level value-add opportunities.

Sold! 21 Units on SE Division, Portland, Oregon

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HFO is pleased to announce the sale of The Oliver, a mixed-use asset in the heart of the Division Street retail corridor. The property is newer construction and was unique for its unit mix of generously sized one- and two-bedroom apartments. HFO used its vast network of investors to locate an out-of-state purchaser looking to acquire more close-in Portland assets. 

Elimination of 1031 Exchanges Called "Potentially Devastating" for $55.3B in Annual Economic Impact

The White House has proposed a tax and spending plan that would end tax deferments on most 1031 exchange transactions effective Dec. 31, 2021. Industry experts are calling the move "potentially devastating" due to the impact on apartment upgrades and rehabs. 

According to BISNOW: A study from Ernst & Young estimates the 1031 exchange program drives $4.4B in investments and related consumer spending, and firms participating in or supplying like-kind deals support 568,000 American jobs and $27.5B in wages and benefits. All told, E&Y estimates the existing 1031 exchange rules generate $55.3B in economic impact.

Oregon's New Prohibition on Enforcement of Unauthorized Guest Provisions.

 

Oregon Senate Bill 282 prohibited enforcement of unauthorized guest provisions. Attorney Brad Kraus discusses this as well as the rights and remedies landlords have remaining after the passage of SB 282 in this article.

His earlier article on the subject can be found here. 

HFO Multifamily Marketwatch - June 7, 2021

This week: Oregon opens its landlord compensation fund for the final round of applications; construction material price increases causing higher costs, and rents are rising across the country as pandemic pricing comes to an end.

Listen to our latest podcast.

Seattle to Add 100 Tiny Houses Throughout City by Summer

With two new villages and an expansion, the effort to double tiny house villages in Seattle begins.

Read more.
 

Tell Your Members of Congress to Support These Important Housing Bills

 

The National Apartment Association (NAA) has launched some grassroots campaigns centered around important affordability issues being debated in congress.

Please take action on these campaigns to tell your members of Congress to pass these important housing bills.

• Section 8 Reform Alert - Reforming Section 8 has been a long-sought-after legislative priority of the NAA. The Choice in Affordable Housing Act incentivizes the participation of the private rental housing industry in the Section 8 HCV program by enacting critical reforms to the program.
  
  
• Housing Affordability Alert - Congress is also considering two other pieces of legislation, the Yes In My Backyard (YIMBY) Act, and the Housing Supply and Affordability Act. These bills will mitigate the housing affordability crisis by helping to remove barriers to the local development of housing. 

NAA asks you to help make sure these bills become law by contacting your legislators today and asking them to cosponsor these pieces of legislation.

Oregon Landlord Fund Round 3 Opens

The Oregon Landlord Fund round three has opened.

The fund is for rental owners who have been unable to collect tenant rent due to the tenant's financial hardships. 

Rental owners whose applications are accepted and awarded will receive 80% of owed, unpaid rent from April 2020 through the application period. They will be required to forgive the remaining 20% of unpaid rent. Visit www.lcf.oregon.gov to apply.

Broker Todd Tully Discusses the Clark County / Vancouver Washington Apartment Market

 

Todd Tully, who specializes in multifamily sales in the southwest Washington market, discusses the recent influx of investment and tenants there. While investors are active in the market due to increasing regulation of the Oregon and Portland apartment market, tenants have been relocating there due to Washington State's more efficient system of providing rental assistance.

HFO Broker Adam Smith Discusses Recent Multifamily Trends in Oregon's Willamette Valley

 

The Willamette Valley area of Oregon has seen significantly more investor attention with the addition of regulations and scarcity of housing in the region. HFO Broker Adam Smith and Partner Greg Frick discuss these trends.

Pandemic Pricing Comes to an End as Rents Rise Rapidly in Most Areas

Rents are on the rise in most areas as pandemic pricing is coming to an end. 

According to Apartment List, rents were up 2.3 percent in May, the largest monthly gain since the company began tracking rents in 2017.

Read more in Rental Housing Journal.

Scarcity of Facts Forces Oregon Legislative Committee to Hold Hearings Friday as Clock Ticks Down to Moratorium Expiration

The Oregon House Committee on Housing will hold an informational hearing on Friday in an attempt to determine how many renters may actually face eviction when the moratorium expires at the end of this month.

At the present time, estimates on how much back rent is owed in Oregon ranges from $171 million to $1.46 billion statewide, depending on who crunches the numbers. Multnomah County estimates $72 million - $500 million is owed in the county alone, and that 56,000 to 90,000 renters face eviction.  

Rental housing associations say their tally statewide is $1.46 billion, less whatever tenants have received in government aid - but that information is not readily available.  

Read more in the Portland Tribune (requires subscription).

HFO Multifamily Marketwatch - Tuesday, June 1, 2021

This week: The $40 billion in rent relief headed to states; $318 billion of proposed housing and tax credits in President Biden’s infrastructure plan; economists predicting a post-pandemic boom, and soaring lumber costs are slowing construction.

Listen to our latest podcast.