Opinion: For Housing Solutions, Look to New York Where Subsidies Cost Less Than Managing the Homeless

Cascade Public Meda\Crosscut report that Seattle [and Portland?] should look to New York and other cities that provide housing vouchers and guaranteed incomes as a solution to homelessness. Best of all - it costs less. Read more. 

President Biden Wants More Housing Units as Democrats Urge Rental Aid and States Brace for Avalanche of Evictions

Roll Call reports that both ideas would cost billions, and both would fall short of what's needed to solve the nation's housing crisis. Read more. 

Meanwhile, The Guardian reports that U.S. states are bracing for an avalanche of evictions as the federal moratorium ends. Read more. 

Sold! 12 Units in Portland's NE Alberta District

HFO is pleased to announce the sale of Simpson Street Apartments in NE Portland's Alberta District! Congratulations to brokers Lee Fehrenbacher and Tyler Johnson and the rest of the HFO team for their work on this transaction. 

Sold! 6 units in Longview, Washington

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HFO is pleased to announce the recent sale of 6 units in Longview, Washington. See all our current listings at https://www.hfore.com. 

Rental Assistance Finder Launched Today by Consumer Financial Protection Bureau

A new Rental Assistance Finder launched today for renters throughout the country to find help location rental assistance programs and housing counselors. The site was designed and is hosted by the U.S. Consumer Financial Protection Bureau.

Click here. 

Meanwhile, property owners remain focused on supporting their renters, according to a survey conducted by the national multifamily housing council. A new survey indicated that 100% of multifamily firms are working with residents facing financial hardships since the onset of the COVID-19 crisis. This new data comes in as the $4 trillion of economic relief--including $47 billion in rental assistance--has stabilized the rental market, allowing the federal eviction moratorium to end on July 31. 

The NMHC encourages its members to work with residents on emergency measures including:

• Encouraging residents to seek rental assistance and apply on behalf of residents or assist with the application process where able.
• Offer solutions to help residents avoid eviction including payment plans, deferments and extended or flexible lease periods for residents who fell behind in rent payments due to the pandemic.
• Provide notice of at least 30 days to residents before filing an eviction for non-payment of rental obligations.
• Work with jurisdictions to break down artificial barriers to rental assistance benefits that stand in the way of residents receiving the help they need, like onerous documentation requirements.
• Identify governmental and community resources to broadly help residents secure food, financial assistance, and healthcare and share that information with residents.
• Communicate with residents that it is a priority for the industry to partner with them to help them retain their housing.

The NMHC Pulse Survey on Eviction Mitigation Practices ran from July 19 to 26, with 74 leading multifamily firms responding. One-hundred percent of firms offered solutions for residents facing financial hardships. The most widely offered assistance options included:

• Payment plans – 100%
• Waived late fees – 96%
• Deferred payments – 78%
• Extended, shortened or other changes to lease terms – 58%
• Cash for keys – 54%
• Fee-free ability to charge rent on credit card – 50%
• The survey also asked what additional steps firms took to support residents during the pandemic:
• Increased cleaning and sanitation – 95%
• Connecting residents with food backs, charities and other local support resources – 86%
• Informing residents of healthcare protocols and best practices – 86%
• Hosting virtual social or exercise events – 57%
• Creating on-site services at communities to support residents – 50%
• Made it easier to work from home – 49%

Sold! 16 Units in Longview, Washington

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HFO is pleased to announce the recent sale of the Washington Arms in Longview, Washington. See all our current listings at https://www.hfore.com. 

The Hill: A Tale of Two Cities: The Multifamily Edition

Describing it as "the best of times" for market-rate apartments and the "worst of times" for affordable housing constituents, The Hill newspaper reports on the National Low Income Housing Coalition's latest annual report, released July 14, titled Out of Reach 2021: The High Cost of Housing. Renters can determine how their states compare to other U.S. states in an interactive map found here. 

Meanwhile, Bloomberg News reports: As Eviction Moratorium Ends, "Unprecedented Spike" Looms. Read more. 

HFO Multifamily Marketwatch - July 26, 2021

This week: Rent growth returns throughout the country and in the Pacific Northwest

Listen to our latest podcast.

Sold! Prime Apartment Development Land in Woodstock Neighborhood, Portland, Oregon

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HFO is pleased to announce the recent sale of a development parcel in the Woodstock neighborhood of Portland See our current development parcel listings at https://www.hfore.com! 

Sold! 28 Units in McMinnville, Oregon

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HFO is pleased to announce the recent sale of the Rhoda Anne Apartments in McMinnville, Oregon. Please call HFO at (503) 241-5541 for additional details. See all our current listings at https://www.hfore.com. 

 

Report: Multifamily Rent Growth Reaching Unprecedented Levels

The Rental Housing Journal has a writeup based on Yardi-Matrix reporting on rent trends in the U.S. Rents are up 6.3% on a year-over-year basis in June, which the report calls "...the largest year-over-year national increase in the history of our data set." The story indicates less of an increase than one reported recently by Bloomberg indicating rents for the first half of the year increased by 9.2%.

The Yardi-Matrix report indicates the factors pushing rent growth are migration, government stimulus money, and a hot housing market. 

The report listed year-over-year rent growth in June of 7.8% for Portland, and forecast an overall 2021 rent growth rate of 5.2%. Seattle's rent growth year-over-year in June is listed at 0.9% with overall 2021 rent increases pegged at 1.9% Read more.

Sold! 88 Units in Springfield, Oregon

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HFO is pleased to announce the recent sale of Pacific Park Apartments in Springfield, Oregon. Congratulations to Rob Marton and Jack Stephens and the rest of the HFO Team.
See all our current listings at https://www.hfore.com. 

Sold! 68 Units in NE Portland

 

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Sold! 84 Units in SE Portland

 

Rent Control: a Popular Idea That Fails in Practice

The Minneapolis Star Tribune carried a story recently by leading business columnist Lee Schafer, who argues why rent control is a popular idea that never works. 

Schafer argues that when government caps the price of something, the market looks first at other markets where the expected rate of return on an investment is not artificially capped. Capital sometimes flows out of the rent-controlled markets, with property owners cutting maintenance budgets, putting off capital improvements, and investing elsewhere.

In Massachusetts, MIT economists analyzed what happened in Cambridge when rent controls were lifted, and the result was a flurry of renovation and investment. 

Read the story.

Report: "Soaring Rents Likely to Stay"

Bloomberg News is reporting that the median national rent climbed 9.2% in the first half of 2021, threatening the consensus that pandemic inflation will soon fade away. 

Yardi-Matrix, meanwhile, reports rents up 6.3% nationally in the first half of the year, with 7.8% hikes in Portland with an overall 2021 rent growth rate of 5.2%. The forecast outperformed Seattle's rent growth year-over-year through June of at 0.9% with overall 2021 rent increases pegged at 1.9

Read more.

Sold! 31 Units in SE Portland, Oregon

 

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Shady Glen is a low-density, garden-style apartment property located in southeast Portland near the Powell Boulevard transit corridor. The property features both one- and two-story floorplans, a portion of which are one-story duplex buildings. The property had minimal updates including some windows and roof replacement. The property offers off-street parking, storage, and common-area laundry. 

Shady Glen was a family-owned property, built by the family that manages it, and has never been on the market. The sellers were looking to exit this multifamily property. The property was owner-managed that resulted in a high number of long-term tenants with in-place rents significantly trailing the market. Shady Glen had a considerable upside in rents, other income (RUBs), and management. HFO positioned the property as a value-add opportunity with a close-in Portland location. Through our extensive network of Investors, we were able to find a purchaser who had the ability to fund and close escrow even with the challenges of the low rents and limited historical operations.

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

HFO Multifamily Marketwatch - July 19, 2021

This week: apartment financing is expected to increase in the final half of this year; rent prices soar in Oregon and across the country, and the U.S. housing market starts to shift as newly listed homes surpass 2019 levels.

Listen to our latest podcast.

At the Intersection of Oregon SB 278 and Multnomah County Ordinance 1296 on 90-day Eviction Protection

In an email dated July 14, 2021, Multifamily NW offered the following additional details regarding Multnomah County's July 8th ordinance as it relates to Oregon SB 278. 

SB 278 Protection Period and Effect of Ordinance No.1296

SB 278 establishes that if a Tenant provides the Landlord with documentation that the Tenant has applied for rental assistance, a Landlord may not deliver a termination notice for nonpayment or initiate or continue an action for possession based on the termination notice for nonpayment for 60 days. Ordinance no. 1296 increases this protection period to 90 days for tenancies located in Multnomah County. This means if a Tenant within Multnomah County provides the Landlord with documentation that they have applied for rental assistance, the Landlord will now need to wait 90 days before delivering a termination notice for nonpayment or initiating or continuing an action for possession based on a termination notice for nonpayment.

Reissuing a Termination for Nonpayment if Balance is Not Paid

If 90 days have passed since the Tenant provided the documentation, a Landlord may issue a new termination notice. If the matter was already filed with the court and the case was postponed for 90-days, the court must promptly set the matter for trial at the reset first appearance. 

Penalties

Ordinance no.1296 does not modify the penalties of SB 278 in any way. If a Landlord violates the extended protection period under Ordinance no.1296, a Tenant may obtain injunctive relief to recover possession or address any other violation. The Landlord’s failure to comply may also be used as a defense in an FED. Finally, if an FED is dismissed based on the extended protection period under Ordinance no.1296, a Tenant is not entitled to a prevailing party fee, costs or attorney fees if the Landlord delivered all notices as required, did not know or have reasonable cause to know that the Tenant had provided documentation when the FED was filed and the Landlord promptly dismissed the FED when they became aware that the Tenant provided the documentation.  

Conclusion

Landlords should pay special attention to the required changes in forms and practices. If you are not already utilizing a forms bank that is updated regularly, you should consider doing so. For more information on COVID-related eviction protections and Multnomah County Ordinance 1296 please visit this link. 

News: Portland, Ore. Rents Continue 5-Month Climb; Oregon Rents up 7.3% Overall

Apartment List is reporting that Portland rents have increased 1.7% over last month, and are currently up 2.5% year-over-year. Median rents stand at $1,197 for a one-bedroom unit and $1,396 for a two-bedroom.

While Oregon year-over-year rents are up 7.3% overall, The company reports the following rent growth specifics:

• Hillsboro - up 4.4% from May to June and 16.9% year-over-year
• Beaverton up 2.4% from May to June and 11% year-over-year
• Bend year-over-year rents up 31.5%
• Eugene rents up 1.6% from May to June and 8.5% year-over-year
• Vancouver, Washington up 2% from May to June and 15.4% year-over-year

National Apt. Assn. Report: National Average Rents Exceed Record $1,500, Predicts Increases Ahead

The National Apartment Association reports that the average monthly national rent hit $1,514, topping the $1,500 mark for the first time in 150 metros surveyed. 

Meanwhile, RealPage reports that rent growth of between 10% and 19.2% is occurring across select big metros in the biggest 12-month hike recorded since early 2001.

Read the Washington Post Story.

Sold! 38 Units in Albany, Oregon

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College Green is a portfolio of duplex and tri-plex homes adjacent to the Linn Benton Community College in Albany, Oregon. The plexes were built around 1977 on individual tax lots and most feature attached garages, vaulted ceilings, loft spaces, and backyards. HFO sourced and helped an exchange buyer from California looking to buy single-family homes or duplex-style units in tertiary markets in Oregon. 

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

Sold! 5.38 Acres for 184 Apartments in Eugene, Oregon

 

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HFO is pleased to announce the sale of this 5.38-acre parcel in Eugene, Oregon. HFO utilized its extensive list of developers to locate a motivated buyer who plans on constructing 184 units of market-rate apartments on the site. The sale closed in 30 days in an all-cash transaction.

Multnomah County Gives Renters 90 Days Safe Harbor From Eviction If They Take Action

On Thursday, July 8, 2021, Multnomah County passed Ordinance 1296 which strengthened protections against evictions for nonpayment of rent for those tenants who have applied for rent assistance. Ordinance 1296 extends the safe harbor period from 60 days to 90 days for tenants in Multnomah County. If the tenant has applied for emergency rent assistance and provided documentation, the landlord cannot serve a termination notice for nonpayment or engage in an eviction court cause for a 90 day period. 

Starting July 1, 2021, all tenants must resume paying their monthly rent subject to the protections in SB 278 and Multnomah County Ordinance 1296. Tenants that accrued nonpayment balances during the emergency period of April 1, 2020-June 30, 2021 have until February 28, 2022, to pay back these accrued nonpayment balances. 

In an email dated July 14, 2021, Multifamily NW offered the following additional details regarding Multnomah County's July 8th ordinance as it relates to Oregon SB 278.

1. SB 278 Protection Period and Effect of Ordinance No.1296 SB 278 establishes that if a Tenant provides the Landlord with documentation that the Tenant has applied for rental assistance, a Landlord may not deliver a termination notice for nonpayment or initiate or continue an action for possession based on the termination notice for nonpayment for 60 days. Ordinance no. 1296 increases this protection period to 90 days for tenancies located in Multnomah County. This means if a Tenant within Multnomah County provides the Landlord with documentation that they have applied for rental assistance, the Landlord will now need to wait 90 days before delivering a termination notice for nonpayment or initiating or continuing an action for possession based on a termination notice for nonpayment.
2. Reissuing a Termination for Nonpayment if Balance is Not Paid If 90 days have passed since the Tenant provided the documentation, a Landlord may issue a new termination notice. If the matter was already filed with the court and the case was postponed for 90-days, the court must promptly set the matter for trial at the reset first appearance.
3. Penalties Ordinance no.1296 does not modify the penalties of SB 278 in any way. If a Landlord violates the extended protection period under Ordinance no.1296, a Tenant may obtain injunctive relief to recover possession or address any other violation. The Landlord’s failure to comply may also be used as a defense in an FED. Finally, if an FED is dismissed based on the extended protection period under Ordinance no.1296, a Tenant is not entitled to a prevailing party fee, costs or attorney fees if the Landlord delivered all notices as required, did not know or have reasonable cause to know that the Tenant had provided documentation when the FED was filed and the Landlord promptly dismissed the FED when they became aware that the Tenant provided the documentation.
4. Conclusion Landlords should pay special attention to the required changes in forms and practices. If you are not already utilizing a forms bank that is updated regularly, you should consider doing so.

For more information on COVID-related eviction protections and Multnomah County Ordinance 1296 please visit this link. 

Clock Ticking: Oregon Renters Waiting for Help From the State

More than 17,500 households have applied for rental assistance in the state of Oregon. But so far, only 265 households — that is, 2% — have received any money as of Friday, July 9. Read more. 

Why the 1031 Exchange is in Danger (Again) and What You Can Do About It [Video]

Toija Beutler of Beutler Exchange Group provides an update on the White House plan for capping 1031 Exchanges at $500,000 and what that would mean for multifamily rental owners. Action should be taken by owners now to make their voices heard on the issue, which is critical to economic growth.

Contact your Senators and Representatives today - especially Oregon Senator Ron Wyden who is chair of the Senate Finance Committee. Take action at: https://1031buildsamerica.org/

Oregon and Washington Legislative Updates [Video]

Oregon and Washington Rental owners get the latest information available on Oregon SB 278 and Senate Bill 282 plus a brief update on recent Washington legislation in this latest video with attorney Brad Kraus of Warren Allen LLP.

In an email dated July 14, 2021, Multifamily NW provides the following additional details regarding Multnomah County's July 8th ordinance as it relates to Oregon SB 278.

1. SB 278 Protection Period and Effect of Ordinance No.1296 SB 278 establishes that if a Tenant provides the Landlord with documentation that the Tenant has applied for rental assistance, a Landlord may not deliver a termination notice for nonpayment or initiate or continue an action for possession based on the termination notice for nonpayment for 60 days. Ordinance no. 1296 increases this protection period to 90 days for tenancies located in Multnomah County. This means if a Tenant within Multnomah County provides the Landlord with documentation that they have applied for rental assistance, the Landlord will now need to wait 90 days before delivering a termination notice for nonpayment or initiating or continuing an action for possession based on a termination notice for nonpayment.
2. Reissuing a Termination for Nonpayment if Balance is Not Paid If 90 days have passed since the Tenant provided the documentation, a Landlord may issue a new termination notice. If the matter was already filed with the court and the case was postponed for 90-days, the court must promptly set the matter for trial at the reset first appearance.
3. Penalties Ordinance no.1296 does not modify the penalties of SB 278 in any way. If a Landlord violates the extended protection period under Ordinance no.1296, a Tenant may obtain injunctive relief to recover possession or address any other violation. The Landlord’s failure to comply may also be used as a defense in an FED. Finally, if an FED is dismissed based on the extended protection period under Ordinance no.1296, a Tenant is not entitled to a prevailing party fee, costs or attorney fees if the Landlord delivered all notices as required, did not know or have reasonable cause to know that the Tenant had provided documentation when the FED was filed and the Landlord promptly dismissed the FED when they became aware that the Tenant provided the documentation.
4. Conclusion Landlords should pay special attention to the required changes in forms and practices. If you are not already utilizing a forms bank that is updated regularly, you should consider doing so.

Sold! 30 Unit Multifamily Property in Milwaukie, Oregon

 

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Christine Court is a 30-unit apartment community in the city of Milwaukie featuring a diverse unit mix that includes some townhome units. As a result, the apartments offer more square feet than average. The seller was looking to diversify out of this purchase so HFO worked with several exchange buyers looking to invest outside the city limits of Portland. HFO sourced a buyer who had the ability and expertise to purchase Christine Court amid the COVID pandemic, finishing inspections and completing the lender-required due diligence promptly.

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

HFO Multifamily Marketwatch - Monday, July 12, 2021

This week: Apartment developers are eyeing market discounts on closed hotels, and spiking lumber prices affect the ability to construct affordable housing.

Listen to our latest podcast.

Multifamily Marketwatch Podcast - July 6, 2021

This week: Investment dollars target the U.S. Apartment Market; homes in Seattle are selling quickly at $100- to $300 thousand over listed rates, and Portland State University researchers estimate Oregon may need to spend billions in the years ahead for the downstream consequences of potential evictions.

Listen to our latest podcast.

Sold in Vancouver, Washington!

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Ellsworth Garden is a 16-unit community in Vancouver, Washington. The property offers an ideal unit mix of one- and two-bedroom townhomes, most with attached garages. After years of ownership and self-management, the seller decided to take advantage of the solid multifamily market and cash out. HFO strategically priced the property to garner multiple competitive offers, guiding the seller towards an experienced owner with numerous other properties in Vancouver. The transaction closed with minimal credits and within a short time frame despite the challenges of COVID-19.

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

Sold in North Corvallis!

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Casa Grande Apartments is a 24-unit value-add complex in North Corvallis, a mile north of Oregon State University’s campus. Casa Grande features 16 two-bedroom units and 8 spacious one-bedroom units.

HFO was hired to sell the asset out of a family trust. HFO created a comprehensive marketing plan that highlighted Casa Grande’s location and income opportunities. The HFO team drew upon their local knowledge and strong sales history in the Willamette Valley to market and sell the property, sourcing an all-cash buyer and closing in 30 days. 

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

Sold! 18 Units in Oregon City

HFO is pleased to announce the sale of Holcomb Heights in Oregon City. Congratulations to lead broker Greg Frick and the rest of the HFO team.

Starting Today, all Oregon Tenants Must Resume Paying Monthly Rent. Except when...

The City of Portland published this announcement.

Tenants Now Have 60-Day Safe Harbor from Eviction for Nonpayment While Applying for Rent Assistance.

Starting July 1, 2021, all tenants must resume paying their monthly rent. SB 278 provides protection to tenants who provide their landlord with the letter proving their rental assistance application status as described below. Tenants that accrued nonpayment balances during the emergency period of April 1, 2020 − June 30, 2021 have until February 28, 2022 to pay back these accrued nonpayment balances.

Tenants can apply for rental assistance through 1 of 44 partner organizations. Once the application is complete and submitted, the partner organization will provide tenants a letter. Upon delivering a copy of this letter to their landlord, tenants are protected from termination and eviction due to nonpayment of rent for 60 days to allow for the processing of the application. Tenants can deliver this documentation by email, text message, mail, or personal delivery.

More details on how to apply for rental assistance can be found here.