Portland Landlords Must Pay Relocation Costs
to Evict Tenants Without Cause
--Jessica Floum
The Oregonian
[email protected]
503-221-8306
Each time Coya Crespin crosses the St. Johns Bridge, she knows she's home. She lives with her six-year-old daughter and five-month-old son in a St. Johns apartment that she's called home for five years. That could soon change. A California-based property management company bought her apartment complex in October. They've started handing out no-cause eviction notices to the more than 50 families living there.
Thanks to a Portland housing policy introduced by housing advocate and new Commissioner Chloe Eudaly and passed unanimously by the City Council on Thursday, that company will now have to pay the tenants it evicts without cause. The rule requires landlords to pay $2,900 to $4,500 to tenants who they evict without cause or who have to move as a result of a rent increase of 10 percent or more in one year.
"This legislation provides us a chance to maintain stability with our families and gives us a chance to not be insignificant to the powers that be," Crespin said. "All we're asking for is a chance to stay in our neighborhoods."
The policy will take effect immediately and apply to all tenants, including those who have received a 90-day eviction notice within the last 89 days. Landlords who rent only one dwelling in Portland will be exempt. Commissioner Amanda Fritz, with the votes of three other commissioners, added that clause to the rule Thursday over Eudaly's objection.
Commissioners heard five hours of testimony on the proposed rule Thursday, nearly all of it from renters and landlords. Tenants shared how no-cause evictions disrupt hard-working families and children's education. Landlords called for the City Council to table Eudaly's proposal, arguing that the policymakers failed to consult all stakeholders, to distinguish mom-and-pop landlords from foreign investors, and to consider that small landlords will consequently sell their property, further limiting Portland's housing supply.
Eudaly called the new rule a necessary first step to address Portland's housing emergency.
"I cannot assert enough this is a temporary emergency ordinance," Eudaly said. "It is not ideal. It is not perfect. This is the only tool the city of Portland has to protect renters and we are using it."
All five commissioners acknowledged the new rule is imperfect and may have some unintended consequences. But they said it is the best way to offer immediate help to vulnerable low-income renters caught at the mercy of a red-hot rental market.
Landlords renting to tenants on a weekly basis, renting rooms in their living space or renting to tenants with the understanding that the landlord will return after three years away will also be exempt from paying relocation costs.
In an open acknowledgment that the rule may need fixes soon out of the gate, the council unanimously backed Commissioner Nick Fish's proposal to create a panel made up of tenants, landlords and others to study the rule and its effects and propose improvements. That group will initially operate in the Housing Bureau and its responsibilities will eventually be passed to the new Office of Landlord-Tenant Affairs that Mayor Ted Wheeler aims to create. "I do believe this will have unintended consequences, and we'll have some time to see that," Fritz said.
Before taking testimony, Eudaly dismissed any hardships imposed on landlords, saying "landlords have been placing that same hardship on tenants." Eudaly said her 33 days as the commissioner in charge of the Bureau of Development Services have assured her that building more apartments is not an immediate solution. Economists say the tight housing supply in Portland is the primary driver of huge rent increases, and they caution that increasing costs for landlords will lead to fewer rental units coming on the market.
"If you've come here today to suggest we build our way out of this crisis, I can tell you today it will take decades to build our way out," Eudaly told people who'd come to testify.
At least five landlords--many owners of one property--said they would not have purchased their property if they knew a relocation fee would be required for no-cause evictions. It came out of nowhere, they said.
Kelly Goss rents to 30 tenants in Southwest Portland. He said he hasn't raised the rent on his properties above $650. He believes in affordable housing, he said.
Goss said the new policy will cause him to sell his properties, a move he says will make him millions of dollars and cause his tenants' rents to spike. "The focus should be on legislating greed rather than focus on legislating being able to manage your property," Goss said.
Another small landlord argued the policy will increase landlords' costs so much that they will raise rents even higher. Eudaly called that argument a "theory," then corrected the way the woman addressed her. "When you address the council, I'd appreciate it if you use our title," Eudaly told the women, who'd called her Eudaly. Wheeler, Fish and Commissioner Dan Saltzman all dropped their jaws.
At least nine landlord and property managers asserted that the council, and more specifically Eudaly's office, ignored their perspective and refused to listen when they called and wrote to propose solutions. Eudaly took offense to many accusations."I do not appreciate your characterization of my office," she responded before Wheeler called for a break to the meeting.
The rule will likely draw a lawsuit from Multifamily Northwest, said representing attorney John DiLorenzo. By imposing fees on landlords who raise rent by 10 percent of more, the rule conflicts with Oregon state law that prohibits rent control, he said.
Eudaly reaffirmed her commitment to rent control at a rally before the vote. She said she will continue to advocate for the state to lift its ban on limiting rent increases. She noted that her relocation policy is the first of many steps she plans to take to protect tenants.
"We will never stop fighting for tenants' rights," Eudaly said. "Keep Portland housed!"
More than 100 tenants' rights advocates rallied outside of City Hall before the vote to support Eudaly's proposed tenant protections and urge the city to go further. "Get your profits off our housing. Stop displacement. Stop price gouging," the crowd chanted before cheering Eudaly up to the podium.
Eudaly called on Portland and Oregon officials to catch up with San Francisco and other cities with strong tenant protection laws and to lead the charge for others.
"My name is Chloe Eudaly, and I'm a renter!" Eudaly exclaimed to a cheering crowd.
--Jessica Floum
[email protected]
503-221-8306
*******************************************
Portland's Renter Relocation Policy Is Now Permanent—And Stronger Than Ever
by Dirk VanderHart • Mar 7, 2018 at 1:04 pm
portlandmercury.com
The city's controversial renter relocation law is here to stay.After kneading out disagreements over the policy, the Portland City Council this morning unanimously expanded and made permanent the requirement that landlords pay between $2,900 and $4,500 in tenant moving expenses in some instances.
As expected the new, permanent statute now ropes in landlords who only rent one unit of housing, a major demand of tenant advocates. And the law now requires landlords to report to the city when they pay tenants relocation expenses, or when they plan to claim one of the remaining exemptions in the bill—a move Mayor Ted Wheeler says will help the city track how the policy is working.
In a somewhat recent development, the law even had the unanimous vote required to pass on an "emergency" basis, meaning it goes into effect immediately. Commissioner Amanda Fritz had retained serious doubts about forcing single-unit landlords to abide the policy, but her position changed when City Council agreed to add one additional exemption to the law: Now, landlords who issue a fixed-term lease to a tenant with an explicit understanding that the unit will be converted or sold at a certain point are free of having to pay relocation fees.
The relocation ordinance kicks in when a landlord issues a no-cause eviction (including refusing to renew a lease) or forces a tenant to move with rent increases of 10 percent or more.
Since the law was first suggested by Commissioner Chloe Eudaly in February 2017, landlords have complained that it's led to property owners selling their rental units, thereby decreasing the amount of rental housing stock in the city. Tenant activists say the law has dramatically cut down on no-cause evictions. To date, there's been little hard data that backs up either assertion, but that didn't stop council from extolling the law.
"Today we are making a successful new program permanent," said Commissioner Nick Fish.
Fritz had a more measured tone. "I'm concerned that some landlords will raise rents by 9.9 percent every year or sell the unit or turn it into an Airbnb," she said. "I don't see any of those being in the best interest of renters." She added, though: "We know it has limited no-cause evictions. We know that is has been crucial for some people."
The bolstered law council passed today still includes loopholes, including a pass for landlords who want to move immediate family members into a unit, landlords who rent out the other half of a duplex that they also live in, and people who are renting their primary residences for three years or less.
Commissioner Dan Saltzman had proposed doing away with an exemption on affordable housing providers written into the law, but backed off today. Instead, he said he'd allow a narrow exemption for cases where low-income tenants' income changes enough to force them to pay more for a unit, or when the amount of their rent subsidized by the government increases.
The council didn't take up other concerns over the law, including a worry that landlords could simply jack up fees associated with a home, or eliminate certain "concessions" attached to the unit that effectively hike rents. In testimony on the law, tenant advocates had reported huge increases in utility payments, pet fees, or parking fees—none of which count as rents under the ordinance. Eudaly also voiced concern about the loophole for landlords moving in family members, which she said could be subject to abuse.
Wheeler, the city's housing commissioner, promised to bring those issues before the city's new Rental Services Commission, and report back to council with recommendations.
Wheeler also took a weird rhetorical stand at the hearing. When Fish suggested an amendment putting an emergency clause on the ordinance—which, again, made it go into effect immediately—Wheeler voted "no." The mayor said he'd heard concerns from the Portland Housing Bureau about how difficult it would be to implement the changes immediately.
Wheeler could have easily made that stance count by also voting against the ordinance itself—a 4-1 passage would have eliminated the emergency aspect. Instead he voted "yes."
"We are providing clear and definitive leadership," Wheeler said. "I certainly have a difference of opinion regarding the emergency clause. We're going to have to work very, very quickly to notify landlords of these changes."
While the new changes go into effect immediately, the renter relocation law isn't completely out of the woods. Landlords are currently challenging the law in the Oregon Court of Appeals.
to Evict Tenants Without Cause
--Jessica Floum
The Oregonian
[email protected]
503-221-8306
Each time Coya Crespin crosses the St. Johns Bridge, she knows she's home. She lives with her six-year-old daughter and five-month-old son in a St. Johns apartment that she's called home for five years. That could soon change. A California-based property management company bought her apartment complex in October. They've started handing out no-cause eviction notices to the more than 50 families living there.
Thanks to a Portland housing policy introduced by housing advocate and new Commissioner Chloe Eudaly and passed unanimously by the City Council on Thursday, that company will now have to pay the tenants it evicts without cause. The rule requires landlords to pay $2,900 to $4,500 to tenants who they evict without cause or who have to move as a result of a rent increase of 10 percent or more in one year.
"This legislation provides us a chance to maintain stability with our families and gives us a chance to not be insignificant to the powers that be," Crespin said. "All we're asking for is a chance to stay in our neighborhoods."
The policy will take effect immediately and apply to all tenants, including those who have received a 90-day eviction notice within the last 89 days. Landlords who rent only one dwelling in Portland will be exempt. Commissioner Amanda Fritz, with the votes of three other commissioners, added that clause to the rule Thursday over Eudaly's objection.
Commissioners heard five hours of testimony on the proposed rule Thursday, nearly all of it from renters and landlords. Tenants shared how no-cause evictions disrupt hard-working families and children's education. Landlords called for the City Council to table Eudaly's proposal, arguing that the policymakers failed to consult all stakeholders, to distinguish mom-and-pop landlords from foreign investors, and to consider that small landlords will consequently sell their property, further limiting Portland's housing supply.
Eudaly called the new rule a necessary first step to address Portland's housing emergency.
"I cannot assert enough this is a temporary emergency ordinance," Eudaly said. "It is not ideal. It is not perfect. This is the only tool the city of Portland has to protect renters and we are using it."
All five commissioners acknowledged the new rule is imperfect and may have some unintended consequences. But they said it is the best way to offer immediate help to vulnerable low-income renters caught at the mercy of a red-hot rental market.
Landlords renting to tenants on a weekly basis, renting rooms in their living space or renting to tenants with the understanding that the landlord will return after three years away will also be exempt from paying relocation costs.
In an open acknowledgment that the rule may need fixes soon out of the gate, the council unanimously backed Commissioner Nick Fish's proposal to create a panel made up of tenants, landlords and others to study the rule and its effects and propose improvements. That group will initially operate in the Housing Bureau and its responsibilities will eventually be passed to the new Office of Landlord-Tenant Affairs that Mayor Ted Wheeler aims to create. "I do believe this will have unintended consequences, and we'll have some time to see that," Fritz said.
Before taking testimony, Eudaly dismissed any hardships imposed on landlords, saying "landlords have been placing that same hardship on tenants." Eudaly said her 33 days as the commissioner in charge of the Bureau of Development Services have assured her that building more apartments is not an immediate solution. Economists say the tight housing supply in Portland is the primary driver of huge rent increases, and they caution that increasing costs for landlords will lead to fewer rental units coming on the market.
"If you've come here today to suggest we build our way out of this crisis, I can tell you today it will take decades to build our way out," Eudaly told people who'd come to testify.
At least five landlords--many owners of one property--said they would not have purchased their property if they knew a relocation fee would be required for no-cause evictions. It came out of nowhere, they said.
Kelly Goss rents to 30 tenants in Southwest Portland. He said he hasn't raised the rent on his properties above $650. He believes in affordable housing, he said.
Goss said the new policy will cause him to sell his properties, a move he says will make him millions of dollars and cause his tenants' rents to spike. "The focus should be on legislating greed rather than focus on legislating being able to manage your property," Goss said.
Another small landlord argued the policy will increase landlords' costs so much that they will raise rents even higher. Eudaly called that argument a "theory," then corrected the way the woman addressed her. "When you address the council, I'd appreciate it if you use our title," Eudaly told the women, who'd called her Eudaly. Wheeler, Fish and Commissioner Dan Saltzman all dropped their jaws.
At least nine landlord and property managers asserted that the council, and more specifically Eudaly's office, ignored their perspective and refused to listen when they called and wrote to propose solutions. Eudaly took offense to many accusations."I do not appreciate your characterization of my office," she responded before Wheeler called for a break to the meeting.
The rule will likely draw a lawsuit from Multifamily Northwest, said representing attorney John DiLorenzo. By imposing fees on landlords who raise rent by 10 percent of more, the rule conflicts with Oregon state law that prohibits rent control, he said.
Eudaly reaffirmed her commitment to rent control at a rally before the vote. She said she will continue to advocate for the state to lift its ban on limiting rent increases. She noted that her relocation policy is the first of many steps she plans to take to protect tenants.
"We will never stop fighting for tenants' rights," Eudaly said. "Keep Portland housed!"
More than 100 tenants' rights advocates rallied outside of City Hall before the vote to support Eudaly's proposed tenant protections and urge the city to go further. "Get your profits off our housing. Stop displacement. Stop price gouging," the crowd chanted before cheering Eudaly up to the podium.
Eudaly called on Portland and Oregon officials to catch up with San Francisco and other cities with strong tenant protection laws and to lead the charge for others.
"My name is Chloe Eudaly, and I'm a renter!" Eudaly exclaimed to a cheering crowd.
--Jessica Floum
[email protected]
503-221-8306
*******************************************
Portland's Renter Relocation Policy Is Now Permanent—And Stronger Than Ever
by Dirk VanderHart • Mar 7, 2018 at 1:04 pm
portlandmercury.com
The city's controversial renter relocation law is here to stay.After kneading out disagreements over the policy, the Portland City Council this morning unanimously expanded and made permanent the requirement that landlords pay between $2,900 and $4,500 in tenant moving expenses in some instances.
As expected the new, permanent statute now ropes in landlords who only rent one unit of housing, a major demand of tenant advocates. And the law now requires landlords to report to the city when they pay tenants relocation expenses, or when they plan to claim one of the remaining exemptions in the bill—a move Mayor Ted Wheeler says will help the city track how the policy is working.
In a somewhat recent development, the law even had the unanimous vote required to pass on an "emergency" basis, meaning it goes into effect immediately. Commissioner Amanda Fritz had retained serious doubts about forcing single-unit landlords to abide the policy, but her position changed when City Council agreed to add one additional exemption to the law: Now, landlords who issue a fixed-term lease to a tenant with an explicit understanding that the unit will be converted or sold at a certain point are free of having to pay relocation fees.
The relocation ordinance kicks in when a landlord issues a no-cause eviction (including refusing to renew a lease) or forces a tenant to move with rent increases of 10 percent or more.
Since the law was first suggested by Commissioner Chloe Eudaly in February 2017, landlords have complained that it's led to property owners selling their rental units, thereby decreasing the amount of rental housing stock in the city. Tenant activists say the law has dramatically cut down on no-cause evictions. To date, there's been little hard data that backs up either assertion, but that didn't stop council from extolling the law.
"Today we are making a successful new program permanent," said Commissioner Nick Fish.
Fritz had a more measured tone. "I'm concerned that some landlords will raise rents by 9.9 percent every year or sell the unit or turn it into an Airbnb," she said. "I don't see any of those being in the best interest of renters." She added, though: "We know it has limited no-cause evictions. We know that is has been crucial for some people."
The bolstered law council passed today still includes loopholes, including a pass for landlords who want to move immediate family members into a unit, landlords who rent out the other half of a duplex that they also live in, and people who are renting their primary residences for three years or less.
Commissioner Dan Saltzman had proposed doing away with an exemption on affordable housing providers written into the law, but backed off today. Instead, he said he'd allow a narrow exemption for cases where low-income tenants' income changes enough to force them to pay more for a unit, or when the amount of their rent subsidized by the government increases.
The council didn't take up other concerns over the law, including a worry that landlords could simply jack up fees associated with a home, or eliminate certain "concessions" attached to the unit that effectively hike rents. In testimony on the law, tenant advocates had reported huge increases in utility payments, pet fees, or parking fees—none of which count as rents under the ordinance. Eudaly also voiced concern about the loophole for landlords moving in family members, which she said could be subject to abuse.
Wheeler, the city's housing commissioner, promised to bring those issues before the city's new Rental Services Commission, and report back to council with recommendations.
Wheeler also took a weird rhetorical stand at the hearing. When Fish suggested an amendment putting an emergency clause on the ordinance—which, again, made it go into effect immediately—Wheeler voted "no." The mayor said he'd heard concerns from the Portland Housing Bureau about how difficult it would be to implement the changes immediately.
Wheeler could have easily made that stance count by also voting against the ordinance itself—a 4-1 passage would have eliminated the emergency aspect. Instead he voted "yes."
"We are providing clear and definitive leadership," Wheeler said. "I certainly have a difference of opinion regarding the emergency clause. We're going to have to work very, very quickly to notify landlords of these changes."
While the new changes go into effect immediately, the renter relocation law isn't completely out of the woods. Landlords are currently challenging the law in the Oregon Court of Appeals.
Summary of City of Santa Cruz Temporary Emergency Ordinances:
Rent Control & Just Cause for Eviction
Effective period of Moratorium for both ordinances: February 13, 2018 through November 6, 2018; ----longer if the Measure M - The Santa Cruz Rent Control and Tenant Protections Act - passes.
The City has declined to enforce either of these ordinances. Tenants retain rights to sue in court.
****************
The City has declined to enforce either of these ordinances. Tenants retain rights to sue in court.
****************
Emergency Rent Control Moratorium Ordinance No. 2018-03
Maximum 2% rent increase per year allowed during moratorium. Time is measured from the previous rent increase.
If you recently received notice of a rent increase, an increase of over 2% is illegal if:
A property owner may petition the City Manager for a higher rent increase with justification for a fair, just and reasonable return on investment.
If you recently received notice of a rent increase, an increase of over 2% is illegal if:
- you received the notice after January 14 for a rent increase under 10% (30 day notice required), or
- you received the notice after December 15 for a rent increase of 10% or more (60 day notice required).
- the effective date of the increase is less than one year since your previous rent increase of 2% or more.
- Short-term rentals (less than 30 days) such as hotels, motels, AirBnB.
- Institutional housing such as hospitals, nursing homes, and school dormitories.
- Section 8 and other government subsidized housing.
- Condominiums and single family dwellings if no other housing unit is on the same parcel (Costa-Hawkins restriction on rent control).
- Units first occupied after Feb 1, 1995 (Costa-Hawkins restriction on rent control).
A property owner may petition the City Manager for a higher rent increase with justification for a fair, just and reasonable return on investment.
Emergency Just Cause for Eviction Temporary Ordinance No. 2018-04
Evictions limited to:
Exemptions for Just Cause for Eviction (but not exempted from Rent Control):
Landlord retains right to approve subtenants; may not refuse addition of tenant’s family members.
Landlord retaliation prohibited for tenant reporting violations.
Landlord must be in compliance with the ordinance to evict a tenant.
Landlord not obligated to pay relocation assistance under this emergency ordinance.
If you believe a violation of these ordinances has occurred, contact [email protected] or call (831) 222-0359.
- Non-payment of rent.
- Substantial breach of lease.
- Criminal activity on the premises.
- Failure to allow access.
- Necessary and substantial repairs requiring temporary vacancy.
- Owner move-in (protection for long-term, elderly, disabled, or terminally ill tenant).
- Permanent withdrawal of all units on a property from the rental market.
Exemptions for Just Cause for Eviction (but not exempted from Rent Control):
- Shared bath or kitchen with landlord in their primary residence.
- Duplex or ADU if landlord lives on the property.
- Landlord’s sole rental unit.
Landlord retains right to approve subtenants; may not refuse addition of tenant’s family members.
Landlord retaliation prohibited for tenant reporting violations.
Landlord must be in compliance with the ordinance to evict a tenant.
Landlord not obligated to pay relocation assistance under this emergency ordinance.
If you believe a violation of these ordinances has occurred, contact [email protected] or call (831) 222-0359.