On February 2, 2017 the city council met to discuss Chloe Eudaly's proposed ordinance that would require landlords to pay a relocation fee to tenants if they asked the resident to move or if the rent was increased 10% or more and the resident decided to move due to the increase.
The ordinance did not consider using a means test so that renters who were well off would be excluded, instead the entire burden was shifted to the landlord.
There are a lot of unintended consequences that will go along with the passage of this ordinance. Below are a few examples.
- Small landlords who own plexes will sell.
- Rents that may have risen less than 9.99% or not at all will now rise regularly to help owners pay for the added cost.
- Communities will be trapped with problem tenants that the owner or there residents cannot prove are violating the lease or where the owner cannot afford the legal expense.
- Some investors will buy outside of Portland.
- Safety issues will increase as bad tenants will remain at the property longer if not indefinitely.
EXEMPT FROM THIS ORDINANCE
- Properties outside of Portland, Oregon.
- Small landlords who own 1 rental unit.
- Owners who rent their primary residence that plan to return in the next 3 years.
PENALTIES FOR FAILURE TO COMPLY
- Relocation fees plus 3X the rent.
If you would like to read the ordinance directly please visit the link below.
For a summary from Bittner & Hahs P.C. please see the link below