New Portland Ordinance!

4 Replies

The Portland City council voted Thursday afternoon (2/2/17) on an addition to the housing state of emergency ordinance passed in 2015. Ordinance states that if a tenant decides to move after being given a rent increase over 10% in a year that landlord is required to pay pre-set (thousands) moving costs. This is in addition to the requirement of a 90 day notice for rent increases over 5%. The landlord will also have to pay, within 14 days, the same moving costs if the tenant has been issued a 90 day no-cause. This is apparently retro active meaning those like myself that have a 90 day no-cause or 10%+ rent increase pending are on the hook for the move out costs even though the notices were issued before the ordinance was voted in... 

Anyone here have any more info on this? My lawyer is researching the ordinance and I know there have been several threats of litigation to block it, but I haven't heard anything concrete as of yet. Any info anyone here has would be greatly appreciated.

Link to ordinance as proposed

My biggest concern is the same no cause eviction + moving fee would also be applied to the End of the Lease if the landlord doesn't offer a chance for renewal. Issue 10-99 for the moving cost to the tenant would be a good way to avoid the landlord getting abused. Here are the reasons.

One, the additional income will negatively affect the low income tenant who lives on welfares including food stamp, earn income credit and obama care etc. 

Second, the moving fee as a income to the tenant is taxable. 10% - 30% will go back to State and Fed and this is nothing the Commissioners can intervene. 

This new ordinance the City approved is 100% poison pill to the low income tenant. To the landlord, the moving fee is 100% tax deductible and can be carry over to years. At the end of the day, paying less tax means putting more equity back to the landlord's pocket. It might hurt the cash flow up front but the cash you pay out will be your tax credit. 

Updated almost 3 years ago

This Ordinance is well-calculated in a way that City saves welfare expenses by disqualifying or reducing the benefits giving to the low income family with their $4500 additional income. The tax which both IRS and Oregon State Revenue will be imposing on the moving fee will kick back to the City of Portland eventually to next year budget of 2018. Two goals the City of Portland wanted to achieve here and they done it. One, from the PR standpoint, City cover their failure on the affordable housing policy by pointing finger to the small landlords. Two, taxing both small property owners and the low income family via the moving fee ordinance and the 10-99 to create more revenue for the City.

Just started studying for my Washington RE License  and leases came up.  By definition a lease for specific time period is called an estate for years:

Definition: In real estate, one type of leasehold estate is the estate for years, or estate for term.

In this type of lease, there is a defined specific beginning date and an ending date for a specific term. This means that no notice to vacate is required, as the ending date of the lease is when the tenant should vacate the property.

The lease cannot be terminated before expiration unless both parties agree.

The question that came up in review was can a landlord give notice of not renewing a lease a move someone else in after giving notice of not renewing the lease.  That answer was true.   

The prupose of a lease is that it has an end date with no further obligation from either party.

Seems like making a landlord renew a lease is illegal.

The rights and obligations of the owner or landlord and the tenant are spelled out in the lease.

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