We are taking this action for the following reasons (you may have to "cut and paste" the links below into your browser):
1. The 90 day notice provision is directly preempted by ORS 91.225.
2. The City Council has already stated its preference in legislative hearings to enact local rent control ordinances and would likely do more if it could overcome statutory preemption. Ironically, the City has only provided property owners 30 day notice of its new 90 day notice provisions for rent increases.
3. The 90 day rent control provisions are not accompanied with 90 day property tax or water and sewer rate control or controls over other property expenses.
4. Rent control is a slippery slope. It is horrible public policy. Most economists believe that rent control (a) inhibits new construction, (b) allows existing housing to deteriorate, (c) reduces property tax revenues, (d) reduces tenant mobility, (e) results in significant costs for entry into the market and (f) ultimately impacts the poor in very negative ways. We see this ordinance as the first step by the Portland City Council to attempt to pursue that slippery slope.
For those of you who are interested here are two articles on this developing story:
This is a developing story and we will keep you posted and the lawsuit moves forward.