NOTE: REVISED MHCO FORM 49 HAS BEEN UPDATED AND UPLOADED TO THE FORMS SECTION
Month-to-Month Rent Increases for Oregon Manufactured Housing Tenancies in 2023
Under ORS 90.323, monthly rent increases are limited to 7% plus the September-to-September average change in the CPI, for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor in September of the prior calendar year (“the Cap”).[1]
Under ORS 90.600, To increase rent on a month-to-month tenancy, the Landlord must:
- Give 90-days’ advance written notice;
- Increases may not exceed the Cap.
- Note: For manufactured housing communities in the City of Portland, Ordinance 30.01.085 provides for the payment of Relocation Assistance for tenants when the rent increase is 10% or more.
The written notice must state:
- Amount of rent increase;
- Amount of the new rent (i.e., total of old rent plus increase);
- Facts supporting the Exemption,[2] if the increase is above the Cap; and
- The date on which the increase becomes effective.
Legal Definitions: (a) Current Rent is the existing monthly base rent exclusive of any other fees or charges payable by a resident under the rental agreement; (b) Rent Increase is the amount of increase over the prior year’s Current Rent; (c) New Rent is the Current Rent plus the Rent Increase. (d) Rent Cap is the maximum combined percentage increase over Current Rent that may be charged to a resident by a Rent Increase, unless exempted under Oregon Law.
A Rent Increase may always be less than the maximum Rent Cap but may not be more. A non-exempted Rent Increase that exceeds the Rent Cap would result in making the landlord liable to a resident in an amount equal to three months’ rent plus actual damages.
Calculating The Rent Cap: Unless exempted by ORS 90.323 (2020), a Rent Increase for any calendar year may not exceed the sum of: (a) Seven percent (7.00%) times the Current Rent (7% X Current Rent) plus (b) The percentage change in the consumer price index (“CPI”) times the Current Rent (% of CPI Change X Current Rent), hereinafter collectively referred to as the “Rent Cap”).
Consumer Price Index (“CPI”): Is the annual 12-month average change in the Consumer Price Index for All Urban Consumers, West Region (All Items), as published by the Bureau of Labor Statistics of the United States Department of Labor (“BLS”) in September of the prior calendar year.
2022 Rent Cap: According to the BLS, for calendar year 2022, the 12-month average change was 7.6%. This figure, combined with 7.00% equals 14.6%) which represents the upper level of a rent increase on a month-to-month tenancy absent an exemption.
Example: Assume Current Rent is $400 per month. The annual 12-month average change in the CPI for calendar year 2023, is 7.6%. Therefore, a Rent Increase notice effective on or after January 1, 2023 may not exceed the sum of (a) 7.00% X $400 ($28.00) plus (b) 7.6% X $400 ($30.40) = $58.40. Thus, commencing on January 1, 2023, the New Rent may not exceed $458.40 ($400+$28.00+$30.40)
Exclusion From Rent Cap Formula: The above Rent Cap calculation does not apply if the landlord is providing reduced rent to a resident as part of a federal, state or local program or subsidy.
Communities Located In City of Portland: If a Community is located within the City of Portland, a Rent Increase may not exceed 9.99%. A rent increase of 10.00% or more can result in a landlord having to pay the resident’s “relocation assistance” of thousands of dollars. If your community is located within the city limits of Portland, you should consult with your attorney before issuing a rent increase notice.
[1] The rent increase Cap does not apply to leases, i.e., fixed term tenancies.
[2] A landlord is not subject to the Cap for month-to-month tenancies in the following circumstances:
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- New Construction. (“The first certificate of occupancy for the dwelling unit was issued less than 15 years from the date of the notice of the rent increase”); or
- Federally Subsidized Rent. The landlord is providing reduced rent to the tenant as part of a federal, state or local program orsubsidy.
- Any increases above the Cap must set forth the facts supporting the exemption.
- Violation of the Cap without an exemption makes landlord liable for 3X the monthly rent, plus actual damages suffered bytenant.
