Question: Landlord sent a 10-day nonpayment of rent notice to a resident.  The night before filing the FED the landlord called the resident to remind them to pay - hoping to resolve it before filing and paying the filing fee.  Landlord did not hear back from the resident, so he filed the FED and paid the filing fee of $143.00.  Several days later the resident shows up at the park office and offers to pay the rent.  Landlord refused to accept the rent tender since the resident would not also pay the filing fee.  Can the landlord decline the rent tender after filing the FED if the resident refuses to pay the filing fee? What happens in court?

 

You may expect all residents to abide by the lease and community rules, and you may take action against anyone who fails to do so. Fair housing law bans discrimination against members of protected classes, but it doesn’t excuse residents from following the rules, regardless of their race or any other protected characteristic.

Don’t let your fear of a fair housing claim prevent you from applying your policies fairly and consistently. If action is required, don’t fail to act because you’re afraid the resident will file a fair housing complaint against you. Just talk to your attorney first to make sure that all of your community’s actions are documented and justified.

 

Focus on fairness and consistency when dealing with residents who break the rules. It’s unlawful to treat residents differently because of their race, color, religion, sex, familial status, national origin, disability—or any other characteristic protected under state or local fair housing law. That means you can’t single anyone out for breaking the rules because he—or his family members or guests—are members of a protected class.

 

Introduction. Effective July 6, 2023 Oregon Senate Bill 611 amended Oregon’s landlord-tenant Rent Cap law. Section 5 of the Bill applies to manufactured housing tenancies and essentially mirrors the non-manufactured home tenancy section. SB 611 was substantially similar to its predecessor law capped the maximum rent increase at 10%.  For the period October 1, 2024 through September 30, 2025, the maximum rent increase is capped at 10%.  This is the same as last year for the same period.

 

The Rent Cap does not apply if the certificate of occupancy of the dwelling is less than 15 years, or the property is on a state/local/federal affordable housing program.

 

The Calculation. Unless exempted (discussed below), a rent increase for any calendar year may notexceed the lesser of: (a) ten percent (10%) or (b) the sum of seven percent (7.00%) times the Current Rent(7% X Current Rent) plus the percentage change in the consumer price index (“CPI”) times the CurrentRent (the % of CPI Change X Current Rent), hereinafter collectively referred to as the “Rent Cap”).

 

Publication of Consumer Price Index (“CPI”): This is the annual 12-month average change in theConsumer Price Index for All Urban Consumers, West Region (All Items). It is published by the Bureauof Labor Statistics (“BLS”) at the end of September of each year. Landlords are to use the CPI numbers that are operational on the date when the rent increase notice is sent.

 

If a rent increase notice is sent out before the September 30, 2024 CPI numbers are out, landlords must use the current (pre-9/30/2024 CPI calculation). The maximum rent increase will always be between 7.00% and 10%.

 

Caveat:  Landlords in the City of Portland should note that the SB 611 statewide 10% rental cap does not appear to override the City of Portland’s Relocation Assistance Program requirements under  Portland City Code 30.01.085(c). Any rent increase of 10% or above, even if allowed under SB 611, will trigger a requirement that the landlord pay relocation assistance if their affected tenants request it. There are limited exemptions to Portland’s 10% increase rule. Landlords should consult with an attorney to inquire about exemptions before increasing City of Portland rents more than 9.9%.

 

MHCO Form 49 (90 Day Rent Increase Notice). We amended the form last year, so no new change is required.[1]  The 2023-2024 rent cap will be operational until Sept 30, 2024.[2]  However, the 2024-2025 Rent Cap of 10% is the same as 2023-2024 after SB 611 became effective.

Form 49 is the 90-day rent increase notice. If landlords wait until the new CPI numbers come out in late September 2024, the earliest the rent increase would go into effect 90 days hence, so essentially January, 2025.

Example. Assuming I issue a 90-day notice on October 1, 2024 using MHCO Form 49,  the Rent Cap would be 10% because the post-Sept. 30, 2024 CPI number is 3.2%, and 10% is less than 10.2% (7% + 3.2%). The earliest my rent increase would go into effect is December 30 (assuming manual delivery or attached and mail – if regular mail, add at least 3 calendar days).

Refresher on Oregon Rent Increases.

Here are points to remember on the entire rent increase issue for park owners:

1. No later than September 30th of each year, the Oregon Department of Administrative Serviceswill calculate and publish in a press release the maximum annual rent increase percentage for thefollowing calendar year as the lesser of:

1. Ten percent; or
2. Seven percent plus the September annual 12-month average change in the Consumer PriceIndex for All Urban Consumers, West Region (All Items), as most recently published bythe Bureau of Labor Statistics of the United States Department of Labor.

 

2. If a tenancy is a week-to-week tenancy, the landlord may not increase the rent withoutgiving the tenant written notice at least seven days prior to the effective date of the rent increase.

 

3. During any tenancy other than week-to-week, the landlord may not increase the rent:
   1. Without giving the tenant written notice at least 90 days prior to the effective date of therent increase.
   2. More than once in any 12-month period.
   3. By a percentage greater than the Cap.

4. The rent increase notice must specify:
   1. The amount of the rent increase;
   2. The amount of the new rent;
   3. Facts supporting the exemption, and
   4. The date on which the increase becomes effective.

 

5. A landlord terminating a tenancy with a 30-day notice without cause as authorized by ORS 90.427 (3) or (4) during the first year of a tenancy may not charge rent for the next tenancyin an amount greater than the maximum amount the landlord could have charged the terminated tenancy under this section.

 

6. A landlord is not subject to the above rent cap rules if:
   1. The first certificate of occupancy for the dwelling unit was issued less than 15 yearsfrom the date of the notice of the rent increase; or
   2. The dwelling unit is regulated or certified as affordable housing by a federal, state orlocal government and the change in rent:
   3. Does not increase the tenant’s portion of the rent; or
   4. The increase is required by program eligibility requirements or by a change in the tenant’sincome.

 

7. A landlord that increases rent in violation of is liable to the tenant in an amount equal tothree months’ rent plus actual damages suffered by the tenant.

 

8. Tenant Committees. Tenants who reside in a manufactured community may elect one committee of seven or fewer members in a facility-wide election to represent the tenants. One tenant of record for each rented space may vote in the election. Upon written request from thetenants’ committee, the landlord or a representative of the landlord shall meet with the committeewithin 10 to 30 days of the request to discuss the tenants’ non-rent concerns regarding the facility.Unless the parties agree otherwise, upon a request from the tenants’ committee, a landlord orrepresentative of the landlord shall meet with the tenants’ committee at least once, but not morethan twice, each calendar year. The meeting shall be held on the premises if the facility has suitable meeting space for that purpose, or at a location reasonably convenient to the tenants. After themeeting, the tenants’ committee shall send a written summary of the issues and concerns addressedat the meeting to the landlord. The landlord or the landlord’s representative shall make a good faith response in writing to the committee’s summary within 60 days. The tenants’ committee may be entitled to informal dispute resolution under ORS 90.769 if the landlord or landlord’s representative fails to meet with the tenants’ committee or fails to respond in a good faith to the written summary from the committee

 

[1] Note: Form 49 does not contain a place to insert the facts  supporting the  exemption if the certificate of occupancy is more than 15 years, or the property is on a state/local/federal affordable housing program. Neither does it require landlords to do the calculations under SB 611. It just contains a place to insert the new rent amount.

 

[2] Note: Form 49 (and the ORLTA) specify a 90-day minimum notice, not a maximum. You can give as much additional notice as you want. You can issue a notice now that increases rent on Jan 1, or you can wait until the new CPI numbers come out and issue a notice 90-day notice for January 2025. Just don’t forget maximum increase is 10% unless subject to an exemption.

 

 

 

MHCO Note:  Although the limit for 2025 will be set at 10%, housing providers should be aware that legislative action in 2025 could quickly change the limit formula downward.

 

|Published: Sep. 23, 2024, 'Oregonian'.

Oregon landlords are allowed to raise rents by up to 10% in many residences next year, state officials said on Monday.

Oregon passed its first-in-the-nation rent control law in 2019 in what supporters cast as a way to stabilize unregulated price increases. Lawmakers modified the law in 2023 to set a ceiling at the lesser of 7% plus inflation or 10%.

Since Oregon implemented rent control in 2019, the cap has equaled about 9% to 10%, according to the Department of Administrative Services, except in 2023 when it reached 14.6% for half the year amid blistering inflation.

That was a turning point for the statewide law, as renters’ rights groups expressed dismay and claimed the high allowable increases would cause more evictions.

Landlord representatives have said that property taxes and housing demand are generally more influential on their pricing decisions that the rent cap formula, and that most rent increases come in below the statutory maximum.

The rate reset to 10% in mid-2023 after lawmakers voted to install an upper limit. It held at 10% in 2024 and will be the same in 2025, as calculated by the stats’s Office of Economic Analysis, which by law must issue a rate by Sept. 30 annually.

The law doesn’t affect rentals built in the past 15 years. It only regulates older houses and apartments