Chapter 705
AN ACT
HB 3186
Relating to conversion condominiums; creating new provisions; and
amending ORS 91.225, 100.305 and 100.315.
Be It Enacted by the People of
the State of
SECTION 1. ORS 100.305 is amended to read:
100.305. (1) A declarant
of a conversion condominium shall give each of the existing tenants of any
building which the declarant intends to submit to the provisions of this
chapter notice of the conversion at least 120 days before the conversion
condominium is submitted to the provisions of this chapter. Thereafter, until
the property is submitted to the provisions of this chapter, the declarant
shall provide a copy of such notice to any new tenant before the commencement
of the tenancy. The notice of conversion shall:
(a) State that the
declarant intends to create a conversion condominium and include general
information relating to the nature of condominium ownership[;].
(b) State that the
notice does not constitute a notice to terminate the tenancy[;].
(c) State whether there
will be a substantial alteration of the physical layout of the unit[;].
(d) State whether the
declarant intends to offer the unit for sale and, if so:
(A) Set forth the rights
of the tenant under ORS 100.310 (1) to (3), including the time available for
the declarant to make an offer to sell and for the tenant to respond;
(B) Set forth a good
faith estimate of the approximate price range for which the unit will be
offered for sale to the tenant under ORS 100.310 (1) and (2); [and]
(C) Set forth a good
faith estimate of the monthly operational, maintenance and any other common
expenses or assessments appertaining to the unit; [and]
(D) State that
financial assistance for purchasing the unit may be available from a local
governing body, the Housing and Community Services Department or a regional
housing center;
(E) Give contact
information for the local regional housing center or, if no regional housing
center exists, for the Housing and Community Services Department; and
(F) State that the
landlord may not terminate the tenancy without cause if the termination would
take effect before the end of the 120-day period described in this subsection
or the 60-day period described in ORS 100.310.
(e) Include information
in substantially the following form:
____________________________________________________________________________
NOTICE OF RENT INCREASE RESTRICTIONS
During the 120 days
following the receipt of this notice, your landlord may increase your rent only
as follows:
If your rental agreement
says that your rent will increase on a particular date and by a definite
amount, the landlord may increase the rent as provided in your rental
agreement.
If your rental agreement
allows rent increases but does not say that your rent will increase
on a particular date and by a definite amount, the landlord may not increase
your rent by a percentage that is more than the percentage increase in the
general cost of living. An increase in the general cost of living is measured
by the percentage increase in the Portland-Salem Consumer Price Index for All
Urban Consumers for All Items as reported by the United States Bureau of Labor
Statistics.
____________________________________________________________________________
[(e)] (f) Be hand delivered to the
dwelling unit of the tenant or sent to the tenant at the address of the
dwelling unit by certified mail, return receipt requested.
(2) A notice of
conversion given under subsection (1) of this section [shall]:
(a) Shall be for
the sole purpose of providing the tenant with general information regarding the
anticipated cost of acquisition of the unit and estimated monthly expenses.
(b) Does not
obligate the declarant to submit the property to the provisions of this
chapter.
(c) Does not
constitute an offer to sell the unit to the tenant or an offer to sell at a
particular price.
(d)
Is not [be] a limitation on
monthly common expenses or assessments.
(3) The notice of
conversion given under subsection (1) of this section must be delivered to the tenant
at least 30 days prior to the presentation of an offer to sell under ORS
100.310 (1) and (2).
(4) The declarant
shall send a copy of the notice of conversion to the mayor of the city in which
the conversion condominium is located or, if the conversion condominium is not
located in a city, to the county commission or county court.
(5) A notice of
conversion that does not contain the information required by subsection (1)(a)
to (e) of this section, or that is not sent to the mayor, county commission or
county court as required by subsection (4) of this section, does not begin the
120-day period required by subsection (1) of this section. Notwithstanding any
prior delivery of a deficient notice of conversion, the 120-day period required
by subsection (1) of this section does not begin until the date a valid notice
is delivered. A tenant, mayor, county commission or county court entitled to
notice may bring an action for injunctive relief to prevent the conversion
until the declarant has complied with the notice requirement.
[(4)] (6) The declaration may be recorded prior to the end of
the 120-day period required under subsection (1) of this section with the
written consent of all tenants who received the notice of conversion less than
120 days before the date of such consent.
[(5)] (7) The requirement under subsection (1) of this
section to provide a copy of the notice of conversion to new tenants shall not
extend the 120-day period nor shall such tenant’s consent be required to record
the declaration prior to the end of the 120-day period as provided for under
subsection [(4)] (6) of this
section.
[(6)] (8) A notice of conversion [shall] does not constitute a notice
to terminate the tenancy.
SECTION 2. ORS 100.315 is amended to read:
100.315. (1) The
declarant [shall] may not
begin improvements or rehabilitation or cause improvements or rehabilitation to
be undertaken in a conversion condominium unit without the tenant’s permission
during the 120-day notice period prescribed by ORS 100.305 (1).
(2) The declarant may
begin improvements or rehabilitation or cause improvements or rehabilitation to
be undertaken in the general common elements during the 120-day notice
period. Improvements to or rehabilitation of general common elements
may be conducted only between the hours of 8 a.m. and 7 p.m. Unless the
declarant and tenant agree otherwise, the declarant must allow each tenant safe
and ready ingress to and egress from the tenant’s dwelling unit during the
improvement or rehabilitation work.
(3) A tenant may bring
an action against a declarant that violates subsection (2) of this section to
recover the greater of actual damages or the equivalent of one month’s dwelling
unit rent.
SECTION 3. ORS 91.225 is amended to read:
91.225. (1) The
Legislative Assembly finds that there is a social and economic need to insure
an adequate supply of affordable housing for Oregonians. The Legislative
Assembly also finds that the imposition of general restrictions on housing
rents will disrupt an orderly housing market, increase deferred maintenance of
existing housing stock, lead to abandonment of existing rental units and create
a property tax shift from rental-owned to owner-occupied housing. Therefore,
the Legislative Assembly declares that the imposition of rent control on
housing in the State of
(2) Except as provided
in subsections (3) to (5) of this section, a city or county shall not enact any
ordinance or resolution which controls the rent that may be charged for the rental
of any dwelling unit.
(3) This section does
not impair the right of any state agency, city, county or urban renewal agency
as defined by ORS 457.035 to reserve to itself the right to approve rent
increases, establish base rents or establish limitations on rents on any
residential property for which it has entered into a contract under which
certain benefits are applied to the property for the expressed purpose of
providing reduced rents for low income tenants. Such benefits include, but are
not limited to, property tax exemptions, long-term financing, rent subsidies,
code enforcement procedures and zoning density bonuses.
(4) Cities and counties
are not prohibited from including in condominium conversion ordinances a
requirement that, during the notification period specified in ORS 100.305, the
owner or developer may not raise the rents of any affected tenant except [in a proportional amount equal to the
percentage increase in the All Items Portland Consumer Price Index since the
date of the last rent increase for the dwelling unit then occupied by the
affected tenant] by an amount established by ordinance that does not
exceed the limit imposed by section 5 of this 2007 Act.
(5) Cities, counties and
state agencies may impose temporary rent controls when a natural or man-made
disaster that materially eliminates a significant portion of the rental housing
supply occurs, but must remove the controls when the rental housing supply is
restored to substantially normal levels.
(6) As used in this
section, “dwelling unit” and “rent” have the meaning given those terms in ORS
90.100.
(7) This section is
applicable throughout this state and in all cities and counties therein. The
electors or the governing body of a city or county shall not enact, and the
governing body shall not enforce, any ordinance, resolution or other regulation
that is inconsistent with this section.
SECTION 4. Sections 5 and 6 of this 2007 Act are added
to and made a part of ORS chapter 90.
SECTION 5. (1) The landlord of a building for which a
declarant of a conversion condominium has issued the tenant a notice of
conversion under ORS 100.305 may not:
(a) Give the tenant a
30-day notice without stated cause that causes the tenancy to terminate on a
date that is prior to the end of the 120-day period described in ORS 100.305 or
the 60-day period described in ORS 100.310; or
(b) Increase the rent
for the dwelling unit in excess of:
(A) Any scheduled
increase provided for in a written rental agreement; or
(B) A percentage equal
to the percentage increase in the Portland-Salem Consumer Price Index for All
Urban Consumers for All Items as reported by the United States Bureau of Labor
Statistics.
(2) A tenant may bring
an action against a landlord that violates subsection (1) of this section to
recover the greater of:
(a) Six times the
monthly rent for the dwelling unit; or
(b) Twice the actual
damages to the tenant arising out of the termination.
SECTION 6. (1) A tenant may bring an action against a
building landlord if for the purpose of avoiding, or assisting a declarant of a
conversion condominium in avoiding, the requirements under ORS 100.305 to
100.320:
(a) Within one year
before the declarant records the declaration under ORS 100.100, the landlord
gives a tenant a 30-day notice without stated cause; or
(b) Within one year
before the declarant records the declaration under ORS 100.100, the landlord
increases the rent in excess of the percentage increase in the Portland-Salem
Consumer Price Index for All Urban Consumers for All Items as reported by the
United States Bureau of Labor Statistics.
(2) If a court finds
that a landlord has taken an action described in subsection (1) of this section
for the purpose of avoiding, or assisting a declarant of a conversion
condominium in avoiding, the requirements under ORS 100.305 to 100.320, the
court may award the tenant the greater of:
(a) Six times the
monthly rent for the dwelling unit; or
(b) Twice the actual
damages to the tenant arising out of the termination or rent increase.
(3) The time allowed
under ORS 12.125 to commence an action under this section begins on the date
the declarant records the declaration under ORS 100.100.
SECTION 7. (1) Section 5 of this 2007 Act applies to
rental agreement terminations and rent increases occurring on or after the
effective date of this 2007 Act.
(2) Section 6 of this
2007 Act applies to eviction notices served, and rent increases imposed, on or
after the effective date of this 2007 Act.
(3) The amendments to
ORS 100.315 by section 2 of this 2007 Act apply to improvement or
rehabilitation work on general common elements performed on or after the
effective date of this 2007 Act.
(4) The amendments to
ORS 100.305 by section 1 of this 2007 Act apply to notices of conversion given
to tenants on or after the effective date of this 2007 Act.
Approved by the Governor June 28, 2007
Filed in the office of Secretary of State July 2, 2007
Effective date January 1, 2008
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