74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2673
A-Engrossed
House Bill 3186
Ordered by the House May 11
Including House Amendments dated May 11
Sponsored by Representative SHIELDS; Representative KOTEK (at the
request of Community Alliance of Tenants)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Expands required contents for notice of condominium conversion.
Requires declarant to send copy of notice and other information
to certain officials or public bodies. Makes notice ineffective
for starting 120-day period if notice does not contain required
information or if officials or public bodies are not notified.
Prohibits landlord from evicting tenant without stated cause or
imposing excessive rent increases after declarant gives 120-day
notice of conversion. Allows action to recover damages for
violation. { - Creates presumption that eviction without stated
cause or excessive rent increase during 180 days before giving of
notice of conversion was for improper purpose. - }
{ + Prohibits landlord from using eviction or rent increase
prior to notice of conversion to avoid or assist in avoiding
requirements. + } Allows action for resulting damages.
{ - Requires declarant to make relocation payment to tenant
after giving notice of conversion. Allows down payment on
purchase of unit in lieu of relocation payment. - }
Limits hours for improvement or rehabilitation of common
elements during 120-day notice period. Requires declarant to
allow tenants access to and { - use of common elements during
120-day notice period - } { + from dwelling unit during common
element improvement or rehabilitation + }. Allows action for
violation of hours restriction or access and use requirements.
A BILL FOR AN ACT
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 Oregon:
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.
(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 5
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 Oregon is a matter of statewide
concern.
(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. + }
----------