08/19/2021
SB 278 and 282 Summary for Landlords - June 2021
Executive Summary: Extends grace period for repayment of residential rent accrued during emergency period of April 1, 2020, to June 30, 2021, until February 28, 2022. Prohibits residential landlord from reporting nonpayment of rent accrued during emergency period to credit bureaus. Prohibits residential landlord from screening prospective tenants based on nonpayment of rent accrued during grace period. Allows certain defendants to set aside and seal judgments of evictions based on claims arising during grace period. Limits certain restrictions on residential tenant's guests. SB 282 sunsets on March 1, 2022.
SB 278 and 282 replacing and amending HB 4401
We begin by reviewing our terms. “Emergency period” is the period during which tenants do not have to pay rent. The EP began on April 1, 2020 and ends on June 30, 2021. The “nonpayment balance” is the amount of unpaid rent, charges, or fees accrued during the EP. “Grace period” is the period during which tenants must eventually pay the nonpayment balance. The GP now ends on February 28, 2022. (SB 282 drops entirely the requirement of the “notice of eviction protection” and the “declaration of financial hardship,” for the sake of terminating a tenancy, but SB 278 still requires the declaration if a landlord applies for rental assistance.)
What happens on July 1, 2021, with respect to rent? SB 278 § 2
(sunsets on February 28, 2022)
1. Tenants must pay July's rent or be at risk for a 10-day
nonpayment notice, subject to certain notice
requirements:
a. Additional language is required on the notice and any
FED summons and complaint: “Eviction for
nonpayment
of rent, charges and fees that accrued on and after
April 1, 2020, and before June 30, 2021, is not allowed
before February 28, 2022. Information regarding
tenant
resources is available at www.211info.org.”
b. A revised notice of eviction protection must be
enclosed with the 10-day notice, as well as attaching
that notice of eviction protection to any FED summons
or complaint. (While the declaration of financial
hardship has been eliminated for the sake of the
notice, it is still required for the landlord to apply for
rent assistance.)
2. If a tenant has provided documentation to the landlord
from a rent assistance provider verifying the submission of
an application for rental assistance, the landlord may not
give a nonpayment notice and may not file or continue an
FED. A tenant may supply this documentation (in any
written form) up to and including first appearance in an
FED. In that case, the court will postpone first appearance
for 60 days (90 days in Multnomah County).
a. If 60 days now pass (90 days in Multnomah County)
after the tenant gave such documentation, the
landlord may give a nonpayment notice without
having to include the notice of eviction protection
(because the tenant already knows). If a court has
postponed first appearance because the tenant
supplied documentation at first appearance, the court
will now set the matter for trial.
b. A court will dismiss an eviction complaint if it finds
that:
i. a landlord did not include a notice of eviction
protection with the nonpayment notice
ii. the landlord failed to reasonably participate in a
rental assistance program
iii. the landlord receives the rent specified on the
nonpayment notice (of course)
iv. a tenant supplied the required documentation
before the landlord filed the complaint
3. A nonpayment-balance reminder notice must change the
“can’t evict for that balance until” language to “can’t evict
for that balance until” February 28, 2022.
4. Landlords can now serve any termination notice without
cause under ORS 90.427. (HB 4401 allowed only no-cause
terminations with a landlord-qualifying reason under ORS
90.427(5).) However, for the sake of the first-year of
occupancy rule, if the first year would have expired between
April 1, 2020, and August 31, 2021, the first year ends on
August 31. This is the only substantive restraint on
terminating for no cause under ORS 90.427. Thus, in order
to terminate under ORS 90.427(3) or (4), the effective date
of the notice must fall no later than August 31, 2021, most
landlords will have to resort to a 90-day notice.
5. Landlords can apply to the Housing and Community
Services Department for 100 percent (not merely 80
percent) of tenants’ nonpayment balances. Landlords still
need tenants to sign a declaration in order for landlord to
apply. Tenants who have incomes at or below 80 percent of
AMI can apply to the Oregon Emergency Rental Assistance
Program and payments go directly to landlords in almost all
cases. This sunsets on March 1, 2023.
What is extended until March 1, 2022, with respect to rent?
1. The GP: Tenants have until March 1, 2022, to pay their
nonpayment balance. If they do not pay by then, they are at
risk for a nonpayment notice, being sued for EP rent, and
being referred to collections or reporting to a credit agency
for unpaid EP rent.
2. Enhanced statutory damages of three times rent if a
landlord retaliates (ORS 90.385). If a tenant has a
nonpayment balance, a landlord cannot consider a tenant
to be in default of rent under ORS 90.385 or ORS 90.390
(discrimination).
3. The changed order of payments under ORS 90.220(9) (first
dollar landlord receives goes to current month’s rent).
4. If a landlord accepts partial rent for either a tenant or a
guest (see below, “Non-Tenant Guests”), the landlord does
not waive their right to terminate under ORS 90.412(2)
(accepting rent with knowledge of violation) or ORS
90.417(4) (requirement of separate agreement for accepting
partial rent).
5. Revised notice of eviction protection must be enclosed with
the 10-day notice, as well as the FED summons and
complaint.
6. Ability of landlord to take EP accrued rent out of deposit,
but only after the tenancy terminates.
7. Finally, the statute of limitation of ORS 12.125, with respect
to claims by a landlord based on a tenant’s nonpayment or
nonpayment balance, is tolled until March 1, 2022.
What happens on March 1, 2022?
The tenant protection provisions of SB 278 and 282 are repealed, except for certain sections below. Nonpayment notices revert to 72 hours. A landlord may send nonpayment notice on March 1, 2022, if the tenant does not pay the nonpayment balance by February 28, 2022.
Tenant Reporting and Screening Amending ORS 90.303 (§ 8 )
A landlord may not report to any consumer credit reporting agency a tenant’s nonpayment balance.
Landlords considering a prospective tenant may not consider an FED general judgment entered against that prospective tenant for any claims that arose during the EP and the GP. Nor may landlords consider an applicant’s unpaid rent during the EP and the GP.
These amendments sunset on January 2, 2028. You heard that right—2028.
Eviction Judgment Expungement Statute (ORS 105.163) Amended (§ 9)
ORS 105.163 generally allows a tenant to have an eviction judgment set aside after five years and have the record sealed. SB 282 echoes that language of amended ORS 90.303: If the judgment was based on any claims for possession during the EP or GP, the tenant can have the judgment expunged.
These amendments sunset on January 2, 2028.
Non-Tenant Guests (§ 14)
During COVID-19, landlords terminated tenancies for guests overstaying a limit on the number of days tenants had agreed to in the rental agreement. SB 282 reduces that likelihood by generally opening up occupancy, subject to certain limits. A landlord can still write into the rental agreement a max occupancy, but there are limits to enforcing that max: (1) If there is a federal, state, or local max occupancy, the rental agreement cannot go below that max for tenants or guests. (2) Setting (1) to one side, a rental agreement cannot set a maximum-duration limit for a guest.
However, if the guest stays longer than 15 days in any 12-month period, a landlord may require the guest to satisfy the landlord’s screening criteria for tenants, except for financial criteria (because guests do not pay rent). A landlord may also require the tenant and guests to make a temporary occupancy agreement under ORS 90.275. But a landlord cannot require the end date of that agreement to be earlier than February 28, 2022.
A tenant is not entirely off the hook, however. A landlord may assess a fee or terminate the tenancy if guest misbehaves or violates the temporary occupancy agreement. This is consistent with termination for nonpayment now being available for landlords post-July 1. A guest may also pay “rent,” without making the guest a tenant.
These amendments sunset on March 1, 2022.
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Pete Meyers | Lawyer
Meyers Law, LLC
1000 SW Broadway, Suite 2300 | Portland, OR 97205 | 971.275.2994| Fax 503.961.8589
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