RENT CONTROL 1. Rent control is statewide. 2. Rents may not be increased in the first year of a tenancy. 3. Rents are limited to increase to 7% plus CPI during any 12-month period. a. The CPI is published by the U.S. Bureau of Labor b. The Oregon Department of Administrative Services will release a CPI by September 30th of each year that may be used during the following year for rent increases. c. The 2019 CPI is 3.3%, and the rent cap is 10.3% d. There is no limit on rent increases after a tenant vacates unless the prior tenancy was terminated without cause, in which case the next tenant’s rent may not exceed 7% plus CPI of the prior tenant’s rent. i. Exceptions: 1. No limit on increases within 15 years of the first certificate of occupancy for the unit. a. Rent increase notices relying on this exemption must describe facts supporting the exemption. b. Example: First certificate of occupancy issued on January 2, 2014. 2. The owner provides reduced rent to tenant as part of a federal, state or local program or subsidy. a. Rent increase notices relying on this exemption must describe facts supporting the exemption. i. Example: Landlord provides reduced rent as part of the LIHTC federal program. ii. Penalties: 1. The liability for raising rents above the limits are: a. Three-month rent penalty; b. Actual damages; c. Potential attorney fees d. Defense to eviction action for nonpayment Rent Control: Frequently Asked Questions Q. Does SB 608 preempt Portland’s relocation fee law? A. Not explicitly. Just recently, the issue became complicated by the fact that two Multnomah County judges have ruled on opposite sides of the Portland relocation fee requirement, with one stating it is de facto rent control. These fees will need to be decided on a case-by-case, judge-by-judge basis until the Oregon Court of Appeals rules later this year. Q. Are the rent increase notices I already sent affected by the new law? A. Not if they were delivered before February 28, 2019. Q. Does SB 608 limit increases on anything other than rent? A. No.