City of Eugene Phase II Rental Regulations

The City of Eugene passed Ordinance Number 20694 amending various sections of the Eugene Code related to rental housing, effective August 25, 2023.

The changes to the law impacting rental housing in the City of Eugene are as follows:

Security Deposits

Housing providers may not collect a security deposit that exceeds an amount equal to two months’ rent for the dwelling unit.[1] 

However, additional security deposits may be required in an amount not to exceed one month’s rent, if agreed upon by the parties, for:

1. Pet deposits (not permitted for assistance animals);
2. If a housing provider agrees to enter into a rental agreement with a renter who otherwise would have been denied pursuant to lawful screening criteria; or
3. Other cause related to the security deposit modification. 

Renters must be allowed at least 3 months to pay the additional deposit. 

Applications

1. Advertising

If a Housing Provider advertises the availability of a dwelling unit, the notice must specify the date and time the Housing Provider will begin accepting rental applications, as well as an open application period.[2]

Advertisements must also inform applicants of the ability to request additional time to ensure that applicants have meaningful access to the rental application.  Housing Providers may provide their contact information and/or website address, internet link or other written method of communicating information to prospective renters.

2. Processing of Applicants

Housing providers must manually or digitally record the date and time of receipt of each application during an open application period.  If an application is received prior to the start of the open application period, the application must be digitally or manually recorded as being received 8 hours after the start of the open application period. 

Housing providers may simultaneously process multiple applications but must accept, conditionally accept, or deny applications in order of receipt.  Waitlists must be administered similarly, adding applicant names in order of receipt.

If an applicant requires additional time to ensure meaningful access[3] to a rental housing application, the applicant may submit a request for additional time to the Housing Provider, which must be date and time stamped upon receipt.  If the applicant submits an application within 24 hours from the time of submission of a request for additional time, the date and time of the request for additional time will serve as the date and time of the receipt of the rental housing application for purposes of determining the order in which applications are received.

Housing Providers must notify an applicant of their position in line for a particular dwelling unit upon request. 

Housing Providers must offer a tenancy to the first qualified applicant who provides a rental housing application.  If that offer is not accepted within 48 hours, the Housing Provider must review the next applications in order of receipt and make an offer of tenancy to the next qualified applicant who provided a rental application.  This process must be repeated until an applicant accepts an offer of tenancy.

Housing Providers may refuse to process applications that are:

1. Materially incomplete; [4]
2. Submitted by an applicant who has violated a rental agreement with the Housing Provider three or more times during the 12-month period preceding the date of the application and the Housing Provider can provide documentation of the violations. 

The Application provisions of the Ordinance are not applicable to:

1. Affordable housing[5];
2. Dwelling units occupied by the Housing Provider as their principal residence;
3. Units of middle housing when the Housing Provider’s principal residence is another unit of middle housing on the same lot or parcel;
4. Accessory Dwelling Units located on the same lot or parcel of the Housing Provider’s principal residence;
5. Dwelling units located on the same lot or parcel of an accessory dwelling unit occupied by the Housing Provider as their principal residence; 
6. Dwelling units shared with an existing renter who as a separate rental agreement for the dwelling unit; and/or
7. Dwelling units not advertised or rented to the general public.

Relocation Assistance

1. Notices of Termination Without Cause – Month-to-Month Tenancies

Housing Providers terminating month-to-month tenancies without cause (permissible under state law only during the first year of occupancy) are required to:

Deliver the written notice of termination to each affected Renter[6] at least 90 days before the termination date designated in the notice; and

1. Specify in the notice the amount of relocation assistance to which the Renter is eligible and give a description of the Renter’s rights and obligations under the relocation ordinance.

Not less than 45 days prior to the termination date in the notice, the Housing Provider must pay relocation assistance in an amount equal to two months’ rent for the dwelling unit. The amount applies per dwelling unit and not per each, individual renter.

Renters who remain in the dwelling unit after the termination date in the notice must immediately repay the Housing Provider the relocation assistance. 

2. Notices of Termination – Qualifying Landlord Reason

Housing Providers terminating tenancies using a Qualifying Landlord Reason are required to:

1. Deliver the written notice of termination to each affected Renter[7] at least 90 days before the termination date designated in the notice; and
2. Specify in the notice the amount of relocation assistance to which the Renter is eligible and give a description of the Renter’s rights and obligations under the relocation ordinance.

Not less than 45 days prior to the termination date in the notice, the Housing Provider must pay relocation assistance in an amount equal to two months’ rent for the dwelling unit. [8] The amount applies per dwelling unit and not per each, individual renter.

Renters who remain in the dwelling unit after the termination date in the notice must immediately repay the Housing Provider the relocation assistance. 

3. Notices of Termination Without Cause – Fixed Term Tenancies

Unless an exemption applies, Housing Providers terminating fixed term tenancies without cause (permissible under state law only during the first year of occupancy) are required to:

1. Deliver the written notice of termination to each Renter at least 90 days before the termination date designated in the notice; and
2. Specify in the notice the following language: “For a tenant to be eligible to receive relocation assistance the tenant must, at least 60 days prior to the specified ending date of the fixed term rental agreement, provide the landlord with written notice of the tenant’s desire to renew the fixed term rental agreement.”

If a Renter provides written notice that they wish to renew the fixed term rental agreement within 30 days of receipt of the notice, the Housing Provider must either:

1. 1. Provide the Renter written notice that the Housing Provider declines to renew the fixed term rental agreement and pay the relocation assistance in an amount equal to two months’ rent; or
   2. Provide the Renter written notice that the Housing Provider agrees to renew the fixed term rental agreement with substantially the same terms.[9]

Renters who remain in the dwelling unit after the termination date in the notice must immediately repay the Housing Provider the relocation assistance. 

4. Rent Increases 

Unless an exemption applies, Housing Providers intending to increase rent by the maximum amount permitted by state law (10% for 2023) must deliver a notice of rent increase to each affected Renter[10] at least 90 days before the date of the rent increase designated in the notice including the following:

1. The amount of new rent, the dollar amount of the increase and the effective date as required by state law, but also the percentage of the increase; and
2. Description of the Renter’s rights and obligations under the relocation ordinance.

Renters who receive a notice of rent increase for the maximum amount allowed under state law, within 30 days of the date of the notice, may request in writing relocation assistance from the Landlord.  If requested by the Renter, the Housing Provider must pay the relocation assistance in an amount equal to two months’ rent at least 45 days prior to the date of the rent increase notice.  This gives Housing Providers a minimum of 15 days to pay the Renter.  The amount of relocation under this provision of the ordinance applies per dwelling unit, not per tenant.

Renters receiving relocation assistance, must, within 45 days of receipt of the relocation assistance, either:

1. Provide the Housing Provider with written notice of termination of the rental agreement and vacate the dwelling unit; or
2. Repay the relocation assistance to the Housing Provider and remain in the unit paying the new rent increase notice amount.

Renters may only receive relocation assistance for rent increases once per tenancy.

These additional requirements do not apply if the Housing Provider rent increase is less than the maximum annual rent increase percentage as set forth by ORS 90.394 (currently 10% for 2023).[11]

Reporting Requirements 

Within 60 days of payment of relocation assistance, Housing Providers must report the payment to the City.[12]

Exemptions from Relocation Assistance 

The following are exempt from relocation assistance requirements in the Ordinance: [13]

1. Week to week tenancies;
2. Occupancy of the same dwelling unit by Housing Provider and Renter where the Housing Provider occupies the dwelling unit as their principal residence for at least 6 months prior to one of the relocation assistance eligible events described above;
3. Renters that occupy one unit of middle housing when the Housing Provider’s principal residence is another unit of middle housing on the same lot or parcel and the Housing Provider occupies the unit of middle housing as their principal residence for at least 6 months prior to one of the relocation assistance eligible events described above;
4. Renters that occupy an accessory dwelling unit and the Housing Provider’s principal residence is located on the same lot or parcel or vice versa as their principal residence for at least 6 months prior to one of the relocation assistance eligible events described above;
5. Housing Providers temporarily renting out their principal residence during the Housing Provider’s absence of not more than 3 years and the Housing Provider returns and reoccupies the dwelling unit as their principal residence;
6. Housing Providers temporarily renting out their principal residence during the Housing Provider’s absence due to active-duty military service and the Housing Provider returns and reoccupies the dwelling unit as their principal residence;
7. Units of affordable housing;
8. Dwelling units subject to and in compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970;
9. Dwelling units rendered immediately uninhabitable not due to the action or inaction of a Housing Provider or Renter;
10. Dwelling unit rented for a period of less than 6 months with appropriate verification of the submission of a demolition permit prior to the execution of the rental agreement; and/or;
11. Dwelling units subject to a fixed term tenancy where the Housing Provider’s intent to sell or permanently convert the dwelling unit to a use other than as a dwelling unit is a term of the executed rental agreement.

Reporting Requirements

Housing Providers (except for week-to-week tenancies) must report to the City all of the following within 30 days of the applicable action:

1. Written notices of termination of a rental agreement that result in a termination of tenancy, including a copy of the termination notice;
2. Notice of renters who vacate a dwelling unit on or before the date indicated in a written termination notice delivered by the Housing Provider, including a copy of the termination notice; and/or
3. Legal action taken by a Housing Provider to remove a Renter from a dwelling Unit that results in a termination of tenancy.

City Manager May Adopt Administrative Rules

The city manager may adopt administrative rules that interpret and implement these new regulations, including but not limited to mandatory forms and reporting procedures. It is highly recommend that you monitor the City website for new administrative rules.

Enforcement and Penalties

Under the ordinance, a housing provider that violates the relocation assistance provisions of the new code is liable to an individual eligible for relocation assistance in an amount equal to three months' rent for the dwelling unit as well as actual damages, relocation assistance, and reasonable attorney fees and costs.

In addition, the city manager may issue an administrative penalty, file an action in municipal court, or both for violations of the code relating to security deposits and screening rules.

As stated above, City of Eugene Ordinance Number 20694 is effective August 25, 2023. Multifamily NW will be developing training on these new City of Eugene regulations as well as updating the Forms Collection for compliance with the Ordinance. Stay tuned for more information. 

This article is not intended as legal advice. Please obtain advice of an attorney for any policy changes or decisions regarding residential Landlord-Tenant matters.