Oregon Senate panel advances rent control bill

(Update: Committee holds hearing, sends bill to full Senate)

There’s a new proposed bill in Oregon that could impact your rent, and it made it past a state Senate committee after a hearing on Monday.

If passed, Senate Bill 608 would be the first statewide rent control law in the country.

It would cap rent increases at 7 percent above the cost of living, or at the current CPI about 10 percent a year. It would also ban no-cause evictions for tenants that have lived in their rental for at least a year and allow landlords with four or fewer units to avoid paying relocation fees after evicting a tenant.

On Monday, state lawmakers held their first committee meeting to discuss the bill.

NewsChannel 21 asked what kind of impact this bill would have on landlords in Central Oregon.

“Now, maybe a landlord would only raise it 50 bucks a year, or something like that,” said Melody Luelling, president of the Central Oregon Renters Association. “But they’ll be afraid to get behind the 8-ball on their rents, so they’re going to make sure that they raise that rent every year that they can, the maximum amount that they can. I don’t think it’s going to be a benefit for the tenants, either.”

Our new KTVZ.COM Poll asks i f you would be in favor of such a bill. If the bill passes, Leulling said it might have the reverse effect of what it is intended for.

“They’re trying to create more housing and keep spikes, rental spikes from going up with the high $400 or $500 spike rent increases,” Luelling said. “In actuality, it’s probably going to cause landlords to sell their properties.”

The legislation was passed out of the Senate Committee on Housing on Monday with a “do pass recommendation” to the full Senate.

Numerous Oregonians from various parts of the state provided oral or written testimony on the legislation, Senate Democrats said in a news release. The bill now will go to the full Senate for a vote.

“Today, working hard is no guarantee that you will be able to put a roof over your head – let alone a healthy and stable one,” Habitat for Humanity of Oregon Executive Director Shannon Vilhauer said in written testimony. “We believe Oregon is better than that. Every Oregonian should be able to find a decent and affordable place to live. Diligent renters deserve the opportunity to plant roots in their local communities. Every child benefits when classrooms stabilize.”

According to a news release from the group Stable Homes for Oregon Families, the panel heard hours of testimony from renters, landlords, advocates, teachers, nurses, and others in favor of the bill. Among those testifying in favor were Senate President Peter Courtney and House Speaker Tina Kotek, who are jointly sponsoring the bill that has already been endorsed by Gov. Kate Brown.

“When you have 22,000 kids who experienced homelessness last year, we have to take action now to protect families. SB 608 is a reasonable approach that prevents both economic and no cause evictions and I look forward to giving Oregon renting families peace of mind for the first time,” Kotek said.

Katrina Holland, executive director of the Community Alliance of Tenants, spoke about how anxious tenants are for even basic statewide protections.

“Displacement due to rent spikes and no cause evictions are happening in every part of our state and SB 608 is essential statewide protection for every tenant in Oregon,” says Holland. “This is critical not only for people who rent their homes but for local communities.”

The group backing the bill said the hearing shed light on an an important development that bodes well for the bill: two influential landlord groups: the Oregon Rental Housing Association and the Rental Housing Alliance, testified that they were neutral on the bill.