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Cliff Hockley, CPM
President, Bluestone & Hockley Real Estate Services
The 73rd Oregon Legislative assembly came to a close this summer. Many bills affect landlords and I will try to give you a condensed view. I would advise interested readers to contact the Oregon Legislature’s bill room for a complete copy of the bills summarized below.
Applies to Commercial, Residential, Condominium
HB 2180 This bill eliminates annual elevator inspections and allows for the frequency and the standards of elevator inspection to be determined by administrative rule. It also allows the elevator Board to set fees that are similar to fees currently being charged for elevator inspections. Most importantly we have a new category of elevator service contractor who is certified by the state and can, by virtue of the certification, submit that an elevator is safe.
HB 2078 Construction Defects This bill creates a task force on construction claims to study the relationship between such claims and construction industry practices, construction defects, consumer protection and state-mandated requirements. Committee will report back to the 2007 Oregon legislature.
HB 2525 Construction Defects This bill gives a contractor an opportunity to remedy problems prior to the start of litigation. Contractors must supply the notice below to clients:
“Oregon Law contains important requirements you must follow before you may commence arbitration or a court action against any contractor, subcontractor or supplier for construction defects.
Before you commence arbitration or a court action you must deliver a written notice of an conditions you allege are defective to the contractor or supplier you believe is responsible for the alleged defect and provide the contractor, subcontractor or supplier the opportunity to make an offer to repair or pay for the defects.
You are not obligated to accept any offer made by the contractor, subcontractor or supplier. If you refuse an offer by the contractor, subcontractor or supplier to repair a defect, your refusal may affect your ability to obtain a remedy for that defect through arbitration or a court action.
There are strict deadlines and procedures under state law. Failure to meet those deadlines or follow those procedures will affect your ability to commence arbitration or court action.”
HB 2071 Construction Defects Allows the client of a contractor to initiate a proceeding to resolve a claim through binding arbitration substantially in conformance with ORS 36.600 to 36.740.
Applies to Mobile Home Parks
HB 2247 This bill requires a manufactured dwelling park or a floating home moorage to register with the Housing and Community Services Department. It requires that at least one owner, manager or person complete continuing education of at least six hours every two years relating to the management of the facility. Failure to register for this education may result in a $500 fine.
This law also defines the methods a landlord may deliver and bill for utility services to park or moorage tenants. This method will need to be defined in the rental agreement between the Landlord and the Tenant. A landlord may not charge a billing service charge to a tenant or any additional charge to offset landlord costs for the installation, maintenance or operation of a utility or service system or any profit for the landlord. The landlord may unilaterally amend a rental agreement to convert a tenant’s existing utility or service billing from their existing system to a sub-meter billing system, with no less than 180 days notice.
For a period of six months following installation of the sub-meter system, the Landlord may not increase the rent to offset the cost of installing a sub-meter system. The Landlord will have permission without further notice to read Tenant’s sub-meters.
Applies to: Residential:
HB 2303 Allows the State Building Codes Division to amend the structural and mechanical codes to keep inline with national alterations of the code.
HB 2524 Landlord Tenant Act Amendments
- Deposits held by landlords will not be subject to garnishment
- Landlords will be required to issue a written statement to applicants if they deny their rental application. Failure to comply will incur a $100 penalty that the Landlord will have to pay the tenant, this penalty will also apply if the landlord fails to tell the truth.( Chapter 31, ORS 90.295)
- Landlords will be exempted from the abandoned property rules if a property was used as a methamphetamine lab.
- Provides for an Ex Parte review of tenant hearing requests to ensure the requests are based on valid reasons previously defined by the law.
- Simplifies and modernizes the Writs of Execution
- A landlord may no longer deny a tenant’s application because they had an FED
- (eviction) on their record that was subsequently dismissed by their previous Landlord. ( Section 32)
The last item allows the landlord to issue a 30 day notice with a suggestion on how to cure an ongoing tenant problem. (i.e. playing the drums at 3 a.m. every night.) Took the Sherrif’s department out of the process of removing evicted tenants’ goods out of units. .(Section 37 ORS105.156)
HB 3319 Wage Payments for Onsite Employees Allows an employer to estimate the final wages of an onsite employee if that employee quits without turning in a time card and without giving 48 hours notice. This allows the employer to make a good faith payment and then amend the records within five days of submission of employee time records. (think onsite employees , managers , maintenance, painters etc.)
Applies to Commercial Buildings
HB 2458 Extends the sunset provision from the statute authorizing industrial development of buildings of any size and type on lands located in the Willamette Valley for land located outside of the Urban Growth Boundary.
Applies to Condominiums and Planned Community Boards
SB 955 Requires that the 30 year reserve study include repair and replacement of the common elements of associated property.Requires that the annual update of the reserve study be published and circulated to all owners in the association within 30 days after conducting the reserve study of the annual update.Requires that associations actually have an ongoing maintenance plan in place that is appropriate for the size and complexity of the property.
As you can see many issues were discussed in this last session. We also expect to see major revisions in how the Real Estate Agency is run. We additionally anticipate the Agency to set a standard list of penalties for those with real estate or property management licenses who do not comply with current administrative rules.
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