Two property management groups are suing Eugene over what they see as “arbitrary” minimum rent inspection fees that passed over the summer.
City officials adopted the $10 in July as part of the first installment of tenant protections that the City Council is considering in three phases.
Claim, which was proposed earlier this month, only addresses the minimum inspection fee. It does not apply to the other four defenses that were passed in the first phase.
FAQ:What Tenants, Landlords Should Know About Eugene Tenant Protection
In the lawsuit, Thorin Properties and Jennings Group argue that the cap on screening fees violates state law that allows landlords to charge applicant screening fees “sufficient to cover the cost of obtaining information about the applicant.”
Property management groups say they have told Eugene officials that it “typically costs four to five times more than the $10” to verify the applications.
➤ You can read the lawsuit at the bottom of the story.
Gary Fisher, deputy executive director of Multifamily NW, the state’s largest housing provider association and a strong proponent of the lawsuit, said the city cannot violate state law by requiring housing providers to charge less than the inspection cost.
“These regulations are essentially a tax on housing providers and will only increase housing costs across the city,” Fisher said in a statement.
Fisher added that housing providers feel left out as the city considers tenant protections and sees the legal system as “a last resort” after coming up with ideas and compromises and ignoring them.
A city spokeswoman said she could not comment on the lawsuit.
Councilors said the protection is long overdue as tenants face a tight market.
Four other defenses adopted at first instance, which the suit does not address, are:
- Support services: Creation of a rental housing reporter position funded by an increase in rental housing door fees from $10 to $20 per year.
- Shipping and removal documents: Landlords are required to document and photograph the condition of the property upon check-in and check-out and include this information when holding the security deposit.
- Rental history: Requiring landlords who receive a written request from a tenant to provide rental history twice a year, even if the tenant has not yet given notice that they intend to leave.
- Tenant’s educational background: Create educational materials on the rights and responsibilities of landlords and tenants during evictions or other termination of lease actions, which landlords must distribute in the lease agreement.
More protection is considered
The authorities are also considering further protection in two other phases.
The City Council voted 5-2 to allow staff to submit the draft ordinance for public hearing, which contains three safeguards in the second phase:
- Limit deposits to a maximum of twice the monthly rent: This limit applies to the total of the security deposit, cleaning deposit and any last month’s rent collection on the lease, staff said, but does not include any potential pet deposits.
- Landowners are required to process applications in the accepted manner: This first-come, first-served approach is designed to prevent discriminatory discrimination, officials said.
- Help to prevent immigration: This measure requires landlords to pay tenants when they evict them without cause or when they raise the rent by a specified amount and the tenant chooses to move out. One council proposal would set the amount to be paid at three times the market rent rate published by the U.S. Department of Housing and Urban Development. For 2023, it’s set at $1,349 for a two-bedroom home in the Eugene-Springfield area. The move approved a trigger for rent increases of 5% or more. The draft decree also includes the creation of a compensation fund for small landowners for landowners who earn less than 80% of the regional average income. That was $39,900 for an individual and $56,950 for a family of four in 2021.
The second stage is ahead:Limiting deposits, preventing displacement among tenant protection measures Eugene
Staff will bring the ordinance back for a public hearing. This is not planned yet.
Some councilors expressed interest in further work sessions on the second phase defense before the vote to incorporate feedback.
Officials also directed staff to adopt some strict enforcement measures to protect the month of July.
One is directly related to the defense of a contested claim, allowing anyone to file an immediate complaint when the inspection fee exceeds $10 and provide legal recourse for damages. Currently, people have to wait 48 hours.
Another requires homeowners to report leaks to help the city track them more accurately.
A third phase of potential protections will go to council early next year. These include banning medical and education loan reviews and limiting the use of credit scores in appraisals, reducing minimum gross monthly income, and preventing or prohibiting temporary evictions.
There is more information about the protection being considered and the process available eugene-or.gov/4885/Renter-Protections-Process.
Contact City Government Supervisor Megan Banta [email protected]. Follow her on Twitter @MeganBanta_1.
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