The 2007 Legislative session is over and it was a roller coaster. Approximately 3000 bills were introduced in the house and senate. Of that number, roughly 1000 bills passed. The IREM and BOMA legislative committee with help from lobbyist Bill Cross paid close attention to over 200 bills that directly affected our industry.

We have listed the bills we think are relevant and will have an impact on day to day management of property.

Bills to note include:

House Bill 262 -- regarding installation of outdoor lighting fixtures -- this bill has no real impact but encourages a study of lighting systems that will be environmentally friendly and will light downward and not light up the night skies. This is part of a larger effort to reduce "light pollution" in urban areas. A study is to be presented to the governor in October of 2008 to help guide us.

House Bill 2665 and House Bill 2666 re: condominiums and HOA's --

a. House Bill 2665 supplements the Planned Community Act and the Condominium Act. It states that if a homeowners association fails to fill vacancies on their board (thereby preventing it from constituting a voting quorum) an owner or a lender may request the circuit court to appoint a receiver to manage the affairs of the association. The salary of the receiver would be paid by the association.

This bill also simplifies the administrative process so if a meeting cannot be organized because of a lack of a quorum of owners, the meeting may be adjourned and set over to a new day at which time a reduced quorum would be required.

b. The bill also allows the association to adopt a resolution regarding insurance deductibles if the declaration or bylaws do not specifically address this issue.

c. The bill also allows for communications to be accomplished by email, including votes, unless an owner or an officer declines see language below:

(2) Notwithstanding subsection (1) of this section, electronic mail, facsimile or other form of electronic communication may not be used to give notice of:

    a. Failure to pay an assessment;

    b. Foreclosure of an association lien under ORS 94.709; or

An action the association may take against an owner.

(3) An owner or director may decline to receive notice by electronic mail, facsimile or other form of electronic communication and may direct the board of directors to provide notice in the manner required under the declaration or bylaws or ORS 94.550 to 94.783.

d.A maintenance plan shall be developed and regularly reviewed. This plan must be adhered to and funds identified in the reserve study must be put aside for these repairs.

House Bill 2666 -- Also amends the condo and community acts. The revisions in this bill are technical in nature and will no doubt be enjoyed by attorneys.

House Bill 3186 tightens condo conversion requirements:

  1. The landlord may not cancel a tenant's residency using a no cause notice if the termination would take effect before the end of a 120 day period or if the landlord decides to sell the property to the tenant.

  2. In addition, the landlord will be limited in the amount of rent increases by existing contractual agreements with tenants or by the increase in the Portland-Salem Consumer Price Index. Penalties that may apply include, among others, six times the actual rent of the unit involved or two times the actual damages to the tenant.

  3. The 120 period ties into a notice to the Mayor, the county commission and to the county court (lets not forget the registration process that needs to be coordinated with the real estate agency as well).

  4. Improvements to the building may only be conducted between 8 a.m. and 7 p.m. unless the tenants and the landlord agree otherwise. The developer must allow "safe and ready" access into each tenant's dwelling unit at all times.

  5. A tenant may bring action against the declarant that violates the rights of the tenants in respect to rehabilitation of the property. The tenants will be able to recover actual damages or the equivalent or one month's rent.

  6. Buried Danger. If a landlord has the intention of converting the property into a condominium for up to one year before the declarant files a conversion declaration, the landlord may not give a no cause 30 day notice to a tenant. If a landlord intentionally coordinates with a developer and tries to avoid this act, the court can award damages of up to 6 times the monthly rent for the dwelling unit or two times the actual damages.

Senate Bill 543

Allows a bank selected by the HOA to operate in Oregon without having a physical location in Oregon. This bill was specifically introduced at the request of Community Association Bank (based in Arizona) to allow associations to deposit funds in federally insured banks outside of Oregon.

Landlord Tenant act Omnibus bill: Senate Bill 561 contains the following highlights:

1. Habitability: If a landlord does not repair a minor habitability problem within seven days after a tenant has reported it to the landlord in writing, the tenant can cause the repairs to be made at a cost of up to $300 and deduct those costs from the rent. Work must be performed in a workman-like manner and in compliance with all state statues, ordinances and building codes.

2. Domestic Violence:

a. Perpetrator:

  • i. A landlord may evict a perpetrator of domestic violence using a 24 hour notice.

  • ii. If the perpetrator lives with other people in a rental unit the other people may not be evicted, most likely they are victims.

  • iii. The perpetrator may still be liable for a proportionate share of the rent up to the date of the termination of his or her tenancy.

b. Victim

  • i. A landlord may not terminate or fail to renew a rental agreement solely because a tenant has been or is a victim of domestic violence, sexual assault or stalking.

  • ii. The landlord cannot discriminate against a tenant or an applicant for a rental unit on the basis of being a victim of domestic violence.

  • iii. Notwithstanding the above: a landlord may terminate the tenancy of a victim of domestic violence if the landlord has previously given the tenant a written warning regarding the conduct of the perpetrator and the victim permits the perpetrator back on to the premises and the perpetrator's presence on the premises creates an actual or imminent threat to the safety of persons at the property, such as adjoining neighbors.

  • iv. If the landlord ignores this statute the tenant may be able to recover up to two months rent in damages.

Other Changes:

Many other changes were of a technical nature but should be reviewed by attorneys, landlords and property managers. The majority of the changes made in the realm of domestic violence parallel those enacted in the federal statutes.

House Bill 3360 -- Allows the use and installation of domestic water heaters designed to create hot water instantaneously on demand without the use of a storage tank.

Senate Bill 431 towing amendments to the landlord tenant act section 90:

Landlord may tow without notice to a vehicle owner if a vehicle:

  • Blocks or prevents access by emergency vehicles

  • Blocks or prevents entry to the premises

  • Violates a prominently posted parking prohibition

  • Blocks or is parked in a space allocated or marked for a person with disabilities

  • Is parked in an area not intended for motor vehicles including but not limited to: sidewalks,lawns and landscaping

  • Is parked in a space reserved for tenants (a tenant) and does not display a parking sticker

In other instances a Landlord may have a vehicle removed from the property if the vehicle is:

a. Inoperable and the tenant has previously signed an agreement to keep their vehicle operable. In order to tow an inoperable vehicle, the landlord would first need to post a prominent notice on the vehicle at least 72 hours before the vehicle is to be towed.

b. A landlord may not have a vehicle towed solely because the vehicle's registration tags have expired or are otherwise invalid.

Note: Metro Multifamily Housing's forms committee will be developing an addendum to address towing issues.

Senate Bill 154 -- This bill relates to properties Oxford House properties that are specifically involved with recovery from drug and alcohol abuse, wherein a tenant must be drug free or alcohol free as a condition to live in the home.If a resident refuses to take a drug or sobriety test or does not pass such a test when administered, this law allows the community members to ask the guilty member of the household to move immediately without being subject to the notice periods set forth in the landlord tenant act.

Senate Bill 416

Limits historic property special tax freezes to one 15 year term for all types of property.

Senate Bill 571 -- Relating to smoking

This law expands the prohibition of smoking in public places and places of employment. A person may not smoke or carry a lighted "smoking implement" within 10 feet of the following public places or places of employment:

  • Entrances

  • Exits

  • Windows that open

  • Ventilation intakes that serve an enclosed area.

Penalties of up to $500 are in place for some situations.

As you can see the legislature has been busy this year. We hope that this summary will help you adapt to these new laws. Copies of the new legislation are easy to find on the internet. Log into the Oregon State Legislature and scroll to the Bills section.