GOV Kotek Signs SB 611 - Rent Cap Update from Stable Homes

From Stable Homes for Oregon Families:

July 7, 2023

FOR IMMEDIATE RELEASE

Tenant alert: New rent limit bill is the law, effective July 6th, 2023. Gov. Kotek has signed SB 611.

Landlords must immediately stop increasing rents more than 10% a year for tenants who are protected under SB 611, which passed the Oregon legislature last month. Gov. Kotek signed the law yesterday, putting the new limit into effect as of July 6th, 2023.

The new Oregon rent limit covers most people who live in properties that have been rentals at least 15 years, which is the majority of the rentals in most areas of the state. The new rent increase limit for these rentals is 10% for the rest of 2023. Any rent increase notice issued for a property protected by the bill on or after July 6, 2023 cannot be more than 10%. The new law applies to most rental homes, and includes spaces for manufactured homes, RVs, and floating homes in marinas. Prior to passage of SB 611, the rent increase limit for this year was 14.6%.

Regardless of the age of the rental unit or any other exemption, landlords may only increase rent with a valid 90-day written notice. Rent cannot be increased during the first year of a tenancy. After the first year, landlords may not raise the rent more than once per year.

If you believe you have received a rent increase notice in violation of Oregon law, you should get advice as quickly as possible. You can contact a lawyer, or your local legal aid office.

Updated information will soon be available on OregonLawHelp.org.

FAQ: How do tenants know if their rental qualifies for the new 10% rent limit?

The new 2023 rent limit applies to all rentals that are at least 15 years old, unless there is a specific exemption in some cases of subsidized housing. If a rent increase notice is issued for more than 10%, the notice must give information about why the landlord qualifies for an exemption to the rent limit law. If you have questions about whether your notice is compliant, you may want to seek assistance from a lawyer.

What if a tenant has already received a rent increase notice of more than 10%?

Rent increase notices that were issued before July 6th, 2023 are not covered by the new law and are allowed to go into effect.

What is the new rent limit based on?

Under the new law, the maximum allowable rent increase for each year in eligible units is now 7 percent plus the annual consumer price index (cpi), with a cap of 10%, whichever is lower.

How long will this rent limit be in effect?

Ten percent is the maximum rent increase allowed in eligible buildings for any rent increase notice issued for the rest of 2023. Under Oregon’s rent stabilization law, a new limit is set every October by the state after determining the applicable annual consumer price index (cpi). The 2024 limit will be announced later this year which will be 7 percentage points over the annual consumer price index with a cap of 10%. When inflation is lower than 3%, the rent limit will be lower than 10%.

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Stable Homes for Oregon Families is a coalition of tenants, housing advocates, labor unions, education and health professionals, businesses, and other Oregonians who believe in the stability of home. We are a diverse coalition of people and organizations that recognize Oregon's opportunity to help solve the housing crisis and secure our future.