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2019.10.08 WS Packet
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2019.10.08 WS Packet
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17 <br /> <br />imposition of unaffordable rent increases)47. Low income tenants are eligible for a relocation <br />assistance payment of $2000,48 shared equally by the landlord and the city.49 Portland, Oregon <br />provides that landlords must provide all tenants with 90 days notice, either of intent to evict <br />without good cause or if the landlord seeks to increase rent by more than 5% in one year 50. In <br />addition, as a temporary measure in response to the housing crisis, Portland enacted a <br />requirement of the payment of relocation benefits of between $2900 and $4500 for any evictions <br />without cause or rent increases of over 10% in a year 51. <br /> <br />Legal Issues <br /> <br />In some cases these measures have created questions about the extent of the cities’ legal <br />authority to enact these policies. Several lawsuits in Oregon have helped somewhat to clarify <br />these legal questions. Landlords challenged the 90 day delay on rent increases over 5% on the <br />grounds that it was preempted by the state law limits on rent control. This is relevant here <br />because Minnesota has similar limitation on local rent control measures.52 In the Oregon case, <br />the city argued that the rent control statute bars limits on the amount of rent charged but not the <br />notice period for rent increases. This case was mooted out, however, by a change in state law, so <br />the issue was not decided. In another case arising out of Portland, the landlord argued that <br />imposing relocation obligations in the case of no cause evictions or certain rent increases <br />effectively amounted to rent control barred by state law. The Court of Appeals rejected that <br />argument, holding that a local law is only preempted to the extent it cannot operate concurrently <br />with state law. In this case, an owner could easily pay locally required payments and still <br />comply with the lesser requirements of state law. The Court also rejected two other arguments <br />of the landlord, holding that the relocation requirement did not amount to an unconstitutional <br />impairment of contract, and that the City had the authority under its local powers to create a <br />private right of action in state court for tenants to enforce the ordinance. 53 <br /> <br />This last issue is particularly important for enforcement of these types of measures. A <br />local government should have provisions to enforce any of its ordinances, of course, but there are <br />good reasons to also empower tenants to enforce when their rights have been violated— <br />particularly where cities enforcement is hampered or where cities are unaware of violations or <br />where city enforcement can’t fully restore tenants’ rights and benefits. Broadly speaking, courts <br />across the country are divided into three groups when it comes to the question of whether local <br />governments can create private rights of action in state courts. One group of states permits this, <br /> <br />47 SEATTLE, WASH., MUNICIPAL CODE § 22.210.120. Section 22.210.136 prohibits rent increases <br />for the purpose of avoiding the application of Chapter 22.210. <br />48 The amount of the payment increases annually. As of April 7, 2018, the amount is $3,848. <br />CITY OF SEATTLE DEP’T OF CONSTR. & INSPECTIONS, DIRECTOR’S RULE 11-2018 (2018), <br />http://www.seattle.gov/dpd/codes/dr/DR2018-11.pdf. <br />49 SEATTLE, WASH., MUNICIPAL CODE § 22.210.130. <br />50 PORTLAND, OR., CITY CODE & CHARTER § 30.01.085(B)-(C). <br />51 PORTLAND, OR., CITY CODE & CHARTER § 30.01.085(B)-(C). The temporary measure was <br />made permanent in March 2018. Portland, OR., Ordinance 188849 (Mar. 7, 2018), <br />https://www.portlandoregon.gov/phb/article/676253. <br />52 MINN. STAT. § 471.9996. <br />53 For a more detailed analysis of the Portland court rulings, contact www.hjcmn.org.
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