Last weekend the Oregon/SW Washington Chapter for the Society of Industrial and Office Realtors (SIOR) got a tremendous update from members of the law firm Dunn Carney about how both Landlords and Tenants need to act to protect their rights with the extended eviction timeline set to expire September 30, 2020, in Oregon. We wanted to share this with you.
Oregon House Bill 4213 Notice Requirements:
The “Emergency Period” set forth in Oregon House Bill 4213 (HB 4213) expires on September 30, 2020, unless the legislature acts to extend. Various news sources have reported that the Speaker of the Oregon House, Tina Kotek, is intending to seek a further extension; but at this point, there has been no action and there is no special session of the Oregon legislature currently scheduled.
Upon expiration of the Emergency Period, tenants must resume making current (i.e. starting October 1, 2020) rent payments. Also, starting on October 1, landlords may give notice to their tenants, the contents of which are set forth in HB 4213 and outlined below. Although the giving of this notice is not mandatory, we recommend that it be given by landlords to any commercial tenants with a “nonpayment balance.”
The HB 4213 Notice must “substantially state”:
- The date that the emergency period ended (i.e. September 30, 2020);
- That if rents and other payments, charges, or fees that come due after the emergency period are not timely paid, the landlord may terminate the tenancy;
- That the nonpayment balance that accrued during the emergency period is still due and must be paid;
- That the tenant will not owe a late charge for the nonpayment balance;
- That the tenant is entitled to a six-month grace period to repay the nonpayment balance that ends on March 31, 2021;
- That by a date stated in the notice that is no earlier than 14 days following the delivery of the notice, the tenant must pay the nonpayment balance or notify the landlord that the tenant intends to pay the nonpayment balance by the end of the six-month grace period;
- That failure of a tenant to give notice to the landlord of utilization of the grace period may result in a penalty equal to 50 percent of one month’s rent; and
- May offer an alternate voluntary payment plan for payment of the nonpayment balance, but must state that this alternate payment plan is voluntary.
If a landlord gives the HB 4213 Notice, a tenant who has an outstanding nonpayment balance as of the date listed on the landlord’s notice must, by the date specified in the landlord’s notice (which must be at least 14 days after delivery of the notice), notify the landlord of the tenant’s intention to use the 6 month grace period (until March 31, 2021) to pay the nonpayment balance. If a tenant does not give the responsive notice to the landlord, the failure to do so entitles the landlord to recover damages equal to 50 percent of one month’s rent following the grace period.
This upcoming HB 4213 notice requirement provides an excellent opportunity to check in with your landlord and tenant clients. Should any of your clients need legal advice, the Dunn Carney Real Estate Team stands ready to assist.