Oregon House Bill 4401 provides for a $150 million Landlord Compensation Fund. It is available to reimburse Oregon property owners for 80% of unpaid rent from April 2020 through date of application. The application process for the first round of funding is open for the first two weeks of February 2021. Property owners may submit an application for reimbursement to the Oregon Housing and Community Services through their website.
In exchange for an award from the Fund, the owner must agree to forgive 20% of the unpaid rent. The Fund is not available for owners whose tenants have moved out.
The owner must include in its application;
- A Declaration of Hardship from each tenant for which landlord is seeking a reimbursement.
- Fillable templates for the Declaration and Rent Roll are on the OHCS website.
- Receipt of the Declaration also extends the eviction moratorium for that tenant to June 30, 2021. If a tenant does not provide a Declaration, the landlord may issue a Notice of Eviction for non-payment following the guidelines under the bill.
- The landlord must include with the eviction notice a copy of a blank Declaration along with a Notice of Tenant’s Rights.
- Rent roll showing the back-owed rental amounts.
- W-9 to verify ownership.
- Basic contact info for the tenant.
Award for reimbursement from the Fund is determined using a point-based system. Owners with smaller portfolio (4 or less) will receive more points. OHCS will also consider what percentage of the rent is still owing per unit. Those owners with more rent owing which was accrued during the COVID-19 emergency period will receive more points. The Fund will disperse $50 million per month or until the funds are extinguished. Owners will be notified before the end of the month they applied in whether they were awarded a reimbursement from the Fund. Owners can re-apply every month until their back-owed rent is paid up.
The above information provides a brief synopsis but does not detail all requirements for landlords and should not be relied upon as legal advice. For specific questions contact the OHCS help line at HCS.LCF@oregon.gov or contact the Buckley Law real estate attorneys at 503-620-8900.
Jordana Loughran is an associate in Buckley Law’s Real Estate & Construction Law group, working in tandem with the Litigation department. Her knowledge of business, real estate, and litigation matters enables her to provide custom strategies to achieve success for her clients. Jordana also has extensive experience with homeowner association and condominium law.
The information contained in this article is for informational purposes only and does not constitute legal advice. This information is not intended to create an attorney-client relationship, and the receipt or viewing of it does not create or constitute an attorney-client relationship. You should not act upon any information contained in this article without consulting an attorney for individual advice regarding your own situation.