OTLA Trial Lawyer Spring 2021

30 Trial Lawyer • Spring 2021 Paul Thompson By Paul Thompson OTLA Guardian J oe is a tenant who lost his job due to the COVID-19 restrictions that began a year ago March. His position was hourly in the service industry, meaning his ability to make a living completely evaporated when the state went into shut down mode. He could not work from home. His unemployment would not come for many months. However, be- cause of Oregon’s renter protections, he continued living at his house while he worked on a plan on how to move for- ward. Joe is a client of mine and among those renters who benefitted from Ore- gon Executive Orders 20-13 and 20-56, HB 4213 and HB 4401, collectively known as renter protections. The execu- tive orders changed the rights and responsibilities of landlords and tenants as spelled out in ORS Chapter 90, otherwise known as the Oregon Resi- dential Landlord/Tenant Act (the Act). For Joe, and countless others like him, the most important renter protec- tion is a ban on evictions for non-pay- ment of rent, generally referred to as 72-hour notices, for any amounts owing from March until December 31, 2020. A landlord may not levy late fees or re- port tenants to credit reporting bureaus for rent in arrears. Generally speaking, these are the renter protections. Many people in the service industry rely upon the renter protections. For example, restaurant workers were hit especially hard by the shutdown. When restaurants can be open, their seating is reduced for everyone’s health and safety. This means less business and lower wages for those lucky enough to retain their employment. Without these protections, many service workers throughout the state would have lost their housing because they could not pay rent. In full disclosure, I worked in restaurants for about ten years. I under- stand how terrifying it can be when a restaurant suddenly closes and you’re left without a job. However, the state recently enacted House Bill 4401, which created a pro- cess that still allows renter protections, while also creating a fund to assist land- lords who are struggling financially. This new law updates HB 4213 while adding additional rights and responsibilities for both landlords and tenants going for- ward. It also formalized the process for repayment of rent owed. If I were to guess, this will not be the final version. Attorneys must be certain they are re- viewing the latest House bill or executive order applying to the act. In my practice, I represent mostly tenants but also represent a few “mom and pop” landlords who generally only have one house for rent or are renting out a room in their house. Most of my tenant clients are lower income or work in a field that does not allow for remote work. They need the renter protections to keep a roof over their heads. This provides me with a perspective of how the current crisis and renter protections affect both sides. The good and the bad For every tenant like Joe who uses the renter protections to keep a roof over their head, there is a landlord who does not receive rent. Not all landlords are large corporations able to absorb many months of nonpayment of rent. In one instance, my client, Sharon, owned a duplex where she lived in one side and rented out the other. Sharon was lucky enough to continue working from home, but her tenants were not so lucky. When her tenants informed her they had lost their jobs and could not pay rent, Sha- ron’s mortgage nearly doubled. Her bank worked with her to soften the blow, but she had to dip into savings to make up the difference. Now, HB 4401 has a Landlords & Tenants IN A DIFFICULT TIME