Apartment owner sues Portland over new rules on rent hikes, evictions

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City Commissioner Dan Saltzman's rental protection rules already face scrutiny. An apartment owner filed a lawsuit Tuesday arguing the rules violate state law.

(Oregonian/OregonLive file photo)

An apartment building owner is suing the city of Portland, arguing the city's new renter-protection laws violate state law.

The lawsuit comes four days after Portland's renter protections began. Portland now requires landlords to give at least 90 days' notice before evicting tenants without cause or raising rents 5 percent or more.

The lawsuit, filed by attorney John DiLorenzo on behalf of Melcliff Associates, contends that Portland's policy amounts to rent control in violation of state law.

"The City Council has already stated its preference in legislative hearings to enact local rent control ordinances and would likely do more if it could overcome statutory pre-emption," he said in an email.

Melcliff also argues that it "faces a real and immediate threat and irreparable injury by virtue of the chilling effect" of the rules.

City officials didn't immediately comment.

Melcliff is registered to Portland resident Tim Gray, according to state records. The company hired DiLorenzo, an attorney who since 2011 has represented a small group of ratepayers suing the city on allegations of improper use of utility dollars. Melcliff Associates owns 52 apartments, DiLorenzo said.

Commissioner Dan Saltzman, who oversees the Housing Bureau, introduced the  renter protections in October amid record-high rent increases and rock-bottom vacancy rates.

The City Council discussed how far the renter protections could go before Portland would be trumped by state law. At the time, Saltzman quelled discussion of a 120-day notification period, saying it "veers" toward violating state law.

In an email, DiLorenzo said the city is already pushing the envelope. "If the City was unwilling to enact 120-day notices because they violated state pre-emption, why should 90-day notices be any different?" he asked.

DiLorenzo contends that the City Council ultimately wants to enact local rent control, which he called a "horrible public policy." He said it was ironic that city officials gave landlords just 30 days' notice of the impending rule change, while tenants now get 90 days' notice.

DiLorenzo said he expects a court hearing in 2016, probably by February.

-- Andrew Theen
atheen@oregonian.com
503-294-4026
@cityhallwatch

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