In the meeting packet (pages 20-22) for the Oregon Stability Council meeting on Friday March 4th OHCS staff is recommending a resolution that would be a policy modification in the rent restrictions for affordable projects that would allow up to 5% annual rent increases without review.
This would still be more restrictive than the statewide policy that has restrictions on rent increases for unassisted projects asking for rent increases more than 7% plus CPI.
It is not clear from the meeting package whether there’s any intention to apply this new policy to projects less than 15 years old.
The state wide policy from HB 3113 applies only to projects that 15 years past their initial date of occupancy.
As a defensive measure this new policy may push affordable projects to increase rents annually so as to avoid reviews in subsequent years.
A 5% increase on a unit renting for $1,000 a month is $50; to remain affordable tenant income would need to increase by $2,000 a year. This need not impact households with rent assistance (vouchers etc), so long as the increased rent is “rent reasonable” and in line with street rents for comparable properties. If so, the government assistance program should pay for the rent increase.
For rent increase requests above 5% OHCS indicates that additional resources may be offered in exchange for limiting rent increases to below 5% for a five year period. OHCS also recommends the Council advocate for additional rental assistance.
Originally created and posted on the Oregon Housing Blog.
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