House Bill 2001 eliminates single-family zoning in Oregon, requiring cities over 25,000 people to allow duplexes, triplexes, fourplexes, and cottage clusters where only single-family homes were previously allowed. Senate Bill 608 limits annual rent increases to 7% plus inflation, prohibits no-cause evictions after the first year, and requires landlords to pay one month's rent in relocation expenses for certain evictions. The bills attempt to address Oregon's housing shortage and affordability crisis by increasing housing supply under HB 2001 and tenant protections under SB 608, though they remain controversial with differing perspectives between tenants and landlords.

1. Page 1 of 13
OREGON LAW AND RULE REQUIRED COURSE
(2020-2021)
Presented by:
Matt Sandler
Vice President | Oregon State Counsel
12909 SW 68th Parkway, Suite 350, Portland, OR 97223
Direct: (503) 431-2681 | Cell: (971) 347-4772
MSandler@wfgnationaltitle.com

2. Page 2 of 13
CLASS OUTLINE
1. Chapter 1: House Bill 2001 - Eliminates Single-Family Zoning
• House Bill 2001 eliminates single-family zoning in Oregon. In cities with more than 25,000
residents, duplexes, triplexes, fourplexes and cottage clusters are now allowed on parcels
currently reserved for single-family houses. In cities of 10,000, duplexes are allowed on
parcels reserved for single-family houses.
• Why is this Legislation Important? Because it makes Oregon the first state to ban the
practice of reserving land for single-family residential development.
• The 1973 Land Use Law and Senate Bill 100. Oregon’s system of land-use regulation was
enacted by Senate Bill 100. The legislation was championed by then republican Governor
Tom McCall. Essentially, Oregon’s statewide program for land use planning is built upon 19
statewide planning goals that express the state’s policies on land use. The goals are
achieved through local comprehensive planning. State laws require each city and county
to adopt a comprehensive plan that is consistent with the statewide planning goals and
various land-division ordinances needed to put the plan into effect. Plans are then
reviewed by the state’s Land Conversation and Development Commission.
• Senate Bill 100 also gave us the controversial urban growth boundary – a tool used to fight
against urban sprawl. It is designed to concentrate growth within established areas with
the specific goal of preventing urban sprawl from consuming the state’s farmland.
• Two Opposing Views of HB 2001:
.1. In Favor: existing land use laws were not addressing the housing shortages plaguing
many Oregonians. The lack of affordable housing has particularly affected low-income
residents and single-family zoning tends to promote exclusionary zoning which tends
to promote racial and economic segregation.
.2. Opposing: The state should make it easier to expand the UGB to more easily meet the
demand of homebuyers. Others argued or that land use control should not exist at all,
instead the marketplace should determine how local jurisdictions will implement land
use controls.
• HB 2001 Housing Types Defined
.1. Section 2, Subsection 1, (a), (b) and (c) define these housing types:
.1.1. Cottage clusters means groupings of no fewer than four detached housing units
per acre with a footprint of less than 900 square feet each, and that includes a
common courtyard.
.1.2. Middle housing means duplexes, triplexes, quadplexes, cottage clusters, and
townhouses.
.1.3. Townhouse means a dwelling unit constructed in a row of two or more attached
units, where each dwelling unit is located on an individual lot or parcel and shares
at least one common wall with an adjacent unit.

3. Page 3 of 13
• When the Housing Types are Required to be Permitted
.1. Cities with populations of 25,000 or more or located within a metropolitan service
district (METRO) are required to allow all middle housing types in areas zoned for
residential use. This means that the following types of housing are required to be
allowed: Duplexes, Triplexes, Quadplexes, Cottage Clusters and Townhouses
.2. Cities with populations between 10,000 and 25,000 and NOT located within METRO
are required to allow the development of a duplex on each lot or parcel zoned for
residential detached single-family dwellings. It should be noted that the local
government may also allow all of the middle housing types in addition to the required
duplexes. Note that nothing in the bill prohibits a local government from allowing
middle housing types in addition to duplexes.
• Exemptions from Required Housing Types
.1. Cities with a population of 1,000 or fewer;
.2. Lands not in the UGB;
.3. Lands not incorporated and also lacking sufficient urban services as defined by Oregon
law;
.4. Lands not zoned for residential use, including lands zoned primarily for commercial,
industrial, agricultural or public uses; or
.5. Lands that are not incorporated and are zoned under an interim zoning designation
that maintains the land’s potential for planned urban development.
• HB 2001 also prohibits local governments from creating regulations that would discourage
the development of middle housing lots.
• Note, single-family homes on parcels are of course still allowed.
• Potential Impact on CCRs. Sections 12 and 13 of HB 2001 address this issue.
.1. Section 12 says that a provision of a governing document that is adopted or amended
on or after the effective date of HB 2001 is unenforceable to the extent that the
amended provision would prohibit or have the effect of unreasonably restricting the
development of housing that is otherwise allowable under the maximum density of
the zoning for the land.
.2. Section 13 provides that any provision in a recorded instrument affecting real
property is not enforceable if that provision would allow single-family development
on a parcel but would prohibit the development of middle housing or accessory
dwelling units if that instrument was executed on or after the effective date of House
Bill 2001.
2. Chapter 2: Senate Bill 608 - Rent Control
• SB 608 is very controversial and has received a lot of reaction. Why was it passed? Oregon
faces a housing crisis.
• Note: House Bill 2001, discussed above, which pretty much did away with single-family
zoning in Oregon, attempts to attack the supply side of housing shortage by allowing for

4. Page 4 of 13
maximum housing density. Senate Bill 608, on the other hand, attempts to get at the
housing crisis by imposing statewide rent control, to provide for extended rent increase
notice periods, and limiting the landlord eviction actions.
• Tenant Perspective v. Landlord Perspective
• Important Features of Senate Bill 608
..1. First, it eliminates no-cause evictions after the first year of a tenant’s occupancy.
However, a landlord can continue to evict a tenant for tenant-based causes. Some
examples of tenant-based causes are:
..1.1. a violation of the rental agreement,
..1.2. non-payment of rent, and
..1.3. conduct egregious enough that it could be deemed to be a danger to others.
..2. Senate Bill 608 creates four new landlord-based cause reasons to evict a tenant.
These four reasons are:
..2.1. sale to an individual who is planning to move into the rented unit;
..2.2. the landlord or a family member of the landlord is planning to move into the
unit;
..2.3. significant repair or renovation of the unit which would necessitate the tenant
to vacate the unit; and
..2.4. removal of the unit from rental use.
..3. In any of these four scenarios, the landlord must provide the tenant with a 90-day
notice, plus a relocation expense in the amount of one month’s rent.
• Exceptions:
..1. Relocation expenses do not have to be paid by small landlords. Small landlords are
defined as those who own four or fewer units.
..2. A no-cause eviction may be given at any time to a tenant if the landlord lives on the
same property as their tenant. This applies only to situations where the owner
occupies the property, and the property contains two units or less;
..3. A landlord may give a tenant a 30-day notice to vacate without cause during the first
twelve months of occupancy. After the first twelve months, a landlord may only evict
a tenant for cause by using an existing tenant-based reason or by using one of the
four new landlord-based previously identified reasons.
• Fixed-Term Leases
..1. The general rule is that after the first twelve months of occupancy under a fixed-term
lease, the lease will automatically convert to a month-to-month agreement unless
the landlord has a new tenant or a landlord based reason to terminate. Again, these
landlord-based reasons to terminate are:
..1.1. Sale to an individual who is planning to move into the rented unit
..1.2. The landlord or a family member of the landlord is to move into the unit
..1.3. Significant repair or renovation of the unit, which would necessitate the tenant
to vacate the unit; and
..1.4. Removal of the unit from rental use.

5. Page 5 of 13
..2. In most cases, the fixed-term lease will roll over into a month-to-month rental.
However, if the landlord has a tenant that has violated the terms of the rental
agreement three separate times during the 12-month term, with written warnings
for each violation, the fixed-term lease may be terminated at the end of the 12-
month term without rollover to a month-to-month agreement.
• Rent Increases
..1. If a landlord is providing reduced rent to a tenant as part of a federal, state or local
program of rent subsidy, the landlord is exempt from the provisions of Senate Bill
608.
..2. If a previous tenant vacates a unit voluntarily or their tenancy was otherwise
terminated in compliance with applicable law, the landlord may reset the rent on the
new tenancy without limitation.
..3. Annual rent increases to a tenant are limited to no more than 7%, plus the consumer
price index. No rent increases are permitted in the first year of a month-to-month
tenancy, and any permitted rent increases must be given to the tenant in the form of
a 90-day notice of rent increase.
..4. The last requirement relating to limitations on rent increases has raised
consternation among some landlords and some in the real estate community. Let’s
say the consumer price index increased by 3% in a given 12 month period. This would
mean the maximum rent increase could be 10%, which is the total of the 3% CPI
figure and the statutory 7% allowed increase. On a rental amount of $3,000 per
month, this would permit a rent increase of $300 for that rental unit. This formula
seems to be reasonable and adequate, and it does put the brakes on uncontrollable
rent increases that contribute to housing unaffordability while, at the same time, it
gives the landlord an ability to reasonably adjust their rent.
3. Chapter 3: Review of Other Rules and Laws
• The majority of these relate to housing supply and expansion.
• House Bill 2003 - Housing Needs Analysis and Housing Production Strategies
...1. HB 2003 requires cities to more rigorously and frequently conduct housing
needs analyses and, for the first time ever, develop housing production
strategies that demonstrate how they will meet those needs, including policy
changes they will enact to encourage development.
...2. HB 2003 requires collaboration at the state level between the Office of
Economic Analysis, the Department of Land Conservation and Development
Commission, and the Department of Housing and Community Services to
develop and evaluate a methodology for regional housing needs analyses.
• House Bill 2056 - Grants and Loans to Expand Low-Income Housing Supply
...1. Establishes Housing Development Grant Program within Oregon Housing and
Community Services (OHCS) to support expanding the supply of affordable

6. Page 6 of 13
rental housing. Excludes use of grants for general operations of an organization.
Allows grant recipients more discretion in tailoring services to the needs of
tenants. Directs OHCS to establish a separate Guarantee Fund. Allows OHCS to
guarantee loans made to persons with moderate incomes. Defines moderate
income. Removes requirement that the Oregon Housing Stability Council
(Council) review loans and instead requires Council to review and approve
underwriting policies. Allows OHCS to transfer surplus moneys from the
Guarantee Account to the Affordable Housing Land Acquisition Revolving Loan
Program.
• House Bill 2423 - Adoption of Small Home Specialty Code
...1. Adopts Small Home Specialty Code for construction of home no more than 400
square feet in size. Requires Department of Consumer and Business Services to
amend Low-Rise Residential Dwelling Code to ensure Small Home Specialty
Code supercedes any conflicting provisions of Low-Rise Residential Dwelling
Code. Specifies design calculation for fire sprinkler system shall consider
maximum of two sprinklers and that small home be considered a single
compartment. Requires small home to have heat or smoke alarm.

7. Page 7 of 13
• Senate Bill 534 - Housing Development on "Skinny" Lots
...1. "Skinny lots" were first platted in the Portland area more than a century ago
and average about 25-by-100 feet. Skinny houses designed for such lots are
typically multi-storied, and range in size from 900 to about 1,500 square feet. In-
fill development on these narrow lots, within existing neighborhoods where
infrastructure development already exists, can result in homes with lower
market values than larger single-story homes on 5,000-square-foot or larger
homes sites, but comparable or higher in market value than alternatives like
condominiums. Such homes may provide additional home ownership
opportunities for buyers. So long as certain conditions are met, Senate Bill 534-
A requires local governments to allow the development of at least one unit on
each platted lot zoned for a single-family dwelling within the urban growth
boundary of cities with populations greater than 25,000.
• House Bill 2006 - Appropriation for Grants to Support Low Income Assistance Programs
...1. Directs Housing and Community Services Department to award housing-related
grants, including grants for no-charge legal services for low-income individuals.
Appropriates $17,000,000 to department, with $2,000,000 directed to no-
charge legal services. Authorizes Department of Justice to use Oregon Domestic
and Sexual Violence Services Fund to assist victims with housing needs.
Appropriates $3,000,000 for deposit in fund for these purposes. Declares
emergency, effective on passage.
• Senate Bill 2 - Economic Development for Eastern Oregon Counties
...1. Comprehensive land use plans are required for cities and counties, and include
statements of issues and problems to be addressed, various inventories and
other technical information, the goals and policies for addressing the issues and
problems and implementation measures. Plans must be done in accordance
with state standards outlined in statute, statewide planning goals and
administrative rules.
...2. Senate Bill 2 would authorize certain counties in eastern Oregon that have
adopted an economic opportunity analysis as part of a comprehensive plan to
designate not more than 10 sites outside an urban growth boundary as
potential sites for industrial or other employment uses without requiring an
exception to any statewide land use planning goal related to agriculture, forest
use, or urbanization.
• Senate Bill 484 - Prohibiting Multiple Rental Application Fees
...1. Limits application fee to one per tenant for multiple dwelling units owned or
managed by the same landlord.
...2. Requires refund to applicants who are screened but not selected.
• Senate Bill 970 - Limitation on Screening Criteria for Residential Landlords
...1. Prohibits all residential landlords from considering minor marijuana convictions,
or possession of a medical marijuana card or status as a medical marijuana

8. Page 8 of 13
patient when evaluating rental applications. Prohibits facility landlords
(manufactured home park and marina landlords) from interfering with tenant's
choice of real estate agent or licensed dealer to sell or lawfully sublet tenant’s
home. Allows manufactured dwelling or floating home seller, who is also a
facility landlord, to require purchaser to rent space in landlord’s facility as a
condition of sale. Requires tenants to be allowed to sublet their home while it is
being marketed for sale, if the facility landlord also rents out homes that are
being marketed for sale. Requires facility landlord to provide information about
landlord/tenant rights in relation to the sale of a manufactured or floating
home. Increases potential civil penalty for specified violations, from $200 to
$500, and from $500 to $1000. Updates form and style of corresponding
provisions and defines terms.
• House Bill 2530 - Notices to Veterans of Armed Forces Regarding Assistance
...1. Requires certain notice to renters and homeowners to include information
about assistance that may be available if recipient is a veteran. Adds
requirement that Department of Veterans' Affairs and Department of Housing
and Community Services jointly submit written report on veterans' housing
programs to interim legislative committees related to veterans by December 1
of each year.
• House Bill 2469 - Allows for a Second Dwelling for a Relative on Forest Zoned Land
...1. In 1993, the Legislative Assembly declared that it is a state policy to provide
certain owners of less productive forestland with the opportunity to build a
dwelling on their land, while limiting siting and land division on more productive
forestland. Counties are authorized to allow certain single-family dwellings to be
established on forestlands, and to outline criteria for large tract, alternative, and
other forestland dwellings.
...2. House Bill 2469 A would allow counties to approve a new single-family dwelling
on forestlands near an existing dwelling for a relative of the owner who
supports the forestry practices of the owner, provided certain conditions are
met.
• House Bill 3024 - Replacement Dwellings on Exclusive Farm Use Land
...1. Prohibits a county from considering the property tax classification of dwellings
that were previously removed, destroyed, demolished, or converted to
nonresidential uses when reviewing an application for a replacement dwelling
on lands zoned for exclusive farm use
• House Bill 2225 - Limits Forest Template Dwellings
...1. In forest zones, five categories of dwellings are currently allowed: large-tract
dwellings, lot-of-record dwellings, forest template dwellings, replacement
dwellings, and temporary hardship dwellings.
...2. Forest template dwellings were authorized in 1993 (House Bill 3661) in areas
with existing development and parcelization. ORS 215.750 allows for the

9. Page 9 of 13
establishment of a single-family dwelling in forest zones and some mixed farm-
forest zones provided that certain conditions are met within a 160-acre square
"template" centered on the tract of the proposed dwelling. Required conditions
include that: at least three dwellings existed on parcels within the template on
January 1, 1993, and between 3 and 11 parcels existed within the template on
January 1, 1993, with the exact number of parcels dependent on the wood fiber
production capability of the applicant's land and whether the land is located in
eastern or western Oregon.
...3. House Bill 2225 A would clarify the definition for "center of the subject tract,"
add requirements for an allowable forest template dwelling, and implement the
changes for three groupings of counties over three biennia.
• House Bill 2312 - Seller’s Disclosure Flood Insurance Language Modification
...1. Requires property seller to disclose, at time of offer, whether they ever
purchased flood insurance for the property.
• House Bill 5017 - Wood Stove Assistance Support
...1. Oregon law requires the removal and destruction of uncertified wood stoves
and fireplace inserts.
...2. House Bill 5017 gives the Department of Environmental Quality a budget of
$500,000 to allocate to homeowners who need financial assistance to swap
uncertified wood stoves for certified wood stoves.
• Disposition of Unclaimed Property
...1. Senate Bill 454-A transfers the administration of Oregon’s unclaimed property
laws from Oregon Department of State Lands to the Oregon State Treasurer, the
constitutional officer responsible for the state’s investing, banking, and debt
programs.
• House Bill 2466 - Homeowner Association and Condominium Unit Owner Association
...1. House Bill 2466 requires particular homeowner associations and condominium
unit owner associations to carry a fidelity bond;
• House Bill 2485 - Procedures for Adoption and Restatement of Declarations
• House Bill 2485 establishes procedures for adoption of or restatement of association
declarations
• House Bill 2486 - Electronic Condominium Reporting
...1. House Bill 2486, allows electronic condominium reporting
• Business taxation - House Bill 3427 - Gross Receipts Tax
...1. Also known as the Student Success Act. This bill is designed to address the
educational challenges facing Oregon, and the financial resources necessary to
address them.
...2. House Bill 3427 imposes a 0.57% tax on businesses that have more than a
million dollars in Oregon sales. Only receipts above $1 million are subject to the
tax, and there are subtractions available for capital and labor costs.
...3. It is the value of commissions, not the total value of home sales for the

10. Page 10 of 13
brokerage will be taxed. In addition, licensee commissions will be taxed at the
licensee level, rather than at the brokerage level. This means that this tax will
apply to brokers who were paid more than $1 million in commissions.
Brokerages that have more than $1 million in revenues, after distributing broker
commissions, also have to pay this tax.
4. Chapter 4: Updating Real Estate Law
• The Legislative Process – the Oregon Legislature enacts changes to Oregon Real Estate
Law.
...1. The Senate (Upper Chamber)
...1.1. 30 elected members, each being elected for a four-year term.
...2. The House of Representatives (Lower Chamber)
...2.1. 60 elected members, each being elected for a two-year term.
• Oregon Legislative District Maps
...1. Legislature is constitutionally required to adjust district boundaries after each 10-year
census
• How the Legislature Creates and Enacts Legislation
...1. Leader of the Senate is the President of the Senate.
...2. Leader of the House is known as the Speaker of the House.
...3. Each leader controls its body by (i) determining which proposed legislation will be
brought before the body; (ii) appointing committee chairpersons to be in charge of
various committees; (iii) deciding who will serve on such committees; and (iv)
organizing floor debates.
...4. These committees will hold public hearings; conduct research; propose legislation.
• Creating a New Bill
...1. A bill is a proposal for law.
...2. A bill passed by the legislature is known as a statute.
...3. Both houses must pass the bill in identical form for it to become law.
• Effective Date of Legislation
...1. ORS 171.022 states: "Except as otherwise provided in the Act, an Act of the
Legislative Assembly takes effect on January 1 of the year after passage of the Act."
...2. Some bills, however, will include a clause to specify their effective date. Others might
have emergency, sunset, or referendum clause attached.
• The Administrative Rulemaking Process – some bills can be implemented on their own,
while others require additional rules to implement, effectuate, or interpret the new
legislation.
...1. Step 1 - Appointment of Advisory Committee
...2. Step 2 - Notify the Public
...3. Step 3 - Conduct a Hearing
...4. Step 4 - File Copies of the Proposed Rule

11. Page 11 of 13
...5. Step 5 - Objection to Oregon Real Estate Agency Action
...6. Step 6 - Incorporation into the Oregon Administrative Rules
• In Oregon, the Oregon Administrative Rules (OAR) are the official compilation of rules
and regulations that run parallel to the Oregon Revised Statutes.
• The majority of the rules relating to the practice of real estate are enacted by the
Oregon Real Estate Agency and once enacted, these rules become a part of OAR which
have the full force and effect of law.
• OAR Numbering System
...1. The majority of the rules dealing with real estate licenses are found in OAR
Chapter 863, Divisions 1 through 60. All OARs use the same numbering
system.
...2. All OARs use the same numbering system.
...3. The first three digits of the number represent the agency that administers the
law. The OAR chapter for real estate is 863. The next three digits represent the
division. The division number represents a subtopic within the real estate
chapter, such as Division 24, which deals with the rules governing the licensing
of property managers. The last 4 numbers are the actual rule number.
Accordingly, Real Estate Agency rules are numbered 863-XXX-XXXX.
5. Chapter 5: Advertising (Again)
• Advertising Defined
...1. In real estate, advertising includes all forms of representation, promotion
and solicitation relating to professional real estate activity and includes, but
is not limited to:
...1.1. US Mail, telephone, internet, email, chatrooms, online bulletin boards,
print media, flyers, business cards, social media, signage and all other
types of promotional materials.
...2. The Oregon Real Estate Agency is concerned about advertising because when it
isn’t done correctly, it could cause harm to the public. To protect the public, the
Agency has adopted rules for advertising and for promoting real estate and real
estate licensee activities. Mostly, you will find these rules in OAR 863-015-0125.

12. Page 12 of 13
• The Five Advertising Rules
...1. Identity of the ad must be that of the licensee.
...2. Truthful.
...3. Correct license status if used.
...4. Proper expertise if used.
...5. Home owner’s permission.
• Points to Remember
...1. In evaluating any specific advertising piece, always keep in mind that the
purpose of the rules is to prevent the public from being deceived or
misled.
...2. Basically, advertising includes all forms of representation, promotion, and
solicitation disseminated in any manner and by any means relating to
professional real estate activity and includes mail; telephone, cellular
telephone, and telephonic; the Internet, email, electronic bulletin board,
and other similar systems; business cards; and all signage including For
Sale signs.
• Some Advertising Dos
...1. Do get written permission from all property owners before advertising any
property.
...2. Do include the licensed name or registered business name of the principal
real estate broker or property manager and make sure it is prominently
displayed, immediately noticeable, and conspicuous.
...3. Do submit all proposed advertising to your principal broker for review and
approval before publicly.
...4. Do keep a record of principal broker approval of your advertisings so they
can be made available to the real estate agency if requested.
• Some Advertising Don’ts
...5. Don’t lead the public to believe you have a level of expertise greater than
you actually have.
...6. Don’t claim or imply a license status other than the one you actually hold.
...7. Don’t design advertisements or marketing materials to deceive or
mislead.
...8. Don’t guarantee future profits.
• Other Important Rules
...1. The Principal broker is responsible for all advertising under their name.
...2. The principal broker should review and approve all advertising or delegate
such authority as appropriate.
...3. Team advertising is allowed but make sure the team name does not
constitute an unlawful use of a tradename or isn’t similar to another
name under which another person is legally authorized to do business.

13. Page 13 of 13
The team or group must include at least one licensee, and all licensee
members of the team must be associated with the same principal broker.
...4. The first page of electronic communications must include the licensee’s
licensed name, the principal broker’s licensed or registered name, and a
statement that the licensee is a licensee in the State of Oregon.
...5. Sponsored links on a search engine are exempt from this rule because the
search link is outside of the control of the licensee. As long as the first
email communication contains the required information, subsequent
email communications are exempt from this rule.
...6. A virtual tour must have the written permission of the owner.
• See OAR 863-015-0125
6. Chapter 6: Radon
• What is Radon - an odorless, colorless, tasteless, and a radioactive gas that is
naturally occurring in our atmosphere - from the breakdown of uranium.
• How Radon Enters a Structure – foundation cracks, ventilation systems, pipe
penetration points, plumbing, heat pipe ducts, and unsealed soiled areas, and
heating systems, fireplaces and chimneys.
• Measuring Radon – measured in picocuries per liter.
• Recommended Action Levels
...1. No action necessary – 4.0 pCi/L or less.
...2. Action within a few years – annual average of 4.0 pCi/L to 20 pCi/L.
...3. Action within a few months – annual average of 20 to 200 pCi/L.
...4. Acting within several weeks – annual average of 200 pCi/L +.
• Testing for Radon
...1. Short Term (screening) – most common.
...2. Long Term.
...3. Active vs. passive radon testing devices
• Radon Reduction Processes
...1. Increasing under floor ventilation.
...2. Radon sump system.
...3. Sealing floors and walls.
...4. Improving ventilation.
7. The End