Judge denies request to delay Portland’s new rental rules

PORTLAND, Ore. (AP) — A federal judge in Portland said he won’t block new city housing screening and security deposit rules taking effect this weekend because a rental industry group waited too long to file a legal challenge.

U.S. District Judge Michael Simon on Thursday said he was denying a request from Multifamily NW for a temporary restraining order to delay two Fair Access in Renting ordinances. He said it was because the almost yearlong gap between when the city council approved them and when the group sued last Friday “implies a lack of urgency or a lack of irreparable harm,” The Oregonian/OregonLive reported.

Multifamily NW and two landlords sued the city claiming the new rules were unconstitutional and ultimately should never go into effect. Simon said he didn’t believe U.S. District Court was the appropriate venue to sort out the constitutionality of city policies.

The traditional route is a lawsuit is filed in state district court, where a decision can be reviewed by the Oregon Court of Appeals and possibly to the Oregon Supreme Court, if they chose to take up the issue, he said.

The Portland City Council voted last June to change the city code revising the screening criteria for landlords to use when evaluating a renter’s application.

The changes include requiring landlords choose renters on a first-come, first-serve basis and to give 72 hours’ notice before accepting applications. Landlords would no longer be allowed to check for felony convictions older than seven years or misdemeanors older than three years.

The new rules also lay out new tenant screening criteria. Landlords may no longer reject prospective tenants for credit scores as low as 500, a court eviction order older than three years or insufficient credit history. Landlords also may no longer reject a tenant whose income is between 2 and 2.5 times the rent.

Landlords may substitute their own screening criteria. If they do, the new policy requires them to explain in writing why they rejected a prospective tenant.

The new city code also requires landlords to more thoroughly account for security deposit funds withheld for repairs and allows tenants to pay security deposits in installments over three months.

The Portland Housing Bureau has been offering free training for landlords on the ordinances.