The commercial eviction moratorium “emergency period” set forth in Oregon House Bill 4213 (“HB 4213”) is set to expire September 30, 2020, unless the legislature acts to extend. Various news outlets have reported that the Oregon Speaker of the House, Tina Kotek, intends to seek a further extension; but as yet, there has been no action and there is no special session of the Oregon legislature currently scheduled.
Upon expiration of the emergency period, commercial tenants must resume making current (i.e. starting October 1, 2020) rent payments. Also, starting on October 1, commercial landlords may give notice to their tenants, the contents of which are set forth in HB 4213 and outlined below. Although providing this notice is not mandatory, we recommend that it be given by landlords to any commercial tenants with a “nonpayment balance.”
For Landlords:
The HB 4213 Notice must “substantially state”:
- The date that the emergency period ended (i.e. September 30. 2020);
- That if rents and other payments, charges or fees that come due after the emergency period are not timely paid, the landlord may terminate the tenancy;
- That the nonpayment balance that accrued during the emergency period is still due and must be paid;
- That the tenant will not owe a late charge for the nonpayment balance;
- That the tenant is entitled to a six-month grace period to repay the nonpayment balance that ends on March 31, 2021;
- That by a date stated in the notice that is no earlier than 14 days following the delivery of the notice, the tenant must pay the nonpayment balance or notify the landlord that the tenant intends to pay the nonpayment balance by the end of the six-month grace period;
- That failure of a tenant to give notice to the landlord of utilization of the grace period may result in a penalty of 50 percent of one month’s rent; and
- May offer an alternate voluntary payment plan for payment of the nonpayment balance, but must state that this alternate payment plan is voluntary.
For Tenants:
If a landlord gives the HB 4213 Notice, a tenant who has an outstanding nonpayment balance as of the date listed on the landlord’s notice section must, by the date specified in the landlord’s notice (which must be 14 days after delivery of the notice), notify the landlord of the tenant’s intention to use the 6 month grace period (until March 31, 2021) to pay the nonpayment balance. If a tenant does not give the responsive notice to the landlord, the failure to do so entitles the landlord to recover damages equal to 50 percent of one month’s rent following the grace period.
Conclusion:
If you have any questions regarding the expiration of the eviction moratorium or the HB 4213 Notice, the Dunn Carney Real Estate Team stands ready to assist.
For more information please contact a member of Dunn Carney’s Real Estate Team.
J. David Zehntbauer, Partner
Phone: 503-306-5320
Email: dzehntbauer@dunncarney.com
