Oregon 2025 Regular Session

Oregon House Bill HB3642

Introduced
2/20/25  

Caption

Relating to residential tenancies.

Summary

HB 3642 would substantially change Oregon’s residential landlord-tenant laws by allowing landlords to end month-to-month residential tenancies without stating a cause and by removing the existing limits on rent increases. Under the bill, landlords could terminate week-to-week tenancies with 10 days’ notice, and month-to-month tenancies could be ended without cause on 30 days’ notice. The bill also repeals the current rent cap framework in ORS 90.324 and removes statutory limits that now restrict how often rent may be raised and how large increases may be, while preserving notice requirements. The bill also revises related provisions for fixed-term tenancies, manufactured dwelling parks, planned community subdivisions, publicly supported housing, and eviction complaint forms to conform to the new termination and rent-increase rules. It updates cross-references in several statutes, including ORS 90.220, 90.323, 90.600, 90.643, 105.124, and 456.267, and repeals ORS 90.324 entirely. In addition, it keeps or clarifies certain protections and procedures, such as notice content requirements, remedies for unlawful terminations, and special rules for manufactured dwelling and affordable housing contexts. The bill’s practical impact would be to give landlords more flexibility and discretion in setting rents and ending tenancies, especially in the general residential rental market. Tenants would lose the current statewide rent-increase limit and the existing cause-based protections that apply after the first year of occupancy for month-to-month tenancies. Landlords who violate the new termination or rent rules would still face tenant remedies, including damages and defenses to possession actions, but the overall balance of power would shift toward landlords. Because there are no committee transcripts or recorded votes provided, there is no documented debate or formal voting history to gauge legislative sentiment. Based on the bill text alone, the measure appears strongly landlord-favorable and tenant-restrictive, so it would likely draw support from landlord and property-owner interests and opposition from tenant advocates, housing stability groups, and affordable housing stakeholders concerned about displacement and rent escalation. The main points of contention are likely to be the elimination of rent caps and the authorization of no-cause termination for month-to-month tenancies. Opponents would likely argue that the bill increases housing insecurity, displacement risk, and the potential for sharp rent hikes, while supporters would likely frame it as restoring landlord flexibility, simplifying tenancy management, and allowing market-based pricing. Additional concern may arise over how the bill affects vulnerable tenants in publicly supported housing, manufactured dwelling communities, and other specialized housing arrangements.

Impact

HB 3642 would amend Oregon’s Residential Landlord and Tenant Act to remove statewide limits on rent increases for most residential tenancies and to allow landlords to terminate month-to-month tenancies without cause on specified notice. It repeals ORS 90.324, revises ORS 90.323 and 90.600 to eliminate the current rent-cap and frequency restrictions, and updates related statutes and eviction forms to align with the new termination framework. The bill also adjusts provisions affecting manufactured dwelling parks, planned community subdivisions, and formerly publicly supported housing, while preserving notice and remedy provisions for unlawful conduct.

Sentiment

No committee discussion or vote record is provided, so there is no direct evidence of legislative sentiment from hearings or floor action. From the bill text, the measure is clearly pro-landlord and would likely be viewed favorably by property owners and rental industry interests, while tenant advocates and housing stability groups would likely oppose it because it weakens rent protections and cause-based eviction limits.

Contention

The central controversy is the bill’s repeal of rent increase limits and its authorization of no-cause termination of month-to-month tenancies. Critics would likely focus on displacement, affordability, and tenant security, especially for renters facing repeated rent hikes or loss of housing without a stated reason. Supporters would likely argue that landlords need flexibility to manage property, set market rents, and end tenancies without being forced into cause-based procedures. Secondary contention may involve the bill’s effects on affordable housing, manufactured dwelling communities, and publicly supported housing, where existing protections are narrowed or cross-referenced to the new rules.

Companion Bills

No companion bills found.

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