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Home My WebLink About230628 WSMINUTES Eugene City Council Work Session Eugene, Oregon 97 401 June 28, 2023 12:00p.m. Councilors Present: Emily Semple, Matt Keating, Alan Zelenka, Jennifer Yeh, Mike Clark, Greg Evans, Lyndsie Leech, and Randy Groves Mayor Vinis opened the June 28, 2023, work session of the Eugene City Council in a hybrid format at 101 W 10 th Avenue, Eugene OR 97401. 1. WORK SESSION: Renters Protections Phase II. City Manager Medary introduced Amy Cameron, Rental Housing Navigator, Will Dowdy, Community Development Director, Amanda Noble Flannery, Housing and Homelessness Section Manager, and Genevieve Middleton, Affordable Housing Policy and Planning Manager who presented on a draft ordinance for Renters Protections Phase II. Councilor Discussion: • • • • • • • • • Mayor Vinis -noted that Council previously removed the exemption for affordable housing. Councilor Leech -asked to discuss the small landlord compensation fund . Councilor Zelenka -asked about the timeframe for a landlord to register an exemption; asked what happens if a landlord does not meet the deadline; asked about the process for current landlords who qualify for an exemption; stated it should be made clear that the exemptions apply to existing leases. Councilor Clark -asked if middle housing and other housing types are defined in the ordinance; asked about the legality of requiring current landlords to apply for exemptions; asked how small landlords will be notified of the new requirements; stated it will not be possible to notify every person who qualifies for the exemption; stated he would prefer if registration was not required. Councilor Yeh -noted she would be voting against the exemptions . Councilor Semple -noted she would be voting against the exemptions; asked what types of housing need to take rental applications in the order they were received. Councilor Keating -asked what percentage of landlords are renting their personal residence; asked if exemptions 2, 3, and 4 would increase home sharing. Councilor Zelenka -noted exemptions 2, 3, and 4 would impact a landlord's quality of life; asked if certain exemptions could be grandfathered in under the new ordinance; noted concerns about the notification process for tenants and landlords. Councilor Clark -asked to clarify that there was not a motion on the table; asked how many rental units are not in the City database; asked if there is a penalty for not registering one's rental; stated a preference for exemptions to apply automatically. MINUTES -Eugene City Council Work Session June 28, 2023 Page 1 MAIN MOTION: Councilor Keating, seconded by Councilor Zelenka, moved to direct the City Manager to revise the draft Ordinance to remove relocation assistance exemptions 2, 3, and 4. Councilor Discussion: • • • • • • Councilor Leech -noted she does not want to discourage small landlords from home sharing or building accessory dwelling units; noted she is in favor of retaining the exemptions. Councilor Keating -noted he is in favor of enforcement oflandlord registration; asked if the City has a history of informing those who may be affected by an ordinance change. Councilor Clark -clarified the meaning of the motion; stated removing the exemptions would decrease middle housing; stated that the added potential liability could negatively impact approval rates for those who intend to buy and rent out properties. Councilor Groves -believes it is important for a landlord to have the ability to manage the shared space they live in; is concerned that removing these exemptions could have a negative impact on the vulnerable population who rely on HomeShare to remain in their home; stated he is against removing the exemptions. Councilor Zelenka -noted he is in favor of grandfathering in existing leases . Councilor Semple -noted having a tenant in the same house is different than having a tenant on the same property. MOTION TO DIVIDE: Councilor Semple, seconded by Councilor Yeh, moved to divide the motion into 2 as one motion, and 3 and 4 as a separate motion. VOTE: 5:4 PASSED (opposed by Councilors Keating, Groves, Clark, and Zelenka with Mayor Vinis' vote in favor breaking the tie) Councilor Discussion: • Councilor Yeh -stated the intention of this process is to support the underserved members of the community, not to support the privileged. • Councilor Clark -stated this process will have a negative effect on housing in Eugene. MOTION: Councilor Keating, seconded by Councilor Zelenka, moved to direct the City Manager to revise the draft Ordinance to remove relocation assistance exemption 2. VOTE: 2:6 FAILED (opposed by Councilors Clark, Evans, Groves, Keating, Leech, Zelenka) MOTION: Councilor Keating, seconded by Councilor Zelenka, moved to direct the City Manager to revise the draft Ordinance to remove relocation assistance exemptions 3 and 4. VOTE:4:5 FAILED (opposed by Councilors Clark, Groves, Leech, and Zelenka with Mayor Vinis' vote in opposition breaking the tie) MOTION: Councilor Zelenka, seconded by Councilor Keating, moved to direct the City Manager to amend the draft ordinance to apply the notice MINUTES -Eugene City Council Work Session June 28, 2023 Page 2 requirements of exemptions to 2, 3 and 4 only to leases executed after the effective date of the ordinance. Councilor Discussion: • Councilor Keating -stated a preference for a date certain starting January 1, 2024 due to the need to educate the community about the new notification requirements; asked if there were benefits to starting sooner. MOTION TO SUBSTITUTE: Councilor Clark, seconded by Councilor Semple, moved to substitute for complete removal of notice requirements for exemptions 2, 3 and 4. Councilor Discussion: • Councilor Clark -noted that his proposed substitute would remove the burden of notification from the landlord; stated that removing the notice requirement would automatically apply a landlord exemption if applicable. • Councilor Zelenka -noted removing the notice requirement would also remove the notice from the lease; stated he is against removing notice requirements from the lease. • Councilor Semple -asked how current tenants will receive notice of changes to relocation assistance rules. • Councilor Clark -stated his motion will prevent the creation of a disparate class of people based on an arbitrary date. • Councilor Semple -spoke in favor of notifying all tenants of changes to rental assistance. • Councilor Leech -noted she is in favor of encouraging landlords to register with the City; stated she is against the motion to substitute. • Councilor Groves -stated he is favor of tenants being required to give notice of intent to end a lease to qualify for assistance. VOTE ON MOTION TO SUBSTITUTE: 1:7 FAILED (opposed by Councilors Semple, Keating, Zelenka, Yeh, Evans, Leech, and Groves) Councilor Discussion: • Councilor Keating -spoke in favor of providing outreach to all tenants and landlords. VOTE: 5:4 PASSED (opposed by Councilors Clark, Groves, Semple, and Yeh with Mayor Vinis' vote in favor breaking the tie) MOTION: Councilor Keating, seconded by Councilor Zelenka, moved to direct the City Manager to revise the draft Ordinance to remove relocation assistance exemptions 5 and 6. Councilor Discussion: MINUTES -Eugene City Council Work Session June 28, 2023 Page 3 • Councilor Zelenka -asked if month-to-month tenancies qualify for relocation assistance; asked how exemptions 5 and 6 work if the landlord decides to re-occupy or re-rent their principal residence. • Councilor Semple -stated she is against exemptions 5 and 6. • Councilor Clark -asked if exemptions 5 and 6 include vacation rentals; asked if a tenant of a vacation rental would qualify for relocation assistance without exemption 5. • Councilor Yeh -asked if there is a mechanism to track whether a landlord re-occupies the residence under exemptions 5 and 6; asked if staff had concerns about enforcement. • Councilor Keating -asked if he could divide the motion; noted he supports exemption 6; noted he does not support exemption 5. MOTION TO DIVIDE: Councilor Keating, seconded by Councilor Semple, moved to divide 5 and 6. VOTE: 8:0 PASSED MOTION: Councilor Keating, seconded by Councilor Zelenka, moved to direct the City Manager to revise the draft Ordinance to remove relocation assistance exemptions 5. Councilor Discussion: • • • • Councilor Zelenka -noted the leases covered by exemption 5 are clearly temporary . Councilor Semple -stated support for the exemption because the tenant is given notice of the temporary nature of the lease. Councilor Clark-asked if relocation assistance is available to a tenant who rents on a month-to-month basis; asked if a tenant could qualify for two months of rental assistance after 31 days of tenancy. Councilor Keating -stated that a landlord who rents their principal residence has the means to pay relocation assistance; asked for the median annual salary of a renter; stated he is in favor of removing exemption 5. VOTE: 3:5 FAILED (opposed by Councilors Zelenka, Clark, Evans, Leech, and Groves) The meeting was adjourned at 1:31 p.m. Respectfully submitted, f2!21k City Recorder (Recorded by Cherish Bradshaw) Link to the web cast of this City Council meeting here. MINUTES -Eugene City Council Work Session June 28, 2023 Page 4