HB 3521
Requires residential landlords to pay a minimum amount of damages for breaching an agreement to later execute a rental agreement of a habitable dwelling unit in exchange for holding a deposit, unless the deposit is returned within five business days or repayment is excused based on an act of God.
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Sign in to take actionPublic sentiment
Support
54%
Oppose
46%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill requires residential landlords in Oregon to pay damages if they break a promise to execute a rental agreement after receiving a deposit, unless the deposit is returned within five business days or repayment is excused due to unforeseen circumstances like a natural disaster. The bill amends existing law to ensure landlords provide clear written statements about rental terms and deposit conditions, and outlines penalties for failing to comply with these requirements.
Key provisions
- Landlords cannot charge a deposit before approving an applicant's application.
- Landlords must provide applicants with a written statement detailing rent, fees, and deposit terms.
- If a rental agreement isn't executed due to the applicant's failure, the landlord can retain the deposit.
- If a rental agreement isn't executed due to the landlord's failure, the landlord must return the deposit plus a penalty.
- The penalty for failing to comply is the greater of the deposit amount or an amount agreed upon by the parties, plus $150.
- Deposits must be returned within five business days or repayment excused by ‘act of God’.
- The law applies to deposits received on or after January 1, 2026.
Who is affected
- Residential Landlords
- Rental Applicants
- Tenants
- Landlord-Tenant Agencies
Notable changes
- Establishes a minimum damages amount for breach of agreement.
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsors
Arguments in favor
Reasons to support this legislation.
Supporters of HB 3521 believe the legislation will enhance an existing housing package, addressing federal assistance losses and aligning with Oregon's tenant-friendly priorities. They advocate for increased accountability and protection for tenants in the event of a breached agreement, citing concerns over unfair financial burdens and exploitative practices by landlords. Key supporters argue that the bill provides necessary measures to prevent coercive practices, protect prospective tenants from losing hold deposits when landlords fail to meet habitability standards, and promote fairness in rental agreements. By establishing clear guidelines for hold deposit agreements and providing important safeguards for renters, proponents believe HB 3521 will increase equity in rental transactions, provide security and stability for tenants, and ultimately benefit the state's housing market.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of HB3521 argue that the bill would impose unnecessary burdens on landlords, increasing costs that would be passed on to renters. They believe the legislation would discourage landlords from listing available housing units and entering into holding deposit agreements with tenants, ultimately harming those same tenants. Additionally, concerns that the bill would penalize landlords, hindering efforts to increase the housing supply, and delay the delivery of available units to the marketplace, exacerbating Oregon's existing housing problem.