Portland Commissioner Chloe Eudaly's proposed tenant protection rule up for vote Thursday could entangle Portland in a lawsuit that could block or delay some or all its provisions, attorney John DiLorenzo says.

Multifamily NW, an association of companies that own or manage many homes and apartments in Portland, intends to sue the city if it passes an ordinance requiring landlords to help pay substantial moving costs for tenants whom they evict without cause or who say they must move as a result of a landlord increasing their rent by 10 percent or more in one year.

DiLorenzo asserts that the proposal conflicts with Oregon state law that prohibits rent control measures.

Eudaly said the ordinance does not infringe on landlords' rights to raise rents, but instead requires landlords to share the financial burden when they "choose to cause an economic displacement".

"We feel very confident that this is highly defensible in court," Portland's newest commissioner said.

DiLorenzo has sued the City of Portland at least seven times, including a case over misspent utility money that dragged out for more than five years and cost the city roughly $13 million.

He said Eudaly's office failed to consult with landlords about "unintended consequences" before drafting the ordinance. He also argued that Eudaly's office rushed her proposal.

"I don't believe any of this has been drafted in a collaborative process at all," DiLorenzo said.

The rule could go into effect the day it is passed -- just over a week after Eudaly publicly disclosed her plan. That would require a unanimous council vote. The rule would last throughout the housing emergency set to expire in October, unless the City Council votes otherwise.

DiLorenzo provided The Oregonian/OregonLive a list of potential hardships that he said could result if the city requires landlords to pay tenants hit with no-cause evictions or 10 percent rent hikes $2,900 to $4,500 to help them relocate.

Homeowners who wish to move back into a home they own would have to pay those fees, he complained. Landlords who need to raise rents by 10 percent to cover the costs of necessary repairs also would face them, he said. So would landlords who want problem tenants out for good reason but face challenges in documenting the just cause, he said.

Eudaly called the hypothetical scenarios DiLorenzo posed "misinformation to rile up opposition."

"The landlord lobby likes to conjure up these bad tenant boogeymen," Eudaly said. "I don't believe in policy-making based on personal anecdote and I certainly don't believe on policy making based on fantasy or myth."

She said, however, she is considering exempting "mom and pop" landlords with a limited number of properties from having to pay the fees.

Eudaly said her office has spoken with several landlords who expressed their support for her tenant protection plan.

Her staff did not consult DiLorenzo or Multifamily NW because she does not believe they have real solutions, she said.

"If they're coming to testify on Thursday, I'm all ears," Eudaly said. "I'm so excited to hear what their solutions are."

Commissioner Nick Fish called Eudaly's proposal a "thoughtful compromise," considering that she advocated rent control during her campaign and won handily. He also urged landlords to come up with alternative solutions to the housing emergency.

"If there is a different and better approach I want to hear it," Fish said. "If we have to fight this in court, so be it."

Commissioner Dan Saltzman said he thinks the emergency ordinance, which requires five votes, will pass Thursday. His chief concern is the effect economic displacement has on children and their education.

Mayor Ted Wheeler has already said he supports Eudaly's proposals. Commissioner Amanda Fritz declined to comment.

--Jessica Floum

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