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Portland Commissioner Chloe Eudaly

(Beth Nakamura/Staff)

Two Portland property owners on Monday made good on their promise to sue the City of Portland over a new policy that requires landlords to pay relocation assistance to tenants, arguing the rule violates both state and federal law.

Introduced by housing advocate and new Commissioner Chloe Eudaly, the rule requires landlords to pay from $2,900 to $4,500 to tenants they evict without cause, who are not offered lease renewal or who move after the landlord raises the rent by 10 percent or more in one year.

The lawsuit argues the rule conflicts with Oregon state laws prohibiting rent control and allowing no-cause evictions by "effectively" controlling the rent and "imposing significant financial burdens" on landlords. It also argued that the law's application to existing leases violates Oregon contract law.

Attorney John DiLorenzo is representing property owners Phillip E. Owen and Michael L. Feves. DiLorenzo has sued the City of Portland at least seven times, including in a recent case over misspent utility money that lasted more than five years and where DiLorenzo prevailed on about $13 million worth of claims.

--Jessica Floum

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