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Bifurcated Rent Increase Request Path

OHCS's Rent Increase Requests Policy establishes four paths for rent increase requests. The Bifurcated Rent Increase Request Path is described below.

The Bifurcated Rent Increase Path is for those owners seeking a 5 percent or lower rent increase on existing tenants in conjunction with a higher up to 7% + CPI increase upon unit turn effective for new tenants, this criteria is applicable. Owners will be able to implement this rent increase as soon as they receive approval from OHCS (consistent with the State of Oregon notice requirements).

Please Note: Bifurcated rental increases are more complex and difficult to track for both OHCS and for the property owner and operator. OHCS advises that properties have a tracking system in place and have a plan for staff training if interested in pursuing a bifurcated rent increase.

Path Details

​A Bifurcated Rent Increase Request Path is defined as:
  • Up to a five percent rent increase for existing residents; and
  • Up to a 7% + CPI increase for new resident move-ins after a specified date 3
​Approved rents will not exceed program rent limit maximums.

3​ Note: it is important to understand that bifurcating rents based on move in date can be incredibly complex and will require additional property management oversight; failure to implement correctly may result in financial penalty (see “unapproved rent increases”)​
OHCS considers multiple criteria when assessing a request to increase rents for a property. Under the Bifurcated Rent Increase Path submittal, the following criteria will be used to determine modification, approval or denial of the request.
  • A comparison of the rent request to the maximum allowable programmatic rent.
  • Property’s vacancy history. OHCS will place particular weight on those properties with occupancy rates lower than 90% and properties with extended vacancies (units vacant for longer than 90 days).
  • Unresolved compliance issues determined by OHCS to be of a severe nature. Examples include but are not limited to:
    • ​unapproved rent increases
    • unresolved health and safety issues – as outlined in your most recent compliance audit
    • unresponsiveness to compliance requirements such as a history of not responding timely or unaddressed issues

​OHCS requires the following documentation to be submitted with the Bifurcated Rent Increase Path Submittal:

  • Current Rent Roll
  • 12-Month Occupancy Report
  • Utility Allowance Documentation
​OHCS will make every effort to make an initial determination on requests received meeting the Bifurcated Rent Increase Path Criteria within a 60-day timeframe. Requests will go through an internal approval process involving a section manager approval.

Owners wishing to request an increase meeting for the Bifurcated​ Rent Increase path must submit the appropriate rent request form and any required supplemental information to MFRent.Request@oregon.gov​.
Return to OHCS Rent Increase Requests Policy webpage here.
Image: Portfolio Administration, Compliance Monitoring

Contact

For Rent Increase Request Information, please email us at:
MFRent.Request@oregon.gov


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