By News-Register staff • 

Village Quarter tenant sues over rent hike

A resident of senior affordable housing Village Quarter Apartments in McMinnville has filed a lawsuit against property manager Housing Authority of Yamhill County alleging an illegal rent increase.

Resident Susan Smith alleges HAYC raised her rent by $175 last year, which exceeds the maximum allowable annual increase of 10% under Oregon law.

In a lawsuit filed in August with the Yamhill County Circuit Court, Smith alleges HAYC raised her rent from $690 to $865 monthly by a notice to her residence that was accompanied by a note explaining her rent hike was higher because there had been no increase the previous year.

Under Oregon law, the Department of Administrative Services annually calculates the maximum rent increase, capped at 10% or 7% plus the 12-month average change in the Consumer Price Index, whichever is lower. The law also states increase limits don’t apply if the landlord is providing reduced rent as part of a federal, state or local program or subsidy.

A subsection of ORS 90.323 states notices of rent increases must show facts related to rent limit exemption.

Smith alleges HAYC didn’t include notice of exemptions in the sticky note that accompanied the increase.

Village Quarter has 50 one- and two-bedroom units designated for tenants over 55 who make 80% or less of area median income. Income limits are $41,300 for a one person household, $47,200 for two persons and $53,100 for three-person homes, according to HAYC.

The lawsuit is seeking damages of $4,520 plus attorney and legal fees. Smith is seeking $2,595 in statutory damages equaling three times her rent and $1,925 in rent overcharges extending as long as the rent remains elevated, according to the lawsuit.

Smith attorney Brandon Smith told the News-Register he is unsure of the timeline for the lawsuit, which will soon enter the discovery phase.

“At this point, we’re just trying to get it resolved,” Brandon Smith said. “I don’t think it should’ve gotten to this point.”

HAYC attorney William Edgar did not respond to a request for comment at press time.

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