1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session A-Engrossed House Bill 3521 Ordered by the House April 11 Including House Amendments dated April 11 Sponsored by Representative HARTMAN; Representatives ANDERSEN, GAMBA, NATHANSON, NGUYEN H, Senators JAMA, PATTERSON SUMMARY The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the measure. The statement includes a measure digest written in compliance with applicable readability standards. Digest: This Act awards an applicant money from a landlord who breaks a promise to rent a home and does not return the deposit soon after. (Flesch Readability Score: 63.0). [Digest: This Act awards damages if a landlord revokes an offer of housing. (Flesch Readability Score:60.7).] 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 inexchangeforholdinga deposit, unless the deposit is returned within five business days or repayment is excused based on an act of God. A BILL FOR AN ACT Relating to residential tenancy hold deposits; creating new provisions; and amending ORS 90.297. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 90.297 is amended to read: 90.297. (1) Except as provided in ORS 90.295 and in this section, a landlord may not charge a deposit or fee, however designated, to an applicant who has applied to a landlord to enter a rental agreement for a dwelling unit. (2) A landlord may charge a deposit[, however designated,] to an applicant for the purpose of securing the execution of a rental agreement, only after approving the applicant’s application but prior to entering into a rental agreement. Before receiving the deposit, the landlord must give the applicant a written statement describing: (a) The amount of rent and the fees the landlord will charge and the deposits the landlord will require; [and] (b) The terms of the agreement to execute a rental agreement; and (c) The conditions for refunding or retaining the deposit. (3) If a rental agreement is executed, the landlord shall either apply the deposit toward the moneys due to the landlord under the rental agreement or refund [it] the deposit immediately to thetenant. (4) If a rental agreement is not executed due to a failure by the applicant to comply with the agreement to execute, the landlord may retain the deposit, unless the applicant has rejected the agreement due to the discovery of material defects relating to the premise’s habitability, as described in ORS 90.320 (1). (5) If a rental agreement is not executed due to a failure by the landlord to comply with the agreement to execute or due to a tenant’s rejection of the agreement based on uninhabitability NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted. New sections are in boldfaced type. LC 573 A-Eng. HB 3521 1 2 3 4 5 6 7 8 9 10 11 12 13 as described in subsection (4) of this section, within [four] five business days the landlord shall return the deposit to the applicant either by making the deposit available to the applicant at the landlord’s customary place of business or by mailing the deposit by first class mail to the applicant. (6) If a landlord fails to comply with this section, the applicant or tenant[, as the case may be,] may recover from the landlord: (a) The amount of any fee or deposit charged, [plus $150.] as provided in subsection (5) of this section;and (b) If the repayment was not made timely under subsection (5) of this section, and the failure to repay was not due to an act of God, a penalty equal to the greater of the deposit or an amount agreed to by the parties. SECTION 2. The amendments to ORS 90.297 by section 1 of this 2025 Act apply to deposits received on or after January 1, 2026. [2]