The Eugene City Council is exploring whether to create a program to give tenants the opportunity to purchase their apartments if their landlord puts the property up for sale.
The proposal is before the council on Monday.
The program is called “Tenant Opportunity to Purchase,” or TOPA for short. Versions of it have been tried in several states and major cities including Washington D.C., San Francisco and Maryland. Oregon has a similar law that allows residents to buy their mobile home parks.
Tim Morris, executive director of the Springfield-Eugene Tenant Association, said the proposal could help preserve affordable housing. He said when tenant associations own and manage housing, those communities tend to have smaller, more transparent rent increases than the commercial market.
“We know that being able to access homebuying these days is especially difficult as the cost of pretty much everything is dramatically increasing,” Morris said. “Finding these unique pathways to homeownership is of interest to us, and for the community as a whole.”
The City Council has a few options Monday, including approving a feasibility study, directing staff to start developing a more specific proposal or urging Oregon lawmakers to formally adopt something.
If they move forward, councilors will also need to decide what kinds of rental properties should be included, how it would enforce the requirement, and what type of investment or support it would provide to tenants and property owners.
There is research and analysis that’s been conducted on opportunities to purchase programs in Washington D.C. and San Francisco.
Those reports found those cities did see success in preserving affordable housing and preventing displacement. Their programs were usually accompanied with tenant education and counseling, and support to ensure tenants had access to financing to be able to put forward competitive offers.
TOPA in Eugene first came up when the city council was reviewing its renter policies in February. City councilors asked staff to research and bring back possible implementation plans at a later date.
According to the meeting documents, city staff consulted housing advocates, community groups and some property owners on potential ideas.
Many supported the idea, saying it could help stabilize housing in Eugene, and some believed tenant associations may do a better job using their rent revenue to repair and maintain their housing. They did raise concerns that without careful implementation, marginalized people could be displaced unless the city provides some sort of support or investment. Others argued Eugene may want to come up with a plan to help new tenant associations because they may struggle to put together financing.
Some housing providers and landlords also raised concerns that requiring a waiting period to sell, or other extra requirements, could disincentivize building and investment in housing or lengthen already complicated real estate transactions.
