A Look at Proposed Law Changes in LC 222: Navigating Oregon Natural Disaster Tenancy Termination

Hey folks, it's Christian Bryant here, your go-to voice for landlord insights across the Portland metro and all of Oregon. We've got a lot on our plates these days—keeping properties in top shape, navigating rent payments, and yeah, occasionally dealing with the curveballs nature throws our way. Speaking of which, there's a draft bill floating around in Salem right now, LC 222, this big housing omnibus package from early January 2026. Most of it focuses on funding tweaks and permitting shortcuts, but one section caught my eye: new rules around Oregon natural disaster tenancy termination when a rental unit gets severely damaged or destroyed by events like wildfires or major storms.

Mr Portland Landlord video summary of this article

Disasters hit hard—no one disputes that. Tenants lose their homes, landlords face rebuild headaches and insurance battles. We all want fair processes that protect people without creating unnecessary hurdles. But this proposed addition to ORS Chapter 90 spells out some automatic outcomes that have me pausing. Let's break it down together, shall we?

The key part is Section 21: If a "natural disaster" (pulling from the definition in ORS 197A.440, think big events like fires or floods) affects a tenancy, and the dwelling unit is fully destroyed, the tenancy terminates immediately unless you and the tenant explicitly agree to something new afterward. Landlords would need to promptly refund prepaid rent (prorated from the disaster date) and the full security deposit. Tenants get reasonable access to retrieve belongings once it's safe, and there's no ongoing rent obligation while the place is inaccessible or posted unsafe.

On the surface, it adds clarity during chaos—who wouldn't want that? But here's where I get thoughtful: Oregon's current Residential Landlord and Tenant Act already handles these situations pretty robustly through habitability rules, without needing this extra layer of mandates.

Current Oregon laws allow flexibility for repairs and continued tenancy after disasters, benefiting both landlords and tenants.

Right now, under ORS 90.320 and 90.360, if damage from a disaster (or anything else) makes the unit uninhabitable, tenants have strong options. They can terminate the lease themselves with notice, abate rent entirely until fixed, or even move out temporarily while keeping the tenancy intact. Landlords, meanwhile, have a duty to repair if it's feasible, especially for essential services. But crucially, both sides can negotiate. What if the damage isn't total destruction, repairs can happen quickly, and the tenant wants to stay (maybe they've got roots in the neighborhood, kids in school)? Current law preserves that flexibility—rent abated during downtime, perhaps a temporary relocation allowance, and everyone works toward getting back to normal. It's not rigid; it allows landlord and tenant to partner on a solution that fits the real circumstances.

This proposal shifts to an automatic termination for destroyed units, slamming that door unless you start fresh post-disaster. That could complicate things when mutual agreement to repair and resume would serve everyone better. Plus, those immediate refund requirements might strain a landlord's cash flow right when they're juggling their own recovery costs. It's not about skimping on protections—tenants are already well-covered under existing rules—but about whether we need more one-size-fits-all mandates on top.

Industry voices chimed in during the January 14, 2026, interim housing committee hearing previewing LC 222, highlighting this potential redundancy. Why add specifics when the habitability framework already gives tenants robust remedies and room for practical agreements?

Existing habitability rules preserve options for mutual agreements during Oregon natural disaster tenancy termination scenarios.

Look, tenants aren't the adversary here; they're our partners in making rentals work. Good tenants stick around, pay on time, and treat properties like home. We need policies that encourage stable tenancies, even through tough times. Piling on more automatic terminations in an already regulated market might just send another subtle signal to investors: "Oregon's great, but maybe look elsewhere for fewer rigid rules."

As the 2026 session gears up, this could change or get separated out. But if you're like me and think current laws strike a decent balance—protecting tenants strongly while allowing flexibility—now's the time to speak up.

Call to Action: Reach out to your state representatives and senators today. Let them know your thoughts on the proposed Oregon natural disaster tenancy termination rules in LC 222—whether you support tweaks, oppose the redundancy, or simply urge focusing legislative time on bigger housing needs. To find your legislators: Head to the Oregon Legislative Information System's "Find My Legislator" tool at https://olis.oregonlegislature.gov/liz/FindMyLegislator. Enter your address, and you'll get names, emails, phone numbers, and office info. A quick email or call goes a long way—be polite, share your real-world perspective as a landlord or property manager, and help shape better policy.

Stay prepared out there (fire insurance updated? Emergency plans in place?), and let's keep the conversation going.

Sources:

• Draft LC 222 (2026 Regular Session), Oregon Legislative Information System: https://olis.oregonlegislature.gov/liz/2026R1/Measures/Overview/LC222

• ORS Chapter 90 (Residential Landlord and Tenant Act, including 90.320 and 90.360 on habitability): https://www.oregonlegislature.gov/bills_laws/ors/ors090.html

• Interim Committee on Housing and Homelessness Agenda and Materials (Jan 14, 2026): https://olis.oregonlegislature.gov/liz/2025I1/Committees/HHOUSH/2026-01-14-14-30/Agenda

• Find Your Legislator Tool: https://olis.oregonlegislature.gov/liz/FindMyLegislator