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 in exchange for holding a deposit, unless the deposit is returned within five business days or repayment is excused based on an act of God.

83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
Enrolled
House Bill 3521
Sponsored by Representative HARTMAN; Representatives ANDERSEN, CHOTZEN, GAMBA,
NATHANSON, NGUYEN H, Senators JAMA, PATTERSON
CHAPTER .................................................
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
the tenant.
(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
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.
Enrolled House Bill 3521 (HB 3521-A) Page 1
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.
Passed by House April 17, 2025
..................................................................................
Timothy G. Sekerak, Chief Clerk of House
..................................................................................
Julie Fahey, Speaker of House
Passed by Senate June 12, 2025
..................................................................................
Rob Wagner, President of Senate
Received by Governor:
........................M.,........................................................., 2025
Approved:
........................M.,........................................................., 2025
..................................................................................
Tina Kotek, Governor
Filed in Office of Secretary of State:
........................M.,........................................................., 2025
..................................................................................
Tobias Read, Secretary of State
Enrolled House Bill 3521 (HB 3521-A) Page 2