Oregon House Bill 3522 targets squatting to protect property owners and housing market

The Oregon State Legislature convened on April 3, 2025, to address pressing issues affecting property owners and the housing market, particularly the growing problem of squatting. The meeting highlighted the significant challenges faced by homeowners and communities due to unlawful occupancy of properties.

The discussion began with an overview of the current legal hurdles property owners encounter when attempting to remove squatters. These individuals occupy homes or buildings without consent, often exploiting legal loopholes to delay their removal. A notable case was presented involving a new homeowner in Gladstone, who, after purchasing a house at auction, discovered it was occupied by squatters claiming "squatters rights." This situation escalated into a lengthy legal battle, costing the homeowner thousands of dollars and leading to increased tensions.

Further examples illustrated the broader implications of squatting. A historic building in Portland, once celebrated for its architecture, was overtaken by squatters, resulting in severe damage that required biohazard teams for cleanup. Such incidents not only affect individual property owners but also harm entire communities, as highlighted by the Oregon Property Owners Association. The association pointed out that squatters are not protected under Oregon's landlord-tenant laws, yet property owners often face delays in eviction processes because law enforcement treats these situations as civil matters rather than criminal trespass.

The meeting underscored the financial impact of squatting on the housing market, noting that it discourages investment in rental properties and contributes to a significant decline in new rental construction in Portland. With Oregon grappling with a housing shortage, the consequences of unlawful occupancy are particularly concerning.

In response to these challenges, House Bill 3522 was introduced as a potential solution. This bill would allow property owners to issue a 24-hour written notice to squatters, demanding they vacate the premises. The notice would clarify that it does not confer any legal occupancy rights. If squatters do not leave within the specified time, their continued presence would be classified as unlawful holding, enabling expedited eviction through the forcible entry and detainer (FED) process. The bill also seeks to broaden the definition of squatters to include anyone using property for dwelling purposes without consent, streamlining the eviction process and reducing the need for costly lawsuits.

The meeting concluded with a consensus on the importance of protecting private property rights as a foundation for economic stability in Oregon. The proposed legislation aims to provide a fair and efficient means for property owners to reclaim their investments while ensuring that squatters have access to legal proceedings. The discussions set the stage for further deliberation on the bill and its potential impact on the state's housing landscape.