Salem council adopts condo-conversion ordinance with 8-3 vote to increase tenant protections

The Salem City Council voted 8–3 on May 22 to adopt an ordinance regulating condominium conversions that changes the timeline and relocation payments for tenants displaced when multifamily homes are converted to condominiums.

The ordinance, passed “as amended,” shortens a protection period from two years to one year for tenants under certain post-purchase displacement rules and requires relocation benefits for displaced tenants, including a provision that 50% of relocation benefits be paid 15 days before moving day and the remaining 50% within 10 days after vacating. Councilor Cohen framed the measure around displacement, saying the city is “losing what is usually a naturally affordable rental unit” and urging action to protect residents.

Council supporters repeatedly said the ordinance is intended to preserve naturally occurring affordable rental housing in Salem and to give tenants more stability and resources when properties convert. Councilor Merkel noted the council has data on condo prices and the costs tenants face, saying the proposed relocation payments are a “very small fraction” of condo values. Councilor Watzenfeld argued the priority should be “the housing stability of potentially vulnerable residents.”

Opponents, including Councilor Jerslov and Councilor Harvey, said the ordinance places burdens on small, long‑time property owners and urged more data before final action. Jerslov called the measure “unreasonable” for middle‑class owners who rely on property sales for retirement or other needs.

The roll call during the final vote recorded: Watsonfeld, Varela, Stott, Mercillo, Merkel, Hapworth, Davis and Cohen voting yes; Jerslov, Harvey and Prozniewski voting no (8 yeas, 3 nays). Council officials and members said the ordinance had been under development for multiple years and had been considered by the Affordable Housing Trust and committees before tonight’s vote.

The ordinance’s sponsors said the change to a one‑year window and the relocation payment timing are intended to balance tenant protections with the realities of local housing finance; they and other councilors said the measure is unlikely to stop condo conversions but may slow them and provide additional protections to displaced renters.

The council did not announce an implementation date during the meeting; staff and committee follow‑up was discussed.

Ending: The ordinance takes effect in the sequence determined by the city’s legislative process; councilors and staff said they will return with implementation details and any required administrative procedures.