Portland Auditor: Ombudsman investigation finds predatory towing harmed residents of low-income housing complexes

October 2, 2023 – City of Portland: Ombudsman investigation finds predatory towing harmed residents of low-income housing complexes

In December 2023, the Ombudsman learned about allegations of predatory towing practices at several Cully neighborhood properties owned by Hacienda CDC in Northeast Portland. The complaints came from residents of five apartment complexes and clients of a Multnomah County community center and health clinic that cater to immigrants and refugees. Complaints included economic hardship that towing fees imposed on low-income, immigrant community members and allegations of unprofessional and illegal conduct by tow truck drivers.

To determine the validity of the complaints, the Ombudsman conducted an investigation that included analyzing 2023 City towing data, reviewing Oregon towing law and City towing regulations, consulting with the Oregon Department of Justice and the State Board of Towing, making site visits, and interviewing affected parties. Because we also received complaints from County clients and staff, the Ombudsman reached out to the Multnomah County Ombudsperson, who has jurisdiction over the County facilities. Together, we held a community meeting in January 2024 to hear directly from residents.

The investigation found that towing caused significant financial and emotional injuries to vulnerable, mostly Latino community members. A single tow costs nearly half of the monthly rent at a studio apartment at the Hacienda properties. On top of that, daily storage fees rapidly increase the cost of recovering the vehicle. If residents cannot afford the fees, their vehicles are auctioned off. Without transportation, they may be at risk of losing employment and eventually face eviction.

Residents were also confused and frustrated about parking and towing rules. For example, signs are only in English. According to Hacienda, over half of its clients report Spanish as their primary language.  

Our review of City towing data also raised concerns that many of the tows were in violation of state law by a company that has been sued by the Oregon Department of Justice for unscrupulous towing practices.

The City of Portland provided more than $16 million in construction loans for two of the five Hacienda-owned apartment complexes: Las Adelitas and the Clara Vista Townhomes.[1] The financial harm of towing runs counter to the City’s affordable housing policies and its equity goals. To reduce that harm, we recommend that the Housing Bureau work with Hacienda to investigate alternatives to towing as a primary punishment for unpermitted parking, install bilingual signage, and expand outreach to residents about parking rules. The five complexes are closely connected due to their physical proximity and are managed by the same property management company, which issues a parking permit to each unit. Because residents of the other three Hacienda apartment complexes face the same harms from current towing practices, the Housing Bureau should also urge Hacienda to adopt the same changes there.

The Ombudsman’s recommendations are limited to parking issues at the apartment complexes. The County Ombudsperson is continuing to review the issues involving the parking spaces at the County community center and health clinic.

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