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The Portland City Council on Wednesday passed a measure that bans corporate landlords from using rent-fixing price algorithms in the city.

The ordinance, which was pushed by Councilor Angelita Morillo鈥檚 office, passed 8-2 after months of debate.

鈥淲e know there are countless units in the city of Portland that are operated by these algorithms that do price fixing, and we owe it to renters and people in our community to do every single thing that we can to change housing affordability,鈥� Morillo said.

Software from companies such as RealPage has been targeted in lawsuits claiming the technology gives landlords access to competitors鈥� data, allowing building owners to collude on rents. The software can prompt landlords to raise their rents if they fall behind.

The local action adds to regulatory pressure on rental algorithms. Also on Wednesday, nine states鈥� attorneys general, including Oregon Attorney General Dan Rayfield, announced a $7 million settlement with multifamily giant Greystar regarding its alleged use of RealPage.

鈥淲hen the largest landlord in America uses an algorithm to price fix the rent, the result is simple: people pay more,鈥� Rayfield stated.

The states had alleged that Greystar and other large landlords used RealPage software to coordinate rent increases rather than compete.

In Portland, landlords and developers opposed the local ordinance, saying it added to their regulatory burden. Councilors Dan Ryan and Olivia Clark voted against the new rules.

鈥淚 cannot support creating legislation without proof of a problem that needs solving,鈥� Ryan said.

The ordinance bans 鈥渁greement among two or more persons or entities, to set, raise, lower, maintain or stabilize rental prices, fees or occupancy levels for dwelling units with different beneficial owners.鈥�

The ordinance exempts regulated affordable housing. It also clarifies that collecting and analyzing public data, and conducting appraisals, feasibility studies and market research do not constitute price fixing.

Violators face a number of possible sanctions. The ordinance authorizes private lawsuits and permits the city attorney to issue subpoenas and to file complaints with a code hearings officer.

Heavy financial penalties may result, with each monthly violation on each unit eligible for fines of $1,000 to owners of 16 or more housing units, or triple damages.