Local Rental Housing Regulation Watch

Posted By: Tim Hatley 2023 Legislative Session, Government,

Bellingham
On November 6, 2023, voters in Bellingham approved a new tenant protection measure put forth by a group calling themselves Community First Whatcom.  This measure requires 120 days’ advance notice of rent increases. If a rent increase is imposed of 8% or more in a 12-month rolling timeframe, tenants could be eligible for relocation assistance from the landlord.

That assistance must equal the sum of three-time Bellingham’s current fair-market monthly rent as defined by the U.S. housing and Urban Development metrics, or three times that tenant’s existing monthly rent, whichever is larger, according to the proposal.

According to the Washington Policy Center, during the period in which the city of Portland’s relocation fee measure had full effect the number of single-family detached rental units in the city declined from 27,656 units to 23,669, a loss of 3,987 units or 14%.

Housing providers in Bellingham will also see their registration fees double, as part of a revamp of an 8-year-old rental inspection program.

Bellingham City Council voted 7–0 Monday, October 30 to change the annual registration fees, while also increasing penalties for missed or failed inspections.

The current fee schedule gives housing providers a free pass for the first failed inspection but charges them $50 for all subsequent re-inspections. That will change to $100 for the first failed inspection, $200 for the second and $500 for the third. The fees for missed appointments will also increase incrementally under the new system.

The council must still approve the new fees with a final vote, expected at a meeting sometime in November. The new fees would then take effect 15 days after that, which means that property managers who pay for their 2024 registrations early enough can still come in under the old annual rate: $10 per unit for 20 units or less, and $8 per for buildings with more than 20 apartments. 

After the changes take effect, owners of 20 units or less will pay $20 per unit, with larger buildings costing $16 per unit in annual registration fees.

Federal Way 
Proponents of new legislation which would require a 180 notice for any rent increase and impose a $10 late fee cap attended a City Council Committee meeting advocating on behalf of the proposal.  A spokesperson for the group claimed they had the support of 10 different community organizations including the Low-Income Housing Coalition and Solid Ground.  While no legislation has yet been introduced, efforts by tenant advocates to push new regulations is ongoing.

Kenmore
The Washington Business Properties Association (WBPA) filed a suit in late August in King County Superior Court against the City of Kenmore.  They are seeking declaratory relief over municipal ordinances that "conflict with and are preempted by state law and that improperly place unconstitutional burdens infringing upon the rights of landlords to enter into and enforce the terms of residential lease relationships with tenants."

Specifically, the WBPA takes issue with two ordinances that were enacted by the city in 2022 as a suite of tenant protections. They aim to enshrine into city law "just cause eviction protection," capping fees and deposits, increasing notice for rent hikes, authorizing tenant payment plans and banning "abusive, deceptive, and unfair practices in rental housing."

The WBPA claims these ordinances are poorly written and run afoul of the state law.

Olympia
The Olympia City Council discussed at a November meeting the potential for a rental registration and inspection program. Their initial belief is that the registration for each property would be $35 paid for by the rental housing provider. Supporters say they would use the money for “improving housing quality, tenant protection, and education,”. Also stated is they would like to see this go further in the future to include relocation assistance and other rental housing laws.

Olympia’s Mayor, Cheryl Selby, expressed her concerns that similar policies passed in other cities have led to small rental housing providers selling their properties because of the increased regulation. This of course would lead to less housing in an already strained market.  

Seattle
The City Council is currently reviewing its 2024 Budget and is considering at least two amendments concerning rental housing. One would appropriate $50,000 to convene a tenant work-group on strategies to protect the health and well-being of Seattle renters, including the potential of a new office dedicated to enforcing current laws and establishing new laws, requirements, and standards related to renters.  A second amendment proposes a reporting requirement to collect data on rental rates and other information about the units (e.g., size of unit) for housing subject to the Renal Registration and Inspection Ordinance. 

Shoreline
The Shoreline City Council is scheduled to discuss potential Residential Tenant Protections at their November 20, 2023, Council meeting with potential final action on December 4, 2023.   Options for protections include, but are not limited to: 
•    Increased notice period for certain rent increases, 
•    Limits to move-in fees, security deposits and late fees, 
•    Ability for tenant to request different rent due dates if primary income source is provided via governmental assistance, and 
•    No requirement to provide a Social Security number for tenant screening. 

Spokane
The Spokane City Council passed the Regulation of Residential Rental Housing ordinance in early 2023.  It mandates business licenses for rental housing operators and establishes a rental property registry.  It also provides funding for more routine inspections by Code Enforcement staff.

The goal of the rental property registry is to collect property information and contact details.  It also aims to simplify reporting.  The registry will help the city with routine inspections and ensure compliance. The online registration has a planned launch for December 2023 

Tacoma
Tacoma Measure 1 was on the November 7, 2023, ballot and proposes relocation assistance for rent increases of more than 5%; requires a 210 notice for a rent increase; prohibits school year and cold-weather evictions; caps fees; and prohibits evictions of seniors, first responders, military, health care providers and educators.  As of this writing the Measure 1 is passing by the thinnest of margins.