LOCAL RENTAL HOUSING REGULATION WATCH: January 2026

The RHAWA Government Affairs Team consistently watches for updates to local housing policy. We track changes proposed by both local city councils and state-level lawmakers, as well as ballot initiatives that have recently passed. In 2025, a ballot initiative passed in the city of Bellingham, which imposed some restrictions on local housing providers.

BELLINGHAM

Initiative 25-03, recently passed by Bellingham voters, creates a new section of the municipal code establishing protections for tenants who engage in organizing, advocacy, information-sharing, or other legally protected activities. The measure prohibits landlords from interfering with or retaliating against tenants who participate in such activities, which include tenant-union organizing, distributing information, posting signs, hosting meetings, conducting voter-registration efforts, filing complaints about housing or legal violations, and other forms of free speech, assembly, and association. The ordinance also bars landlords from requiring tenants to sign nondisclosure agreements related to lease terms or rental offers, and it prohibits lease language that forces tenants to waive their right to sue or participate in class-action litigation. Any such clauses are declared void and unenforceable once the ordinance takes effect.

The initiative imposes several affirmative duties on housing providers. Landlords must post a new tenant-rights notice, supplied by the city, in a conspicuous location within each rental property. Retaliation against tenants becomes a key area of concern: actions such as nonrenewal, eviction, fee increases, refusal to perform maintenance, threats, or harassment may be presumed retaliatory if they occur within 210 days after a tenant exercises a protected right. Landlords could face private lawsuits from tenants or tenant organizations, as well as civil infractions enforced by the city. Because these protections serve as an affirmative defense in eviction and unlawful-detainer actions, landlords initiating enforcement or termination procedures will face a higher burden to show the action was taken for legitimate, non-retaliatory reasons.

For housing providers, the initiative’s passage brings legal, operational, and financial implications. Non-RHAWA leases may need to be revised to remove NDA provisions, confidentiality clauses related to tenancy or lease offers, and any language limiting a tenant’s ability to pursue legal claims or organize with others. Property management staff will need training to understand what constitutes a protected activity and how to handle tenant requests involving access to common areas or distribution of materials. Landlords should expect an increased compliance burden as well as potential liability from missteps, because both tenants and the city are empowered to enforce the new protections. Financial exposure may increase due to legal defense costs, fines, or damages, and some landlords may experience shifts in operations if they previously relied on restrictive lease language or practices that could now be considered retaliatory.

Given the substantial voter support behind the measure and the city’s upcoming implementation steps, landlords should prepare early. This includes updating lease templates, planning where tenant-rights posters will be displayed, establishing internal policies for staff, and potentially consulting legal counsel about risk exposure. The initiative represents a meaningful shift in landlord-tenant dynamics within Bellingham, aligning with a national trend of expanding tenant-organizing protections. Housing providers who proactively comply and adjust their practices will be better positioned to avoid disputes, legal challenges, and enforcement actions once the ordinance becomes enforceable.

SPOKANE

On December 1st, 2025, the Spokane City Council adopted an ordinance prohibiting algorithmic rent price-fixing and expanding retaliation provisions within Chapter 10.57 of the municipal code. The measure passed 5–2, with Councilmembers Michael Cathcart and Jonathan Bingle voting no, illustrating ongoing policy divisions around rental housing in Eastern Washington. Modeled conceptually on Seattle’s and King County’s versions, the ordinance positions Spokane among the jurisdictions now asserting local authority over data-driven pricing tools in rental markets.

The law bans rental housing providers from contracting with or exchanging value for algorithmic platforms that use non-public competitor information to influence rent levels, occupancy rates, or lease terms. Service providers are similarly barred from coordinating price recommendations for more than one operator. Violations may result in civil penalties of up to $5,000 per dwelling unit, and the City retains discretionary authority to suspend or revoke a business license for up to five years for violations—a shift from earlier drafts that included mandatory revocation.

The ordinance also broadens Spokane’s anti-retaliation framework, specifying that housing providers may not intimidate or penalize tenants, employees, or advocates for raising concerns tied to alleged algorithmic pricing practices. A private right of action allows prevailing parties to recover attorneys’ fees, damages, and injunctive relief, underscoring the litigation exposure for operators.

For rental housing providers, Spokane’s ordinance introduces notable compliance considerations. Operators accustomed to automated pricing systems must review whether their platforms fall within Spokane’s definition of “coordinating services.” Internal policies and documentation practices will matter more in defending business decisions, particularly when rent increases, non-renewals, or screening criteria could be characterized as retaliatory or connected to algorithmic influences. The ordinance’s encouragement of employee and contractor reporting further heightens internal governance complexity—a subtle but meaningful expansion beyond Seattle and King County.

As with the Seattle and King County ordinances, RHAWA participated in the stakeholder process, raising practical concerns and encouraging changes to avoid unintended harm to Spokane’s rental housing market. While we oppose any form of price-fixing or collusive practices, we also recognize the value of innovation, data tools, and software that help housing providers operate efficiently and improve affordability for tenants. Our feedback focused on striking that balance—discouraging harmful conduct without chilling legitimate technological advancement that benefits both providers and residents. Several key provisions were refined during the process, including shifting from automatic to discretionary licensing penalties and clarifying acceptable software use, resulting in a final version that is more workable for Spokane’s rental housing sector.