Local Rental Housing Regulation Watch - December 2024
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BELLINGHAM
Bellingham City Council hosted a lengthy discussion in October where they weighed the impact of the limits on “junk fees” detailed in our previous month's update. The council concluded that more research was needed before proceeding with changes to their rental housing policy and plans to create a framework by which they will engage with local housing providers for input on these policies. However, due to obligations to budgeting, it was noted that the creation of this process will likely be delayed until later in the year or even the beginning of 2025.
RHAWA has reached out to provide input as part of the stakeholder process when it comes to fruition. We will ensure that housing providers in the area are properly informed and prepared to provide their input on these fee limits as well.
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SPOKANE
The Spokane City Council has passed the rental registry ordinance (C36576). This ordinance introduces additional registration requirements and imposes new restrictions on providers who are not fully registered or licensed with the city, including the inability to evict or raise rent for any unit not on the rental registry. Over half of all rental units in the City of Spokane are not on the registry. This legislation raises concerns about its effect on both housing providers and tenants, particularly in relation to costs, safety, and legal liability.
Council Members Cathcart and Bingle voted against the ordinance, expressing concerns about its negative impacts and lack of outreach done by the City of Spokane Code Enforcement.
RHAWA’s Response and Next Steps
RHAWA has been actively involved in opposing this ordinance. Executive Director Sean Flynn testified before the City Council, stating that RHAWA intends to litigate if the ordinance is passed. Following the passage of the ordinance, Sean Flynn was interviewed by several Spokane media outlets, where he restated RHAWA's intention to move forward with legal action. These news articles can be found on RHAWA's website under the Press page of the Media section.
A formal letter, authored by RHAWA Legal Counsel Christopher Bennis of First Avenue Law Group, was submitted to the City Council, outlining conflicts between the ordinance and the Residential Landlord-Tenant Act (RCW). Additionally, several Spokane-based attorneys have provided their opinions, which overwhelmingly state that the ordinance is in conflict with state law.
RHAWA has also been working with the Spokane Real Estate Coalition, which it chairs, to coordinate with partner organizations and industry associations in opposition to this ordinance. Both RHAWA Staff Daniel Klemme and RHAWA Regent Steve Corker have submitted testimony to the Spokane City Council to highlight the ordinance’s problematic provisions.
KEY CONCERNS WITH THE ORDINANCE
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Removal of Unit Fee Exemption for Below-Market Rentals:
Small providers offering affordable rentals not tied to federal or local programs will now lose their fee exemptions, increasing their operating costs and further reducing housing options for lower-income tenants. -
Restrictions on Rent Increases and Evictions:
The ordinance prevents rental providers from increasing rent or evicting tenants if their properties are not fully registered or licensed. This could leave providers unable to act in situations of tenant misconduct or dangerous activities, putting other tenants and the surrounding community at risk. -
Safety and Liability Risks:
The ordinance conflicts with RCW 59.12.030(5), which permits housing providers to evict tenants involved in illegal activities. If providers are unable to act because they are not fully registered, they face increased legal liability, as seen in the Brady vs. Whitewater Creek case, which highlights the risks of not addressing known dangers. - Delays in Addressing Domestic Violence Situations:
Under RCW 59.18.585, landlords are required to remove abusers following a court order. However, the ordinance’s registration requirements could delay these critical actions, putting domestic violence victims in harm's way.
Call to Action for RHAWA Members
RHAWA remains committed to advocating for the interests of housing providers and protecting their rights in the face of legislation that could create unintended consequences for the rental housing industry and the broader Spokane community. We are counting on our members' involvement to help fight against ordinances like this one. Please consider contributing to our Legal Defense Fund, which is a crucial tool in fighting bad legislation and local ordinances that directly impact your businesses and property rights. Your support will enable RHAWA to move forward with legal action and continue our advocacy efforts.
RHAWA is partnering with Spokane Code Compliance office to offer a registration demo to help housing providers who are struggling with the process. To learn more, attend Spokane Rental Registration Demo/Q&A class. Details on December Calendar page 4.
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TACOMA
Those of you who operate rental housing in Tacoma may have noticed some new questions on your business license renewal form. These new questions include:
• How many bedrooms is your rental?
• Square footage of your unit?
• How much do you charge in rent?
RHAWA reached out to the Taxes and Licensing office for the City of Tacoma and was told this information is being collected to help the city better understand the future of the city’s housing needs and what the real-time market looks like. The city has never had the ability for a database and this data collection will be added to that database. Whether this information helps inform future changes to the Measure 1 ordinance passed by voters last year remains to be seen. The Tacoma City Council will have the ability to make changes to Measure 1 in December 2025.
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TUKWILA
Tukwila is once again kicking around their ordinance from early 2023, which is similar to many other ARCH policies that have infiltrated many cities across King County. To remind everyone who may have forgotten, below is what Tukwila has proposed. The ordinance has been discussed in committee, but all local city councils in every city around the state are deep in their budget season. After budget season comes the state legislative session, so whether Tukwila decides to hold off until after the session remains to be seen.
Fair Housing Disclosure:
• A landlord shall provide a copy of [Fair Housing, Rights & Obligations, and Legal Resources] to any tenant or prospective tenant when a rental agreement is offered, whether the agreement is for a new or renewal agreement.
Move-In Fee Cap:
• The sum of any security deposits and nonrefundable move-in fees charged by a landlord before a tenant takes possession of a dwelling unit shall not exceed an amount equal to one month’s rent.
• Tenants may request to pay move-in fees and security deposit in installments.
Cap on Late Fees:
• Any fees for late payment of rent shall not exceed 1.5% of monthly rent per month.
Adjustable Due Dates:
• Allowing tenants to adjust the due date of rent payments if the tenant has a fixed income.
SSN Requirement Ban:
• A landlord may request but shall not require a social security number for the purposes of screening.
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VANCOUVER
RHAWA has been participating in the Rental Habitability stakeholder group in Vancouver over the last few months. The group is going over a number of proposed policies that may go before the city council after the stakeholder period has concluded.
• Rental Registration License in addition to a city business license, which would be $30 a year per unit. The proposals say these fees would help fund city support for rental housing.
• Rental Inspections, which would vary in time between inspections based on the age of the unit.
• The City of Vancouver would provide an annual report documenting results from the proposed programs, including the number of units registered and inspected, as well as revenue and expenses.
• Fees collected would also go towards tenant and housing provider education on all new policies and procedures.
The completed stakeholder group write-up will be presented to the Vancouver City Council sometime in the late fall.
Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.