SB 5435 Concerning residential rent increases under the residential landlord-tenant act...

SB 5435

Protecting Tenants By Prohibiting Predatory Residential Rent Practices And By Applying The Consumer Protection Act To The Residential Landlord-Tenant Act And The Manufactured/Mobile Home Landlord-Tenant Act.

Companion Bill to 1389

Bill Summary

• Applies to both residential housing and manufactured home communities.
• Prohibits a landlord from increasing rent more than the rate of inflation (CPI-U) or 3%, whichever is greater, up to a maximum or 7% above existing rent if the rent increase:
  • Is not justified by costs necessary to maintain the dwelling unit
  • Is substantially likely to lead to the displacement of the tenant, or
  • Is used to avoid other tenant protections.
• Rent increase provisions do not apply to:
  • Dwelling units for which the first certificate of occupancy was issued 10 or less years before the notice of the rent increase.
  • Tenancies for which the landlord is required to reduce rent to 30% or less of the tenant's income because of a federal, state, or local program or subsidy; and
• Creates a private cause of action for a tenant to recover actual damages, punitive damages equal to 3 months' rent and fees, and reasonable attorneys' fees and costs.
• Provides that a violation of the RLTA or MHLTA is a violation of the Consumer Protection Act.
• Prohibits charging a higher rent or including terms of payment or other material conditions in a rental agreement that are more burdensome to a tenant for a month-to-month rental agreement than for a longer-term rental agreement.
• Authorizes the Attorney General (AG) to:
  • Investigate practices that violate this section. When investigating, the AG may consider, in addition to any other relevant information:
    • The condition of the dwelling unit, including outstanding repair issues, maintenance costs other than for upgrades, property taxes, etc.;
    • Whether a rent increase was issued to evade protections afforded to tenants; and
    • Whether a rent increase will result in the displacement of the tenant or household.
  • Issue a cease-and-desist letter to prevent predatory practices that violate this section. If the recipient does not comply within five calendar days, the AG may file an action in court with a civil penalty up to $10,000 per;
  • Imposes a civil penalty of no more than $25,000 per violation.
• Requires Commerce to calculate and publish the maximum annual rent increase percentage on September 30, 2023, and on each following September 30.
• Includes an emergency clause and an immediate effective date.

• Jan 18 First reading, referred to Housing. (View Original Bill)
• Jan 27 Scheduled for public hearing in the Senate Committee on Housing at 10:30 AM (Subject to change). (Committee Materials)
• Feb 10 Executive session scheduled, but no action was taken in the Senate Committee on Housing at 10:30 AM. (Committee Materials)
• Feb 17 Executive session scheduled, but no action was taken in the Senate Committee on Housing at 10:30 AM. (Committee Materials)