by Cindy Alia 1/11/25
Property Rights Urgent Alert!
HB 1217 Improving housing stability for tenants subject to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act by limiting rent and fee increases, requiring notice of rent and fee increases, limiting fees and deposits, establishing a landlord resource center and associated services, authorizing tenant lease termination, creating parity between lease types, and providing for attorney general enforcement.
HB 1217 is getting an extrordinary level of attention from both sides of the issue, those who want reasonable and predictable landlord/tenant law, and those who are in a hurry to pass this bill that has an over the top methodology to determine who, what, when, and how properties will be rented and managed. This legislation represents a significant intervention in the rental market, aiming to balance tenant protection with landlord rights. While it could lead to greater housing stability for many, it also introduces new dynamics in property management and investment. The effectiveness and unintended consequences of these policies will likely be debated and possibly refined based on the forthcoming social vulnerability assessment.
This bill will have a hearing on the first day of session!
House Hearing Rm C and Virtual
John L. O'Brien Building
Olympia, WA 1:30
You can attend and provide comment, or you can attend virtually to provide comment: Either way, it is important to provide your legislators information about the bill you think is important!
Make sure you know your legislator, your district, and the phone number of your legislators: You can use this map to easily find your district and information about your legislators.
You can always use the legisltive hotline to make your voice heard. A friendly and polite member of the legislative information services will take your message and ensure your legislators hear it.
Call the Legislative Hotline
1-800-562-6000
Here are some of the top issues CAPR finds problematic in this bill:
Rent and Fee Increases:
Cap on Increases: The bill proposes that landlords cannot increase rent and fees combined by more than 7% within any 12-month period, except during the first 12 months of a tenancy where no increase is allowed.
Exemptions: Certain properties are exempt from these caps, including new constructions (within the last 10 years), units owned by public or nonprofit entities where rent is already regulated, and specific types of owner-occupied residences.
Notice Requirements:
Annual Notice: Landlords must provide annual written notice of any rent or fee increases, including details about exemptions if applicable.
Extended Notice Period: If the increase is 3% or more, landlords must give tenants 180 days' notice, otherwise, 60 days' notice is required.
Tenant Protections:
Lease Termination: Tenants can terminate their lease without penalty if an unlawful rent increase is imposed.
Security Deposits: Caps security deposits and move-in fees at one month's rent.
Landlord Resource Center:
The Department of Commerce is tasked with creating an online resource center to provide landlords with information on available programs and resources.
Enforcement and Penalties:
Violations by landlords can result in damages, including three months' worth of any unlawfully charged rent or fees, plus attorney fees for tenants.
The Attorney General can enforce these rules under the Consumer Protection Act.
Late fees are limited to 1.5% of the monthly rent if paid more than 5 days late.
The bill provides for a social vulnerability assessment to evaluate the impact of rent stabilization.
Prohibits certain kinds of lease incentives
This bill will have significant impact on Market Dynamics!
Market Dynamics:
Impact on New Renters: New tenants might face higher initial rents since landlords can set rates at market levels for new tenancies, potentially creating a disparity between new and existing tenants.
Short-term Rentals: The inclusion of short-term rentals in these regulations might affect the profitability or attractiveness of such investments in Washington.
Landlord Considerations:
Landlords might face increased administrative burdens due to the notice requirements and new regulations. There could also be a potential impact on property investment if returns are perceived as less predictable or profitable.
Legal and Compliance Issues: The enforcement mechanisms, including the involvement of the Attorney General, suggest a robust framework for ensuring compliance, but this might lead to increased legal scrutiny and costs for landlords.
Long-term Effects: The social vulnerability assessment mandated in the bill indicates an awareness of potential unintended consequences, aiming to adjust policies based on real-world impacts. However, the outcomes of such stabilization measures can be complex, potentially affecting housing supply, maintenance quality, and new construction.
There are external factors that should be considered before this bill would pass, potentially preventing negative unanticipated effects of the bill and policies the bill promotes. To summarize, these factors must be addressed! Overall, it appears the bill has a high potetential of making housing much less affordable in an already unaffordable environment.
External Factors Affecting the Bill's Success:
Economic Conditions:
Interest Rates: Higher interest rates can make financing new construction more expensive, potentially deterring developers.
Inflation: Rising costs for materials, labor, and land can impact the feasibility of new projects.
Job Market: Economic growth or downturns affect demand for housing; a robust job market might increase demand for new units, while a recession could decrease it.
Regulatory Environment:
Zoning and Land Use Regulations: Local zoning laws might restrict where and how high-density or affordable housing can be built.
Building Codes and Standards: Compliance with new or stringent building codes can increase construction costs or delay projects.
Public and Community Sentiment:
NIMBYism (Not In My Backyard): Local community resistance to new housing developments, especially high-density or affordable housing, can lead to delays or cancellations of projects.
Infrastructure Availability:
Utilities and Transportation: Lack of adequate infrastructure like roads, public transit, water, and sewage can limit where new housing can be built or increase costs.
Government Policies and Incentives:
Tax Policies: Property taxes, tax incentives for developers, or exemptions for affordable housing can influence construction decisions.
Subsidies and Grants: Availability of government funding or subsidies for affordable housing can encourage or discourage new builds.
Market Dynamics:
Rental Market Trends: If there's a significant shift towards homeownership or if there's a surge in short-term rentals, it could impact the demand for traditional rental units.
Environmental Regulations:
Environmental Impact Assessments: Requirements for environmental studies can delay or increase the cost of development, particularly in areas with sensitive ecosystems.
January 11, 2025