Rent increase cap approved by Washington House

Yahoo

11-03-2025

An apartment building under construction in Olympia, Washington in January 2025. Critics of a proposal to cap rent increases in Washington argue that it could stifle new development. (Photo by Bill Lucia/Washington State Standard)
A bill to cap yearly rent increases cleared the Washington state House on Monday following a spirited debate on whether such limits will bring greater security for tenants or higher prices and fewer options for those in need of housing
House Bill 1217 would prohibit landlords from raising a residential tenant's rent and fees more than 7% in any 12-month period or by any amount during the first year after the tenancy begins.
It would also require landlords to give 90 days' notice before any rent increase takes effect and would bar them from charging more than a 5% difference in rent for similar leased units.
There are several exceptions to the cap, including buildings operated by nonprofits and residential construction that is 12 years old or less. Rent increase limits would not apply for tenants of triplexes and fourplexes if the owner lives in one of the units.
Changes approved Monday include eliminating the proposed cap on move-in fees for residential rental units. Earlier versions limited the amount to no more than one month's rent. The bill keeps in place caps on move-in fees for manufactured housing. Also, an earlier version required renters to receive a six-month notice of any increase.
Supporters argue that stabilizing rents will provide people with predictability in their expenses to help them stay in their housing and avoid homelessness. They called it a modest and balanced approach to help renters as the supply of affordable housing grows.
'It is a really strong policy,' said Rep. Nicole Macri, D-Seattle, who led negotiations with Republicans on the version that reached the floor. 'Keeping the rent increase limit at seven percent will be a huge impact for renters across the state.'
The bill contains an emergency clause. If enacted, the provisions will take effect immediately.
'Supply takes time to get going,' said Rep. Strom Peterson, D-Edmonds, chair of the House Housing Committee. 'The people that are suffering are the people that are seeing 20, 30, 40, 50% rent increases.'
Opponents say the bill will hurt small landlords and owners of older buildings who will not be able to keep up with inflationary costs for maintenance and other expenses if rents are limited. It also will deter construction of new apartments and multi-family complexes, critics argue.
'Renters are frustrated. Those concerns are absolutely real,' said Rep. April Connors R-Kennewick. 'Rent control is not the answer. This bill will not stabilize the market. It is going to choke off housing supply. Economists all agree this is not a housing solution. It is a self-inflicted economic wound.'
'This policy is the wrong policy. The policy that we need is supply,' said Rep. Sam Low, R-Lake Stevens, who is also a Snohomish County Council member. 'We're not going to see housing providers provide any more housing with these terrible policies.'
House Bill 1217 passed on a 53-42 vote with five Democrats joining 37 Republicans to oppose it.
Democrats rejected several amendments proposed by Republicans, including one to set the cap at 10% plus the consumer price index for the Seattle-Tacoma-Bellevue metropolitan area. There was also a failed amendment to prevent cities and counties from imposing their own rent increase caps.
The bill now heads to the Senate where a similar bill lapsed in the chamber last year. Prospects are much improved this year with a Democratic caucus that has grown in number while shedding two moderate members opposed to rent caps.
Last month, the Senate Housing Committee, the panel that killed the policy in 2024, approved the Senate companion bill to the House legislation.