Washington bill to cap rent increases clears first Senate hurdle
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A new cap on rent hikes in Washington got one step closer to becoming law Wednesday.
On a party-line vote, the Senate Housing Committee passed House Bill 1217, which would set a 7% limit on annual residential rent increases, with some exceptions.
The bill, one of the most controversial moving through Olympia this legislative session, would also prohibit rent increases during the first year of a tenancy. The rules wouldn't apply to buildings under 12 years old or those owned by nonprofits or public housing authorities.
Landlords would also need to give written notice 90 days before a rent increase. The policy would cap move-in fees for manufactured housing, but not rentals.
Tenants or the state attorney general's office could bring litigation over violations of the proposed law.
The committee had already passed the House bill's Senate companion last month, but it didn't advance beyond that. So if lawmakers approve the rent stabilization proposal this year, the House version will have to be the vehicle for enshrining it into law.
Sen. Jesse Salomon, D-Shoreline, who didn't support the previous bill last month, voted for the version passed Wednesday.
Opponents say the bill would drive developers out of Washington, hurting the state's push to increase housing supply. And current landlords wouldn't be able to keep up with inflationary costs for maintenance, they believe.
Sen. Chris Gildon, R-Puyallup, pointed to another proposal from Senate Democrats to allow an increase in annual property tax from the current 1% cap.
'I have a real fear for our housing market at large over time should both of those policies come to fruition,' Gildon said.
Supporters, meanwhile, argue the rent legislation would give predictability to tenants who could be forced out of their homes by steep hikes, while still giving room for landlords to impose increases.
'As everyone knows, housing is the single greatest cost in a household budget,' said Sen. Emily Alvarado, D-Seattle. 'This bill is a simple guardrail for the many, many people in this state who just want to make sure that they can have a little bit of control in that household budget and plan and save.'
The committee on Wednesday added a 2045 expiration date for the policy, changed the proposed rent cap for manufactured homes from 7% to 5% and required an analysis of the bill's impacts in 10 years.
Democrats turned down a Republican amendment to remove the exemption for nonprofits and public housing authorities.
'If this is a good policy, it should apply to all,' said Sen. Keith Goehner, R-Dryden.
Earlier this month, the measure passed the House on a 53-42 vote, with five Democrats joining Republicans in opposition.
After the vote, Senate Majority Leader Jamie Pedersen, D-Seattle, indicated the bill may need changes in his chamber to curry votes. Democrats hold a 30-19 majority in the Senate. The bill would need 25 votes to pass. Already, 18 Democrats had signed on in support and Salomon would make 19.
Pedersen pointed to adjusting the 7% cap or lengthening the 12-year exemption period for new buildings as possible tweaks.
He also floated the idea that landlords could 'bank' the rent increases for future years, meaning that if they forgo part or all of the 7% increase in a given year, they could attach the leftover amount to a future rent hike above the current threshold.
The bill now heads to the Ways and Means Committee, where a similar bill lapsed last year after passing the House. The measure needs to pass the committee by April 8, or it will likely be considered dead for the year.
If the bill passes the Senate and Gov. Bob Ferguson signs it, the provisions would go into effect immediately. The legislative session is scheduled to adjourn April 27.
The housing committee on Wednesday also advanced bills to encourage more transit-oriented development and allow for lot splitting.
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