Washington State Enacts Landmark Rent Stabilization Law

In a significant move to address housing affordability, Washington state lawmakers have passed House Bill 1217, introducing statewide rent stabilization measures. The bill now awaits Governor Bob Ferguson's signature to become law.

✨Key Provisions of House Bill 1217

• Rent Increase Cap: Landlords are restricted from raising rent by more than 7% annually for existing tenants. No rent increases are permitted during the first year of tenancy.
  
  

• Notice Requirement: A 90-day written notice is mandatory before any rent increase takes effect.
  
  

• Lease Parity: Landlords cannot charge more than a 5% difference in rent for the same unit based on lease type (month-to-month vs. fixed-term).
  
  

• Exemptions: The cap does not apply to:
  
  

• New constructions less than 12 years old.
  
  

• Properties owned by nonprofits or public housing authorities.
  
  

• Owner-occupied duplexes, triplexes, or fourplexes.
  
  

• Enforcement: Tenants and the state attorney general can take legal action against violations.
  
  

• Sunset Clause: The rent cap provisions are set to expire on July 1, 2040.
  
  

💼Legislative Journey and Compromise

The bill underwent extensive debate and revisions. Initially, the House proposed a flat 7% cap. The Senate later amended it to allow increases up to 10% plus inflation and introduced exemptions for certain single-family homes. These changes sparked concerns among housing advocates about the potential dilution of tenant protections. After negotiations, a compromise was reached, leading to the bill's current version.

🏡Implications for Renters and Landlords

For renters, especially in high-demand areas like Seattle, Bellevue, Mercer Island, and Bainbridge Island, the legislation offers a measure of predictability in housing costs, potentially reducing the risk of sudden, significant rent hikes. However, it's important to note that the cap applies only to existing tenancies; landlords can set initial rental rates for new tenants.

Landlords have expressed concerns that the cap may hinder their ability to cover rising maintenance and operational costs, potentially impacting the quality and availability of rental housing. Some argue that the legislation could deter investment in new housing developments, exacerbating the housing shortage.

➡️Next Steps

Governor Ferguson is expected to sign the bill into law, after which its provisions will take immediate effect. This move positions Washington alongside states like Oregon and California in implementing statewide rent control measures.

📄Stay Informed and Engaged

As Washington embarks on this new housing policy chapter, renters and landlords must stay informed about their rights and responsibilities under the new law. Feel free to reach out for personalized guidance or to discuss how these changes may impact you. Together, we can navigate this evolving landscape and work towards a more equitable housing future.