(The Center Square) – A controversial and hotly debated bill to cap rent increases in Washington state passed the Legislature on Sunday, the last day of the 105-day session. The legislation now heads to Gov. Bob Ferguson’s desk for his signature.
After some back-and-forth between the two chambers, lawmakers passed Engrossed House Bill 1217, which limits rent increases to 7% plus inflation or 10%, whichever is lower. The rent cap for manufactured and mobile homes is 5%. Landlords could still set rent at whatever they please when a tenancy begins.
Bill proponents say it will give renters a degree of predictability in dealing with the high cost of living. Opponents of the bill contend it will hinder development and price landlords out of the business.
“It’s been a road for this piece of legislation,” Rep. Strom Peterson, D-Edmonds, said on the House floor Sunday. “Incredibly proud of the work that has been done in this space to protect some of the most vulnerable Washingtonians. Those that are struggling month-to-month to make ends meet will have the same monthly assurances that you and I have when it comes to paying our mortgage.”
Rep. Michelle Caldier, R-Gig Harbor, who sits just behind Peterson, shook her head disapproving of his testimony.
Rep. Sam Low, R-Lake Stevens, spoke against the bill.
“We all agree that people are struggling in this state right now, and we do know that rents are high … We need relief for those who are struggling,” he said. “Unfortunately, I believe this policy is not going to help. It’s a risky proposition. Supply is the answer. We need more supply so people’s rents can be lowered.”
The Senate-passed version of the bill excluded single-family homes in the cap requirement, but that was not included in the final version passed by the Legislature.
Landlords who do not follow the new law can be sued for damages by the tenant, who is also provided counsel from the Office of the Attorney General.
Developers contend the bill will make Washington unattractive for new housing starts and ultimately worsen the housing shortage crisis.
Rep. Jeremie Dufault, R-Selah, testified remotely Sunday after being banned from the House floor late last week for an outburst over House Bill 1296, which addresses student and parental rights.
“In our rural areas where we don’t have this level of rent increases, now all of the sudden across our state we’re going to have almost every tenant seeing annual rent increases,” Dufault said, noting that an amendment to the bill which was rejected by majority-party Democrats would have allowed landlords who are already renting below fair market value, to be exempt from the legislation. “Rent control doesn’t work, and it hasn’t worked anywhere it’s been imposed in the country.”
As reported by The Center Square, rent control policies in California have not worked as promised.
“Study after study has shown that rent control both reduces the amount of units on the market and reduces the quality,” California Apartment Association Senior Vice President of Local Government Affairs Fred Sutton said.
“This is going to be a self-inflicted economic wound for the state of Washington,” Rep. April Connors, R-Kennewick, said.
She then read from a letter she said was provided by one of the largest multi-family housing developers in the state: “Should the Legislature pass 1217, we will immediately begin evaluating the feasibility of more than 2,000 new housing units that we have in various stages in Washington state, and will suspend nearly 500 million in investment in Washington state to begin reevaluating the financial viability and the feasibility for a reasonable rate of return for these projects under this law.”
Rep. Shaun Scott, D-Seattle, rose in support of the bill, saying that past racial housing policies necessitate the legislation.
“The founding documents of our Republic were designed in many ways to protect property holders, landowners, and people who were trafficking in enslaved people,” he said.
At that point, Rep. Travis Couture, R-Allyn, called for a “point of order,” arguing that Scott’s comments were not directly related to the policy. However, House Laurie Jinkins, D-Tacoma, did not agree and allowed Scott to continue.
The rent control bill passed the Senate on a vote of 27-20, with one member excused. Two Senate Democrats joined all Republicans in opposition.
In the House, the bill passed on a vote of 55-44, with five House Democrats joining all Republicans in opposition.
