ESHB 2114 – Rent Control

ESHB 2114 imposes statewide rent control in Washington State limiting rent increases to no more than 7% but exempts not-for profit housing providers vouchers and new construction less than 10-years old.  The bill also requires 180-notice for any rent increase over 3%, limits total move in fees to one month’s rent, and even caps late fees to 1.5%

Sponsors: Alvarado, Macri, Ramel, Peterson, Mena, Slatter, Farivar, Taylor, Doglio, Cortes, Fitzgibbon, Gregerson, Berry, Senn, Reed, Bateman, Ortiz-Self, Simmons, Ormsby, Street, Chopp, Orwall, Bergquist, Berg, Wylie, Stonier, Lekanoff, Fosse, Riccelli, Pollet, Kloba, Davis

Summary

• Data relied upon by the State does not distinguish between short-term rentals, single family, multifamily and manufactured housing.
• A month-to-month agreement is more costly than longer term leases. The bill restricts costs increases for both in the same manner.
• Local government policies, ordinances, or other regulations will create patch work across the State of different rules and requirements and cause confusion.
• Does not apply to first ten years of a new property, older housing stock is treated differently than 10 year or younger housing stock. Older housing has costs not consistent with new housing.
• Restricts rent increases to 7% once every 12 months. This is Rent Control.
• Model lease agreement language published by AG but can be modified by local governments.
• Landlord resource center will track landlords and require registration of properties.
• Requires 180 notice for rent increases of more than 3%.
  • Exact notice is prescribed in the bill, and will be posted on the AG and Dept of Commerce Website by Jan 2025
• Does not permit electronic notice.
• Rent increases of more than 3% give tenants the right to terminate a lease with a 20-day notice
• Combines security deposit with move in fees and both cannot exceed a month’s total rent.
• 1.5% late rent payment fee is imposed.
• Bill has an emergency clause that permits immediate implementation of the bill requirements.
  • bill will be unfunded till June 30th 2024, and could be null in void if not funded at that time.
• No mechanism to increase by more than 7% in event of factors outside housing providers control – unconstitutional under current SCOTUS case law.
  • Example Property taxes have increased on average over 45% in 2024, property insurance over 30%, expected maintenance costs due to increased wage and benefits requirements that one into effect Jan 2024.