SB 5961 – Rent Control

DEAD – SB 5961 imposes statewide rent control in Washington State limiting rent increases to no more than 5% but exempts not-for profit housing providers 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 $10. 

Sponsors: Trudeau, Nobles

Summary

• Data relied upon by the State does not distinguish between 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 5% 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%.
• Does not permit electronic notice.
• Rent increases of more than 3% give tenants the right to terminate a lease.
• Combines security deposit with move in fees and both cannot exceed a month’s total rent.
• $10 late rent payment fee is imposed.
• Park tenant purchased parks can raise rent, but non-tenant purchased parks cannot raise rent upon purchase date.
• Bill has an emergency clause that permits immediate implementation of the bill requirements.
• No mechanism to increase by more than 5% in event of factors outside housing providers control – unconstitutional under current SCOTUS case law