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The Washington state House of Representatives on Tuesday passed a bill that among other things prohibits apartment owners from increasing residential rents more than 7% during a 12-month period.
Senate Majority Leader Jamie Pedersen (D-Seattle) on Wednesday said he would refer the bill to the Senate Ways & Means Committee, where it will have until Feb. 26 to advance.
"My understanding is that Chair (June) Robinson intends to hold a public hearing on it. So, for at least the next 12 days, the bill remains alive," Pedersen told the Business Journal.
Rent control is a key issue with urban progressives promising action and the real estate industry fighting the practice as it has spread on the West Coast.
HB 2114 sponsor Emily Alvarado of West Seattle said Democrats kept their promise on rent control, or rent stabilization as she and allies call it, by passing the bill, 54-43.
The bill also requires landlords to charge the same for month-to-month and long-term leases. Other measures are:
- Combined total move-in fees and security deposits cannot exceed the cost of one month’s rent
- Late fees are capped at 1.5% of a tenant’s total monthly rent
- Rent increases of more than 3% require 180-day notice
“This policy will bring fairness into the housing market and provides immediate relief for seniors and working families,” Alvarado said in a news release.
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The state chapter of commercial property association NAIOP says rent control creates an undersupply of housing, and adds that boosting supply is the only viable way to ensure long-term affordability.
Prospects of passage in the Senate appear slim, said Washington Business Properties Association Managing Director William Shadbolt. He cited a more landlord-friendly version of the bill that did not advance to a floor vote.
"Rent control doesn't pencil out for providers or those struggling with our state's housing affordability crisis," Shadbolt said in a news release. "The Senate must stop this bad legislation."
Single-family homes built in Puget Sound region in 2022
| Rank | Prior Rank | Business name (prior rank) |
|---|---|---|
1 | 1 | Lennar NW |
2 | 2 | D.R. Horton Inc. |
3 | 3 | Richmond American Homes of Washington Inc. |
