With tweaks, rent limit proposal forges ahead in WA House

OLYMPIA — A proposal to limit rent hikes in Washington gained the approval of a House budget committee Saturday and continues its trek through the statehouse.

The House Appropriations Committee advanced a version of the bill that would limit annual increases in rent to 7% for existing tenants, up from a 5% limit in an initial proposal.

In order for House Bill 2114 to survive, it has to get the go-ahead from a full vote of the House by Feb. 13. If the House passes the bill, it would still need vetting and approval from the Senate in order to pass.

The path ahead for the proposal has grown thornier since a Senate version died in committee last week. The Senate Housing Committee had appeared to pass a companion bill limiting annual increases even higher, at 15%, but that proposal died Wednesday after a member of that committee — Sen. Annette Cleveland, D-Vancouver — said she wouldn’t sign in favor.

The proposal has heightened a debate in Olympia about what policies would truly address the housing crisis — with opponents criticizing artificial price limits as counterproductive in a state with a severe shortage of housing, and proponents arguing that tenants need relief from expensive rent hikes.

In the past year, state lawmakers have acted to make it easier to build more places for people to live, like passing legislation to loosen zoning to allow more multifamily housing. On the first day of session, Jan. 8, the House passed House Bill 1245, which would make it easier to split residential lots, a policy intended to allow more development.

Rep. April Connors, R-Kennewick, recommended her colleagues on the House Appropriations Committee on Saturday vote no on advancing the bill and said that housing supply is what drives down costs for buyers and renters.

She cited her 23 years of experience as a Realtor, as well as committee testimony and a Zillow report showing median rent has declined $146 in Washington in the past year.

“We have done a lot of work in the last year to increase supply, but we need to let that actually work,” Connors said. The state Department of Commerce estimates that Washington will need 1 million new housing units in the next 20 years.

The sponsor of House Bill 2114, Rep. Emily Alvarado, D-Seattle, said she believes that between the 7% cap, a 10-year exemption for new construction, and the fact that landlords can “reset” the rent to whatever level they choose once an existing tenant vacates a unit, the proposal would not affect the housing supply.

“This policy is carefully calibrated to not impact supply, but to provide immediate relief to seniors and working people who are struggling to keep up with rising rents,” Alvarado said.

The initial version of the bill had proposed a $10 maximum on late fees, but the changed version would cap them at 1.5% of a tenant’s monthly rent. The House version also adds exemptions for certain situations, like when the owner is also a resident of the property.