(Olympia, WA) Caps on yearly rent increases are one step closer to becoming law in Washington.
The House Housing Committee on Wednesday approved a bill that would limit rent increases to 7% for existing residential tenants. It passed on a one-vote margin with one Democrat, Rep. Adison Richards of Gig Harbor, voting against it.
Supporters of the proposal say it will help tenants stay in their homes and provide predictability in their housing costs. Opponents, however, say it could hurt small landlords and hinder new housing construction in Washington.
“This bill is about basic fairness,” sponsor Rep. Emily Alvarado, D-Seattle, said. “Our constituents are asking for relief on excessive rent increases now.”
Under the proposal, landlords could set the rent at whatever amount they want at the start of a tenant’s lease. Every year after, increases would be capped at 7% of the tenants’ current rent.
There would be some exceptions, including buildings operated by nonprofits and residential construction that is 10 years old or less. It would also require landlords to give 180 days’ notice before an increase of 3% or more and limit some move-in and deposit fees.
Those who violate the law would face penalties enforced by the state attorney general’s office Consumer Protection Division.
In the Housing Committee, Rep. Jeremie Dufault, R-Yakima, introduced amendments that would have upped the cap, added more exemptions and removed the penalties from the Consumer Protection Division’s jurisdiction. All of the amendments failed.
Dufault argued that the bill as written would push developers out of Washington, undercutting new housing. It could also force small landlords to shut down their businesses because they could not set the rent to keep up with inflation, he said.
He called the proposal “a giant step in the wrong direction.”
Rep. Andrew Barkis, R-Olympia, said lawmakers need to focus on increasing the supply of housing and not on controlling the price of rent.
“This will make the problem worse,” Barkis said. “This is not the answer to solve this problem.”
Housing Committee Chair Strom Peterson, D-Edmonds, rejected the idea that this bill would hurt housing supply in Washington. He said the Legislature has passed significant legislation to increase the amount of housing in recent years, and more will be done this year.
“We know that building this supply will take time,” Peterson said. “Right now, people are suffering. This is something we can do today.”
The bill passed in the state House of Representatives last year and was expected to have similar support this year. It now heads to the House Appropriations Committee for further consideration before making its way to the full chamber for a vote.
In the Senate, where the bill has died previously, conversations are just beginning. The Senate Housing Committee will hold a public hearing on their version of the bill on Wednesday.
This story first appeared on Washington State Standard.