Bill Summary – FastDemocracy

CERTIFICATION OF ENROLLMENT
            ENGROSSED SECOND SUBSTITUTE SENATE BILL 5160
                       Chapter 115, Laws of 2021
                               (partial veto)
                               67th Legislature
                             2021 Regular Session
                       LANDLORD-TENANT RELATIONS
                    EFFECTIVE DATE: April 22, 2021
Passed by the Senate April 19, 2021                  CERTIFICATE
  Yeas 27 Nays 22
                                       I, Brad Hendrickson, Secretary of
                                       the   Senate   of  the   State  of
              DENNY HECK               Washington, do hereby certify that
President of the Senate                the attached is ENGROSSED SECOND
                                       SUBSTITUTE SENATE BILL 5160     as
                                       passed by the Senate and the House
                                       of Representatives on the dates
Passed by the House April 8, 2021      hereon set forth.
  Yeas 72 Nays 26
                                                 BRAD HENDRICKSON
            LAURIE JINKINS
                                                                     Secretary
Speaker of the House of
Representatives
Approved April 22, 2021 3:37 PM with                    FILED
the exception of sections 12 and 13,
which are vetoed.                                   April 22, 2021
                                                Secretary of State
              JAY INSLEE                        State of Washington
Governor of the State of Washington
                 ENGROSSED SECOND SUBSTITUTE SENATE BILL 5160
                            AS AMENDED BY THE HOUSE
                   Passed Legislature - 2021 Regular Session
     State of Washington         67th Legislature     2021 Regular Session
     By Senate Ways & Means (originally sponsored by Senators Kuderer,
     Liias, Conway, Das, Lovelett, Saldaña, and Wilson, C.)
     READ FIRST TIME 02/22/21.
     AN ACT Relating to addressing landlord-tenant relations by
 providing certain tenant protections during the public health
 emergency, providing for legal representation in eviction cases,
 establishing an eviction resolution pilot program for nonpayment of
 rent cases, and authorizing landlord access to certain rental
 assistance programs; amending RCW 43.31.615, 59.18.057, 59.18.365,
 59.12.040, 59.20.040, and 59.18.410; reenacting and amending RCW
 43.31.605 and 59.18.230; adding new sections to chapter 59.18 RCW;
 adding a new section to chapter 2.53 RCW; adding a new section to
 chapter 43.185C RCW; creating new sections; repealing RCW 59.18.375;
 prescribing penalties; making an appropriation; providing expiration
 dates; and declaring an emergency.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION.   Sec. 1.   The legislature finds that the COVID-19
 pandemic is causing a sustained global economic slowdown, and an
 economic downturn throughout Washington state with unprecedented
 numbers of layoffs and reduced work hours for a significant
 percentage of our workforce. Many of the state's workforce has been
 impacted by these layoffs and substantially reduced work hours and
 have suffered economic hardship, disproportionately affecting low and
 moderate-income workers resulting in lost wages and the inability to
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 pay for basic household expenses, including rent. Hundreds of
 thousands of tenants in Washington are unable to consistently pay
 their rent, reflecting the continued financial precariousness of many
 renters in the state. Before the COVID-19 pandemic, nonpayment of
 rent was the leading cause of evictions within the state. Because the
 COVID-19 pandemic has led to an inability for tenants to consistently
 pay rent, the likelihood of evictions has increased, as well as life,
 health, and safety risks to a significant percentage of the state's
 tenants. As a result, the governor has issued a temporary moratorium
 on evictions as of March 2020, with multiple extensions and other
 related actions, to reduce housing instability and enable tenants to
 stay in their homes.
     Therefore, it is the intent of the legislature with this act to
 increase tenant protections during the public health emergency,
 provide legal representation for qualifying tenants in eviction
 cases, establish an eviction resolution pilot program to address
 nonpayment of rent eviction cases before any court filing, and ensure
 tenants and landlords have adequate opportunities to access state and
 local rental assistance programs to reimburse landlords for unpaid
 rent and preserve tenancies.
     NEW SECTION.   Sec. 2.   A new section is added to chapter 59.18
 RCW to read as follows:
     The definitions in this section apply to sections 3 and 4 of this
 act unless the context clearly requires otherwise.
     (1) "Dwelling unit" has the same meaning as defined in RCW
 59.18.030, and includes a manufactured/mobile home or a mobile home
 lot as defined in RCW 59.20.030.
     (2) "Eviction moratorium" refers to the governor of the state of
 Washington's proclamation 20-19.6, proclaiming a moratorium on
 certain evictions for all counties throughout Washington state on
 March 18, 2021.
     (3) "Landlord" has the same meaning as defined in RCW 59.18.030
 and 59.20.030.
     (4) "Prospective landlord" has the same meaning as defined in RCW
 59.18.030.
     (5) "Public health emergency" refers to the governor of the state
 of Washington's proclamation 20-05, proclaiming a state of emergency
 for all counties throughout Washington state on February 29, 2020,
 and any subsequent orders extending or amending such proclamation due
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 to COVID-19 until the proclamation expires or is terminated by the
 governor of the state of Washington.
     (6) "Rent" has the same meaning as defined in RCW 59.18.030.
     (7) "Tenant" refers to any individual renting a dwelling unit or
 lot primarily for living purposes, including any individual with a
 tenancy subject to this chapter or chapter 59.20 RCW or any
 individual residing in transient lodging, such as a hotel or motel or
 camping area as their primary dwelling, for 30 days or more prior to
 March 1, 2020. "Tenant" does not include any individual residing in a
 hotel or motel or camping area as their primary dwelling for more
 than 30 days after March 1, 2020, if the hotel or motel or camping
 area has provided the individual with a seven-day eviction notice,
 which must include the following language: "For no-cost legal
 assistance, please call 2-1-1 or the Northwest Justice Project CLEAR
 Hotline outside King County (888) 201-1014 weekdays between 9:15 a.m.
 – 12:15 p.m., or (888) 387-7111 for seniors (age 60 and over). You
 may    find     additional   resource     information    at    http://
 www.washingtonlawhelp.org." "Tenant" also does not include occupants
 of homeless mitigation sites or a person entering onto land without
 permission of the landowner or lessor. For purposes of this
 subsection, any local government provision of solid waste or hygiene
 services to unsanctioned encampments does not constitute permission
 to occupy land.
                          TENANT PROTECTIONS
     NEW SECTION.   Sec. 3.   A new section is added to chapter 59.18
 RCW to read as follows:
     (1) A landlord may not charge or impose any late fees or other
 charges against any tenant for the nonpayment of rent that became due
 between March 1, 2020, and six months following the expiration of the
 eviction moratorium.
     (2) For rent that accrued between March 1, 2020, and the six
 months following the expiration of the eviction moratorium expiration
 date:
     (a) A landlord may not report to a prospective landlord:
     (i) A tenant's nonpayment of rent that accrued between March 1,
 2020, and the six months following the expiration of the eviction
 moratorium; or
                                     p. 3                    E2SSB 5160.SL
     (ii) An unlawful detainer action pursuant to RCW 59.12.030(3)
 that resulted from a tenant's nonpayment of rent between March 1,
 2020, and the six months following the expiration of the eviction
 moratorium.
     (b) A prospective landlord may not take an adverse action based
 on a prospective tenant's nonpayment of rent that occurred between
 March 1, 2020, and the six months following the expiration of the
 eviction moratorium.
     (3)(a) A landlord or prospective landlord may not deny,
 discourage application for, or otherwise make unavailable any rental
 dwelling unit based on a tenant's or prospective tenant's medical
 history including, but not limited to, the tenant's or prospective
 tenant's prior or current exposure or infection to the COVID-19
 virus.
     (b) A landlord or prospective landlord may not inquire about,
 consider, or require disclosure of a tenant's or prospective tenant's
 medical records or history, unless such disclosure is necessary to
 evaluate   a   reasonable   accommodation   request   or   reasonable
 modification request under RCW 49.60.222.
     (4) A landlord or prospective landlord in violation of this
 section is liable in a civil action for up to two and one-half times
 the monthly rent of the real property at issue, as well as court
 costs and reasonable attorneys' fees. A court must impose this
 penalty in an amount necessary to deter future violations, payable to
 the tenant bringing the action.
                            REPAYMENT PLANS
     NEW SECTION.   Sec. 4.  A new section is added to chapter 59.18
 RCW to read as follows:
     (1) The eviction moratorium instituted by the governor of the
 state of Washington's proclamation 20-19.6 shall end on June 30,
 2021.
     (2) If a tenant has remaining unpaid rent that accrued between
 March 1, 2020, and six months following the expiration of the
 eviction moratorium or the end of the public health emergency,
 whichever is greater, the landlord must offer the tenant a reasonable
 schedule for repayment of the unpaid rent that does not exceed
 monthly payments equal to one-third of the monthly rental charges
 during the period of accrued debt. If a tenant fails to accept the
                                     p. 4                    E2SSB 5160.SL
 terms of a reasonable repayment plan within 14 days of the landlord's
 offer, the landlord may proceed with an unlawful detainer action as
 set forth in RCW 59.12.030(3) but subject to any requirements under
 the eviction resolution pilot program established under section 7 of
 this act. If the tenant defaults on any rent owed under a repayment
 plan, the landlord may apply for reimbursement from the landlord
 mitigation program as authorized under RCW 43.31.605(1)(d) or proceed
 with an unlawful detainer action as set forth in RCW 59.12.030(3) but
 subject to any requirements under the eviction resolution pilot
 program established under section 7 of this act. The court must
 consider the tenant's circumstances, including decreased income or
 increased expenses due to COVID-19, and the repayment plan terms
 offered during any unlawful detainer proceeding.
     (3) Any repayment plan entered into under this section must:
     (a) Not require payment until 30 days after the repayment plan is
 offered to the tenant;
     (b) Cover rent only and not any late fees, attorneys' fees, or
 any other fees and charges;
     (c) Allow for payments from any source of income as defined in
 RCW 59.18.255(5) or from pledges by nonprofit organizations,
 churches, religious institutions, or governmental entities; and
     (d) Not include provisions or be conditioned on: The tenant's
 compliance with the rental agreement, payment of attorneys' fees,
 court costs, or other costs related to litigation if the tenant
 defaults on the rental agreement; a requirement that the tenant apply
 for governmental benefits or provide proof of receipt of governmental
 benefits; or the tenant's waiver of any rights to a notice under RCW
 59.12.030 or related provisions before a writ of restitution is
 issued.
     (4) It is a defense to an eviction under RCW 59.12.030(3) that a
 landlord did not offer a repayment plan in conformity with this
 section.
     (5) To the extent available funds exist for rental assistance
 from a federal, state, local, private, or nonprofit program, the
 tenant or landlord may continue to seek rental assistance to reduce
 and/or eliminate the unpaid rent balance.
     Sec. 5. RCW 43.31.605 and 2020 c 315 s 8 and 2020 c 169 s 2 are
 each reenacted and amended to read as follows:
                                     p. 5                    E2SSB 5160.SL
     (1)(a) Subject to the availability of funds for this purpose, the
 landlord mitigation program is created and administered by the
 department. The department shall have such rule-making authority as
 the department deems necessary to administer the program.
     (b) The following types of claims related to landlord mitigation
 for renting private market rental units to low-income tenants using a
 housing subsidy program are eligible for reimbursement from the
 landlord mitigation program account:
     (i) Up to one thousand dollars for improvements identified in RCW
 59.18.255(1)(a). In order to be eligible for reimbursement under this
 subsection (1)(b)(i), the landlord must pay for the first five
 hundred dollars for improvements, and rent to the tenant whose
 housing subsidy program was conditioned on the real property passing
 inspection. Reimbursement under this subsection (1)(b)(i) may also
 include up to fourteen days of lost rental income from the date of
 offer of housing to the applicant whose housing subsidy program was
 conditioned on the real property passing inspection until move in by
 that applicant;
     (ii) Reimbursement for damages as reflected in a judgment
 obtained against the tenant through either an unlawful detainer
 proceeding, or through a civil action in a court of competent
 jurisdiction after a hearing;
     (iii)   Reimbursement   for  damages   established   pursuant   to
 subsection (2) of this section; and
     (iv) Reimbursement for unpaid rent and unpaid utilities, provided
 that the landlord can evidence it to the department's satisfaction.
     (c) Claims related to landlord mitigation for an unpaid judgment
 for rent, unpaid judgments resulting from the tenant's failure to
 comply with an installment payment agreement identified in RCW
 59.18.610, late fees, attorneys' fees, and costs after a court order
 pursuant to RCW 59.18.410(3), including any unpaid portion of the
 judgment after the tenant defaults on the payment plan pursuant to
 RCW 59.18.410(3)(c), are eligible for reimbursement from the landlord
 mitigation program account and are exempt from any postjudgment
 interest required under RCW 4.56.110. Any claim for reimbursement
 made pursuant to RCW 59.18.410(3)(e)(ii) must be accompanied by a
 court order staying the writ of restitution pursuant to RCW
 59.18.410(3). Any claim for reimbursement under this subsection
 (1)(c) is not an entitlement.
                                     p. 6                    E2SSB 5160.SL
     (i) The department shall provide for a form on its website for
 tenants and landlords to apply for reimbursement funds for the
 landlord pursuant to this subsection (1)(c).
     (ii) The form must include: (A) Space for the landlord and tenant
 to provide names, mailing addresses, phone numbers, date of birth for
 the tenant, and any other identifying information necessary for the
 department to process payment; (B) the landlord's statewide vendor
 identification number and how to obtain one; (C) name and address to
 whom payment must be made; (D) the amount of the judgment with
 instructions to include any other supporting documentation the
 department may need to process payment; (E) instructions for how the
 tenant is to reimburse the department under (c)(iii) of this
 subsection; (F) a description of the consequences if the tenant does
 not reimburse the department as provided in this subsection (1)(c);
 (G) a signature line for the landlord and tenant to confirm that they
 have read and understood the contents of the form and program; and
 (H) any other information necessary for the operation of the program.
 If the tenant has not signed the form after the landlord has made
 good faith efforts to obtain the tenant's signature, the landlord may
 solely submit the form but must attest to the amount of money owed
 and sign the form under penalty of perjury.
     (iii) When a landlord has been reimbursed pursuant to this
 subsection (1)(c), the tenant for whom payment was made shall
 reimburse the department by depositing the amount disbursed from the
 landlord mitigation program account into the court registry of the
 superior court in which the judgment was entered. The tenant or other
 interested party may seek an ex parte order of the court under the
 unlawful detainer action to order such funds to be disbursed by the
 court. Upon entry of the order, the court clerk shall disburse the
 funds and inc