The bill introduces comprehensive regulations governing residential rent increases in Washington State, specifically under the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act. Key provisions include a prohibition on rent increases during the first 12 months of tenancy and a limitation on annual increases to the greater of the rate of inflation or three percent, capped at seven percent. Additionally, landlords are restricted from charging move-in fees or security deposits that exceed one month's rent. The bill empowers the attorney general to investigate violations and impose civil penalties, while also granting tenants the right to seek damages for unlawful rent increases.

Moreover, the bill establishes a "banked capacity" program, allowing landlords to accumulate potential rent increases if they do not raise rent in a given year, with the possibility of applying these increases in future years. Landlords may raise rent by an additional three percent for each year of banked capacity, with a maximum annual increase of 10 percent. They are required to provide tenants with written notice regarding any rent increases, including details about banked capacity and exemptions for significant improvements or public housing authority ownership. The bill emphasizes tenant protections and categorizes violations as unfair or deceptive acts under the consumer protection act, with an immediate effective date contingent upon specific funding by June 30, 2023.