ENGROSSED SUBSTITUTE HOUSE BILL 2114
State of Washington 68th Legislature 2024 Regular Session
By House Appropriations (originally sponsored by Representatives
Alvarado, Macri, Ramel, Peterson, Mena, Slatter, Farivar, Taylor,
Doglio, Cortes, Fitzgibbon, Gregerson, Berry, Senn, Reed, Bateman,
Ortiz-Self, Simmons, Ormsby, Street, Chopp, Orwall, Bergquist, Berg,
Wylie, Stonier, Lekanoff, Fosse, Riccelli, Pollet, Kloba, and Davis)
READ FIRST TIME 02/05/24.
1 AN ACT Relating to improving housing stability for tenants
2 subject to the residential landlord-tenant act and the manufactured/
3 mobile home landlord-tenant act by limiting rent and fee increases,
4 requiring notice of rent and fee increases, limiting fees and
5 deposits, establishing a landlord resource center and associated
6 services, authorizing tenant lease termination, creating parity
7 between lease types, and providing for attorney general enforcement;
8 amending RCW 59.18.140, 59.18.270, 59.18.170, 59.20.090, 59.20.170,
9 59.20.060, and 59.20.030; adding new sections to chapter 59.18 RCW;
10 adding new sections to chapter 59.20 RCW; creating new sections;
11 prescribing penalties; providing an expiration date; and declaring an
12 emergency.
13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
14 NEW SECTION. Sec. 1. (1) The legislature finds that:
15 (a) The state is in the midst of a housing affordability crisis.
16 Homes cannot be built fast enough to meet the urgent need to keep
17 families, seniors, and all Washington renters housed.
18 (b) Residential rents and manufactured/mobile home lot rents have
19 increased at a rate that outpaces inflation, wage growth, cost of
20 living adjustments for programs like social security, and other
21 standard economic metrics that drive price increases. During a six-
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 1 month period in 2023, the United States census bureau estimated that
2 more than 900,000 Washington renters experienced a rent increase, of
3 which 75 percent reported an increase of greater than $100 and more
4 than nine percent experienced an increase of more than $500.
5 (c) Tenants in residential and manufactured/mobile home settings
6 are subject to not only excessive rent increases, but also to the
7 addition of new recurring or periodic fees that can have the effect
8 of drastically increasing monthly housing costs. Tenants also
9 experience arbitrary one-time fees or the addition of fees for
10 services that were previously provided at no cost. Combined with rent
11 increases, these fees create significant additional financial strains
12 for renter households.
13 (d) According to the 2021 American community survey, nearly one
14 out of every four renters in the state of Washington is over the age
15 of 55. Households of color are disproportionately renters, and these
16 households, as well as Hispanic households, are majority renter
17 households.
18 (e) Excessive rent increases force renter households, including
19 families, seniors, and young people, to lose housing opportunities.
20 Due to excessive rent increases, renter households are increasingly
21 unable to afford housing in communities of opportunity and are being
22 forced to move away from their communities. Renter households are
23 forced to make tough and often impossible decisions between paying
24 the rent and paying for other basic necessities such as medicine,
25 child care, and transportation. Communities, employers, and workers
26 all suffer when businesses cannot retain or hire staff because
27 workers cannot find affordable rental homes near their jobs and
28 offices, a phenomenon especially common for the service industry in
29 heavy tourism areas.
30 (2) The legislature declares that failure to act urgently to
31 protect Washingtonians from excessive rent increases will result in
32 continued harm for millions of residents, especially when considering
33 the essential nature of housing. Therefore, the legislature intends
34 to enact rent stabilization policies in order to preserve the public
35 peace, health, or safety of the state by providing Washington renters
36 with predictability, transparency, and the same protections afforded
37 to other consumers.
38 PART I
39 RESIDENTIAL LANDLORD-TENANT ACT
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 1 NEW SECTION. Sec. 101. A new section is added to chapter 59.18
2 RCW to read as follows:
3 (1) Except as authorized by an exemption under section 102 of
4 this act, a landlord may not increase the rent and fees combined for
5 any type of tenancy, including short-term rentals and vacation
6 rentals, regardless of whether the tenancy is month-to-month or for a
7 term greater or lesser than month-to-month:
8 (a) During the first 12 months after the tenancy begins; and
9 (b) During any 12-month period, in an amount greater than seven
10 percent.
11 (2) If a landlord increases the rent and fees combined above the
12 amount allowed in subsection (1) of this section as authorized by an
13 exemption under section 102 of this act, the landlord must include
14 facts supporting any claimed exemptions in the written notice of the
15 rent increase. Notice must comply with this section, section 103 of
16 this act, RCW 59.18.140, and be served in accordance with RCW
17 59.12.040.
18 (3) If a landlord increases rent and fees combined above the
19 amount allowed in subsection (1) of this section and are not
20 authorized by an exemption under section 102 of this act, the tenant
21 may, in addition to any other remedies or relief available under this
22 chapter or other law, terminate the rental agreement at any time
23 prior to the effective date of the increase by providing the landlord
24 with written notice at least 20 days before terminating the rental
25 agreement. If a tenant terminates a rental agreement under this
26 subsection, the tenant only owes pro rata rent through the date upon
27 which the tenant vacates the dwelling unit. A landlord may not charge
28 a tenant any fines or fees for terminating a rental agreement under
29 this subsection.
30 (4) A landlord may not charge a higher rent or fees or include
31 terms of payment or other material conditions in a rental agreement
32 that are more burdensome to a tenant for a month-to-month rental
33 agreement than for a rental agreement where the term is greater than
34 month-to-month, or vice versa.
35 (5) A landlord who engages in practices in violation of this
36 section, section 102 of this act, section 103 of this act, RCW
37 59.18.140, 59.18.170, 59.18.200, 59.18.270, or 59.18.650 is liable
38 for:
39 (a) Damages in the amount of any excess rent, fees, or other
40 costs paid by the tenant;
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 1 (b) Mandatory damages equal to three months of any unlawful rent,
2 fees, or other costs charged by the landlord; and
3 (c) Reasonable attorneys' fees and costs incurred in bringing the
4 action.
5 (6) The remedies provided by this section are in addition to any
6 other remedies provided by law, including the remedies provided for
7 in section 104 of this act.
8 (7) It is a defense to an eviction or other legal action that the
9 action to remove the tenant and recover possession of the premises
10 was for nonpayment of rent or fees that were unlawfully increased in
11 violation of this section.
12 (8) A landlord may not report the tenant to a tenant screening
13 service provider for failure to pay rent or fees that were unlawfully
14 increased in violation of this section.
15 (9) A local government may adopt policies, ordinances, or other
16 regulations to enforce this act.
17 NEW SECTION. Sec. 102. A new section is added to chapter 59.18
18 RCW to read as follows:
19 (1) A landlord may increase rent and fees combined in an amount
20 greater than allowed under section 101 of this act only as authorized
21 by the exemptions described in this section.
22 (a) If the first certificate of occupancy for the dwelling unit
23 was issued 10 or less years before the date of the notice of the rent
24 increase, rent and fee increases for the dwelling unit are not
25 limited by section 101 of this act.
26 (b) Rent and fee increases are not limited by section 101 of this
27 act for any of the following:
28 (i) A tenancy in a dwelling unit owned by a:
29 (A) Public housing authority;
30 (B) Public development authority;
31 (C) Nonprofit organization, where maximum rents are regulated by
32 other laws or local, state, or federal affordable housing program
33 requirements; or
34 (D) Nonprofit entity, as defined in RCW 84.36.560, where a
35 nonprofit organization, housing authority, or public development
36 authority has the majority decision-making power on behalf of the
37 general partner, and where maximum rents are regulated by other laws
38 or local, state, or federal affordable housing program requirements;
39 or
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 1 (ii) Tenancies in a qualified low-income housing development as
2 defined in RCW 82.45.010, where the property is owned by any of the
3 organizations described in (b)(i)(A) through (D) of this subsection.
4 (c) Housing accommodations in which the tenant shares bathroom or
5 kitchen facilities with the owner who maintains a principal residence
6 at the residential real property are not limited by section 101 of
7 this act.
8 (d) Single-family owner-occupied residences, including a
9 residence in which the owner-occupant rents or leases no more than
10 two units or bedrooms including, but not limited to, an attached or
11 detached accessory dwelling unit, are not limited by section 101 of
12 this act.
13 (e) A duplex in which the owner occupied one of the units as the
14 owner's principal place of residence at the beginning of the tenancy,
15 so long as the owner continues the occupancy, is not limited by
16 section 101 of this act.
17 (2) Subsection (1)(c) through (e) of this section only apply
18 where the owner is not any of the following:
19 (a) A real estate investment trust, as defined in section 856 of
20 the internal revenue code;
21 (b) A corporation; or
22 (c) A limited liability company in which at least one member is a
23 corporation.
24 NEW SECTION. Sec. 103. A new section is added to chapter 59.18
25 RCW to read as follows:
26 (1) A landlord must provide a tenant with annual notice of rent
27 and fee increases in substantially the following form. Notice under
28 this section must comply with the requirements in RCW 59.18.140 and
29 be served in accordance with RCW 59.12.040.
30 (2) The annual notice of rent increase requirement in this
31 section does not apply if the rental agreement governs a subsidized
32 tenancy where the amount of rent is based on, in whole or in part, a
33 percentage of the income of the tenant or other circumstances
34 specific to the subsidized household. However, for purposes of this
35 section, a subsidized tenancy does not include tenancies where some
36 or all of the rent paid to the landlord comes from a portable tenant-
37 based voucher or similar portable assistance administered through a
38 housing authority or other state or local agency, or tenancies in
39 other types of affordable housing where maximum unit rents are
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 1 limited by area median income levels and a tenant's base rent does
2 not change as the tenant's income does.
3 "TO TENANT(S): (tenant name(s))
4 AT ADDRESS: (tenant address)
5 RENT AND FEE INCREASE NOTICE TO TENANTS
6 This notice is required by Washington state law to inform you of
7 your rights regarding rent and fee increases. Washington state limits
8 how much your landlord can raise your rent and fees.
9 (1) Your landlord can raise your rent and fees combined once
10 every 12 months by up to seven percent, as allowed by section 101 of
11 this act. Your landlord is not required to raise the rent or fees by
12 any amount.
13 (2) Your landlord may be exempt from the seven percent limit on
14 rent and fee increases for the reasons described in section 102 of
15 this act. If your landlord claims an exemption, your landlord is
16 required to include supporting facts with this notice.
17 (3) Your landlord must properly and fully complete the form below
18 to notify you of any rent and fee increases and any exemptions
19 claimed.
20 Your landlord (name) intends to (check one of the following):
21 __ Raise your rent and/or fees: Your total rent and fee increase
22 effective (date) will be (percent), which totals an additional $
23 (dollar amount) per month, for a new total amount of $(dollar amount)
24 per month for rent and fees combined.
25 This rent and/or fee increase is allowed by state law and is
26 (check one of the following):
27 __ A lower rent and/or fee increase than the maximum allowed by
28 state law.
29 __ The maximum rent and/or fee increase allowed by state law.
30 __ Authorized by an exemption under section 102 of this act. If
31 the rent and/or fee increase is authorized by an exemption, your
32 landlord must fill out the section of the form below.
33 EXEMPTIONS CLAIMED BY LANDLORD
34 Under penalty of perjury, I (landlord name) certify that I am
35 allowed under Washington state law to raise your rent and fees by
36 (percent), which is more than the maximum increase otherwise allowed
37 by state law, because I am claiming the following exemption under
38 section 102 of this act (check one of the following):
39 __ The first certificate of occupancy for your dwelling unit was
40 issued on (insert date), which is 10 or less years before the date of
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 1 this rent and fee increase notice, so the maximum allowable rent and
2 fee increase limit in section 101 of this act does not apply. (The
3 landlord must include facts or attach documents supporting the
4 exemption.)
5 __ You live in a dwelling unit owned by a public housing
6 authority, public development authority, or nonprofit organization
7 where maximum rents are regulated by other laws or local, state, or
8 federal affordable housing program requirements, or a qualified low-
9 income housing development as defined in RCW 82.45.010, where the
10 property is owned by a public housing authority, public development
11 authority, or nonprofit organization.
12 __ You live in a housing accommodation in which you share
13 bathroom or kitchen facilities with the owner, and the owner
14 maintains a principal residence at the residential real property.
15 (The landlord must include facts or attach documents supporting the
16 exemption.)
17 __ You live in a single-family residence in which the owner
18 leases no more than two units or bedrooms including, but not limited
19 to, an attached or detached accessory dwelling unit. (The landlord
20 must include facts or attach documents supporting the exemption.)
21 __ You live in a duplex in which the owner occupied one of the
22 units as the owner's principal place of residence at the beginning of
23 the tenancy, and the owner continues in occupancy."
24 NEW SECTION. Sec. 104. A new section is added to chapter 59.18
25 RCW to read as follows:
26 The legislature finds that the practices covered by section 101
27 of this act, section 102 of this act, section 103 of this act, RCW
28 59.18.140, 59.18.170, 59.18.200, 59.18.270, and 59.18.650 are matters
29 vitally affecting the public interest for the purpose of applying the
30 consumer protection act, chapter 19.86 RCW. A violation of section
31 101 of this act, section 102 of this act, section 103 of this act,
32 RCW 59.18.140, 59.18.170, 59.18.200, 59.18.270, or 59.18.650 by a
33 landlord is not reasonable in relation to the development and
34 preservation of business and is an unfair or deceptive act in trade
35 or commerce and an unfair method of competition for the purpose of
36 applying the consumer protection act, chapter 19.86 RCW.
37 NEW SECTION. Sec. 105. A new section is added to chapter 59.18
38 RCW to read as follows:
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 1 (1) The department of commerce shall create an online landlord
2 resource center to distribute information to landlords about
3 available programs and resources including, but not limited to, the
4 following:
5 (a) The landlord mitigation program created in RCW 43.31.605;
6 (b) The low-income residential weatherization programs created in
7 chapter 70A.35 RCW;
8 (c) The model lease provisions regarding rent and fee increases
9 created by the attorney general's office under subsection (2) of this
10 section;
11 (d) Local government resources; and
12 (e) Any other programs and resources that the department
13 determines are relevant.
14 (2)(a) The attorney general, in consultation with appropriate
15 stakeholders, shall publish model lease provisions regarding rent and
16 fee increases that comply with the requirements in this chapter.
17 (b) The model lease provisions regarding rent and fee increases
18 must be published in the top 10 languages sp