Bill Summary – FastDemocracy

S-3801.1
                                 SENATE BILL 5961
     State of Washington         68th Legislature       2024 Regular Session
     By Senators Trudeau, Nobles, Frame, Hasegawa, Keiser, Kuderer,
     Lovelett, Nguyen, Randall, Robinson, Saldaña, Stanford, Van De Wege,
     and C. Wilson
     Prefiled 01/04/24.    Read first time 01/08/24.   Referred to Committee
     on Housing.
     AN ACT Relating to improving housing stability for tenants
 subject to the residential landlord-tenant act and the manufactured/
 mobile home landlord-tenant act by limiting rent and fee increases,
 requiring notice of rent and fee increases, limiting fees and
 deposits, establishing a landlord resource center and associated
 services, authorizing tenant lease termination, creating parity
 between lease types, and providing for attorney general enforcement;
 amending RCW 59.18.140, 59.18.200, 59.18.650, 59.18.270, 59.18.170,
 59.20.090, 59.20.170, 59.20.060, and 59.20.030; adding new sections
 to chapter 59.18 RCW; adding new sections to chapter 59.20 RCW;
 creating a new section; prescribing penalties; and declaring an
 emergency.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION. Sec. 1. (1) The legislature finds that:
     (a) The state is in the midst of a housing affordability crisis.
 Homes cannot be built fast enough to meet the urgent need to keep
 families, seniors, and all Washington renters housed.
     (b) Residential rents and manufactured/mobile home lot rents have
 increased at a rate that outpaces inflation, wage growth, cost of
 living adjustments for programs like social security, and other
 standard economic metrics that drive price increases. During a six-
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 month period in 2023, the United States census bureau estimated that
 more than 900,000 Washington renters experienced a rent increase, of
 which 75 percent reported an increase of greater than $100 and more
 than nine percent experienced an increase of more than $500.
     (c) Tenants in residential and manufactured/mobile home settings
 are subject to not only excessive rent increases, but also to the
 addition of new recurring or periodic fees that can have the effect
 of drastically increasing monthly housing costs. Tenants also
 experience arbitrary one-time fees or the addition of fees for
 services that were previously provided at no cost. Combined with rent
 increases, these fees create significant additional financial strains
 for renter households.
     (d) According to the 2021 American community survey, nearly one
 out of every four renters in the state of Washington is over the age
 of 55. Households of color are disproportionately renters, and these
 households, as well as Hispanic households, are majority renter
 households.
     (e) Excessive rent increases force renter households, including
 families, seniors, and young people, to lose housing opportunities.
 Due to excessive rent increases, renter households are increasingly
 unable to afford housing in communities of opportunity and are being
 forced to move away from their communities. Renter households are
 forced to make tough and often impossible decisions between paying
 the rent and paying for other basic necessities such as medicine,
 child care, and transportation. Communities, employers, and workers
 all suffer when businesses cannot retain or hire staff because
 workers cannot find affordable rental homes near their jobs and
 offices, a phenomenon especially common for the service industry in
 heavy tourism areas.
     (2) The legislature declares that failure to act urgently to
 protect Washingtonians from excessive rent increases will result in
 continued harm for millions of residents, especially when considering
 the essential nature of housing. Therefore, the legislature intends
 to enact rent stabilization policies in order to preserve the public
 peace, health, or safety of the state by providing Washington renters
 with predictability, transparency, and the same protections afforded
 to other consumers.
                                 PART I
                    RESIDENTIAL LANDLORD-TENANT ACT
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     NEW SECTION. Sec. 101. A new section is added to chapter 59.18
 RCW to read as follows:
     (1) Except as authorized by an exemption under section 102 of
 this act, a landlord may not increase the rent and fees combined for
 any type of tenancy, regardless of whether the tenancy is month-to-
 month or for a term greater than month-to-month:
     (a) During the first 12 months after the tenancy begins; and
     (b) During any 12-month period, in an amount greater than five
 percent.
     (2) If a landlord increases the rent and fees combined above the
 amount allowed in subsection (1) of this section as authorized by an
 exemption under section 102 of this act, the landlord must include
 facts supporting any claimed exemptions in the written notice of the
 rent increase. Notice must comply with this section, section 103 of
 this act, RCW 59.18.140, and be served in accordance with RCW
 59.12.040.
      (3) A landlord may not charge a higher rent or fees or include
 terms of payment or other material conditions in a rental agreement
 that are more burdensome to a tenant for a month-to-month rental
 agreement than for a rental agreement where the term is greater than
 month-to-month, or vice versa.
      (4) A landlord who engages in practices in violation of this
 section, section 102 of this act, section 103 of this act, RCW
 59.18.140, 59.18.170, 59.18.200, 59.18.270, or 59.18.650 is liable
 for:
      (a) Damages in the amount of any excess rent, fees, or other
 costs paid by the tenant;
      (b) Mandatory damages equal to three months of any unlawful rent,
 fees, or other costs charged by the landlord; and
      (c) Reasonable attorneys' fees and costs incurred in bringing the
 action.
      (5) The remedies provided by this section are in addition to any
 other remedies provided by law, including the remedies provided for
 in section 104 of this act.
      (6) It is a defense to an eviction or other legal action that the
 action to remove the tenant and recover possession of the premises
 was for nonpayment of rent or fees that were unlawfully increased in
 violation of this section.
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     (7) A landlord may not report the tenant to a tenant screening
 service provider for failure to pay rent or fees that were unlawfully
 increased in violation of this section.
     (8) A local government may adopt policies, ordinances, or other
 regulations to enforce this act.
     NEW SECTION. Sec. 102. A new section is added to chapter 59.18
 RCW to read as follows:
     A landlord may increase rent and fees combined in an amount
 greater than allowed under section 101 of this act only as authorized
 by the exemptions described in this section.
     (1) If the first certificate of occupancy for the dwelling unit
 was issued 10 or less years before the date of the notice of the rent
 increase, rent and fee increases for the dwelling unit are not
 limited by section 101 of this act.
     (2) For a tenancy in a dwelling unit operated by a public housing
 authority, public development authority, or nonprofit organization
 where maximum rents are regulated by other laws or local, state, or
 federal affordable housing program requirements, rent and fee
 increases that comply with legally binding and recorded regulatory
 agreements are not limited by section 101 of this act.
     NEW SECTION. Sec. 103. A new section is added to chapter 59.18
 RCW to read as follows:
     A landlord must provide a tenant with annual notice of rent and
 fee increases in substantially the following form. Notice under this
 section must comply with the requirements in RCW 59.18.140 and be
 served in accordance with RCW 59.12.040.
     "TO TENANT(S): (tenant name(s))
     AT ADDRESS: (tenant address)
     RENT AND FEE INCREASE NOTICE TO TENANTS
     This notice is required by Washington state law to inform you of
 your rights regarding rent and fee increases. Washington state limits
 how much your landlord can raise your rent and fees.
     (1) Your landlord can raise your rent and fees combined once
 every 12 months by up to five percent, as allowed by section 101 of
 this act. Your landlord is not required to raise the rent or fees by
 any amount.
     (2) Your landlord may be exempt from the five percent limit on
 rent and fee increases for the reasons described in section 102 of
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 this act. If your landlord claims an exemption, your landlord is
 required to include supporting facts with this notice.
     (3) Your landlord must properly and fully complete the form below
 to notify you of any rent and fee increases and any exemptions
 claimed.
     Your landlord (name) intends to (check one of the following):
     __ Raise your rent and/or fees: Your total rent and fee increase
 effective (date) will be (percent), which totals an additional $
 (dollar amount) per month, for a new total amount of $(dollar amount)
 per month for rent and fees combined.
     This rent and/or fee increase is allowed by state law and is
 (check one of the following):
     __ A lower rent and/or fee increase than the maximum allowed by
 state law.
     __ The maximum rent and/or fee increase allowed by state law.
     __ Authorized by an exemption under section 102 of this act. If
 the rent and/or fee increase is authorized by an exemption, your
 landlord must fill out the section of the form below.
     EXEMPTIONS CLAIMED BY LANDLORD
     Under penalty of perjury, I (landlord name) certify that I am
 allowed under Washington state law to raise your rent and fees by
 (percent), which is more than the maximum increase otherwise allowed
 by state law, because I am claiming the following exemption under
 section 102 of this act (check one of the following):
     __ The first certificate of occupancy for your dwelling unit was
 issued on (insert date), which is 10 or less years before the date of
 this rent and fee increase notice, so the maximum allowable rent and
 fee increase limit in section 101 of this act does not apply. (The
 landlord must include facts or attach documents supporting the
 exemption.)
     __ You live in a dwelling unit operated by a public housing
 authority, public development authority, or nonprofit organization
 where maximum rents are regulated by other laws or local, state, or
 federal affordable housing program requirements, so rent and fee
 increases that comply with legally binding and recorded regulatory
 agreements are not limited by section 101 of this act. (The landlord
 must include facts or attach documents supporting the exemption.)"
     NEW SECTION. Sec. 104.   A new section is added to chapter 59.18
 RCW to read as follows:
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     The legislature finds that the practices covered by section 101
 of this act, section 102 of this act, section 103 of this act, RCW
 59.18.140, 59.18.170, 59.18.200, 59.18.270, and 59.18.650 are matters
 vitally affecting the public interest for the purpose of applying the
 consumer protection act, chapter 19.86 RCW. A violation of section
 101 of this act, section 102 of this act, section 103 of this act,
 RCW 59.18.140, 59.18.170, 59.18.200, 59.18.270, or 59.18.650 by a
 landlord is not reasonable in relation to the development and
 preservation of business and is an unfair or deceptive act in trade
 or commerce and an unfair method of competition for the purpose of
 applying the consumer protection act, chapter 19.86 RCW.
     NEW SECTION. Sec. 105.   A new section is added to chapter 59.18
 RCW to read as follows:
     (1) The department of commerce shall create an online landlord
 resource center to distribute information to landlords about
 available programs and resources including, but not limited to, the
 following:
     (a) The landlord mitigation program created in RCW 43.31.605;
     (b) The low-income residential weatherization programs created in
 chapter 70A.35 RCW;
     (c) The model lease provisions regarding rent and fee increases
 created by the attorney general's office under subsection (2) of this
 section;
     (d) Local government resources; and
     (e) Any other programs and resources that the department
 determines are relevant.
     (2)(a) The attorney general, in consultation with appropriate
 stakeholders, shall publish model lease provisions regarding rent and
 fee increases that comply with the requirements in this chapter.
     (b) The model lease provisions regarding rent and fee increases
 must be published in the top 10 languages spoken in Washington state
 and, at the discretion of the office of the attorney general, other
 languages.
     (c) The office of the attorney general shall publish the model
 lease provisions regarding rent and fee increases in the following
 formats:
     (i) A full digital version available on the office of the
 attorney general's website; and
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      (ii) Hard copy versions made available upon request to landlords,
  tenants, and any other relevant entities identified by the office of
  the attorney general.
      (d) The office of the attorney general shall publish the first
  version of the model lease provisions regarding rent and fee
  increases by January 1, 2025, and shall periodically publish new
  versions of the model lease provisions as necessary to incorporate
  any relevant changes made to this chapter.
     Sec. 106. RCW 59.18.140 and 2019 c 105 s 1 are each amended to
 read as follows:
     (1) The tenant shall conform to all reasonable obligations or
 restrictions, whether denominated by the landlord as rules, rental
 agreement, rent, or otherwise, concerning the use, occupation, and
 maintenance of his or her dwelling unit, appurtenances thereto, and
 the property of which the dwelling unit is a part if such obligations
 and restrictions are not in violation of any of the terms of this
 chapter and are not otherwise contrary to law, and if such
 obligations and restrictions are brought to the attention of the
 tenant at the time of his or her initial occupancy of the dwelling
 unit and thus become part of the rental agreement.
     (2) Except for termination of tenancy and an increase in the
 amount of rent, after ((thirty)) 30 days written notice to each
 affected tenant, a new rule of tenancy may become effective upon
 completion of the term of the rental agreement or sooner upon mutual
 consent.
     (3)(a) Except as provided in (b) and (c) of this subsection, a
 landlord shall provide a minimum of ((sixty)) 60 days' prior written
 notice of an increase in the amount of rent to each affected tenant,
 and any increase in the amount of rent may not become effective prior
 to the completion of the term of the rental agreement.
     (b) If the rental agreement governs a subsidized tenancy where
 the amount of rent is based on the income of the tenant or
 circumstances specific to the subsidized household, a landlord shall
 provide a minimum of ((thirty)) 30 days' prior written notice of an
 increase in the amount of rent to each affected tenant. An increase
 in the amount of rent may become effective upon completion of the
 term of the rental agreement or sooner upon mutual consent.
     (c) If a landlord intends to increase the rent and fees combined
 in an amount of three percent or more, the landlord must provide
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 written notice to each affected tenant a minimum of 180 days before
 the effective date of the increase. This subsection (3)(c) does not
 apply to any tenancy in a dwelling unit operated by a public housing
 authority, public development authority, or nonprofit organization
 that qualifies for an exemption under section 102(2) of this act.
     Sec. 107. RCW 59.18.200 and 2021 c 212 s 3 are each amended to
 read as follows:
     (1)(a) ((When)) Except as provided in (b) and (c) of this
 subsection, when premises are rented for an indefinite time, with
 monthly or other periodic rent reserved, such tenancy shall be
 construed to be a tenancy from month to month, or from period to
 period on which rent is payable, and shall end by written notice of
 20 days or more, preceding the end of any of the months or periods of
 tenancy, given by the tenant to the landlord.
     (b) Any tenant who is a member of the armed forces, including the
 national guard and armed forces reserves, or that tenant's spouse or
 dependent, may end a rental agreement with less than 20 days' written
 notice if the tenant receives permanent change of station or
 deployment orders that do not allow a 20-day written notice.
     (c) If a landlord provides notice to a tenant that the landlord
 intends to