Bill Summary – FastDemocracy

H-0385.4
                                HOUSE BILL 1217
     State of Washington       69th Legislature       2025 Regular Session
     By Representatives Alvarado, Macri, Ramel, Peterson, Berry, Mena,
     Thai, Reed, Obras, Farivar, Parshley, Ortiz-Self, Cortes, and Duerr
     Prefiled 01/09/25.
     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, 59.18.270, 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 new sections;
 prescribing penalties; providing an expiration date; 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. In October
                                     p. 1                           HB 1217
 2024, the United States census bureau reported that 15 percent of
 renter households in Washington received a rent increase of over $250
 ($3,000 per year). The United States census bureau also reported that
 Black households received higher rent increases than other racial
 groups and that almost a quarter of Black renters received rent
 increases of over $250 per month. In addition, 57 percent of renter
 households with children under the age of 18 received a rent increase
 of over $100, while 22 percent received rent increases of over $250.
     (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 have to move due to excessive rent increases, 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.
                                     p. 2                          HB 1217
                                  PART I
                     RESIDENTIAL LANDLORD-TENANT ACT
     NEW SECTION. Sec. 101. A new section is added to chapter 59.18
 RCW to read as follows:
     (1)(a) 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 or lesser than month-to-month:
     (i) During the first 12 months after the tenancy begins; and
     (ii) During any 12-month period, in an amount greater than seven
 percent.
     (b) This subsection (1) of this section applies to all tenancies
 subject to this chapter, including any such tenancies in dwelling
 units operated as short-term rentals and vacation rentals.
     (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) If a landlord increases rent and fees combined above the
 amount allowed in subsection (1) of this section and the increase is
 not authorized by an exemption under section 102 of this act, the
 tenant may, in addition to any other remedies or relief available
 under this chapter or other law, terminate the rental agreement at
 any time prior to the effective date of the increase by providing the
 landlord with written notice at least 20 days before terminating the
 rental agreement. If a tenant terminates a rental agreement under
 this subsection, the tenant only owes pro rata rent through the date
 upon which the tenant vacates the dwelling unit. A landlord may not
 charge a tenant any fines or fees for terminating a rental agreement
 under this subsection.
     (4) 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 or
 lesser than month-to-month, or vice versa.
                                     p. 3                          HB 1217
      (5) 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.
      (6) 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.
     (7) 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.
     (8) 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.
     (9) 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:
     (1) 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. Rent and fee increases
 are not limited by section 101 of this act for any of the following
 types of tenancies:
     (a) A tenancy in a dwelling unit for which the first certificate
 of occupancy was issued 10 or less years before the date of the
 notice of the rent increase.
     (b) A tenancy in a dwelling unit owned by a:
     (i) Public housing authority;
     (ii) Public development authority;
     (iii) Nonprofit organization, where maximum rents are regulated
 by other laws or local, state, or federal affordable housing program
 requirements; or
                                     p. 4                          HB 1217
     (iv) Nonprofit entity, as defined in RCW 84.36.560, where a
 nonprofit organization, housing authority, or public development
 authority has the majority decision-making power on behalf of the
 general partner, and where maximum rents are regulated by other laws
 or local, state, or federal affordable housing program requirements;
 or
     (c) A tenancy in a qualified low-income housing development as
 defined in RCW 82.45.010, where the property is owned by any of the
 organizations described in (b)(i) through (iv) of this subsection.
     (d) A tenancy in a dwelling unit in which the tenant shares a
 bathroom or kitchen facility with the owner who maintains a principal
 residence at the residential real property.
     (e) A tenancy in a single-family owner-occupied residence,
 including a residence in which the owner-occupant rents or leases no
 more than two units or bedrooms including, but not limited to, an
 attached or detached accessory dwelling unit.
     (f) A tenancy in a duplex in which the owner occupied one of the
 units as the owner's principal place of residence at the beginning of
 the tenancy, so long as the owner continues the occupancy.
     (2) Subsection (1)(d) through (f) of this section only apply
 where the owner is not any of the following:
     (a) A real estate investment trust, as defined in section 856 of
 the internal revenue code;
     (b) A corporation; or
     (c) A limited liability company in which at least one member is a
 corporation.
     NEW SECTION. Sec. 103. A new section is added to chapter 59.18
 RCW to read as follows:
     (1) 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.
     (2) The annual notice of rent increase requirement in this
 section does not apply if the rental agreement governs a subsidized
 tenancy where the amount of rent is based on, in whole or in part, a
 percentage of the income of the tenant or other circumstances
 specific to the subsidized household. However, for purposes of this
 section, a subsidized tenancy does not include tenancies where some
 or all of the rent paid to the landlord comes from a portable tenant-
                                     p. 5                          HB 1217
 based voucher or similar portable assistance administered through a
 housing authority or other state or local agency, or tenancies in
 other types of affordable housing where maximum unit rents are
 limited by area median income levels and a tenant's base rent does
 not change as the tenant's income does.
     "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 seven 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 seven percent limit on
 rent and fee increases for the reasons described in section 102 of
 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
                                     p. 6                          HB 1217
 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 owned 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, or a qualified low-
 income housing development as defined in RCW 82.45.010, where the
 property is owned by a public housing authority, public development
 authority, or nonprofit organization. (The landlord must include
 facts or attach documents supporting the exemption.)
     __ You live in a dwelling unit in which you share a bathroom or
 kitchen facility with the owner, and the owner maintains a principal
 residence at the residential real property. (The landlord must
 include facts or attach documents supporting the exemption.)
     __ You live in a single-family residence in which the owner
 leases no more than two units or bedrooms including, but not limited
 to, an attached or detached accessory dwelling unit. (The landlord
 must include facts or attach documents supporting the exemption.)
     __ You live in a duplex in which the owner occupied one of the
 units as the owner's principal place of residence at the beginning of
 the tenancy, and the owner continues in occupancy. (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:
     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
                                     p. 7                          HB 1217
 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