WA State: House Bill 1217
Governor Bob Ferguson has recently signed House Bill 1217. The bill introduces new regulations that will affect residential and manufactured/mobile home tenancies and aims to improve housing stability for tenants through several key provisions.
Rent Increase Limitations: The legislation establishes limits on rent increases for all tenancy types after the initial twelve months. Rent cannot be increased by more than seven percent plus the consumer price index for the Seattle area, or ten percent, whichever is less, within any twelve-month period. The Department of Commerce will be responsible for annually calculating and publishing the maximum allowable percentage.
Notice of Rent Increases: Landlords are now required to provide tenants with a specific written notice of rent increases. For standard residential tenancies, this notice must be given at least ninety days prior to the effective date of the increase. For subsidized tenancies, the notice period is thirty days. The notice must include details of the increase, the new total rent amount, and any claimed exemptions to the rent increase limitations outlined in the bill.
Exemptions to Rent Increase Limits: Certain types of tenancies are exempt from the rent increase limitations. These include dwelling units with a certificate of occupancy issued within the last twelve years, properties owned by public housing authorities, public development authorities, and specific nonprofit organizations with regulated rents. Exemptions also apply to qualified low-income housing developments and certain owner-occupied residences, such as those where the owner rents no more than two units or bedrooms, and owner-occupied duplexes, triplexes, or fourplexes where the owner resided at the beginning of the tenancy and continues to occupy the property. Specific corporate ownership structures may disqualify owners from some of these exemptions.
Parity Between Lease Types: The bill mandates that landlords cannot charge more than a five percent difference in rent for the same dwelling unit based solely on the type of lease agreement (e.g., month-to-month versus a fixed term), ensuring this difference does not cause the rent to exceed the overall rent increase limit.
Tenant Remedies and Enforcement: Tenants and the Attorney General are authorized to bring legal action to enforce compliance with these regulations. If a violation is found, tenants may be awarded damages for any excess rent paid, up to three months of unlawful rent, and reasonable attorney fees and costs. The Attorney General can also pursue civil penalties up to $7,500 per violation and has the authority to issue civil investigative demands.
Tenant Lease Termination: In the event of an unauthorized rent increase, tenants have the option to terminate their rental agreement by providing written notice (twenty days for residential, thirty days for manufactured/mobile home) prior to the effective date of the increase, without incurring fines or fees, although they remain responsible for rent during the month of vacating.
Landlord Resource Center: The Department of Commerce is directed to create an online landlord resource center. This center will provide information to landlords about available programs, associated services, and resources, including the landlord mitigation program and low-income residential weatherization programs.
Manufactured/Mobile Home Provisions: For manufactured/mobile home tenancies, the annual rent increase is capped at five percent. Exemptions mirror some of those in the residential section, with additional exemptions for rent increases following a qualified sale to an eligible organization (if approved by a majority of homeowners) and a one-time rent increase option upon the first renewal after a transfer of the rental agreement due to a home sale. The notice period for rent increases in this sector aligns with existing law.
Limits on Move-in Fees and Security Deposits: For leases entered into on or after the effective date of this bill, the total amount a landlord can charge for move-in fees and security deposits is limited to one month's rent.
Expiration Date and Effective Date: Most of the new sections introduced by this bill are scheduled to expire on July 1, 2040. The bill includes an emergency clause, which means it is expected to take effect sooner than the standard ninety-day period following the legislative session.