Bill Capping Rent Increases at 7% Passes Washington State House

Bill Capping Rent Increases at 7% Passes Washington State House

In a move aimed at addressing the ongoing housing affordability crisis, the Washington state House of Representatives passed a bill on Monday that would impose a cap on annual rent increases. House Bill 1217, a measure aimed at stabilizing rent prices, limits increases to no more than 7% per year.

 

For many renters in Washington, particularly those on fixed incomes, this bill represents a much-needed step toward housing stability. Elizabeth Archambault, a senior citizen residing in a low-income studio apartment in Seattle’s Eastlake neighborhood, expressed her support for the measure. “It would give people the chance to plan for any rent increases, and that, in itself, would provide a feeling of stability,” she said.

Archambault, who is retired and lives on a fixed income, shared that the bill’s protections extend beyond her personal situation. “I’m all for rent control, not just for myself, but for everyone,” she added.

 

Proponents of the bill argue that it would offer crucial relief to renters by limiting the frequency and size of rent hikes, as well as imposing restrictions on fees and deposits. The legislation also mandates that landlords issue clear notices before making changes. A key component of the bill is the creation of a landlord resource center aimed at providing support and guidance for rental property owners.

Michele Thomas, director of policy and advocacy at the Washington Low Income Housing Alliance (WLIHA), called the bill an essential measure to prevent renters from being overwhelmed by rising costs. “The tragic fact is that many renter households won’t withstand another year of out-of-control rent hikes,” she said in an interview with KOMO. According to Thomas, HB 1217 would provide immediate relief and long-term stability for renters, including manufactured homeowners who lease the land their homes occupy.

For seniors like Archambault, the burden of rising rents is particularly acute. She explained that nearly 70% of her income goes toward rent, even with assistance programs like food stamps, food banks, Medicare, and Medicaid. “I’m fortunate that I qualify for food stamps and that there’s a food bank nearby,” Archambault noted. According to WLIHA, the majority of Washington renters spend more than 30% of their income on rent, with many households paying more than 50%.

 

Opponents of the bill, however, warn that capping rent increases could drive smaller landlords out of the market, further exacerbating the housing crisis. Rep. April Connors, a Republican from District 8, criticized the bill as a misguided economic decision, claiming that it would discourage development and cost the state millions in lost tax revenue. “Washington is losing millions of dollars in sales and property taxes from developers who are choosing to build in other states,” she argued.

Sean Flynn, executive director of the Rental Housing Association of Washington, echoed these concerns, describing the bill as a “toxic cocktail” with unpredictable consequences. He warned that while the bill may stabilize rents, it does not address the fundamental issue of housing supply. “Washington needs to keep the rental units already available while concurrently working to build more housing,” he said.

In addition to the rent cap, HB 1217 would impose several new tenant protections, including prohibiting landlords from charging higher fees for month-to-month rental agreements, as well as limiting security deposits to no more than one month’s rent. Landlords would also be required to secure these deposits in trust accounts and provide written receipts to renters.

Flynn strongly opposed these provisions, arguing that the bill’s multiple moving parts would have a negative impact on the state’s economy. “This bill is dangerous. It’s like a patchwork of nine different bills, and nobody knows what will happen when you put them all together,” he stated.

The bill passed the House by a vote of 53-42 and now moves to the Senate for further consideration. The vote was largely divided along party lines, with five Democrats joining Republicans in voting against the measure.

Opponents of the bill continue to voice concerns about its long-term effects on the state’s housing market, suggesting that it could discourage investment and reduce the availability of rental units. “It’s a big bright sign to investors not to put their money here,” Flynn said, noting that no investor would want to operate in an environment where returns are capped by government regulation.

Supporters, on the other hand, argue that the bill will protect tenants and improve housing stability without harming the state’s housing production. As the legislation heads to the Senate, the Rental Housing Association of Washington is urging its members to contact lawmakers and express opposition, claiming that the bill could make Washington’s housing crisis even worse.

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