Nov 2024 Local Rental Housing Regulation Watch

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BELLINGHAM 

Bellingham City Council member Jace Cotton brought forward a proposal to limit fees in Bellingham. To the tune of just shy of 30 specific fees they would like to limit. See the extensive list below:

Housing Providers Would be Prohibited from Charging:

1. Any rental application fees not complying with RCW 59.18.257 or exceeding $25.00, per applicant, whichever is less. 

2. Any non-refundable fee charged prior to or at the beginning of the tenancy (except as expressly allowed under state law or in this section, such as rental application fees, pet deposits, or last month’s rent)

3.Any fee imposed by the landlord without the consent of the tenant at the renewal of the tenancy.

4. Any combination of move-in fees and security deposits that exceeds one month’s rent.

5. Any fee for the use of appliances in the dwelling unit including, for example, dishwashers, washer/ dryer, and HVAC units.

6. Any administrative fee for a rental agreement take-over or the addition of a tenant. 

7. Any pet damage deposit per dwelling unit that exceeds 20% of one month’s rent.

8. Any single-time, monthly, or recurring fee for the right of a tenant’s pet to occupy the unit.

9. Any fee or charge for late payment of rent exceeding $10.00.

10. Any fee for a dishonored check due to insufficient funds greater than the amount of the fee that a bank or other financial institution has charged. 

11. Any late fee when the late payment, or non-payment of any portion of the rent, when a subsidy provider is responsible for payment.

12. Any fee to accept rent payments or other payments. To comply with this section, the landlord must accept payments by personal check, money order, cashier’s check, credit or debit card, cash, or bank transfer. (Payments with debit or credit cards may include an additional processing charge equal to the amount that a bank or other financial institution charges)

13. Any fee for the landlord to conduct regular inspections of the dwelling unit.

14. Any fee for a tenant's access to common areas.

15. Any charge for utilities greater than that charged by the utility service provider for the tenant’s actual usage. 

16. Any fee for bike parking or bike storage.

17. Any fee for mail and package collection and distribution.

18. Any fee for the performance of any landlord duty required by RCW 59.18

19. Any fee for the replacement of a lost key that exceeds the actual duplication costs of the mechanical or electronic key plus $10.

20. Any fee for the tenant to access their dwelling unit if their keys are lost, damaged, or stolen that exceeds $10. (If the request is made during standard business hours of 8:00 AM to 5:00 PM, Monday through Friday)

21. Any fee associated with the issuance of a notice to a tenant.

22. Any fee for a rental agreement violation or noncompliance with a rental agreement, except as expressly allowed under state law.

23. Any fee associated with the request, payment, receipt, or repayment of economic displacement relocation assistance.

24. Any fee to rent month-to-month instead of on an annual basis or vice versa.

25. Any move-out fee or lease-breaking fee, which does not include valid security deposit withholdings or rent due.

26. Any other fee, cost, or charge, whether a one-time or recurring fee, that is not disclosed in the rental agreement or lease.

27. Any fee for a non-optional service.

28. Any fee for an optional service that is assessed without an informed opt-in by the tenant or where the tenant may not later opt out of the service.

Potential Penalties: 

• Any provision of a rental agreement or lease that is entered into or renewed after the effective date of this chapter in violation of BMC 6.16.020 shall be deemed against public policy and shall be void and unenforceable.

• A landlord or other person who is in violation of this chapter is liable to the tenant, prospective tenant, or other person in a private right of action for:

• Three times the actual damages suffered by the tenant or prospective tenant, or if actual damages are difficult to ascertain, then an amount equal to three times the monthly rent for the dwelling unit for a tenant, or up to $1,000 for a prospective tenant.

• Double the amount of any deposit unlawfully charged or withheld.

• Costs of suit or arbitration, reasonable attorney's fees, as well as other forms of relief.

• A person violating this chapter commits a civil infraction and shall be issued a citation and assessed a monetary penalty as described in this section:

• A fine of up to $500.00 for a first violation.

• A fine of up to $1,000.00 for a second or subsequent violation.

The rest of the Bellingham City Council seemed to agree with our assessment that this was an over-the-top ordinance brought before the council with virtually zero community input or involvement from housing providers or tenants. That being said, the city council agreed to have the ordinance discussed within the community and receive input from local and statewide organizations. We will keep everyone posted on how this piece of legislation proceeds.

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SPOKANE

Local Legislation Update: Spokane Rental Registry Ordinance

Spokane City Council is moving forward with a rental registry ordinance (C36576) that will significantly impact small housing providers. The ordinance introduces additional registration requirements and imposes new restrictions on providers who are not fully registered or licensed with the city, including the inability to evict or raise rent for any unit, not on the rental registry. Over half of all rental units in the City of Spokane are not on the registry. This legislation raises concerns about its effect on both housing providers and tenants, particularly in relation to costs, safety, and legal liability.

RHAWA’s Efforts to Oppose the Ordinance

RHAWA has been actively involved in opposing this ordinance. A formal letter, authored by RHAWA Legal Counsel Chris Benis of First Avenue Law Group, was submitted to the City Council, outlining conflicts between the ordinance and the Residential Landlord-Tenant Act (RLTA). Additionally, several Spokane-based attorneys have provided their opinions, which overwhelmingly state that the ordinance is in conflict with state law.

RHAWA has also been working with the Spokane Real Estate Coalition, which it chairs, to coordinate with partner organizations and industry associations in opposition to this ordinance. Both RHAWA staff Daniel Klemme and RHAWA Regent Steve Corker have submitted testimony to the Spokane City Council to highlight the ordinance’s problematic provisions.

Additionally, RHAWA has actively engaged our Spokane membership encouraging members to testify in person or use our advocacy center to email the city council and express their concerns.

KEY CONCERNS 

1. Removal of Unit Fee Exemption for Below-Market Rentals: Small providers offering affordable rentals not tied to federal or local programs will now lose their fee exemptions, increasing their operating costs and further reducing housing options for lower-income tenants.

2. Restrictions on Rent Increases and Evictions: The ordinance prevents rental providers from increasing rent or evicting tenants if their properties are not fully registered or licensed. This could leave providers unable to act in situations of tenant misconduct or dangerous activities, putting other tenants and the surrounding community at risk.

3. Safety and Liability Risks: The ordinance conflicts with RCW 59.12.030(5), which permits housing providers to evict tenants involved in illegal activities. If providers are unable to act because they are not fully registered, they face increased legal liability, as seen in the Brady vs. Whitewater Creek case, which highlights the risks of not addressing known dangers.

4. Delays in Addressing Domestic Violence Situations: Under RCW 59.18.585, landlords are required to remove abusers following a court order. However, the ordinance’s registration requirements could delay these critical actions, putting domestic violence victims in harm's way.

RHAWA remains committed to advocating for the interests of housing providers and protecting their rights in the face of legislation that could create unintended consequences for the rental housing industry and the broader Spokane community and will continue to update our membership on the status of this ordinance.

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TACOMA

Right of First Refusal is being explored as a policy option to pair with Tacoma’s Preservation Ordinance. This would give affordable housing developers the first chance at purchasing certain properties, at market rate, before the building is offered to other potential buyers.

Tenant Opportunity to Purchase Act (TOPA). This program allows tenants to organize and purchase a building collectively rather than have the property sold to another investor. This is similar in concept to statewide legislation passed in Olympia in 2023 for residents’ ability to have first right of refusal for mobile home park purchases. We will continue to monitor this situation and be sure to keep you, our members, up to date.

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TUKWILA

Tukwila is once again kicking around their ordinance from early 2023 which is similar to many other ARCH policies that have infiltrated many south King County cities. To remind everyone who may have forgotten, below is what Tukwila has proposed. The ordinance has been discussed in committee but does not yet have a date set or slot on the full council agenda.

Fair Housing Disclosure:

• A landlord shall provide a copy of [Fair Housing, Rights & Obligations, and Legal Resources] to any tenant or prospective tenant when a rental agreement is offered, whether the agreement is for a new or renewal agreement.

Move-In Fee Cap:

• The sum of any security deposits and nonrefundable move-in fees charged by a landlord before a tenant takes possession of a dwelling unit shall not exceed an amount equal to one month’s rent.

• Tenants may request to pay movein fees and security deposit in installments.

Cap on Late Fees: 

• Any fees for late payment of rent shall not exceed 1.5% of monthly rent per month.

Adjustable Due Dates: 

• Allowing tenants to adjust the due date of rent payments if the tenant has a fixed income. 

SSN Requirement Ban:

• A landlord may request but shall not require a social security number for the purposes of screening.

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VANCOUVER 

RHAWA has been participating in the Rental Habitability stakeholder group in Vancouver over the last few months. The group is going over a number of proposed policies that may go before the city council after the stakeholder period has concluded.

• Rental Registration License in addition to a city business license which would be $30 a year per unit. The proposals say these fees would help fund city support for rental housing.

• Rental Inspections which would vary on time in between inspections based on age of the unit.

• The City of Vancouver would provide an annual report documenting results from the proposed programs including the number of units registered and inspected as well as revenue and expenses.

• Fees collected would also go towards tenant and housing provider education on all new policies and procedures.

The completed stakeholder group write-up will be presented to the Vancouver City Council some time in the late fall.

Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.