Bill that would limit rent hikes, late fees for tenants across Washington dies in Legislature

OLYMPIA – A proposed state law to cap annual rent increases was halted Monday, with less than two weeks left before Washington’s legislative session.

The bill has been one of the most controversial proposals discussed in this year’s legislative session. The proposed law would limit annual increases that tenants in the state pay to 7%. It would also ban landlords from charging late fees if a tenant pays rent within five days following the rent due date.

Supporters of the bill argued the law would boost tenant rights and save people on fixed incomes from eviction. Opponents argued the legislation could drive housing investors out of Washington in the midst of the state’s dire housing shortage.

‘We can’t normalize this’

In Spokane County, courts saw record-breaking eviction actions filed last year. There were 1,663 eviction actions filed in 2023 – the highest seen by the county in eight years and a nearly 50% increase from the number filed in 2019.

One Spokane resident last month reported they received notice that their monthly rent would soon increase by $900, said Terri Anderson, the director of the Tenants Union of Washington State.

“These tenants can’t afford it,” Anderson said. “They’re scared they’re going to lose their housing and live on the streets. The most vulnerable tenants we see in these situations are senior citizens. Or vulnerable parents with children. We don’t have enough affordable housing in Spokane.”

In Washington, Black and Indigenous tenants and other tenants of color are disproportionately impacted by evictions and forced into homelessness. Some 35% of Black households in the state own their homes, compared with 68% of white households, according to a 2023 Seattle Times report.

Families often get split apart when evictions happen. In Anderson’s line of work, she said she sees it all the time.

“People talk about family separation at the border,” she said. “But we do family separation as a way to address our housing issues. That’s just wrong. Think about the message that it sends down generationally. I don’t think people think of the bigger picture. We can’t normalize this.”

‘We fell short’

Monday marked the deadline for state budget committees to pass bills, sending them one step closer to a floor vote. The rent cap limit bill was scheduled on Monday for an executive session in the Senate Ways and Means Committee. But the committee adjourned for the day that afternoon without taking action on the bill. Committee Chair Sen. June Robinson, D-Everett, said in the meeting that the bill did not have enough votes to pass out of committee.

This means the bill almost certainly has no path forward, said Senate Majority Leader Andy Billig, D-Spokane.

“There are ‘suspend the rules’ kind of things with two-thirds of the body, but that’s extremely rare and would need a two-thirds supermajority vote,” Billig said in an interview. “It had been clear that it was a challenging path to get through the Housing Committee, the Ways & Means Committee and the Senate as a whole. I had hoped that we could continue to work on it.”

Sen. Mark Schoesler, R-Ritzville, on Monday said the bill died rightly because it is “anti-landlord.” The Eastern Washington lawmaker believes the market should dictate housing costs. The best thing lawmakers can do for affordable housing is work to increase housing supply, he said, not discourage investment.

The bill “was such poor public policy that wasn’t just rent control,” Schoesler added. “It was a host of so many other things. It prohibited discounting long-term leases over short-term. That’s been a common practice. The bill was a red flag to people that like to develop housing. This was a victory for mom-and-pop landlords that provide housing at really affordable rates.”

After news broke about the Senate committee’s decision not to move the bill along, tenants’ rights groups and advocates from across Washington expressed frustration and outrage. Some urged the committee to change its mind.

“Senate leadership has the authority and 10 more days to take action, including pulling this critically needed legislation out of committee for a floor vote,” said Michele Thomas, advocacy and policy director for the Washington Low Income Housing Alliance. “Without rent stabilization, nearly 1 million households will continue to face unchecked rent hikes, which are causing displacement and contributing to homelessness.”

The Washington Legislature is scheduled to adjourn for the year on March 7. Lawmakers plan to continue work on the rent cap proposal next year, Robinson said in a statement Monday .

“There was no Republican support and not enough Democratic support to get the bill out of committee,” she said. “I’m proud of the work we have done to make housing more affordable across Washington, but we fell short in this instance and will continue to work on the issue next year.”