Washington senate moves rent cap bill forward, but not without a fight

A state Senate committee, as expected, moved a rent stabilization bill forward Wednesday, opening the door for more debate over ‘what is rent control’.

Senate Bill 5222 would cap rent increases at 7% per year and any increase of rent in a tenant’s first year.

The goal, according to backers, is to create stability for tenants who often face unpredictable and steep rent increases.

Just before Senate Housing Committee took its vote, Senator Yasmin Trudeau (D-Tacoma) , who introduced the bill, made it personal, explaining, “I mentioned why I brought the bill in the first place based on my own personal experiences and the experiences of members of my family that are in a much more vulnerable situation than me.”

She emphasized the need to strike a balance, saying, “We just want to find a balanced approach, where we can bring housing online, but we can ensure that people stay in their homes and are stabilized so they don’t drop off as we continue to address our housing crisis.”

The bill also includes protections beyond rent limits, such as requiring landlords to give six months’ notice for rent increases over 3%, capping move-in fees at one month’s rent, and restricting late fees.

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Party line politics

But opponents of SB 5222 aren’t buying it.  They argue that the bill could make things worse by discouraging investment in rental housing and leading to unintended consequences.

Senator Chris Gildon (R-Puyallup)  didn’t mince words, warning that “within a year or two, what you’re going to see is a drop in the supply of available rental housing as small mom-and-pop housing providers get out of the business and they sell their homes.” He predicted that “hope and happiness” among tenants would “fade away very quickly” once they realized the policy’s long-term effects.

He argued that the bill could drive property owners out of the rental market, making the housing shortage even worse. “What we’ve seen is that when people find their lives regulated, they tend to move to where they have less regulation,” he said, echoing concerns that landlords might sell properties or invest elsewhere.

Rent control illegal in Washington state

In Washington state, the debate over rent regulation has been ongoing for decades. Back in 1981, the state legislature passed a law prohibiting cities and towns from controlling residential rents, effectively banning rent control statewide.

Fast forward to 2024, lawmakers introduced House Bill 2114, aiming to establish rent stabilization measures. This bill proposed capping annual rent increases at 5% for existing tenants, with certain exemptions for newer properties. Despite passing in the House, the bill stalled in the Senate and did not become law.

The terminology used in this debate often varies by political affiliation. Democrats frequently refer to such measures as “rent stabilization,” emphasizing tenant protection and housing affordability. Republicans, on the other hand, tend to label them as “rent control,” highlighting concerns about market interference and potential negative impacts on housing supply.

The bill received a do-pass recommendation from the Senate Housing Committee on Wednesday along a party line vote.

A companion, HB 1217 is slightly further along in the process.  It received a do pass recommendation from  House Committee on Housing and the House Committee Appropriations and is waiting a date for floor vote in the House.

Whether it survives the full legislative process is still up in the air

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