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Rent Cap Proposal Clears First Hurdle in WA House

A new rent cap proposal in Washington is inching closer to becoming law, with the House Housing Committee giving the bill its first green light. The bill, which would limit rent increases to 7% annually for existing tenants, passed by a narrow margin, with just one lawmaker voting against it.

Supporters argue that the bill will provide much-needed relief for renters, offering them more stability and predictability in an increasingly volatile housing market. However, critics warn that the proposal could hurt small landlords and stifle new construction in the state.

A Close Call: House Housing Committee Approves Rent Cap Bill

On Wednesday, the Washington House Housing Committee voted to approve a proposal that would place a cap on yearly rent increases for tenants. The bill, which passed with only a one-vote margin, would limit rent hikes to no more than 7% each year for tenants who have already signed a lease.

Rep. Emily Alvarado, D-Seattle, who sponsors the bill, framed it as a necessary step toward ensuring housing affordability in the state. “This bill is about basic fairness,” Alvarado said. “Our constituents are asking for relief on excessive rent increases now.”

The proposal would allow landlords to set the initial rent for new tenants at whatever rate they choose. However, once a tenant has signed a lease, landlords would be restricted to increasing rent by no more than 7% each year. This provision aims to provide tenants with some sense of stability and predictability in what has become a rapidly rising housing market in Washington.

Washington state housing rent increase cap

Supporters of the bill argue that it would provide essential protection to tenants who are struggling with skyrocketing rent costs. Many renters, particularly in high-demand areas like Seattle, have faced double-digit rent increases in recent years, often forcing them to move or find other accommodations they can afford.

Opposition: Concerns Over Impact on Small Landlords and Housing Supply

Not everyone is on board with the proposal, though. Critics, particularly from the Republican side of the aisle, argue that the rent cap could have unintended consequences. Rep. Jeremie Dufault, R-Yakima, offered several amendments to the bill during the committee hearing, including a proposal to raise the cap, add more exemptions for certain types of properties, and remove the penalties for violations from the state Attorney General’s Consumer Protection Division.

Dufault warned that the bill could push developers out of the state and reduce the incentive to build new housing. He argued that controlling rent prices could backfire by discouraging investment in new developments and exacerbating the housing shortage that Washington is already facing.

“There’s a real risk that we’ll push developers out of Washington,” Dufault said. “This could also drive small landlords out of business because they won’t be able to keep up with inflation.”

Rep. Andrew Barkis, R-Olympia, echoed Dufault’s concerns, arguing that lawmakers should focus on increasing the supply of housing rather than controlling rent prices. According to Barkis, Washington needs more housing stock to keep up with demand, and rent control measures could actually hinder those efforts.

“It’s not about rent control,” Barkis said. “We need more housing, not less. We need to be focused on building more units, not controlling prices.”

Key Provisions and Exceptions

While the bill has sparked a heated debate, there are provisions within the proposal aimed at addressing some of the concerns raised by critics. For example, the bill includes certain exceptions to the rent cap, such as for buildings operated by nonprofits or residential properties that are less than 10 years old. These exceptions are intended to give flexibility to developers and landlords who are operating in a more complex market.

Additionally, the bill would require landlords to provide 180 days’ notice before increasing rent by 3% or more, giving tenants more time to adjust or seek alternative housing options. It would also limit move-in fees and deposit charges, which are additional costs that renters often face when securing a new home.

Violations of the law would be subject to penalties, which would be enforced by the Washington state Attorney General’s Consumer Protection Division. The intention is to create a system of checks and balances that ensures landlords comply with the law and tenants are protected from unfair practices.

What’s Next for the Rent Cap Proposal?

The proposal has now cleared its first legislative hurdle, but it still has a long way to go before becoming law. The bill will likely face further scrutiny as it moves through the legislative process, with additional debates expected over its potential impact on landlords, developers, and renters alike.

If passed, the rent cap would be a significant step in addressing Washington’s housing affordability crisis. However, it remains to be seen whether lawmakers can find a balance between protecting tenants and encouraging the development of new housing in a state that is grappling with severe housing shortages.

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