Bill to cap rent increases passes out of WA Senate Housing Committee

(The Center Square) – The Senate Housing Committee on Wednesday gave Senate Bill 5222 a do-pass recommendation during executive session. SB 5222 would cap annual rent and fee increases at 7%, enhance talent protections, and establish new notice requirements for landlords under Washington’s landlord-tenant laws.

Companion legislation, Second Substitute House Bill 1217, successfully moved out of the House Appropriations Committee with a do pass recommendation on Feb. 10.

Even as majority party Democrats move ahead with rent control legislation, Republicans are offering a package of bills aimed at tackling the state’s growing housing affordability crisis, partly by making it easier to build homes in the Evergreen State.

The group of bills, dubbed “Housing Solutions Washington,” was unveiled Tuesday ahead of a Republican leadership press briefing.

“We’ve always been trying to get more flexibility, and we have seen some movement, particularly this session, but we aren’t doing it in the planning process that would give more flexibility to those local governments, said Sen. Keith Goehner, R-Dryden, the ranking member on the Senate Housing Committee.

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Goehner told The Center Square Republicans have bills to address the complex permitting process.

“It has been so onerous and cumbersome for people, and it drives up the cost of housing,” Goehner explained. “So, we have bills that would streamline some of that permitting.”

Rep. April Connors, R-Kennewick, is also on the House Housing Committee. She explained that during the time between legislative sessions, members of the committee spent a great deal of time working on legislation to address the housing crisis, but noted many of the bills offered by Republicans have not advanced.

Eviction reform legislation, Senate Bill 5740, sponsored by Sen. Minority Leader John Braun, R-Centralia, did receive a public hearing Wednesday.

Another Republican bill, sponsored by Sen. Jeff Wilson, R-Longview, also received a hearing before Wednesday’s Senate Housing Committee.

Senate Bill 5749 would allow “cities to designate housing development opportunity zones in areas of large commercial development, where residential development must be prioritized.” It also authorizes cities to waive impact fees associated with development.

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Still, the executive session discussion on the rent control bill took center stage during the hearing.

Sen. Chris Gildon, R-Puyallup, spoke in opposition to SB 5222 ahead of the committee vote.

“I suspect that should this bill pass, there will be a lot of celebration and a lot of tenants will be filled with hope across our state,” Gildon said. “But I also forecast that should this bill pass, that hope and that happiness is going to fade away very quickly. Within a year or two, you’re going to see a drop in the supply of available rental housing.”

Goehner also voiced opposition to the bill ahead of final passage.

“When people find their lives regulated, they tend to move to where they have less regulation, and that’s really the testimony we’ve heard,” he said. “People will reinvest outside the state of Washington because of the uncertainty of their ability to actually cover the costs of maintaining or constructing new units.”

Sen. Emily Alvarado, D-West Seattle, who sponsored the companion legislation when she was in the House, urged members to support the bill.

Alvarado moved from the House to the Senate on Jan. 21 after the King County Council appointed her to replace Joe Nguyen, who Gov. Bob Ferguson tapped to lead the state Department of Commerce.

“This bill simply provides some commonsense guardrails to say that landlords can’t raise the rent at an excessive level while they still can raise the rent, make a fair return and invest in the property,” she said.

Connors voiced skepticism about the bill.

“Rent control is the big push for the House Democrats this year, but we’re already hearing from developers across Washington state, that if this bill goes into effect, actually just the hint of this bill going into effect, they will leave the state,” he said during Tuesday’s Republican news conference. “This is a great bill for Idaho. Rent control is a great bill for Montana, and it’s a great bill for Arizona because that’s where we’re hearing the developers are going right now.”

Policy bills must pass out of committee by Friday, or essentially die this session.

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