(The Center Square) – The Tacoma City Council has approved revisions to the controversial Tacoma Landlord Fairness Code Initiative, with city officials saying the changes are intended to reduce unintended impacts on Tacoma’s housing market.
The ordinance passed Tuesday night by a 7–2 vote with Councilmembers Jamika Scott and Kiara Daniels being the two “no” votes.
The initiative, narrowly approved by voters in 2023, required landlords to provide two rent-increase notices – one 210 to 180 days in advance and 120 to 90 days before a rent change; capped late fees at $10 a month; and established tiered relocation assistance dependent on percentage of rent increase.
After concerns were raised by low-income housing providers about the initiative’s impact, the Tacoma City Council brought forward the revisions as is allowed under the Tacoma City Charter, following a two-year restriction on any changes.
“I do believe that the well-intentioned [Landlord Fairness Code] policies as written have had consequences that are bad for this city, and these consequences will lead to more displacement and not less, because the net effect is to lead to fewer housing units being built,” said Councilmember Sandesh Sadalge during Tuesday’s council meeting.
The newly-approved revisions extend the notice requirements to raise rents from 120 days to 180 days, aligning with the current initiative; raise late fee caps to $75; limit affordable housing exemptions to nonprofit entities that provide rental housing for qualifying households; increase the 80% area median income requirement for the cold-weather eviction defense to a 120% AMI requirement; and update a Dec. 1 to March 1 eviction moratorium to Nov. 15 to March 15.
Tacoma For All – the group behind the Landlord Fairness Code – rallied supporters outside of city hall. The organization called the ordinance a “lame-duck power grand,” and said that while it understands the urgency felt by nonprofit housing providers, the city council should pass specific exemptions to the code and negotiate any other changes with tenants at the table.
“This really is a complex issue, and I think that having a diverse range of input is going to get us closer to the best outcome. I’ve had a hard time with this proposal, I recognize that the Landlord Fairness Code initiative is not perfect, but I’m also concerned that so many members of our community are not pleased with the proposed changes, and it’s not just on one side of the argument,” Scott said.
Despite the revisions, the Rental Housing Association of Washington doesn’t see Tuesday’s decision as a complete win for Tacoma.
“We are grateful for the changes that were made [but] we don’t think that it is enough to save the housing market in Tacoma,” RHAWA Executive Director Sean Flynn told The Center Square in a phone interview. “We think the whole thing should be repealed.”
Flynn said the Landlord Fairness Code makes it difficult for housing providers in Tacoma because they will need zero risk on the tenant they put in their housing units, because if the relationship goes sideways, the provider will not be able to collect rent for months if not a year.
“Not many businesses or people can withstand that risk,” Flynn added. “It takes the normal risk of a housing environment and multiplies it exponentially.”
Tacoma For All did not respond to The Center Square’s request for comment by the time of this publication.
