(The Center Square) – Attempting to stabilize costs as families struggle to find housing, Senate Democrats advanced a bill Wednesday that would impose annual rent caps for the first time in Washington state history.
The proposal comes as the state grapples with a housing crisis, needing to build a million units over the next two decades. Supporters say House Bill 1217 provides peace of mind ahead of annual rent hikes, but landlords and developers argue it could disincentivize new construction.
Two weeks ago, five Democrats joined House Republicans in opposition to the proposal, which passed the floor by a 53-42 vote. The Senate Housing Committee voted Wednesday to advance the bill to the Ways & Means Committee, pending further consideration before it heads to the floor for a full vote.
“On the striking amendment, I would say that again, we continue to hear from stakeholders on this bill,” Sen. Emily Alvarado, D-West Seattle, said Wednesday, “and we continue to make adjustments and reflections and changes to make this operational and to find compromise.”
Alvarado introduced a new version of HB 1217 with a striking amendment, replacing it in full after the title. While much of the intent remained the same, her iteration adjusts rent caps based on unit type and adds a 20-year sunset clause, among other changes.
As approved by the committee, HB 1217 would cap annual rent hikes at 7% for most units and 5% for manufactured and mobile homes. The bill prohibits any increase within the first year of tenancy but includes several exemptions, mainly for affordable housing providers.
Republicans pushed to remove the exemptions for nonprofits, public housing authorities and other providers, but the amendment failed due to a lack of support from the majority party.
“If this is a good policy, it should apply to all,” Sen. Keith Goehner, R-Dryden, argued.
The committee also approved changes to allow a one-time increase when a tenant places a manufactured home on the lot, allow tenants to receive damages from lawsuits over violations, and provide the attorney general with the authority to issue written investigative demands.
Alvarado’s version also requires a study on the impact of HB 1217 within a decade of adoption.
Existing language from the original bill will continue to provide exemptions for units built within the last 12 years and require documents explaining why rent is increasing, with a 90-day notice.
“We’re moving towards a certain conflict,” Sen. Chris Gildon, R-Puyallup, said. “We’re looking today at capping the amount that rents can increase year over year, and … another policy that is coming before the legislature that would remove the cap at which property taxes can be increased year over year.”
Gildon fears that, should either pass, the policies could cause tremendous turmoil in the market.
Alvarado called HB 1217 a “simple guardrail” to give people more control over their budget.
If passed by the Senate floor, the proposal would take effect immediately.
