Olympia, WA – The Washington State House of Representatives is set to re-examine a significantly amended rent control bill passed by the Senate, signaling potential late-stage struggles before it can become law.
Late Thursday evening, the Senate passed House Bill 12-17, initially introduced in the House, but not without substantial alterations. The original bill proposed capping rent increases at 7%. However, the Senate version raised this limit to 10% plus the rate of inflation. Additionally, the Senate amendments included a 15-year sunset clause on the rent cap and an exemption for single-family homes not owned by real estate development companies.
Representative Emily Alvarado (D-West Seattle), who sponsored the bill in the House, expressed her disappointment with the Senate's revisions. "I'm disappointed in the changes that were made that strip away protections that could have been offered to so many people. But this bill is still important," she stated.
House Housing Committee Chair Strom Peterson echoed this sentiment, saying, "While we anticipated some changes, we are very disappointed. They essentially doubled the rent cap that we passed out of the House, and we don't believe that's affordable for many families in Washington state."
Despite his disappointment, Chair Peterson affirmed his commitment to pushing forward a bill that benefits families. "Over the next few weeks, we're going to do our best to get a bill to the governor's desk. We think 7% is very reasonable, but it could be slightly higher than that," he added.
Conversely, Republican Representative Andrew Barkis, ranking member of the House Housing Committee, expressed satisfaction with the Senate's amendments and indicated his intention to vote against the bill. He argued for the need for increased housing supply and regulatory reform. "We've seen a decrease in construction and a decrease in supply. And you can see that this is going to be a problem that we're going to have to come back and fix. Again, I think the best outcome is for this policy to not exist in Washington state," Representative Barkis asserted.
For the bill to reach the governor's desk for signing, both chambers must agree on a unified version by the end of the legislative session on April 27th. Given the current divergence in their positions, significant hurdles are anticipated in reaching a final consensus.
Key Points to Consider:
Inflation Rate: The "inflation rate" mentioned in the bill will likely be based on the Consumer Price Index (CPI). The specific calculation method is expected to be detailed in the final legislation.
Impact of the Sunset Clause: The 15-year sunset clause means the bill's effect will automatically expire after 15 years. This provision allows for a future reassessment of the policy based on changes in the housing market.
Rationale Behind Single-Family Home Exemption: Exempting single-family homes not owned by real estate development companies from rent control aims to ease the burden on small-scale landlords and maintain diversity in the rental market.
Issue of Housing Supply Shortage: The housing supply shortage, as highlighted by Representative Barkis, is a significant concern in many parts of the U.S., including Washington state. It is considered a major driver of rising rents, leading to various policy discussions aimed at addressing the issue.
Past Attempts at Rent Control in Washington: Washington state has seen previous debates regarding the implementation of rent control, but these efforts have historically been unsuccessful. The fate of the current bill remains uncertain.
Rent Control Examples in Other Regions: Various states and cities across the U.S. have already implemented different forms of rent control. These examples could serve as reference points for Washington state's policy decisions. For instance, California has a statewide law limiting annual rent increases.
Outlook for Bill Passage: With clear differences between the House and Senate positions, the final passage of the bill is uncertain. Whether the House will accept the Senate's amendments or propose its own revisions will significantly influence the negotiation process and outcome. The efforts of policymakers to address the housing issue, along with public attention, will be crucial in the coming weeks.
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