SEATTLE — Washington Gov. Bob Ferguson has signed House Bill 1217, which limits yearly rent increases for existing tenants in Washington state to 7 percent plus inflation or 10 percent, whichever is lower. Landlords can still adjust rent by higher amounts for new tenants.
The bill also limits rent increases for manufactured homes to 5 percent per year. HB 1217, as well as several other bills, were signed on May 7 at the Blake House affordable housing high rise in downtown Seattle. The bill automatically became law upon signing. Other bills signed that day covered areas such as property tax relief for disabled veterans and legislation encouraging construction of middle-market housing options.
While the new law is being praised by tenant-advocacy groups, industry groups have historically been opposed to rent-control measures like HB 1217 out of concern that they could limit new development at a time when operational and construction costs are rising.
“Areas that impose rent control struggle to secure financing for new housing developments, resulting in a scenario where any new projects that do emerge are prohibitively expensive, as they are often the only ones that can maintain financial viability under such constraints,” said a letter to the governor jointly penned by a consortium of private developers and public entities.
“A healthy housing market requires a steady influx of diverse housing options catering to all income levels, and restrictive measures like rent control will hinder this vital objective.”
Sen. Emily Alvarado (D-West Seattle) introduced the bill on Jan. 9. “At a time of economic uncertainty, this commonsense guardrail will protect working families and seniors from excessive rent hikes,” Sen. Alvarado said.