Tag: Rent Laws

SPOKANE, WA—-Washington state made history this spring with the enactment of House Bill 1217, the first rent stabilization law of its kind in the region.

Following in the footsteps of Oregon and California, Washington has joined the growing list of states adopting rent cap legislation. HB 1217 limits annual rent increases to 7% plus inflation—or 10%, whichever is lower.

The bill marks a compromise in the decades-long national debate over rent stabilization, offering a more moderate approach compared to the stricter models passed in other parts of the country. Supporters say it strikes a balance by preserving tenant protections while keeping the housing market viable for landlords and developers.

The law also includes several tenant-friendly provisions: it limits late fees to 1.5% of monthly rent, caps move-in fees—including deposits and other charges—at no more than one month’s rent, and restricts lease-switching fees (such as converting to month-to-month terms) to 5% of the base rent.

A statewide housing impact study is mandated by 2029 to evaluate the law’s effects and help guide any future legislative changes.

Advocates argue that inaction is no longer an option. The new law is not universally praised, but for a state-level intervention in a high-cost housing market, it is viewed as a more measured, middle-path solution that avoids many of the well-documented pitfalls of older rent control regulations imposed nationwide.

“This isn’t Berlin. This isn’t New York. We’ve created something new,” said Washington state Rep. Emily Alvarado, D-Seattle, who helped sponsor the bill. “HB 1217 doesn’t slam the brakes—it taps them.”

Alvarado was referencing Berlin’s Mietendeckel, a total rent freeze introduced by the Berlin Senate in February 2020. The policy prohibited rent increases for five years on apartments built before 2014 and required landlords to reduce rents considered excessively high. Mietendeckel is now widely cited as a cautionary tale against sweeping rent freezes, prompting many cities to consider hybrid approaches like HB 1217.

Supporters argue that the Washington law is a flexible and fair response to runaway rent hikes in high-demand cities such as Seattle, Spokane and Tacoma. Unlike San Francisco—where rent increases for 2024–2025 are capped at just 1.7%—or New York City, where some rent-controlled tenants still pay 1970s-era prices, HB 1217 allows landlords greater flexibility. Notably, the law exempts buildings constructed within the last 12 years from regulation.

Daniel Klemme a property rights advocate and housing policy expert weighed in on the situation, saying:

“In places like St. Paul, Minnesota, a 3% rent cap led to an 80% drop in new building permits. Rent controls, no matter how well intentioned, make developers nervous and landlords hesitant to reinvest in older properties.”

Klemme points to multiple studies showing that rent control, especially without careful economic safeguards, can lead to maintenance neglect, housing shortages, and even upward pressure on market-rate units as costs get passed to the unregulated sector.

HB 1217 was written with these conditions in mind, including a 12-year exemption for new construction aimed at encouraging growth. Supporters argue that lower rent volatility can help stabilize neighborhood turnover and attract long-term residents.

They believe that overall housing quality depends more on code enforcement than on rent policy in the long run. Construction permit impact studies are planned to monitor the law’s effect on development.

The goal, proponents say, is not about taking sides—it’s about keeping people housed while allowing the housing market to grow.

Others suggest investing in more complementary programs like Section 8, which provides rental assistance to low-income households, seniors, and people with disabilities. The program is designed to help those in housing duress, but it has come to be seen more like a lottery—those who receive assistance often remain in the program indefinitely, while others are completely locked out.

To date, the only rental assistance offered in Spokane occurred during and shortly after the COVID-19 pandemic. No significant aid has been available since the Biden administration took office and inflation peaked.

The need is clear: Spokane has reached a critical gap in housing support. Whether this bill helps bridge that gap remains to be seen. Still, there is cautious optimism that HB 1217 could become a model for other regions. If not, the bill includes a sunset clause in 2040, giving lawmakers an opportunity to revisit its impacts and make necessary adjustments.

Story & Photos: Danyle D’Alene