This story by Jake Goldstein Street was originally published in Washington Standard.
The limit that will take effect on Jan. 1 will be set at 9.683%, the state Department of Commerce said Friday.
House Bill 1217, signed into law in May by Gov. Bob Ferguson, limits annual housing rent increases to 7% plus inflation, or 10% lower.
Because the law will come into effect immediately, with the remaining rates set at up to 10% for 2025, with 7% and inflation equaling 10.8%.
From now on, the Ministry of Commerce will announce annual rent restrictions every July. The timing is based on the release of inflation data from the U.S. Bureau of Labor Statistics.
The first year of tenants under Washington’s groundbreaking laws does not allow rent to any degree. However, the landlord can set up rent, but please be happy when the tenants come in.
The cap does not apply to all homes. For example, new construction is not covered for the first 12 years. Public housing authorities whose owner lives in any of the units, low-income developments, and duplexes, triplexes and forplexes are also exempted.
For manufactured homes, the increase is kept at 5%.
If the landlord raises rent above the limit without exemption, the tenant must either give the landlord the opportunity to correct the error or may terminate the lease with a 20-day notice. A tenant or state attorney general may file a lawsuit to implement compliance. The Attorney General can collect up to $7,500 for each violation.
This law was one of the most divisive sessions in Olympia. Progressive initially pushed for a strict 7% limit, but came across opposition from moderate Democrats.
Democrats hope that compromise will provide tenants with a bit of predictability. Republicans fear it will be developed and cut prices by handing over small landlords who can’t keep up with maintenance costs without flexibly raising rents.
Under the law, rent increases restrictions remain in effect until 2040.
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