HomeMy WebLinkAboutPCD 2023-08-07 Item 1B - Update - Renter Protection ProposalsCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
T0: Planning and Community Development Committee
FROM: Laurel Humphrey, Legislative Analyst
Kari L. Sand, City Attorney
Nora Gierloff, AICP, Director DCD
DATE: July 27, 2023
SUBJECT: Renter Protection Policy Proposals
ISSUE
The Transit Riders Union (TRU) approached the City Council about adding additional
regulations/protections for tenants in Tukwila.
BACKGROUND
The Planning and Community Development Committee discussed the proposals at its May 1,
2023 meeting and requested that the City Attorney prepare a preliminary opinion on legal
risk prior to any legislation being drafted. This memo provides that analysis as well as
comments from the DCD Director on the proposed changes to the Residential Rental Business
License & Inspection Program and suggestions for gathering community feedback.
City Attorney Analysis
Attached as Exhibit 1 is a "Renter Protections Comparison Chart" provided by the Transit Riders
Union ("TRU"), which shows other jurisdictions that have adopted renter protections greater
than Washington state law. Attached as Exhibit 2 is the "TRU Renter Protections Policy
Proposal," which has been color coded based on legal risk using a traffic light metaphor, as
explained further below, with some additional comments from the Tukwila City Attorney's
Office. The color -coded categories are explained as follows.
GREEN: Po I hat carrj9 s" k ti+w a hal beenr :"'na ad b' i es of si `sLa
t T La
• The "GUT " proposed policies include:
o Requiring additional notice of rent increases regarding 120 days' notice if the
increase is greater than 3% and 180 -days' notice if the increase is greater than
5%;
o Capping move -in costs as proposed by TRU;
o Enacting just cause protections;
o Establishing a proactive education and outreach program to inform tenants of
their rights;
o Posting requirements in a public area (if possible) and documentation provided
at time of lease signing and annually thereafter; and
9
o Prohibiting rent increases for units not passing inspection due to unsafe or poor
conditions.
• Alternatives to some of the proposed policies that would be "green" may include:
o Capping late fees at 1.5%-2% of monthly rent
• The "green" policies present relatively low risk if approved by the Tukwila City Council
and have been enacted by similar cities, including SeaTac. These policies present low
legal risk because they have been: (1) unchallenged thus far and (2) do not conflict with
state law. This is particularly true regarding just cause protections. The state enacted a
just case law in 2021, requiring landlords to specify a reason for refusing to continue a
residential tenancy, subject to certain limitations, and allowing cities to impose more
expansive just cause provisions, provided they do not prohibit landlords from initiating
proper unlawful detainer actions unless specific just cause requirements are met. RCW
59,18,650; see Rental Housing Ass'n of Wash. v. City of Burien, 2022 WL 3715061 (Wash.
Ct. App. Aug. 29, 2022). The so-called "lease loophole," as described by TRU, allows
landlords to evict people on yearlong leases without reason by not renewing their lease.
See RCW 59.18.650!;1 )-(c). SeaTac enacted a just cause ordinance that is stronger
than the State's; however, it retained the lease loophole, though other jurisdictions
(e.g., Seattle, Auburn, Federal Way, Kenmore, and unincorporated King County) have
removed the loophole. See STMC 4.05.090. Additionally, the policies regarding
establishing a proactive education and outreach program in addition to posting
requirements and providing documentation are similar to "Tenant Information
Packets" provided in cities such as Auburn, Burien, and SeaTac. These cities all require
that those packets be publicly available and provided to tenants by landlords (note:
Tukwila is currently working on a Language Access Plan to provide more city documents
in the community's top languages, and tenant information will be included). Thus,
those specific requirements are likely to have a low legal risk and have been
implemented in similar cities to Tukwila.
10
• The
" proposed policies include:
o Allowing tenants to end a lease early for rent increases over 5%;
o Capping late fees at $10;
o Banning most winter evictions;
o Broadly strengthening Tukwila's rental property inspection program;
o Regulating additional fees and costs added to rent;
o Removing social security number ("SSN") requirements;
o Allowing renters on fixed income to change the rent due date; and
o Banning deceptive and abusive practices.
• The "yellow" policies present a relatively medium level of legal risk and largely have not
been enacted by cities similar to Tukwila. These policies present a medium level of legal
risk because they are: (1) arguably in conflict with state law, (2) have not been used in
cities with limited staff resources, such as Tukwila, and (3) may place an increased
burden on the City. Neither the right for tenants to leave a lease early for rent increases
over 5%, nor regulation of additional fees and costs added to rent (except for delivery
fees in Seattle) have been enacted by any city highlighted by TRU. Thus, these proposed
policies are largely untested, may be challenged, and may not survive legal scrutiny by
a court. Additionally, while the removal of SSN requirements and allowing renters on
fixed income to change their rent due date have both been enacted by SeaTac, the
proposed policies may conflict with state and/or federal law, and though they have
been unchallenged thus far, would carry legal risk as a result. Finally, banning deceptive
and unfair practices would require a significant number of resources and would be
difficult to enforce based on Tukwila's relatively limited staffing resources, thereby
carrying legal risk; additionally, neither similar cities nor Seattle have enacted this
policy. The same is true for broadly strengthening Tukwila's rental property inspection
program. While some specific provisions carry low legal risk, others are untested and
may expose the City to difficulty with enforcement and potential legal challenges.
RED: Policies that carry hi h ea risk, a ad1ess ` enactment by ther A
jurisdictions
• The "RED" proposed policies include:
o Requiring relocation assistance for rent increases beyond what is required by
the State;
o Banning most evictions of families and educators during the school year;
o Enacting a Fair Chance Housing law; and
o Enacting a first -in -time ("FIT") rental application law.
• The "red" proposed policies present a relatively high level of legal risk. These policies
present a high level of legal risk because they are: (1) clearly in conflict with existing law,
11
(2) controversial, and (3) place a very high burden on landlords. Additionally, all these
policies have only been enacted by Seattle, and many have already been subject to legal
challenges. Relocation assistance for rent increases as proposed by TRU seems to go far
beyond the limitations outlined in State law (note: Tukwila currently requires relocation
assistance under chapter 8.46 TMC when a rental unit fails inspection to such a degree
that the conditions endanger life safety, and failure to obtain a Certificate of
Compliance will result in the non -issuance or revocation of the rental business license
for that unit. See TMC 5.06.120.). See RCW 59.18.440. It would additionally impose a
significant burden on landlords. For example, while state law only requires relocation
assistance for low-income tenants under specific circumstances and limits assistance
to $2,000 or less with the owner only responsible for one-half of the assistance, TRU's
proposal would require assistance equal to three months' rent for tenants in all income
brackets in some cases and would create a private right of action. This goes far beyond
most protections for tenants and would perhaps unfairly burden landlords. While the
bans on certain types of evictions have been upheld in some courts, they are still
controversial and would likely expose the City up to legal challenge if implemented. The
same is true for the proposed first -in -time rental application law. Finally, the fair chance
housing law is currently in conflict with existing law, as the Ninth Circuit recently held
that Seattle's fair chance housing law was impermissible and that cities may not
prohibit landlords from inquiring about the criminal history of current or potential
tenants. Yim v. City of Seattle, 63 F.4th 783 (9th Cir. 2023). Thus, an enactment of the same
policy would be illegal based on the holding in the Yim case.
Rental Housing Program
Some of the TRU proposals are already part of Tukwila's practices. For example, we advertise
the availability of "courtesy inspections" for tenants concerned about their living conditions
on the rental licens n webpage and in the Hazelnut newsletter, as shown below. However,
some tenants are reluctant to ask for inspections due to fear of retaliation, so code language
to protect them could be considered.
12
Renting in Tukwila
All rental units in Tukwila are required to be
licensed and inspected. To check the status of
your rental unit or unit that you are interested
n renting, or to request a courtesy rental
inspection, please contact the Rental Housing
Program at RentalHousing@TukwiLaWA.gov or
206-431.3674.
Kiraystayaasha Tukwila
Dhammaan guryaha kirada ah ee Tukwila :vaxa
ooga baahan yahay inay haystaan shati iyo
kormeer.51 aad u hubiso xaaladagungaaga
Jaarka ama guriga aad xiisaynayso inaad
k ray+tate„ama si aad u codsato korrneer kiro oo
xushmad ieh, kala xidlhudh Barnaamijka Guryaha
Kirada ee RentalHousing@TukwilaWA.gov ama
206 431-3674.
Afgtia thue nha d Tukwila
Tat ca cat don vi cho thue d Tukwila deu phai
duoc cap phep va kiem tra De kiem tra tinh
trang cua don vi cho thue hoac don vi ma ban
muon thue; hoar de yeu cau kiem tra nha cho
thue Lich su, vui long lien he vol Chuong trinh Nha
cho thue tai RentalHousrng@TukwiiaWA.gov
hoac 206-431-3674.
Alquilar en Tukwila
nidades de aiquileren Tukwila deben
terser ircencia e inspection Para consultar
el estado de su unidad de alquiler o unidad
que le mteresa alquilar, o para solicitar una
inspect on de alquiler de cortesia, cornuniquese
con el Programa de viviendas de a[quikr en
RentatHousing@TukwitaWA.gov a 2206.431-3574.
As a pilot project this year we are offering city inspection of up to 12 -unit buildings to assess
the impact on staff workload. Legally we must allow any property owner to select a qualified
inspector of their choice. We have encountered only a few low -quality outside inspectors over
the years, but as TRU suggests, we could consider a more systematic audit of these third -
party inspectors rather than the complaint or issue driven process we have now. The annual
license renewal process would be an effective way to communicate any changes to rental
regulations adopted by Council to Tukwila's rental property owners.
Public Outreach
Staff suggests conducting outreach to seek feedback on the proposals that the Committee
would like to consider. Following are suggested methods:
• Councilmember discussions with constituents
• Online survey
• Article in Hazelnut or E -Hazelnut, depending on timing
• Email to all current Board & Commission members
• Notice to landlords enrolled in Residential Rental Business License and Inspection
Program and rental housing associations
• Notice to Community Based Organizations
• Information page on City website
RECOMMENDATION
Staff is seeking Committee direction on next steps, which could include public outreach and
developing legislation. It would be helpful to know which specific policy proposals the
Committee is interested in pursuing.
ATTACHMENTS
Exhibit 1: TRU Renter Protections Comparison Chart
Exhibit 2: TRU Renter Protections Policy Proposal with color -coding.
13
14
�0�/�
VJ
0
E
co0
U
0
U
WA State
60 days
U) a) O
C E
O 0.,.
a) E� c� `� a)
E O L a)
c�6 a) c to
o ._ �� a)�
(
r-
Late fees
can't be
charged until
5 days after
rent is due
a)
C CO
c 0 CO N
c. a)
U U= L
CCt.
_) a5 o
Lt) ) ">
o N -a=oa)
c c c c E c,0
3 i= N a, w E co
In N to N C E 00 4- N
}E��Cr �_..00s
SeaTac
120 days if
>3%
180 days if
>10%
o to c
ccs ^
O - L -C to
o
a)c'=c-cow"-tna)C
0- O �; .- O L. O N 'C 0
0 C c r j
I
I
1
2
oa u) E a)
.,..... 8,
a .2(7,3 c
LO
(i
eL 2EL.L.
1
For
condemned
or unlawful
buildings,
see RCW
a)
a)
(1)
<t)
>-
1
u)
a)
>-
cn
a)
>-
1
i
1
1
1
1
1
(/)
a)
>-
1
i
1
1
1
in
a)
>-
(J)
a)
>-
1
1
1
1
(1)
<t)
cn
a)
u)
a)
1
1
1
i
1
1
ci)
a)
>-
1
1
i
1
1
(,)
a)
>-
1
1
ci)
a)
c
o •
ci) c c
a) (1.) z a)
ci)
a)
ca.
,.. D-•• c - - (Li_) a) (.)
Yes, for
low-income
tenants
(paid 1/2& 1/2
bycity &
No SSN
required to
apply for
rental
home
Ban on
abusive,
deceptive
& unfair
practices
No rent
increase if
proPertY is
in poor
condition
c
0
05 c
Ban on
Notice
Delivery
Fees
a)
06,,
— ca 4.,
u/
0
Relocation
assistance
when
property is
torn down
16
17
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
I
I
I
I
property
owner)
(1)
>.cu
(i)
a)
(J)
a)
(i)
a)
or
renovated
First-in-tim
e rental
application
law
....... ,. ..., o_
II.. L) = 2 u -1:2. mi
Ban on
most
winter
evictions
ti) ci)
Lt." 0
,,,, 2 'E 41 re 0
.., ,.., „„ 0 ..... 0 ,.
CtlEocsotSomso>,
17
18
Tukwila Renter Protection Policy Proposals
Submitted by Transit Riders Union 4/3/23
Additional •notice of rent increases: Washington state has 60 -days' notice required, but
nearby jurisdictions have gone above and beyond to allow for additional time to plan ahead
and/or seek new housing in response to large rent increases — see Renter Protections
Comparison Chart — Exhibit 1. The Washington State Legislature considered but did not
pass similar protections (HB 1124).
o 120 days if >3%
o 180 days if >5%
Cap on matesin costs: Most families do not have adequate savings and little excess income
to pay multiple months of rent in advance in addition to moving costs. This creates a barrier
that makes it more difficult for families to relocate; it sometimes traps people in rental
situations that they cannot afford or traps people in dangerous or abusive situations.
o Any upfront costs over and above the 1st month's rent are capped at a total of 1 -month
rent, with a right to pay in installments over 6 months (or 2 months for leases shorter
than 6 months).
Cap on laic lees: With no regulation on late fees, it is very easy for families to become
permanently behind on rent and stuck in a cycle of escalating fees and debt. Renters
consistently prioritize rent over other bills to avoid eviction; large late fees are not needed to
incentivize paying on time. Service providers that aid in helping stabilize the living situation
for families behind on rent can do more when less of their assistance is spent on exorbitant
late fees.
H
016404,01401"4**41,4V,
r" 15,40WkeWiAti*****014eryst
ae • • ,*14.•
rnhpti
Washington state has some protections whereby landlords must
give a just cause for evicting a tenant or terminating a lease. Other jurisdictions, including
Federal Way, Auburn, and unincorporated King County, and Seattle, have strengthened this
law and closed a loophole that excludes many renters on fixed term leases.
• Relocation assistance: When property owners seek to dramatically increase rents, and
thereby profit from future tenants, current tenants forced to relocate bear the financial burden
for landlord's future gain. Landlord -paid relocation assistance helps ensure families can safely
find new housing that works within their budget and softens the cost of moving.
o Relocation assistance equal to three months' rent for housing cost increases of 10% or
more. Unlike Seattle's program, this would be a direct transaction between tenant and
property owner. A similar policy exists in Portland, OR, and is being considered in
Tacoma.
o Enforcement through private right of action. Other jurisdictions and proposals require
property owners to submit a report to the city to confirm payment was made, which
may assist tenants in enforcing this protection.
iovtiW, p6n4'.,:,tzl: Tukwila has a standing
registration and inspection program that is intended to ensure safe living conditions for rental
units in the city. Many tenants still experience unsafe living conditions, and currently there is
little protection for tenants wishing to seek remedies for these unsafe conditions.
{KZS2858910.DOCX;1/13175.000001/)
19
/May, haw
Pietahal priatechayils and ia 0:11 evictions for LinitS that fa1 inVeCT.10n, A tetiaM
bCrtind CM relit May bC diSC0111"agOd 11'0111 reqi,k,::-.!.q."111.g all tISpeet(011. Or plirSifillg wrahr
remixoes tor chi:no-cause eviction ibr hilimar \holahmii
Late rent, or wher olcihisisifliimon (if miiiithziatiincirat,
lincsiara,iraithies phhiihrhy (ivialtihs hasihica in a
imanficas Hiles nave a haw cap and iAre attached to the properly.,
but the ciasi,i hyhtkii authoray 1:(,) colkii.ct„ and We Uries are not significant Lc.)
deter iiii.olaitions„
O Establish a proactive education and outreach program to let tenants know they have a
right to an inspection and al -Khoo 'Hams:a, efficrinco ieNpeceion pmpram
to be more eicark7 usmant
0 Posting renter protections in a pithlic arca (ifipossible) and documentation provided at
time (,),f lease signing and annually' thereafter„
ia No rent increases permitted for units drat, have thiled to pass inspection or are in the
process of being, inspected at. the request of a. tenant, or have outstanding requests for
repairs, or have defective conditions making the dwelling unlivable, or are otherwise
in violation of RCN 59.1 8„060, (SeaTac has adopted this protection„)
harraiiisi„-i itudgis and iiiihiaasai. efficacy et:third. paily nhipection companies, and assess
ithishahiges shou'd made, MC:hi:ding NMA111111,,,;; haVIng the ty pertdiTZ1
Regulate additio,nal lees and costs added to rent, Property owners, especially corporate
landlords, are increasingly charging a wide variety of arbitrary fees for everything from
delivering a notice to signing a lease renewal to turning on the HVAC. Layering on fees can
also be a strategy to get around some renter protection laws.
o Ensure that rent increase notice requirements and relocation assistance are based on
an increase in total housing costs (including all fixed monthly charges paid to the
landlord, e.g. parking, pet rent, storage, flat utility fees) and not just base rent.
o Ban or limit other types of fees including notice delivery fees, "admin" and lease
renewal fees, month-to-month fees, "service" and "billing" fees, etc.
• Remove Social security number requirements„ Other jurisdictions including Burien,
Kenmore, and Redmond have recognized the need for families to have access to housing as a
human right, regardless of immigration status. Creating barriers for people to find homes is
harmful to the whole community. (Burien, Kenmore, King County, Redmond, and SeaTac
have adopted this protection.)
• Allow renters on fixed income to change rent due datei Renters living on a fixed income
are better able to budget their limited funds when their due date better aligns with the date
they receive their payments, without any additional cost to a property owner. State law allows
only a 5 -day adjustment. (Burien, Kenmore, King County, Redmond & SeaTac allow this.)
lo Bark tilticeptive and a busiVe pira ctir es. In general, property owners and management
understand landlord -tenant laws better than the average renter. Unfortunately, some landlords
exploit this gap and lie about what rights a tenant has, for example, by telling tenants they
must pay for repairs that are actually the landlord's responsibility. Better defining and
establishing clearer consequences for such behavior can help.
* Additional. protections worth considering. Nearly all the protections above have some
precedent in King County cities. In addition, Seattle has passed some further protections
Tukwila might consider:
{KZS2858910.DOCX;1/13175.000001/
20
Ban on most evictions f families & educators during school year
Fair Chance Housing law (no criminal background checks)
Firstrinhime rental application law
{KZS2858910.DOCX;1/13175.000001/
21
22