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September 25, 2019


• Rent Increase • Eviction Reform • 14 days Pay or Vacate • Expanded opportunity for reinstatement

• Termination • Landlord Mitigation Fund • Tenancy Preservation Program ESSB 5600


Real Estate Excise Tax Property Value

< $500,000

$500,000 - $ 1.5 million

$1.5 million - $3 million

> $3 million

2019 REET

1.28% + 0.5%

1.28% + 0.5%

1.28% + 0.5%

1.28% + 0.5%

2020 REET

1.1% + 0.5%

1.28% + 0.5%

2.75% + 0.5%

3.0% + 0.5%

ESSB 5998


B & O Taxes • Workforce Education Investment Surcharge • 20 percent on select businesses • 33.33 percent on advanced computing businesses with revenue between $25 billion and $100 billion • 66.66 percent on advanced computing businesses with revenue more than $100 billion

• Financial institution tax • 1.2% additional tax on financial institutions reporting net income of at least $1 billion. ESHB 2158 / SHB 2167


• Notice of Intent to Sell (effective Sept. 2, 2019) • Contractual agreements & criminal history requirements • • • • •

Add’l Protections for Domestic Violence Survivors Adding occupants & rent responsible parties Accepting non-electronic means of payment Notice requirements Natural gas connection prohibitions

• • • • •

Rent Control Financial penalties for rent increases Mutual Termination Agreements Lease Break Fees Payment Plans – Late payments


Federal Way • Just Cause eviction initiative Kenmore • 90 days’ notice of rent increase Cause Eviction • King County • Burien • Kent Rental Inspection programs • Federal Way • Burien


• • • •

60-day notice of termination requirement Just cause eviction Adds defenses to eviction Creates affirmative opportunities to add occupants without landlord’s knowledge • Removes opportunity for fixed term lease requirements • Adds requirements to mutual termination agreements


• Overtime exemptions increase July 1, 2020 based on company size and equalize for all companies beginning 2026 • Proposed exemptions limits: • Employers 50 or fewer employees - $675 / week (~$35,000 annually) • Employers 50+ employees - < $49,000 / year • Beginning 2026 – all employees earning less than $1,536 / week (~ $80,000 annually)

• Current Federal standards: • Salaried positions paying less than $455, or $23,660 per year


• City Council elections on-going through out Washington. • Seattle City Council • 7 Council seats • 3 incumbents seeking re-election


• Mandate grace periods in notice requirements • Just cause eviction requirements • Strengthen source of income discrimination • Seal eviction records • Increase representation • Criminal history limitations • Rent Control


Shortage of housing options No simple policy solutions

One-party majorities

Tenants Rights Groups


• 7 percent plus CPI in any 12month period • 15-year exemption for new construction • No vacancy control • Passed Feb. 27, 2019 / effective March 1, 2019

March 1, 2019


• Removal of vacancy de-control • By rent • By income

• Maximum 2 percent annual increase • Individual Apartment Improvements • Preferential Rent • Major Capital Improvements June 14, 2019


• 5 percent plus CPI but no more than 10 percent in any 12month period • 15-year exemption for new construction • No vacancy control • Single family home exemption • 10-year sunset (2030) • Effective January 1, 2020 Jan. 1, 2020


Sanders â&#x20AC;˘ 3 percent or 1.5x CPI Warren â&#x20AC;˘ Prohibit state preemption laws Biden, Buttigieg and other leading democrats have not publicly supported rent control


83% of voters are concerned about affordable housing.

89% are concerned about homelessness.


• Public/private partnerships • Rental assistance to low-income residents • Property tax aid for housing providers that keep units below market rate • Increased investment in affordable housing through Housing Trust Fund and local Housing Levies

Profile for HFO Investment Real Estate

Washington Multifamily Housing Association 2019 Legislative Recap  

Washington Multifamily Housing Association 2019 Legislative Recap  

Profile for hfore