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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 • 3 percent or 1.5x CPI Warren • 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