Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Local Government Committee

HB 1082

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Prohibiting regulation of the amount of rent for commercial properties.

Sponsors: Representatives Manweller, Condotta and Buys.

Brief Summary of Bill

  • Prohibits cities and towns from imposing rent control on commercial buildings or sites, other than publicly managed or owned properties.

Hearing Date: 1/17/17

Staff: Desiree Omli (786-7383).

Background:

There are various types of local governments, including cities and towns. A city is a general purpose unit of government that provides a wide range of services and facilities and regulates matters within its borders. A town is a similar type of municipality. Cities are classified as: (1) classified cities including first class cities operating under charters, second class cities, and towns; (2) code cities; or (3) unclassified cities.

Since 1981, cities, towns, and counties have been prohibited from regulating the amount of rent charged on single-family or multiple-unit residential rental structures. However, rent control is not prohibited for floating homes and residential properties under joint public-private ownership, public management, or joint public-private agreements for financing or providing low-income homes.

In general, rental terms for commercial properties, including the amount of rent to be charged, are subject to the terms in individual lease agreements between the landlord and tenant.

Summary of Bill:

Cities and towns are prohibited from enacting, maintaining, or enforcing any ordinance or other provisions which regulate the amount of rent to be charged for commercial rental structures or sites.

There is an exception for properties in public ownership or properties under public management. Moreover, a city or town may enter into agreements with private persons which regulate or control the amount of rent to be charged for commercial properties.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.