H-4280              _______________________________________________

                                          SUBSTITUTE HOUSE BILL NO. 2437

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By House Committee on Housing (originally sponsored by Representatives Nutley, Leonard, Winsley and Todd)

Read first time 1/31/90.

AN ACT Relating to tenant application fees; adding a new section to chapter 59.18 RCW; creating a new section; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     The legislature finds that tenant application fees often have the effect of excluding low-income people from applying for housing because many low-income people cannot afford these fees in addition to the rent and other deposits which may be required.  The legislature further finds that application fees are frequently not returned to unsuccessful applicants for housing, which creates a hardship on low-income people.  The legislature therefore finds and declares that it is the policy of the state that certain tenant application fees should be prohibited and guidelines should be established for the imposition of other tenant application fees.

NEW SECTION. Sec. 2.  A new section is added to chapter 59.18 RCW to read as follows:

          (1) It shall be unlawful for a landlord to require a fee from a prospective tenant for the privilege of being placed on a list to be considered as a tenant for a dwelling unit.

          (2) A landlord may not charge a prospective tenant a fee for a background report that exceeds the landlord's actual costs of obtaining the background information.  If a landlord uses a tenant screening service, then the landlord may charge for the costs incurred for using a tenant screening service under this section.  If a landlord conducts his or her own screening of tenants, then the landlord may charge an amount not to exceed the costs charged by an outside screening service.  A landlord may not charge a prospective tenant a fee for a background report under this section unless the landlord first notifies the prospective tenant of his or her rights to correct information provided by the tenant screening service or provided by the entities listed on the tenant application who will be contacted for information concerning the tenant.  The landlord must give the prospective tenant the name and address of the tenant screening service used by the landlord.

          (3) A landlord who charges a prospective tenant a fee or deposit to secure that the prospective tenant will move into a dwelling unit, after the dwelling unit has been offered to the prospective tenant, must provide the prospective tenant with a receipt for the fee or deposit, together with a statement of the conditions, if any, under which the fee or deposit is refundable.  If the prospective tenant does occupy the dwelling unit, then the landlord must credit the amount of the fee or deposit to the tenant's first month's rent or to the tenant's security deposit.

          (4) Any landlord who violates this section may be liable to the applicant for an amount not to exceed one hundred dollars.  The prevailing party may also recover court costs and a reasonable attorneys' fee.

NEW SECTION. Sec. 3.     This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect April 1, 1990.