AN ACT Relating to relocation assistance for residential tenants; amending RCW 82.02.020; adding a new chapter to Title 59 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1. Sections 1 through 18 and 20 of this act may be known and cited as the residential tenant relocation assistance act.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Assisted housing development" and "development" mean a multifamily rental housing development that either receives government assistance and is defined as federally assisted housing in RCW 59.28.020, or that receives other federal, state, or local government assistance and is subject to use restrictions as defined in this section.

(2) "Change of use" means the conversion of any dwelling unit from a residential use to a nonresidential use or the conversion of a dwelling unit to a materially different residential use, regardless of whether any new or additional permits are required for the conversion.

(3) "Dwelling unit" means a structure or that part of a structure which is used as a home, residence, or sleeping place by one person or by two or more persons maintaining a common household, including but not limited to single-family residences, units of multifamily rental housing developments, housekeeping units, guest rooms, and mobile homes.

(4) "Household" means one or more related or unrelated persons who live together in a dwelling unit under a rental agreement.

(5) "Owner" means an individual, corporation, association, partnership, joint venture, or business entity which either holds all or any part of the legal title to property, or holds all or part of the beneficial ownership, and a right to present use and enjoyment of the property.

(6) "Rental agreement" means all oral or written agreements which establish or modify the terms, conditions, rules, regulations, or any other provisions concerning the use and occupancy of a dwelling unit.

(7) "Tenant" means a tenant, subtenant, lessee, sublessee, or other person entitled to occupy a dwelling unit primarily for living or dwelling purposes under a rental agreement.

(8) "Use restriction" means any federal, state, or local statute, regulation, ordinance, or contract, which, as a condition of receipt of any housing assistance, including an operating subsidy, rental subsidy, mortgage subsidy, mortgage insurance, tax exempt financing, or low-income housing tax credits by an assisted housing development, establishes maximum limitations on tenant income as a condition of eligibility for occupancy of the units within an assisted housing development; imposes any restrictions on the maximum rents that could be charged for any of the units within a development; or requires that rents for any of the units within a development be reviewed by any governmental body or agency before the rents are implemented.

(9) "Low income" means total household income that is less than eighty percent of the median income for comparably sized households in the standard metropolitan statistical area in which the property is located.

(10) "Very low income" means total household income that is less than fifty percent of the median income for comparably sized households in the standard metropolitan statistical area in which the property is located.

NEW SECTION. Sec. 3. An owner shall provide a relocation assistance payment to any tenant who is displaced by the demolition, substantial rehabilitation, or change of use of residential rental property, conversion of residential rental property to a condominium or a cooperative, code enforcement, or the removal of use restrictions in an assisted housing development. A tenant shall be deemed to be displaced by any of these actions if it is necessary to vacate the property or if the actions will result in a material change in the terms of the rental agreement.

NEW SECTION. Sec. 4. The owner shall pay relocation assistance to the tenants in the following amounts:

(1) One thousand dollars for a low-income household containing one person;

(2) One thousand five hundred dollars for a low-income household containing two or more people;

(3) Two thousand dollars for a very low-income household containing one person; or

(4) Three thousand dollars for a very low-income household containing two or more people.

NEW SECTION. Sec. 5. Any tenant who may be displaced as a result of a demolition, substantial rehabilitation, or change of use of residential property, the conversion of residential property to a condominium or a cooperative, code enforcement, or removal of use restrictions in an assisted housing development, shall be served with a notice and accompanying relocation assistance eligibility form at least one hundred eighty days prior to the effective date of the action causing the displacement. In the case of displacement caused by code enforcement, the notice and relocation assistance eligibility form shall be served on the tenant as far in advance as is practicable. The notice shall inform the tenant of the termination date of the tenancy, which shall be not less than one hundred eighty days from the date of service of the notice, or a shorter period of time as may be necessary in the case of code enforcement, and of the tenant's right to relocation assistance under this chapter. The notice and accompanying form shall be served either by delivering it to the tenant personally or by leaving it with an adult who resides with the tenant.

NEW SECTION. Sec. 6. The notice and accompanying relocation assistance eligibility form shall be substantially as follows:

NOTICE

!tp1,1,1 !tj1!trDate:!sc ,1!w_

!ixTO:!sc ,6!sc ,4(Tenant)!sc ,4

!ixFROM:!sc ,4!sc ,3(Landlord)!sc ,4

The following action is being taken that may require you to vacate your dwelling unit:

!ix(Check one)

@ie¨!tlDemolition of dwelling unit

@ie¨!tlSubstantial rehabilitation of dwelling unit

@ie¨!tlChange of use of dwelling unit

@ie¨!tlConversion of dwelling unit to condominium or cooperative

@ie¨!tlCode enforcement action against dwelling unit

@ie¨!tlRemoval of use restriction on dwelling unit

!er!ix As a result of this action your tenancy will be terminated on !sc ,4(date)!sc ,4. Because you may be forced to move as a result of this action, you may be eligible, under state law, for relocation assistance. If you are eligible for relocation assistance, you will receive a cash payment to help you move. The amount of the payment will depend on your income and household size. To determine the amount of relocation assistance, refer to the following guidelines:

!tp1,1,1 !ixHouse!tthold Size!tl!tt50% Median Income!tl!tt80% Median Income

!tl1!tl(insert income!tl(insert income

!tl2!tlfigures for listed!tlfigures for listed

!tl3!tlhousehold sizes)!tlhousehold sizes)

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If your household size is one and your income is between 50% of median and 80% of median, your relocation assistance payment will be $1000.00

If your household size is two or more and your income is between 50% of median and 80% of median for the same size household your relocation assistance payment will be $1500.00.

If your household size is one and your income is below 50% of median, your relocation assistance payment will be $2000.00.

If your household size is two or more and your income is below 50% of median for the same size household your relocation assistance payment will be $3000.00.

To determine your eligibility, please fill out the attached form and return it to me at the address below within thirty days of the date of service of this notice, or such shorter period of time as may be necessary in the case of code enforcement, of the date of receipt of this notice.

Thank you.

!tp1,1 !ix!w_!tl

!ix(Landlord name)

!ix!w_!tl

!ix(Landlord address)

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RELOCATION ASSISTANCE ELIGIBILITY FORM

!ixName:!sc ,20!tt!sc_,30

!ixAddress:!tl!sc_,030

!tl!sc_,030

Phone:!tl!sc_,030

!ixDate you moved in:!tl!sc_,030

Based on your household size (circle your household size) your household income is (check one)

Below 50% of median !sc_,5

Between 50% of median and 80% of median !sc_,5

!tp1,1,1 !ixHouse!tthold Size!tl!tt50% Median Income!tl!tt80% Median Income

!tl1!tl(insert income!tl(insert income

!tl2!tlfigures for listed!tlfigures for listed

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Please return this information to:

!ix(Landlord name)

!ix(Address)

I hereby certify under penalty of perjury that the above information is true and correct.

!tp1,1 !tl!w_

!tl(Tenant signature)

!tl!w_

!tl(Date)

!te!ix

NEW SECTION. Sec. 7. Within fourteen days, or as soon as is practicable in the case of code enforcement, after receipt of the completed relocation assistance eligibility form from the tenant, the owner shall deliver a written notice to the tenant informing the tenant of the dollar amount of relocation assistance that the tenant is eligible to receive.

NEW SECTION. Sec. 8. An owner or a tenant may request a hearing to resolve any dispute regarding eligibility for a relocation assistance payment, the amount of relocation assistance to be paid, or other actions governed by this chapter. The superior courts or the district courts, including small claims courts, of this state may exercise jurisdiction over any owner or tenant with respect to any activity in this state governed by this chapter or with respect to any claim arising under this chapter within the respective jurisdictions of the superior, district, or small claims courts. Venue may be in the county or district in which the tenant's dwelling unit is located. Either party shall be entitled to a hearing within thirty days of the date of filing of a complaint or notice of small claim regarding any dispute under this chapter.

NEW SECTION. Sec. 9. Prior to service of the notice required under section 5 of this act, an owner shall not evict a tenant, increase the rent required of a tenant, reduce services to the tenant, or increase or change the obligations of the tenant, for the purpose of avoiding or diminishing the application of this chapter. The initiation of any of these actions within one hundred eighty days of service of the notice shall create a rebuttable presumption that the action was intended to avoid or diminish the application of this chapter.

NEW SECTION. Sec. 10. After service of notice under section 5 of this act, an owner shall not evict any tenant except for good cause as defined in section 11 of this act, increase the rent required of any tenant, reduce the services to any tenant, or increase or change the obligations of any tenant.

NEW SECTION. Sec. 11. For the purposes of this chapter, "good cause" for eviction is limited to the following:

(1) Failure to pay rent after service of a three-day notice to pay rent or vacate as provided in RCW 59.12.030(3);

(2) Failure to comply with a material term of the rental agreement after service of a ten-day notice to comply or vacate as provided in RCW 59.12.030(4); or

(3) The commission or permission of waste, the maintenance of a nuisance, or the conduct of an unlawful business on the premises and failure to vacate after service of a three-day notice as provided in RCW 59.12.030(5).

NEW SECTION. Sec. 12. The relocation assistance payable under this chapter shall be paid to any tenant who vacates a dwelling unit after receiving notice under section 5 of this act. At least one-half of the relocation assistance payable to the tenant shall be paid by the owner to the tenant not less than fifteen days before the date the tenant vacates the dwelling unit and the balance of any relocation assistance payable to the tenant shall be paid by the owner to the tenant on the date the tenant vacates the dwelling unit. The relocation assistance paid shall be in addition to any damage deposit, security deposit, or other compensation or refund to which the tenant is otherwise entitled.

NEW SECTION. Sec. 13. Tenants who receive notice under section 5 of this act may terminate their tenancies at any time by delivering written notice of termination of tenancy to the owner twenty days or more before the date on which any monthly or periodic rent is due. Where premises are rented for a specified time, by express or implied contract, and the tenancy is terminated by the tenant, under this section, before the end of such specified time, the tenant shall have no further obligations under the rental agreement after the date of termination.

NEW SECTION. Sec. 14. Any tenant who vacates a dwelling unit prior to service of notice under section 5 of this act shall not be entitled to the relocation assistance payment authorized by this chapter, but if the tenant vacates the dwelling unit because of actions of the owner that violate any applicable law or are intended to avoid or diminish the application of this chapter, the tenant shall be entitled to receive a relocation assistance payment.

NEW SECTION. Sec. 15. A tenant who moves into a dwelling unit after the owner's service of notice under section 5 of this act, will not be entitled to the relocation assistance payment authorized by this chapter if the tenant receives written notice from the owner prior to taking possession of the dwelling unit which specifically sets forth the following:

(1) A description of the activity or condition which may result in the tenant's displacement;

(2) The date on which the tenancy will be terminated and the tenant will be required to vacate; and

(3) A statement that the tenant will not be eligible for a relocation assistance payment under this chapter.

The owner shall provide the tenant with a copy of the written notice and the owner shall retain a copy with the tenant's signature acknowledging its receipt and the date of receipt.

NEW SECTION. Sec. 16. This chapter does not limit the authority of local jurisdictions to require owners to make relocation assistance payments or provide other relocation assistance to tenants who are or may be displaced by actions of the owner. However, any relocation assistance paid under this chapter shall be credited against any relocation assistance required under any other law for the same tenant in the same dwelling unit for the same relocation and any relocation assistance payment or the cash equivalent of relocation assistance provided under any other law will be credited against the relocation assistance required under this chapter for the same tenant in the same dwelling unit for the same relocation.

NEW SECTION. Sec. 17. Relocation assistance payments or other relocation assistance received by tenants under this chapter or any other local law shall not be considered as income or otherwise affect the eligibility for or amount of assistance paid under any other local or state government benefit program. If the tenant's receipt of a relocation assistance payment or other relocation assistance would affect the tenant's eligibility for or amount of any government benefit, the tenant, at the tenant's option, may require the owner to provide equivalent relocation assistance in a form that will cause it to be disregarded or treated as exempt by other government benefit programs.

NEW SECTION. Sec. 18. Any violation of this chapter by an owner shall be construed to constitute an unfair or deceptive act or practice or unfair method of competition in the conduct of trade or commerce, under chapter 19.86 RCW.

Sec. 19. Section 82.02.020, chapter 15, Laws of 1961 as last amended by section 6, chapter 179, Laws of 1988 and RCW 82.02.020 are each amended to read as follows:

Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. No county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements pursuant to RCW 58.17.110 within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;

(2) The payment shall be expended in all cases within five years of collection; and

(3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.

Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.

Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.

Nothing in this section prohibits counties, cities, or towns from requiring owners to provide relocation assistance to tenants who are or may be displaced by owner action or inaction.

This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 56, 57, or 87 RCW, nor is the authority conferred by these titles affected.

NEW SECTION. Sec. 20. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 21. 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 immediately.

NEW SECTION. Sec. 22. Sections 1 through 18 and 20 of this act shall constitute a new chapter in Title 59 RCW.