Advocacy Alert

January 20, 2024

PRO

SB 6210 - Clear the Eviction Backlog

HEARING: January 26th at 10:30 AM

SUMMARY: Improving unlawful detainer efficiency.

- Pandemic responses to landlord-tenant relationships have caused a significant backlog of court cases;
- All county superior courts may appoint one or more attorneys to exercise all powers and perform all duties of a court commissioner;
- Additional court commissioners will reduce the backlog of unlawful detainer cases and improve the efficiency of these processes.
- Requires documentation of verification of income for tenants being appointed taxpayer-funded attorneys
- $5,250,000 is solely allocated to fund appointed commissioners to clear the backlog.

EFFECT: Helps courts clear the backlog of evictions. Requires taxpayer-funded tenant attorneys to provide proof that tenants qualify for assistance. Funds newly appointed commissioners with $5,250,000.

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SB 6203 - Self Storage aren’t homes

HEARING: January 26th at 10:30 AM

SUMMARY: Renters of self-storage units cannot live in them. Self-storage is not subject to the Residential Landlord Act

EFFECT: Stops people from renting self-storage units, living in them and then claiming it is a residence when local police or sheriffs are called. Clarifies to local police and sheriffs that owners of self-storage do not have to evict occupants similar to residential homes.

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CON

HB 2323 - Monthly reporting to credit agencies but no late reporting

HEARING: January 25th at 8:00 AM

SUMMARY: Requiring landlords to report on-time rent payments to consumer reporting agencies.

- Housing providers will be required to make monthly reports for all on-time rent payments.
- Information informing the tenant of their ability to request the monthly reporting must be provided at the signing of the lease.
- Housing providers must furnish proof the on-time rent has been reported to a consumer reporting agency every month.
- No requirement to report late or missed payments.
- Requires housing providers to immediately stop reporting when a tenant is late.

EFFECT: Housing providers will have to give notice to tenants that they can require the provider to report on-time rent payments to credit reporting agencies. This creates significant administrative burdens, especially for small housing providers.

Housing providers are banned from reporting late or missed payments, creating a false sense that renters only pay on time.

Reporting is costly. One option for housing providers is $3500 to set up and $2 per unit per month. It would cost $3,524 in year one and $24 every year after for a housing provider with one single-family home.

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SB 6064 - $150 Pet Deposit

HEARING: January 24th at 10:30 AM

SUMMARY: Concerning money collected by a landlord as fees, deposits, or security for pets.

- Puts a $150 limit on Pet Deposit Fees
- No allowance for additional Pet Fees of any kind OR additional rent for a tenant having a pet.
- No deposit shall be withheld on account of wear resulting from ordinary use of the premises.

EFFECT: Housing providers could stop allowing pets, reducing options for renters. An increase in false service, or emotional support animals is concerning. It's unclear if damages exceeding $150 from pets can be deducted from a deposit. Apartment buildings may remove pet areas, poop bags, etc. as they will not be able to charge pet rent. It is possible rents increase for all occupants regardless of having pets or not.

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SB 6191 - Increases Excise tax top rate by 33.3%

HEARING: January 25th at 4:00 PM

SUMMARY: This bill imposes an additional real estate transfer tax on the sale of qualified real property, with the revenue allocated to various housing programs.

Adds a New REET Tax under REET Tax Changes
- Real estate transfer tax is imposed on the sale of qualified real property.
- Tax must be paid by the seller and imposed and collected in the same manner as the real estate excise tax imposed.
Beginning January 1, 2025, the rate of the tax is as follows:
- 1.1 percent of the portion of the selling price that is less than or equal to $750,000;
- 1.28 percent of the portion of the selling price that is greater than $750,000 and equal to or less than $1,525,000;
- 2.75 percent of the portion of the selling price that is greater than $1,525,000 and equal to or less than $3,025,000; and
- 3.0 percent of the portion of the selling price that is greater than $3,025,000
Additional 1.0 percent of the portion of the selling price that is greater than $3,025,000 in REET Tax. Revenues will be distributed as follows:
- 25 percent must be deposited into the affordable housing for all accounts created in RCW 43.185C.190 for operations, maintenance, and service costs for permanent supportive housing;
- 15 percent must be deposited into the developmental disabilities housing and services account; and
- 10 percent must be deposited into the housing stability account.

EFFECT: Lifts the lowest band of REET from $525,000 to $750,000. Saves $750k transactions $405. Increases the effective top rate to 4%, making it the second-highest in the nation. 13 states don’t have any transfer/excise tax. The majority of those that do have rates less than 0.5%. Makes Washington less attractive for investment and incentivizes apartments to be sold as condos.

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Read HB 2276 Bill Analysis (companion bill)

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