Residential Landlord-Tenant Law Update Evan L. Loeffler Loeffler Law Group www.loefflerlaw.com (206) 443-8678 eloeffler@loefflerlegal.com

Eviction Reform SB 5600 passed the House April 12, 2019. Still requiring Senate vote to become law. If the law passes it will be effective July 27, 2019. Notice to pay rent or vacate requires 14 days (not 3) and must be on a statutory form. “Rent” is defined as monthly recurring charges including utilities. Late fees, damages, security deposits, and one-time fees are not rent. Payments must be applied to “rent” first. Landlords may not commence unlawful detainer action based on failure to pay late fees or other “non-rent” fees.

Eviction Reform (continued) Eviction summons changed. Tenants may reinstate their tenancy after judgment By paying 100% of the judgment within 5 court days of the judgment; By asking the court to reinstate after considering seven factors including willfulness of the default and payment history. The tenant is required to pay the judgment within 90 days under terms the judge decides. Late fees are capped at $75.00 plus $50.00 for each prior eviction proceedings. Attorney’s fees are limited. Judicial discretion to refuse reinstatement limited if the tenant has not already received numerous notices to pay or vacate. Alternative service procedures altered. Landlord Mitigation Fund expanded.

Service Members May Terminate Tenancy HB 1138: Service members may terminate a residential tenancy when they receive a “permanent change of station” Effective Date:  Saturday, July 27, 2019 Permanent change of station includes: Transfer to a unit located at another port or duty station more than 35 miles away; Change in a unit’s home port or permanent duty station; Call to active duty for a period not less than 90 days; Separation from the military; or Retirement. A service member and dependents, must provide at least 20 days written notice and include a copy of the official military orders or a signed letter from the service member’s commanding officer confirming the change of station.

Increased Notice for a Rent Increase HB 1440 passed on April 10. The law takes effect July 27, 2019.  Housing providers must give at least 60 days’ notice for a rent increase of any amount.    In subsidized tenancies where the rent is based on the income of the tenant household, the housing provider must provide at least 30 days’ notice of an increase of rent. 

Increased Notice to Terminate a Tenancy HB 1462 passed on April 13, 2019.  The bill still requires a vote of concurrence. If passed it will be effective July 27, 2019. Property owners must give 120 days’ notice if they intend to substantially renovate, demolish or change the use of multifamily residential property.  “Substantially renovate” means extensive structural repair or extensive remodeling of the premises that requires a permit, such as a building, electrical, plumbing or mechanical permit and that results in displacement of an existing tenant.  A person that violates the notice provisions of this law is liable for up to 3 and one-half times the monthly rent.  Seattle and Tacoma already have tenant relocation assistance programs and are exempt.

First-in-Time Ordinance City of Seattle enacted ordinance, SMC 14.08 in January, 2017. Requires Seattle landlords to advertise selection criteria, keep records of applications and offer the rental to the first applicant who meets the criteria. King County Superior Court determined the ordinance violates the Washington Constitution on March 28, 2018. No remedy entered: the order does not state the ordinance may no longer be enforced or dismiss the case. Appeal filed and ruling not expected until the end of 2018 at the earliest.

Fair Housing Considerations Tex. Dep't of Hous. & Cmty. Affairs v. Inclusive Cmtys. Project, Inc., 576 U.S. ___, 135 S. Ct. 2507 (2015) Expressly provides that disparate impact claims are cognizable under the FHA The Court limited its holding stating that a respondent in a fair housing case may have a defense when the policy is “necessary to achieve a valid interest.” The majority opinion states that a plaintiff must produce statistical evidence showing a causal connection to the respondent’s policy. With this limitation, the Court aims to “protect defendants from being held liable...for disparities they did not create.” 

Unlawful detainer action – RCW 59.18.375 Notice RLTA amended in 2008. When the eviction is over non-payment of rent the landlord may serve additional pleading requiring tenant to pay rent into court registry. RCW 59.18.375. Form of notice at RCW 59.18.375(7)(f). Notice may be served with filed complaint or with order to show cause. Beware: This law is being challenged in Federal Court.

Storage of Tenant Property RLTA amended 2011. Sheriff required to inform residential tenant of the right to request the landlord store the tenant’s personal property form . RCW 59.18.312(5). Form of notice set out at RCW 59.18.312(6). Landlords may attach the notice to the writ of restitution and deliver to the sheriff.

Fair Housing Considerations HUD Guidance Memo HUD published memo in April, 2016 This guidance memo does not expand the list of protected classes and it is not law. HUD guidelines suggest that criminal history-based restrictions violate the FHA if, without justification, the burden falls more often on renters of once race over another. HUD finds that minorities have a disproportionately high rate of arrests and convictions. Approximately one-third of the population have a criminal record. Across the U.S., African Americans and Hispanics are arrested, convicted and incarcerated at rates disproportionate to their share of the general population. As a result, criminal record-based screening for housing has a disproportionate impact on minority applicants. Therefore, a blanket policy of “no criminal history” may be discriminatory based on a disparate impact analysis.

Seattle limits on move-in fees and deposits In Seattle, SMC 7.24.035 added in 2016 to limit the amount landlords may charge for security deposits and non-refundable move-in fees. Total of deposit and fees may not exceed one full month’s rent. Landlord’s may not charge any one-time fees other than “move-in” fees, and they may not be more than 10% of a month’s rent. Security deposit for any purpose may not be more than one month’s rent. Tenants have options to pay in installments for deposits or last-month’s rent. SMC 7.24.036. Pet deposits may not exceed 25% of one month’s rent and may be paid in installments. SMC 7.24.038.

Seattle rules on raising the rent Seattle ordinance requires landlords raising the rent (or any monthly charged living expense including utilities) by 10% or more in any 12-month period to give at least 60 days’ notice. SMC 22.206.180(H) In 2016 Seattle added a requirement that, when giving notice of increasing the rent, the Landlord must include language informing Tenant of the right to complain to the City about the increase. Sample language to be included on notices: For more information on your rights related to this notice, you may contact the City of Seattle Department of Construction and Inspections at (206) 615-0808. You may also go to their website: http://www.seattle.gov/dpd/codesrules/codes/prohibitedacts/default.htm.

Seattle rules on screening for criminal history “Fair Chance Housing Ordinance” enacted in Seattle in 2017. SMC 14.09. It is an unfair practice for a landlord to advertise it will exclude applicants with an arrest record or conviction record. It is an unfair practice for a landlord to ask a prospective tenant about criminal history. It is an unfair practice for a landlord to refuse to rent to a prospective tenant for being a registered sex offender without a “legitimate business reason.” Civil penalties from $11,000 to $55,000 depending on prior violations.

Questions? Evan L. Loeffler Loeffler Law Group www.loefflerlaw.com (206) 443-8678 eloeffler@loefflerlegal.com