Olympia City Council to review state rent control laws, local tenant protections 

The Olympia City Council will review House Bill 1217 at a study session on Tuesday, July 29, at which time the group is expected to discuss how to align the city's rental housing regulations with the state legislation.

The study session begins at 6 p.m. at Olympia City Hall, Council Chambers, 601 4th Ave. E in downtown Olympia. The study session can also be viewed on Zoom.

HB 1217, known as the rent stabilization bill, establishe Washington's first-ever cap on annual rent increases.  HB 1217 limits annual rent increases to 7% plus inflation, with a maximum of 10%.

It also requires 90 days notice before any rent increases. These rent stabilization measures expire in July 2040.  

The Olympia Municipal Code requires landlords to provide 120 days notice for rent increases over 5% and for rent increases that total 7% or more within 12 months.

The current code also requires 180 days notice of rent increases of 10% or greater. Tenants facing rent increases of 7% or more can also request relocation assistance from their landlords.  

The city council is looking at three options with respect to aligning rental housing regulations with HB 1217.

• Maintain the city's current rental housing code. The city council could keep the existing rental house code unchanged, preserving stronger tenant protections, including longer notice periods and economic displacement assistance for rent increases over 7%. While this may discourage higher rent increases, it could create confusion with new state requirements.  

If chosen, staff recommends adding clarifying language about allowable rent increases with state law references.  

• Eliminate local provisions and defer to state rules. This would lose protections for renters, including a notice period that would drop to 90 days, relocation assistance would be eliminated, and tenants could still face rent increases up to 10% annually under state caps.  

• Adopt a hybrid approach. This option would simplify and streamline current requirements to align with state law while preserving tenant protections. This could include a uniform 120-day notice for all rent increases and maintaining relocation assistance when rent increases by 7% or more annually.  

Manufactured homes 

The state legislation also addresses manufactured home communities, where residents own their homes but rent lot space. These communities now face a 5% annual cap on lot rent increases with no expiration date, along with limits on move-in fees and late charges.  

Staff recommended the city council no longer pursue local policies for longer notice periods or relocation assistance for these communities. HB 1217 addresses concerns from residents about steep rent increases and a lack of communication from property owners.  

However, city staff suggests the city council could still explore zoning changes to prevent displacement due to the redevelopment of manufactured home parks.  

City of Olympia Senior Housing Program Specialist Christa Lenssen is scheduled to brief the city council on the legislative updates and discuss next steps for aligning local and state requirements.

Staff is also likely to seek direction on whether to draft an amendment to the city's rental housing code, and whether to explore manufactured home park zoning protections.