Bellingham Forges New Renter Protections Laws as Housing Affordability Concerns Persist
Sean Martin | Interim Executive Director
Responding to demands from renter advocacy and low-income housing groups, Bellingham City Council was expected to approve legislation at its February 26 meeting which seeks to address ongoing rental housing concerns in the city.
The new provisions, scheduled to take effect March 13, include source of income protections for renters, as well as increased notification requirements when landlords issue rent increases of 10% or more and “no cause” terminations of tenancy when ending month-to-month rental agreements.
The city identified these issues after a public hearing process during mid-2017 where the Council Planning Committee received information and presentations regarding access issues affecting renters in Bellingham, discrimination facing renters who receive Section 8 and other forms of subsided income, and the need for other protections for renters in Bellingham.
These discussions also occurred in the context of a rental market where vacancy rates were at historic lows, conservatively dipping below 2% in 2017. Advocates for renters argued that extremely low vacancy rates enabled substantial rent increases in the city and had placed some renters at risk of displacement with limited housing options to pursue.
Source of Income
As has occurred in several cities, landlord ability to refuse to accept certain sources of income was seen as disadvantaging vulnerable renters, particularly those with low incomes and rental vouchers holders. Advocates for the legislation argued that landlord refusal to accept certain types of income had a disproportionate impact on low-income and minority renters.
The resulting law makes it illegal for a landlord to refuse a rental application, or deny an applicant, due to the source of an individual’s income. Advertisements also cannot have information restricting which types of income are accepted.
Legally protected sources of income are defined as income sources derived from social security, supplemental security income, other retirement programs, and any federal, state, local or nonprofit-administered benefit or subsidy programs, including housing assistance, public assistance, and general assistance programs.
The case of housing vouchers and subsidies also includes a new consideration for landlords using income to rent ratios to qualify an applicant’s income. When using a ratio, the landlord must first subtract the voucher or subsidy prior to calculating whether the income criteria have been met. Practically this means that if monthly rent is $1,000, and the applicant has an $800 housing voucher, the income to rent ratio is only allowed to be applied against the applicant’s $200 “co-pay” for rent.
Rentals that don’t qualify for voucher programs due to rent amounts or other lease terms are not required to accept rental vouchers. The new rules also don’t apply in cases where a voucher program inspection doesn’t occur within 5 business days of the unit being ready for inspection.
Violations of the law can result in fines of $500 for a first violation, up to $1,000 for a third violation. Landlords may also can be sued under private right of action for up to $5,000, costs of a suit or arbitration, and reasonable attorney’s fees.
Owner-occupied properties are exempted from this law.
Rent Increase Notice
Bellingham also joins a short list of cities which require more than the standard 30-day notice of rent increase as is guided by the state residential landlord-renter act. The new law will now require landlords to provide a 60-day notice of rent increase for increases of 10% or more, including multiple increases exceeding 10% in total over a 12-month period.
Termination of Tenancy
The final component of the ordinance involves a change in the notification requirements a landlord must provide when ending a month-to-month tenancy. A “no cause” termination of tenancy now requires 60-days’ notice prior to the end of the monthly rental period, a change from the state required 20 days’ notice. Notification period requirements for a renter to end a rental agreement remains the standard 20 days.
In situations where a landlord is court-evicting a renter because of their failure to comply with a notice to vacate, a failure to provide the required 60-day notice grants the renter an additional affirmative defense to the unlawful detainer. In that situation, the landlord may also be liable in a private right of action for actual damages up to $5,000, costs of suit or arbitration, and reasonable attorney’s fees.
RHAWA remains concerned that this new law will prolong tenancies which may be contentious, or where there may be undesired activity occurring in a rental unit.
The Council intends to schedule a review of this legislation approximately 12 months from now to discuss the ordinance’s effects and its effectiveness. RHAWA plans to remain engaged with the city during this time.
