Washington landlords can no longer raise rents by more than 10% per year under landmark legislation Gov. Bob Ferguson signed into law May 7.

Effective immediately, House Bill 1217 caps residential rent hikes during a 12-month period at 7% plus inflation, or 10%, whichever is lower. The limit will last 15 years. The bill also restricts manufactured home rent increases to 5% with no expiration date.

Rent increases are also prohibited for the first year of a tenancy under the new law. But when a renter moves in, landlords can set the initial rate however they please.

New construction is not subject to the cap for its first 12 years. Public housing authorities, low-income developments, and duplexes, triplexes and fourplexes in which the owner lives in one of the units are also exempt.

Rent hike notices are now required 90 days before they go into effect, up from 60 days under previous law.

If a landlord raises rent above the cap without an exemption, the renter must give the landlord a chance to fix the error or can terminate their lease with 20 days’ notice. A tenant or the state attorney general can bring litigation to enforce compliance with the new law. The attorney general can recover up to $7,500 per violation.

Democrats believe the limit will give renters greater predictability in one of the most expensive states to live in, while Republicans think it will chill development and force landlords to sell their properties because they can’t keep up with maintenance costs and property taxes.

Last month, Rep. Sam Low, R-Lake Stevens, argued the policy is “going to be devastating for our housing providers, and we need housing providers to be a part of the solution in the housing crisis that we have.”

The legislation was part of a suite of bills Ferguson signed May 7, aiming to clear obstacles to construction, increase homeownership opportunities, pave the way for redevelopment of commercial property into residential and provide a modicum of tax relief. 

Other bills focused on promoting housing development around transit stops and allowing for more lot splitting remain to be signed.

It was a long road to the governor’s desk for the uber-controversial rent cap proposal.

After clearing the House, the Senate raised the cap from an initial 7% to 10% plus inflation in a dramatic floor vote, to the dismay of progressive Democrats. The two chambers then negotiated to come up with the compromise that eventually passed on the final day of the legislative session, but not before a procedural fiasco delayed the final votes.

The legislation was a top priority for Democrats after a similar bill stalled in the Senate last year.

Behind the scenes, Ferguson’s staff worked with lawmakers for months to get the bill across the finish line. But the governor himself declined to confirm support publicly until last week.

This story is republished from the Washington State Standard, a nonprofit, nonpartisan news outlet that provides original reporting, analysis and commentary on Washington state government and politics.