HB 1388 — Protecting tenants by prohibiting predatory residential rent practices and by applying the consumer protection act to the residential landlord-tenant act and the manufactured/mobile home landlord-tenant act.

H-1120.2H-0529.1 SUBSTITUTE HOUSE BILL 1388 State of Washington 68th Legislature 2023 Regular Session By House Housing (originally sponsored by Representatives Macri, Ramel, Peterson, Thai, Gregerson, Hackney, Ormsby, Alvarado, Doglio, Cortes, Riccelli, Mena, Kloba, Bateman, Fitzgibbon, Street, Taylor, Lekanoff, Simmons, Farivar, Pollet, Stonier, Berry, Reed, Bergquist, Morgan, Davis, Santos, Chopp, Stearns, and Fosse)Fosse READRead FIRSTfirst TIMEtime 02/14/23.01/17/23.

Referred to Committee on Housing.

(1) Except as provided in subsection (2) of this section, a landlord is prohibited from engaging in any of the following predatory practices:

(a) A landlord may not rent or seek to rent a dwelling unit at an excessive rent,rent if such rent increase is beyondnot thejustified amountby reasonablycosts necessary to maintain the dwelling unit, is substantially likely to force the tenant or improvehousehold to move or involuntarily relocate from the dwellinghome, unit,or andis is:used as a means to avoid other protections afforded to tenants under this chapter or any other source of legal rights;

(i)(b) SubstantiallyA likelylandlord tomay causenot thecharge tenanta higher rent or householdinclude toterms moveof payment or involuntarilyother relocatematerial fromconditions thein home;a rental agreement that are more burdensome to a tenant for a month-to-month rental agreement p.

or1 (ii)HB Used1388 asthan for a meansrental toagreement avoidwhere otherthe protectionsterm affordedis togreater tenantsthan undermonth-to- thismonth, chapter or anyvice otherversa; applicable law;

(b)and (c) A landlord may not charge a highertenant rentmove-in fees or includesecurity termsdeposits ofbefore paymenta ortenant othertakes materialpossession conditionsof in a rentaldwelling agreementunit that areexceed p.one month's rent.

1 SHB 1388 more burdensome to a tenant for a month-to-month rental agreement than for a rental agreement where the term is greater than month-to- month, or vice versa;

and (c) A landlord may not charge a tenant move-in fees or security deposits that exceed one month's rent.

and (b) A tenancy in a dwelling unit for which the first certificate of occupancy for the dwelling unit was issued 1210 or less years before the date of the notice of the rent increase.

(3) The attorney general may investigate predatory practices that are violations of this section.

The attorney general may issue subpoenas or civil investigative demands forpursuant documents, answers to writtenRCW interrogatories,19.86.110 or testimony to any person that the attorney general has reason to believe has violated this section or has information or knowledge pertaining to a violation of this section.

and (c) Whether a rent increase will causeforce the tenant or household to move or involuntarily relocate from the home.

If the recipient of a cease and desist letter does not comply within five calendar days of receipt of the letter, the attorney general may file an action in superior court to enforce thisthe section.cease and desist letter.

If the court finds that the person violated this section and failed to comply with a cease and desist letter, the court shall enjoin the p.

2 SHBHB 1388 a cease and desist letter, the court shall enjoin the person from engaging in conduct that violates this section and impose a civil penalty of no more than $10,000 in addition to other remedies per violation of the cease and desist letter.

In any successful action to enforce a cease and desist letter under this section,chapter, the court shall award the attorney general the costs of bringing the action, including reasonable investigative costs and reasonable attorneys' fees,fees. plus damages and restitution for any persons harmed by the violation.

(5) The attorneyremedies generalunder this subsection are in addition to any other remedies a court may enforceorder thisunder sectionsubsection in(5) superiorof court.this section.

In(5) anyA successfulperson actionwho underviolates this section,section themust courtforfeit shalland imposepay a civil penalty of no more than $25,000 per violation, and shall award the attorney general the costs of bringing the action, including reasonable investigative costs and reasonable attorneys' fees, plus damages and restitution for any persons harmed by the violation.

The remedies under this subsection are in addition to, and are not prerequisites for, any other remedies a court may order under subsection (6) of this section.

(6) A tenant whose landlord engages in predatory practices in violation of this section and pays rent or other charges in excess of amounts permitted by this section has a cause of action against the landlord to recover actual damages in the amount of the excess rent or other charges paid, mandatory punitive damages equal to three months of the unlawful higher rent or charges that the tenant paid, and reasonable attorneys' fees and costs incurred in bringing the action.

(10) By January 1, 2024, the office of the attorney general shall produce and maintain on its website translated versions of this section in the 10 languages most frequently spoken in Washington state and, at the discretion of the office of the attorney general, p.other languages as requested by individuals who have limited English language proficiency.

3 SHB 1388 other languages as requested by individuals who have limited English language proficiency.

(a) "Excessive rent" means a rent increase during any 12-month period that is greater than the rate of inflation as measured by the consumerp. price index or three percent, whichever is greater, up to a maximum of seven percent above the existing rent.

3 HB 1388 consumer price index or three percent, whichever is greater, up to a maximum of seven percent above the existing rent.

p.(3) The department of commerce shall maintain publicly available information on its website about the maximum annual rent increase percentage for the previous calendar year and for the current calendar year, and on or after September 30th of each year, for the following calendar year.

4 SHB 1388 (3) The department of commerce shall maintain publicly available information on its website about the maximum annual rent increase percentage for the previous calendar year and for the current calendar year, and on or after September 30th of each year, for the following calendar year.

(1)p. The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.

4 HB 1388 (1) The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW.

(1) Except as provided in subsection (2) of this section and in RCW 59.20.060(2)(c), a landlord is prohibited from engaging in any of the following predatory practices:

(a) A landlord may not rent or seek to rent a mobile home lot at an excessive rent,rent if such rent increase is beyondnot thejustified amountby reasonablycosts necessary to maintain the mobile home lot, is substantially likely to force the tenant or improvehousehold to move or involuntarily relocate from the mobile home lot, andor is:is used as a means to avoid other protections afforded to tenants under this chapter or any other source of legal rights;

(i) Substantially likely to cause the tenant or household to move or involuntarily relocate from the mobile home lot;

or (ii) Used as a means to avoid other protections afforded to tenants under this chapter or any other applicable law;

and p.(c) A landlord may not charge a tenant move-in fees or security deposits before a tenant takes possession of a mobile home lot that exceed one month's rent.

5 SHB 1388 (c) A landlord may not charge a tenant move-in fees or security deposits that exceed one month's rent.

(3) The attorney general may investigate predatory practices that are violations of this section.

The attorney general may issue subpoenas or civil investigative demands forpursuant documents, answers to writtenRCW interrogatories,19.86.110 or testimony to anyp. person that the attorney general has reason to believe has violated this section or has information or knowledge pertaining to a violation of this section.

5 HB 1388 any person that the attorney general has reason to believe has violated this section or has information or knowledge pertaining to a violation of this section.

and (c) Whether a rent increase will causeforce the tenant or household to move or involuntarily relocate from the mobile home lot.

If the recipient of a cease and desist letter does not comply within five calendar days of receipt of the letter, the attorney general may file an action in superior court to enforce thisthe section.cease and desist letter.