Title
Briefing on Renter Protection Measures
Recommended Action
Committee Recommendation:
The Land Use & Environment Committee recommends receiving a briefing on the City’s renter protection measures and discuss next steps.
City Manager Recommendation:
Receive a briefing on the City’s renter protection measures and discuss next steps.
Report
Issue:
Whether to receive a briefing on the City’s renter protection measures and discuss next steps.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Community Planning and Economic Development, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Community Planning and Economic Development
Background and Analysis:
Path that led the City to explore tenant protections
In 2018, the Olympia City Council began exploring tenant protection policies implemented in other cities, such as relocation assistance; increased notice for rent increases; rental licensing and inspection; and other proposals in response to the 2017 Assessment of Fair Housing (AFH). The 2017 AFH raised concerns regarding the number of cost-burdened renting households and drew attention to the fact that people who rent are often the most vulnerable community members. One of the 2017 AFH recommendations was to consider existing Washington State landlord licensure program models to monitor and regulate safe, decent and sanitary housing.
In late 2019, tenants and tenant advocates held a rally at City Council and presented a proposed ordinance to cap deposits, move-in costs, and pet deposits, as well as allow tenants to pay these fees and last month’s rent in installments. In March 2020, the Land Use & Environment Committee held a community meeting to learn more about challenges and potential solutions with renters and landlords. Tenant protections are of significant interest to the community and many community members participated in providing feedback to the City Council.
Around this same time, several workplans were underway to review housing needs and challenges, to prioritize actions to increase housing access and stability. Many of these plans include actions to help stabilize renting households. These workplans all included significant public outreach, consultation with subject matter experts, and local data analysis. The data highlighted the needs and challenges faced by community members, particularly low-income renters and marginalized communities most at risk of homelessness.
Housing Needs and Challenges
Olympia’s population is over half renters (54%). Of these renting households, 52% are housing cost-burdened, which means they spend over 30% of their income on housing costs.
Spending more money on rent means that households have less income to spend on other basic needs, or to fall back on when emergencies arise. Black, Indigenous and People of Color (BIPOC) are more likely to rent and more
likely to have lower incomes than white, non-Hispanic residents. This makes them vulnerable to eviction and potential homelessness, due to inability to keep up with rising rents. Local Point in Time Count data shows that community members experiencing homelessness are disproportionately Black, Indigenous, or People of Color.
City and Regional Workplans
In 2019 and 2020, a 5-Year Homeless Crisis Response Plan (HCRP) was completed for Thurston County and the One Community Plan was completed by the City of Olympia to create a community response to homelessness. According to the HCRP, lack of affordable housing, steadily increasing rents and stagnant wages are causing more households to be at risk of falling into homelessness.
The One Community Plan highlights how housing affordability impacts homelessness, citing gaps between affordable housing supply and need, creating lower vacancy rates and higher housing costs. The One Community Plan also notes that housing costs are outpacing wage growth: ‘between 2010-2018: average rents rose 5% per year, and median household income rose 2.8% per year.’ Data from the HCRP indicates that about one third of Thurston County households are housing cost burdened (spending over one third of their income on housing) and could be at risk of homelessness.
The HCRP notes that multiple studies have linked increases in rent to increases in homelessness. According to a 2020 report by the U.S. Government Accountability Office, every $100 increase in median rent is associated with a 9% increase in the estimated homelessness rate. Data from the Thurston County Point in Time (PIT) Count reveals that eviction/loss of housing is one of the most common causes of homelessness.
The HCRP outlines several strategies to prevent households from falling into homelessness by enacting tenant protection laws and funding enforcement to reduce rates of eviction; identifying models for tenant relocation assistance to assist households in transitioning to new housing and prevent homelessness; and prevent loss of housing by addressing housing quality standards. Focus Area 2 of the One Community Plan is to ‘Expand affordable housing options and homelessness prevention,’ which includes strategies to facilitate access to housing for at-risk and marginalized populations and to provide landlords and tenants rights information.
A regional Housing Needs Assessment was completed for the cities of Olympia, Tumwater, and Lacey in January 2021, which informed the development of Olympia’s Housing Action Plan. According to data from the Housing Needs Assessment, over half (54%) of Olympia’s population rents rather than owns their homes. Data in the Housing Needs Assessment also indicates that average rents are increasing faster than inflation and that over 4,500 households earning below 50% of Area Median Income are housing cost-burdened (spend over 30% of their income on rent). Olympia’s Housing Action Plan outlines many strategies to address housing needs identified by the data. In addition to increasing affordable housing supply, the Housing Action Plan addresses a series of strategies to make it easier for households to access housing and stay housed.
These actions are intended to stabilize households to ensure they are not at risk of eviction or homelessness. If households do experience displacement, they may face additional barriers to accessing housing in the future. Olympia Housing Action Plan Strategies include:
• 2.a. Identify and implement appropriate tenant protections that improve household stability.
• 3.a. Provide displaced tenants with relocation assistance.
• 2.f. Explore barriers and policies that can increase access to housing for formerly incarcerated individuals.
In early 2023, a Thurston County Assessment of Fair Housing (AFH) was completed by City of Olympia, Thurston County and Housing Authority of Thurston County. The AFH finds that people of color, people with disabilities, people who are transgender, and single mothers are:
• cost burdened at higher rates (pay more than 30% of their income on housing costs);
• more likely to be renters;
• at higher risk of displacement (being forced to move due to eviction, increasing costs, etc);
• more likely to experience homelessness; and/or
• face continuing gaps in homeownership in Thurston County
Over 600 community members participated in online surveys and multiple organizations were consulted in development of the AFH. Strategies to address identified housing needs and disparities include:
• Reduce barriers to accessing housing, i.e. criminal and credit history
• Explore options for tenant relocation assistance
• Improve environmental health in housing units
• Increase Fair Housing and Source of Income Discrimination education, outreach, and enforcement
Public engagement for Olympia Tenant Protections (2021-2022)
Olympia City Council directed staff to pursue tenant protection policies in order to further the goals of the workplans cited and address housing challenges. The City Council allocated funding for a consultant to assist in developing an outreach and engagement plan to solicit feedback from renters and landlords about which policies to help prioritize policies with the greatest impact. Through 1-on-1 stakeholder interviews, focus groups (with renters, renter advocates, local landlords and larger property management companies), and community surveys, staff learned about challenges faced by renters, gathered insights from landlords about potential unintended consequences of policies, and gauged level of support from stakeholders for various policy options.
Over 430 community members submitted input via community surveys in early 2022. Public engagement echoed findings from previous input and analysis that informed the development of the above workplans, including: high housing costs, difficulty accessing housing due to high cost of entry, income requirements and low vacancy rates, fears of displacement (to homelessness, to worse housing conditions, out of geographic area), health/safety concerns, and lack of accountability for noncompliance with codes/regulations or resources to help tenants enforce their rights.
Of the approximately 200 renters who completed the 2022 survey, 80% say it has been a “lot” harder to pay rent this past year compared to prior years.
Tenant Protections Enacted (2022-current)
Olympia City Council has passed several tenant protection measures under Olympia Municipal Code Chapter 5.82 (known as the Rental Housing Code) referred by the Council’s Land Use & Environment Committee (LUEC). The City Council has enacted three key ordinances enacting new tenant protections since 2022.
Staff researched and interviewed other Washington cities about their tenant protection policies, lessons learned, and best practices. Staff consulted internal stakeholders to inform program models. LUEC reviewed public input, staff research, and alignment with existing workplans to prioritize policies for adoption.
Limits to move-in fees and increased rent notification (Ordinance 7332)
Due to a State law that prohibits cities from regulating the dollar amount of rent, LUEC prioritized addressing associated housing costs that impact access to housing and helping tenants plan for significant rent increases.
In August 2022, the City Council passed an ordinance requiring longer notice periods for rent increases over 5% (120 days) and 10% or more (180 days). The state landlord-tenant law requires 60 days’ notice for rent increases. The ordinance also limits deposits/move-in costs to the equivalent of one month’s rent and limits pet deposits to 25% of one month’s rent.
This policy aligns with goals identified in workplans to make it easier for households to access housing and helps to prevent displacement due to an unexpected cost increase by allowing households more time to plan or move to new housing. Since the City has been authorized to investigate and enforce the code (starting March 1, 2024), City staff have been able to help tenants receive a rent credit for rent increases with improper notices, receive a credit at move-out for noncompliant move-in fees, and have longer time to prepare for a rent increase after a compliant notice was reissued.
Rental Registry (Ordinance 7376)
In November 2023, City Council passed an ordinance creating rental registration, business licensing and inspection requirements for rental properties. Registration and business licensing requirements went into effect on March 1, 2024, with periodic inspection requirements starting in 2025. As of late February 2025, there are 10,552 units in the process of being registered with the City (5,940 approved and 4,612
pending applications) which is an estimated 80-85% of the rental units in the City. This policy aligns with goals identified in workplans to prevent homelessness through loss of housing by addressing housing quality standards and improve health equity through mitigating environmental health hazards in rental units.
The ordinance also created protections against retaliation when a tenant asserts their rights, allows the City to investigate and enforce the Rental Housing Code, and prohibits rent increases if a landlord fails to make repairs to make a unit habitable, if the unit fails the City’s inspection, or fails to complete the required inspection.
Relocation Assistance, Limits to Fees, Right to Install Cooling Devices (Ordinance 7391)
In April 2024, an ordinance was passed to require relocation assistance if tenants are displaced from their unit under certain circumstances. A public hearing was held in March 2024, as required by state law (RCW 59.18.440), to enact proposed tenant relocation assistance requirements.
LUEC directed staff to draft the ordinance to address concerns regarding potential tenant displacement if a unit was found to need substantial repairs or was condemned through the new required inspection process. Under the ordinance, tenant relocation assistance is required when a tenant is displaced because their unit is going to be demolished, substantially rehabilitated or the use changes to a non-residential purpose (only applies to tenants earning below 50% of Area Median Income); if a unit is condemned (pursuant to RCW 59.18.085); or if rent is increased by 7% or more in a 12-month period.
This policy aligns with workplan goals to prevent homelessness through displacement due to physical displacement (unit is condemned, demolished, redeveloped) or economic displacement (rent increases). So far, none of the investigations conducted by staff have resulted in relocation assistance payments due to either households not being eligible when a unit is being substantially rehabilitated, or relocation assistance was not applicable to the situation because work displaced the tenant temporarily not permanently.
The ordinance passed in April 2024 also limited fees that may be charged by landlords and allowed tenants to install cooling devices in their units. With many renting households already experiencing housing cost burden, additional and unexpected fees can create a significant hardship for tenants who are already struggling to meet rent obligations.
During public engagement for renter protections and climate vulnerability, staff heard from some tenants that their landlords prohibit them from installing A/C units. The need for cooling devices is increasing with rising temperatures and is a health and safety issue for tenants, particularly seniors and people with disabilities or chronic health conditions. The ordinance allows landlords to set reasonable rules about installing cooling devices but prevents them from denying installation without a qualifying reason.
Staff has spent the most significant time investigating fees to determine if they comply with the Rental Housing Code. Staff has been able to prevent tenants from being charged for pest control when there was insufficient evidence that there was infestation caused by the tenant, worked with property managers to revise listings or lease agreements with noncompliant fees, and reduced late fees that exceeded the $10 per month limit.
Enforcement of the Rental Housing Code
Effective March 1, 2024, the City is authorized to enforce the Rental Housing Code. Enforcement actions are responsive to tenant complaints and potential violations are investigated by housing staff. Enforcement mechanisms include civil infractions carrying a monetary penalty, right of private action by the tenant, defense in an eviction proceeding, and the suspension, denial or revocation of a landlord’s business license.
Typically, these complaints can be resolved through education and communication between City housing staff and property owners.
If a violation is found and a resolution cannot be reached, City housing staff refers the case to Code Enforcement, who may issue a civil infraction. Only one case has been referred to Code Enforcement to pursue a civil infraction. City housing staff also help landlords to comply who contact the City with questions, and direct landlords to other resources if the issue is addressed by state landlord-tenant law, rather than City code.
Policy proposals coming to the City Council in Q2-3 2025:
Income to Rent ratios in tenant screening
The Land Use & Environment Committee (LUEC) directed staff to bring several policy proposals to City Council after its November 2024 meeting.
An ordinance has been drafted that addresses income to rent ratios in the tenant screening process. As housing prices continue to rise, it becomes increasingly difficult for tenants to qualify for a rental unit, with current practices of requiring tenants to demonstrate that their income is three times (or more) than the rental rate. Staff have heard from local tenants that some landlords require each applicant to demonstrate their earnings are triple the cost of rent (even if they are applying as a couple or as roommates).
Other cities and states have enacted policies which limit the amount of tenant income that may be required to qualify for a rental unit (ranging from two to three times the monthly rental amount). In November 2024, staff presented information about policies enacted in Tacoma, Portland, and Colorado to LUEC to develop a proposed approach for Olympia.
In the proposed ordinance, if a landlord screens tenant income for eligibility, either a financially responsible applicant’s income OR combined household income may be used to determine financial eligibility. Landlords may not require the applicant income to be more than 2.5 times the amount of monthly rent for the unit. Per state law, if a tenant uses a voucher to pay their rent, only the tenant’s portion of rent should be used for screening purposes.
The ordinance has been drafted and is ready to present to the City Council, if directed to move forward. Staff is seeking direction on whether this item should be moved to full City Council this quarter or come back to LUEC for further input.
Manufactured Home tenant protections
Following passage of Olympia’s tenant protections in May 2024, residents in manufactured home communities reached out to the City for clarification on applicability to manufactured home tenancies (where the resident owns their home, but rents lot space in a park). This occurred around the same time as the Regional Housing Council’s manufactured home subcommittee was developing a proposed ‘Opportunity Fund’ to provide a set-aside fund for emergent situations, such as when a manufactured home community is up for sale and the residents have an interest in purchasing the community as a cooperative.
The City’s tenant protection policies only apply to tenancies covered under the Residential Landlord Tenant Act (rented dwelling units) and do not apply to tenancies under the Manufactured/Mobile Home Landlord Tenant Act (where the homeowner only rents lot space, not the dwelling unit).
Staff facilitated two community meetings with manufactured home residents in Olympia in September 2024 and February 2025 to gather insight and input from residents to inform the City’s approach. There were approximately 25-35 attendees at each meeting. At the first meeting, residents were invited to share about their housing concerns and challenges. Staff compiled notes and themes, to include rising lot rents, concern regarding sale to corporate owners who will increase costs, concerns regarding displacement due to redevelopment, lack of transparency and communication with property owners, and specific concerns regarding maintenance responsibilities.
Staff developed policy proposals based on this information and presented options to the Land Use & Environment Committee at their November 2024 meeting. At the February 2025 meeting, staff provided residents with a survey to gather input on their support for the policy proposals.
Several of the proposed policies are similar to existing Olympia tenant protections (providing more notice of rent increases, creating the option to request relocation assistance if the tenant decides to move out rather than paying increased rent, providing more information and transparency on the rent increase notice, and providing tenants information and resources on an annual basis when their lease renews).
Residents who attended were supportive of all of the policies proposed, but due to the lack of feasibility to move their manufactured homes or find more affordable alternative housing, are concerned that their options will continue to be limited even if they are provided longer rent increase notice periods or economic displacement relocation assistance. Staff will continue to monitor state legislation to determine if rent stabilization measures and rent increase notices proposed will address these issues.
Residents were most supportive of amending the City’s zoning laws to prevent existing manufactured home communities from being redeveloped to a different use to ensure they will not be displacement due to redevelopment.
Staff will draft proposed code language if directed by the City Council to bring an ordinance for consideration.
Rent to own agreements
In April 2024, the City Council approved an exemption from the rental registry for property owners renting to an immediate family member. At that time, the City Council also directed staff to look into a potential exemption for landlords who enter into lease to own contracts with their tenants. After staff research and input from legal aid attorneys prompted some concern about the risks of these agreements to tenants, staff developed a program proposal that was presented to the Land Use & Environment Committee in November 2024.
Staff recommended requiring completion of a home inspection to ensure the home is in good condition, completion of an appraisal to determine a fair purchase price, and a title search to ensure there are no claims to the property. The City could provide some financial support to perform this due diligence if the property is sold to a low-income tenant. Staff estimates this would cost the City approximately $2,000 per home, based on cost estimates gathered in Fall 2024. Staff also recommended that the City contract with a qualified legal service provider to aid in developing a written agreement between the landlord and tenant.
Staff has asked a local legal service provider to provide an estimated budget for these services to help create a proposed budget and scope of work to bring back to the City Council or to LUEC. Staff is seeking direction on whether to move forward with drafting a more detailed program scope and budget to bring to either the City Council or LUEC after budget estimates are provided to City staff.
A full timeline of City Council actions and notable events related to tenant protections is included as an attachment.
Next phase of tenant protections (Q2 2025 - Q1 2026):
Tenant screening
Tenant screening policies can include consideration of an applicant’s criminal history, credit history, eviction history, employment history, and income, among other factors. Tenant screening practices present significant barriers for renters to access housing opportunities, particularly for people who are low-income, formerly incarcerated individuals, members of protected classes (such as people of color, people who were born outside the U.S., and people with disabilities). At the January 2024 Land Use & Environment Committee, staff were directed to bring sample policy language regarding tenant screening for public comment at a public hearing in March 2024.
Staff has provided sample policies regarding criminal history screening, credit history screening, eviction history screening, and requirements to provide alternative documentation to establish eligibility besides a Social Security Number. In April 2024, HUD released ‘Guidance on Application of the Fair Housing Act to the Screening of Applicants for Rental Housing.’ It discusses how housing providers and companies that offer tenant screening services can screen applicants for rental housing in a nondiscriminatory way and recommends best practices for complying with the Fair Housing Act.
Staff will provide additional policy research and options at the May Land Use & Environment Committee meeting.
Tenant Opportunity to Purchase
As part of the Affordable Homeownership Study completed in early 2024, the City’s consultant gathered initial research on Tenant Opportunity to Purchase policy and program options.
The City’s consultant provided sample policies from other jurisdictions, including a recommended policy from Takoma Park, Maryland, which is similar in population to Olympia. The City’s consultant also recommended that the City initially pursue a tenant opportunity to purchase policy for properties with more than ten units. Based on review of policies enacted in other jurisdictions, it is likely that some financial support and/or technical assistance may be needed for tenants to effectively purchase cooperatively.
Staff is requesting direction on whether to bring additional research and options later in 2025 or 2026.
Climate Analysis:
This action is expected to have no significant impact on greenhouse gas emissions. Preserving existing housing may have a long-term reduction on greenhouse gas emissions by eliminating need for replacement of housing units. Most manufactured home communities in Olympia are located along major transit corridors where residents have access to public transit. Preserving these housing units from commercial redevelopment will keep housing that is already accessible to transit routes.
Equity Analysis:
BIPOC households are more likely to rent and less likely to own their homes than white households in Olympia. According to HUD CHAS data (retrieved from Department of Commerce), 50% of white households in Olympia rent, while 61% of BIPOC households and 73% of Hispanic/Latinx households rent. According to ACS data (retrieved from the Thurston County Assessment of Fair Housing), about 82% of Olympia households with a single mother rent rather than own their homes.
As indicated in the Assessment of Fair Housing, income disparities contribute to difficulty in paying for housing and limit housing choice. Economic disparities and lack of intergenerational wealth have contributed to income gaps between BIPOC and white households. According to HUD CHAS data, 24% of households of color in Olympia and 22% of Hispanic/Latinx households in Olympia earn less than 30% of Area Median Income, while 15% of white households earn less than 30% of Area Median Income. According to 2020 ACS data (retrieved from the Assessment of Fair Housing), a person with a disability earned on average $26,075, compared to $37,168 earned by a person without a disability. Just over 33% of single mother households in Olympia had income below the federal poverty level, compared to 11% of the total population. Creating tenant protections will benefit lower-income households and protected classes, as BIPOC, people with disabilities and single parents with children are more likely to rent and have less income to pay for housing.
Households in mobile homes are over twice as likely to live in poverty (DeLuca, Stefanie, and Eva Rosen 2022, 348) and manufactured housing is the largest source of unsubsidized affordable housing in the country (Consumer Financial Protection Bureau, ‘Manufactured Housing Finance: New Insights from the Home Mortgage Disclosure Act Data’). Adults over age 65 are more likely to live in a manufactured home than the general population, according to the Regional Housing Needs Assessment. About 12 percent of seniors countywide live in manufactured housing or mobile homes compared to nine percent for the county population as a whole. Nearly 17% of adults over age 65 in Olympia have income below the federal poverty level, which is about 1.5% higher than the general adult population. Staff was not able to locate the racial demographics of Olympia residents who live in manufactured homes. Enacting policy protections that increase housing stability and reduce risk of displacement will benefit lower-income households and older adults, who are more likely to live in manufactured housing.
There is limited data on landlord demographics. City of Olympia surveys include demographic data, but not all respondents provide demographic information and there is a limited sample size. Approximately 71% of landlords who completed the landlord survey (part of the Olympia rental housing code update in 2022) identified as white, which is similar to the general population of Olympia overall. Landlords are burdened by additional requirements or restrictions put in place by the City.
Neighborhood/Community Interests (if known):
Potential changes to Olympia Municipal Code’s Rental Housing Code (OMC 5.82) are a topic of significant interest to renters and rental housing owners/operators within the city and around Thurston County. Over 430 community members participated in the 2022 Engage Olympia survey for renters, landlords, and interested third parties. Over half of Olympia’s residents are renters, so the majority of residents will be impacted by any policy changes. Manufactured home community residents have expressed significant interest and have engaged with city staff by attending community meetings, providing input via phone calls and emails.
Financial Impact:
Additional costs are not anticipated at this time.
Options:
1. Receive a briefing on the City’s renter protection measures and discuss next steps.
2. Do not Receive a briefing on the City’s renter protection measures and discuss next steps.
3. Take other action.
Attachments:
Timeline of Renter Protections
Olympia Tenant Protections Information