Title
Approval of an Ordinance Amending Olympia Municipal Code Related to Required Notice for Relocation Assistance
Recommended Action
Committee Recommendation:
Not referred to committee.
City Manager Recommendation:
Move to approve an Ordinance Amending OMC 5.82 related to required notice for Relocation Assistance.
Report
Issue:
Whether to approve an Ordinance Amending OMC 5.82 related to required notice for Relocation Assistance.
Staff Contact:
Christa Lenssen, Senior Housing Program Specialist, Office of Community Vitality, 360.570.3762
Presenter(s):
Christa Lenssen, Senior Housing Program Specialist, Office of Community Vitality
Background and Analysis:
The background and analysis did not change from first to second reading.
The Olympia City Council adopted an ordinance on April 16, 2024, that addresses tenant relocation assistance. Between first and second reading of the ordinance, City Council directed staff to amend the ordinance language to require landlords to offer tenant relocation assistance if a landlord increases rent by 7% or more over a 12-month period, instead of requiring relocation assistance when a landlord provides notice of a rent increase over 5%. An existing provision requires landlords to provide 120 days’ notice before increasing rent by more than 5%. A landlord could increase rent incrementally with only 60 days’ notice if the increase is 5% or less, as required by current state landlord-tenant law.
Under the new economic displacement relocation assistance provisions, the tenant has 45 days to request relocation assistance after receiving the rent increase notice and the landlord has 30 days to pay. The tenant would then have an opportunity to seek new housing and if the tenant does not move out by the effective date of the rent increase, would be required to pay the new rental amount and repay the tenant relocation assistance provided by the landlord.
Due to the changes requested by Council between first and second reading, staff needed to amend the required notice for rent increases to require landlords to provide 120 days’ notice if the rent increase adds up to 7% or more cumulatively over a 12-month period. Staff has addressed the timeframe issue in the proposed language to allow tenants more time to request and receive payment, as well as search for alternative housing.
Staff has also taken this opportunity to correct additional errors in the code to ensure consistency in language and numbering between sections.
Establishing tenant protections to address housing stability is addressed under Strategy 2.a. of the City’s Housing Action Plan (“Identify and implement appropriate tenant protections that improve household stability”), Strategy 2.c. (“Provide displaced tenants with relocation assistance”), and Strategy 2.f. (“Explore barriers and policies that can increase access to housing for formally incarcerated individuals”). The Thurston County Homeless Crisis Response Plan identifies tenant relocation assistance as a strategy for preventing homelessness.
Climate Analysis:
The proposed rental housing policies are not expected to have an impact on greenhouse gas emissions.
Equity Analysis:
BIPOC households are more likely to be renters than white households in Thurston County. Approximately 42% of BIPOC households rent, compared to 31% of white households. People of color and people with disabilities earn less on average than white, non-disabled people. In Thurston County, about 36% of white households earn over $100,000 per year compared to 18% of Native American households. White households are the most likely to earn over $100,000 annually and least likely to earn under $35,000 annually than any other racial or ethnic group countywide. In 2020 in Olympia, a person with a disability earned on average $26,075, compared to $37,168 earned by a person without a disability. These low-income households are more likely to rent and more likely to qualify for relocation assistance when their rent has increased.
Relocation assistance will assist low-income renters in transitioning to new housing when their rent is increased. Low-income renters will still be burdened by displacement and may face difficulty in locating a new rental unit that meets their needs and budget. Staff can provide referrals and connections to housing options or supportive services. Staff will seek funding support and opportunities to provide additional incentives for rental property owners to keep rents lower and rent to low-income households.
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 and costs to provide tenant relocation assistance.
All community members will benefit from low-income renting households being supported into transition to a new housing situation, rather than falling into homelessness.
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.
There is considerable local and state interest in establishing measures to address tenant displacement, including new requirements for cities to perform displacement analysis in their Comprehensive Plan Updates. About 54% of landlords and 88% of renters who participated in a 2022 Engage Olympia survey expressed support for the concept of a tenant relocation assistance program, though landlords expressed concern regarding how the program would be funded.
Financial Impact:
Additional costs are not anticipated if the City adopts the updated language regarding economic displacement relocation assistance. Staff time will be required to enforce these provisions.
Options:
1. Approve the ordinance to amend OMC 5.82.
2. Modify the ordinance to amend OMC 5.82.
3. Do not approve the ordinance to amend OMC 5.82 and direct staff to take other action.
Attachments:
Ordinance