Title
Approval of an Ordinance Amending Olympia Municipal Code 5.82 to Address Tenant Screening Practices
Recommended Action
Committee Recommendation:
The Land Use & Environment Committee recommends approving an ordinance addressing tenant screening practices.
City Manager Recommendation:
Move to approve on first reading, and forward to second reading, an ordinance amending Olympia Municipal Code 5.82 addressing tenant screening practices.
Report
Issue:
Whether to approve an ordinance addressing tenant screening practices.
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:
The City of Olympia has been engaged in discussions about renter protections since 2018. In 2019, Council and Council committees discussed several potential policy options and prioritized a set of actions to explore further. In March 2020, the City’s Land Use & Environment Committee (LUEC) held a forum to begin a community conversation about challenges in rental housing and potential solutions. Due to the COVID-19 pandemic, these discussions were put on hold until mid-2021.
This work resumed in 2021 with the development and prioritization of policies based on staff research and review of stakeholder input. This ordinance is part of a package of tenant protections starting in 2022 that have been passed by Olympia City Council under Olympia Municipal Code Chapter 5.82 (known as the Rental Housing Code). Staff discussed tenant screening practices with LUEC and Council on multiple occasions. In early 2024, community engagement related to the City’s renter protections work and the countywide Assessment of Fair Housing led to a public hearing intended to solicit feedback about tenant screening and other proposed tenant protections.
November 2024: Staff briefed the LUEC on income to rent policy options based on similar policies enacted in other jurisdictions. The LUEC directed staff to draft an ordinance addressing income to rent ratios used in tenant screening processes.
March 2025: Council directed staff to wait to bring forward tenant screening policy options until the 2025 state legislative session was complete and more was known about tenant protection bills being considered at the state level.
May 2025: Staff presented to LUEC guidance from the U.S. Department of Housing & Urban Development (HUD) and sample tenant screening policies from other jurisdictions in Washington and across the U.S. related to:
• criminal history,
• credit history,
• eviction/rental history, and
• requirements to provide a Social Security number.
Staff provided sample policies that take two different approaches to enforcement:
• Individualized assessments, made on a case-by-case basis
• Set limitations on what aspects of the person’s background may or may not be considered, to create guardrails against overly restrictive tenant screening practices
The LUEC directed staff to pursue policy options that set reasonable guardrails by creating limitations on what aspects of a person’s background may or may not be considered in the screening process.
The LUEC also requested staff to bring education approaches in addition to policy proposals to Council. LUEC directed staff to solicit community engagement to inform their approach and return to Council to discuss the policies, educational approaches, and community engagement findings.
July-August 2025: A community survey was conducted to gather information about screening practices and experiences, as well as solicit input on proposed policies. Over 120 renters and community advocates/service providers, and 160 landlords/property managers completed the survey. Summary information is included in the Community Interests section of this staff report.
September 2025: Staff presented results of community engagement, policy approaches, and educational approaches at a Council study session. Council directed staff to prepare an ordinance setting limitations on income to rent ratios in tenant screening, as well as the use of Social Security numbers in tenant screening processes. Council also directed staff to provide education about the 2024 HUD guidance to inform landlords about the potential discriminatory impacts of tenant screening practices related to criminal history, credit history, and eviction/rental history.
The proposed ordinance amends Chapter 5.82, adding a new section to address income to rent ratios and use of Social Security Numbers in tenant screening.
Rent to Income Ratios background
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 monthly rental rate. Staff heard through public engagement 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). These tenant screening practices create barriers to housing access and stability.
According to HUD Comprehensive Housing Affordability Strategy (CHAS) data, 52% of Olympia renters spend more than one third of their income on rent. These Olympia renters will be unlikely to qualify for rental housing where they must earn three times the monthly rent. If a household spends more than one third of their income on rent, they are considered housing cost burdened. The National Low Income Housing Coalition (NLIHC) releases annual data on rents and wages to demonstrate the disparity between housing supply and rent that is considered affordable based on tenant incomes. According to 2025 NLIHC data, an Olympia renter working full time at minimum wage would only be able to afford monthly rent of $866. A minimum wage worker would need to work 73 hours per week to afford a 1-bedroom unit at fair market rent ($1,585) in the Olympia-Tumwater Metropolitan Statistical Area (MSA).
Development of Ordinance language
The ordinance includes similar elements to policies passed by Tacoma and Portland.
The proposed ordinance:
• Prohibits landlords from requiring applicants to demonstrate more than 2.5 times the amount of monthly rent to qualify for a rental unit
• Allows applicants to use total household income to qualify
• Allows landlords to request a co-signer or guarantor if the applicant does not meet the income requirement
• Allows landlords to review an applicant’s positive rental history if the applicant does not meet the income requirement
A ratio that exceeds two and a half times the monthly rent is beyond the reach of many renters due to wages not keeping up with housing costs. At the same time, if a ratio lower than two times the monthly rent was adopted, renters may be able to access housing more easily but would be spending more than 50% of their income on housing costs and would be considered severely cost-burdened. If 50% or more of a tenant’s income is used to pay housing costs, they may be at higher risk of not being able to pay rent if they face an emergency, rent increase, or other unexpected cost. Rather than adopting varying income qualifications (like Tacoma and Portland) depending on the unit rent, the draft ordinance uses one threshold to simplify the requirements for both landlords and tenants.
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. That language is also reflected in the proposed policy, as community input from the Assessment of Fair Housing indicates that source of income discrimination is an issue in Thurston County.
Social Security numbers background
Landlords and screening companies often require housing applicants to provide a Social Security number to verify identity and to assess credit or rental history. Immigrants and refugees may face additional barriers to access rental housing because they do not have a Social Security number. Washington State’s Law Against Discrimination (WLAD) prohibits housing discrimination based on immigration or citizenship status. However, the State Human Rights Commission lacks capacity to promptly investigate and enforce the WLAD. Applicants may lose a housing opportunity if they are rejected because they are not able to provide a Social Security number on their housing application. Fair housing agencies in Washington State have provided guidance on alternative documentation that can be utilized to verify an applicant’s identity and financial eligibility, so that screening policies do not have an unintended discriminatory impact on immigrants and refugees. This guidance is posted on the City’s Landlord Information webpage and has been shared with subscribers to the Rental Registry email list.
Development of Ordinance language
Staff incorporated sample policy language from other jurisdictions which:
• allows landlords to request but not require applicants to provide a Social Security number
• requires landlords to allow applicants to provide alternative documentation to verify identity and financial eligibility
o Examples of acceptable documents to establish identity include a birth certificate, driver’s license, individual taxpayer identification number (ITIN), non-immigrant visa, or Certificate of Naturalization (INS I-550)
• prohibits landlords from rejecting or offering different terms to an applicant who does not provide a Social Security number
• prohibits landlords from threatening, intimidating or harassing an applicant or tenant due to their immigration/citizenship status
• does not prevent landlords from rejecting an applicant due to unfavorable results of the screening, complying with any legal obligations under federal law, or requesting additional information to verify the applicant’s eligibility.
Other Olympia Municipal Code amendments
Staff has added some clarifying information to the definitions section of the code chapter. Due to input from community members and rental registry program staff, staff recommends updating the definition of immediate family member to include ‘first cousin.’
Enforcement of ordinance
The proposed ordinance amends Chapter 5.82, adding a new section to address income to rent ratios and use of Social Security numbers in tenant screening. The same enforcement mechanisms and penalties for violations applies in the proposed ordinance as the rest of the chapter. These enforcement mechanisms include: civil infractions carrying a monetary penalty, right of private action by the tenant, defense in an eviction proceeding, and suspension, denial or revocation of a business license. Enforcement actions are responsive to tenant complaints and potential violations are investigated by housing staff. Typically, these complaints can be resolved through education and communication between City 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.
Effective date of ordinance
Staff recommends the ordinance take effect on or after April 1, 2026. Staff anticipates that landlords may need time to research and contract with alternative third-party screening companies or revise their screening criteria to comply with these new requirements.
Educational efforts
In November 2025, staff organized a free webinar about the 2024 HUD tenant screening guidance in collaboration with the Fair Housing Center of Washington and regional jurisdictions in Thurston County. Education related to criminal, credit, and rental history screening was provided. Nearly 150 people registered and over 90 people attended the webinar. An additional 49 people viewed the recording online by November 24. HUD’s 2024 guidance was sent to attendees, Rental Registry subscribers, and posted on the City’s Landlord Information webpage.
Climate Analysis:
The proposed rental housing policies are not expected to have a significant impact on greenhouse gas emissions. If a household is able to qualify for more housing options and relocate close to their existing residence, they may have reduced commute times, resulting in a long-term reduction in greenhouse gas emissions.
Equity Analysis:
Requiring rental applicants to demonstrate their income totals three or more times the rent creates barriers to housing access for BIPOC, people with disabilities, and single parents who are more likely to have lower incomes. These community members benefit from the City lowering these thresholds and increasing the housing options available to them. One of the goals identified in the Assessment of Fair Housing is to explore and enact policy solutions to reduce barriers to accessing housing, such as barriers in the tenant screening process.
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 American Community Survey 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.
BIPOC households are more likely to be extremely low-income than white households. In Olympia, 24% of households of color and 22% of Hispanic/Latinx households earn less than 30% of Area Median Income, while 15% of white households earn less than 30% of Area Median Income. 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. Just over 33% of single mother households in Olympia had income below the federal poverty level, compared to 11% of the total population. Requiring rental applicants to demonstrate their income totals more than three times the rent creates barriers to housing access for BIPOC, people with disabilities, and single parents who are more likely to have lower incomes. These community members benefit from the City lowering these thresholds.
Requiring provision of Social Security numbers prevents housing access for immigrants to the U.S. According to ACS 5-year estimates, Olympia’s immigrant population is growing. Between 2010 and 2020, the City of Olympia experienced 3% growth in residents born outside the U.S. Ten percent of Olympia’s population was born outside the U.S.
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 requirements that may change their current rental screening practices, which will require more time and effort to attain compliance.
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 were 283 respondents to the Engage Olympia survey on this topic (123 renters and community service providers and 160 landlords/property managers). A summary of community survey results was shared with City Council at the September 2025 study session.
Financial Impact:
Additional costs are not anticipated if the City adopts the ordinance as presented to amend OMC 5.82. Additional staff time may be required to investigate and enforce the ordinance, as well as provide education and outreach to landlords and tenants.
Options:
1. Move to approve on first reading, and forward to second reading, an ordinance amending Olympia Municipal Code 5.82 addressing tenant screening practices.
2. Approve the ordinance with modifications, which may impact renters’ ability to access housing units and landlords’ business practices.
3. Don’t approve the ordinance, which may restrict the ability of renters to access housing units.
Attachments:
Ordinance