Housing Market Fairness Act

Preamble

Whereas the affordability and availability of housing is a critical issue affecting millions of residents in Washington State;

Whereas large-scale ownership of residential properties by corporate entities has been identified as a factor contributing to increased housing costs and reduced availability for individual homebuyers;

Whereas stabilizing rental costs is essential to ensure that renting remains a viable and affordable option for individuals and families;

Whereas the promotion of fair competition in the housing market can contribute to healthier, more sustainable communities;

Therefore be it enacted by the Legislature of the State of Washington:

Section 1: Short Title

This Act shall be known as the "Washington State Housing Market Fairness Act."

Section 2: Purpose

The purpose of this Act is to promote affordable housing, stabilize rental costs, and ensure fair competition in the housing market by limiting the number of residential properties that can be owned by a single entity and capping annual rental increases.

Section 3: Definitions

1. Entity: Any corporation, partnership, association, or individual engaged in the business of buying, selling, or renting residential properties within the state of Washington.

2. Residential Property: Any property intended for residential use, including single-family homes, townhouses, and condominiums. This definition explicitly excludes multi-family dwellings such as apartment buildings.

3. Partial Ownership: Holding less than full ownership in a property, including shares or interests through partnerships, joint ventures, or investment groups.

4. Consumer Price Index (CPI): A measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services, published by the Bureau of Labor Statistics.

Section 4: Ownership Limitations

1. No entity shall own more than 10 residential properties within the state of Washington.

2. Entities with partial ownership interests in properties shall calculate their ownership on a pro-rata basis. For example, owning 50% of a property counts as owning 0.5 properties.

3. Entities found in violation of this section shall be required to divest excess properties within 12 months of notification by the Washington State Department of Commerce.

Section 5: Rental Cost Increase Limitations

1. Annual rental cost increases shall not exceed twice the annual percentage increase in the Consumer Price Index (CPI) for All Urban Consumers.

2. In no case shall rental increases exceed 10% annually, regardless of CPI fluctuations.

3. Exceptions to this limitation may be granted by the Washington State Department of Commerce in cases of significant property improvement or other justified increases in operational costs.

Section 6: Enforcement and Penalties

1. The Washington State Department of Commerce shall be responsible for enforcing the provisions of this Act.

2. Entities found in violation of this Act shall be subject to fines not exceeding $50,000 per property in excess of the limit or per instance of rental increase violation.

3. Repeat offenders may face additional penalties, including mandatory divestment and restrictions on future property acquisitions.

Section 7: Mitigation of Negative Impacts

1. To address potential reductions in rental housing availability, this Act shall include provisions for:

a. Incentives for the construction of affordable housing, including tax credits and grants.

b. Support for non-profit organizations and community land trusts to acquire and manage affordable housing units.

2. The Washington State Department of Commerce shall establish a task force to monitor the impact of this Act on the housing market and recommend adjustments as necessary.

Section 8: Severability

If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of this Act, and the application of such provision to other persons or circumstances, shall not be affected thereby.

Section 9: Effective Date

This Act shall take effect 180 days after its enactment.