Senate Bill Report EHB 1694
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2020-02-27
- Case
- 2020 02 27 A26685 D218633 Bill Report 1694 E Sba Fiet 20 Ta
Summary
A Senate Bill Report on EHB 1694, an act relating to allowing tenants to pay certain sums in installments, as of February 26, 2020, prepared by staff of the Senate Committee on Financial Institutions, Economic Development & Trade. The report records that the bill, sponsored by Representative Morgan and others, passed the House on 2/17/20 by a vote of 54-44 and was heard in committee on 2/25/20. It summarizes the bill as requiring landlords, on a tenant's request, to permit deposits, nonrefundable fees and last month's rent to be paid in installments: three payments for tenancies longer than three months and two for shorter ones. It gives background on deposits and fees under the Residential Landlord-Tenant Act and notes no appropriation and no fiscal note. The staff summary of public testimony lists supporting arguments about up-front moving costs.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
SENATE BILL REPORT
EHB 1694
As of February 26, 2020
Title: An act relating to allowing tenants to pay certain sums in installments.
Brief Description: Allowing tenants to pay certain sums in installments.
Sponsors: Representatives Morgan, Macri, Riccelli, Goodman, Jinkins, Cody, Stonier,
Robinson, Appleton, Pollet, Gregerson and Frame.
Brief History: Passed House: 2/17/20, 54-44.
Committee Activity: Financial Institutions, Economic Development & Trade: 2/25/20.
Brief Summary of Bill
For residential rental agreements three months or longer in duration,
tenants are authorized to pay certain deposits, fees, and last month's rent in
up to three consecutive and equal installment payments.
For residential rental agreements less than three months in duration,
tenants are authorized to pay certain deposits, fees, and last month's rent in
up to two consecutive and equal installment payments.
SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, ECONOMIC
DEVELOPMENT & TRADE
Staff: Clint McCarthy (786-7319)
Background: Residential-Landlord Tenant Act. The Residential Landlord-Tenant Act
(RLTA) regulates the creation of residential tenancies and the relationship between landlords
and tenants of residential dwelling units. The RLTA establishes rights and duties of both
tenants and landlords, procedures for the parties to enforce their rights, and remedies for
violations of the RLTA.
Landlords often collect deposits and fees and other amounts prior to, or at the outset of, a
tenancy:
1. Tenant screening fee: The RLTA includes provisions governing the amount that may
be charged and the information that must be provided to the tenant.
––––––––––––––––––––––
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not a part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- EHB 1694
2. Holding deposit or fee to hold the dwelling unit after the tenant has been offered the
unit. If the tenant moves in, the landlord must credit the fee or deposit to the first
month's rent or the security deposit.
3. Damage or security deposit: The purpose of such a deposit is to cover any damage
caused to the property by the tenant, in excess of normal wear and tear. Under the
RLTA, deposits must be placed in a trust account. Any interest earned generally
belongs to the landlord.
4. Nonrefundable fee: This may include a cleaning fee; if that is the case, the landlord
may not also charge the tenant for normal cleaning.
5. First and last month's rent.
A tenancy may be for a specified time, such as one year. Alternatively, premises may be
rented for an indefinite time, from period to period or month to month.
Summary of Bill: Upon the request of a tenant, a landlord is required to permit the tenant to
pay any deposits, nonrefundable fees, and last month's rent in installments. If the total
amount of deposits and nonrefundable fees do not exceed 25 percent of the first full month's
rent and payment of the last month's rent, the landlord is not required to permit a tenant to
pay deposits and non refundable fees in installments.
When premises are rented for period of time that is longer than three months, the tenant may
elect to pay any deposits, nonrefundable fees, and last month's rent in three consecutive and
equal monthly payments at the beginning of the tenancy. For tenancies that are less than
three months, the tenant must pay all deposits, fees, and last month's rent in two consecutive
and equal monthly installment fees.
A landlord cannot charge a fee to a tenant choosing to pay in installments. A fee or deposit to
hold a dwelling unit is not to be considered a deposit or nonrefundable fee
Appropriation: None.
Fiscal Note: None.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony: PRO: This is very important legislation. Rents have
increased much faster than personal income. Increased rents have caused some of the
homelessness in our region. Changing homes from one rental to another can cost as much as
$5,000. There are rentals in the Puget Sound that require as much as $6,000 up front to
secure the home. The city of Tacoma has passed ordinances that allow to pay some costs and
fees in installments so that less money is required up front. This bill is a great start in
continuing the work towards solving our state's homelessness crisis. This bill will help a lot
of people get out of a state of homelessness, as well as get out of toxic living situations.
Low-income people on fixed income have a difficult time getting enough money together to
change their housing situation. Relationships and life situations change and sometime
necessitate a change in housing situations, but a lot of people and families do not have the
Senate Bill Report -2- EHB 1694
wherewithal to pay the high cost of moving and have to stay in place. The less money you
have, the less likely you are to generate thousands of dollars to pay for a move. There is a
loophole in this bill that does not limit the costs of holding fees. Four in ten adults would
have a difficult time covering an unanticipated cost of $400—these costs can be in the
thousands of dollars. People who can afford to pay rent cannot afford to pay the cost of
moving in many cases. There needs to be an enforcement mechanism that creates
consequences for landlords not allowing installment payments. One of the biggest barriers
for individuals that are victims of domestic violence to get out of their situation is the cost of
moving. Some supporters of the bill would like to see access to the Landlord Mitigation
Fund be applicable to installment payments of rents and fees.
Persons Testifying: PRO: Representative Melanie Morgan, Prime Sponsor; Lisa Sawyer;
Samantha Thompson, West Seattle Helpline; Dinah Braccio, Tenants Union; Sarah Nagy,
Columbia Legal Services; Xochitl Maykovich, citizen; Michele Thomas, Washington Low
Income Housing Alliance; Brett Waller, Washington MultiFamily Housing Association;
Matthew Sutherland, Vice-President of Legislative Affairs, Graduate and Professional
Student Association.
Persons Signed In To Testify But Not Testifying: No one.
Senate Bill Report -3- EHB 1694
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- 2020-02-27_a26685_d218633_bill-report-1694-e-sba-fiet-20-ta.pdf
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- Original
- app.leg.wa.gov