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An organization representing owners of manufactured home communities is suing to block Washington’s landmark law capping rent increases.
Much of the conversation around House Bill 1217 in the last legislative session was about its limits on residential rent increases. But the law, which took effect in May, also blocks annual rent hikes of more than 5% for manufactured homes when residents own their home but have to lease the land they live on. No rent increases are allowed in the first year of a tenancy.
Manufactured Housing Communities of Washington argues in the lawsuit filed Tuesday that its members have felt “significant cost increases and lost revenue” because they can’t raise rents on their tenants more than 5%.
Advocates argued the limit was necessary to give residents predictability so they’re not suddenly displaced by drastic rent hikes they can’t afford. But opponents said it would drive away developers and leave landlords unable to keep up with rising maintenance costs.
The eight-page lawsuit, filed in Spokane County Superior Court, raises several issues with the law. It alleges violations of the state and U.S. constitutions because it doesn’t allow manufactured home park owners to seek an exception to the cap in case of emergency.
“This law isn’t just bad policy, it’s unconstitutional, unworkable, and actively undermining the long-term stability of manufactured housing communities across Washington,” the organization said in a statement. “It offers no safety valve, no hardship exemption, and no due process for property owners facing rising costs, emergencies, or infrastructure failures.”
The park owners also say it violates the contract clause in the U.S. Constitution because its passage nullified existing leases that allowed for rent increases. The lawsuit notes the state has issued cease and desist orders and threatened legal action against Spokane County park operators who enacted rent hikes in line with previous lease agreements.
The attorney general’s office over the summer fined eight landlords $2,000 each for violating the law. The police allows the attorney general to recover up to $7,500 per violation.
Public housing authorities and some nonprofits are exempt from the cap. The organization argues this creates an unconstitutional two-tier system.
The statewide organization is asking a judge to stop enforcement of the law. No court dates have been set.
Mike Faulk, a spokesperson for Attorney General Nick Brown said in an email Wednesday that, “We look forward to defending Washington law and are confident that this law will be upheld.”
The organization is represented in court by Philip Talmadge, a former Democratic state senator and state Supreme Court justice.
Washington State Standard is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Washington State Standard maintains editorial independence. Contact Editor Bill Lucia for questions: info@washingtonstatestandard.com.
The net effect of this law will not favor renters living in manufactured home parks. It will eventually lead to the closing of the parks and repurpose of the property to something profitable. Democrats think the owners should just absorb rising operating costs. Funny they never cap the taxes owners must pay. When it becomes impossible to make a profit then owners will get out of the business. Then where do you move your manufactured home? I suggest to the Olympia capitol grounds and make the state your landlord.
If I owned a park, I would sell to the highest bidding developer.