A group of landlords is suing the City of Seattle over a law that limits how much a property owner can charge in move-in fees.
The Rental Housing Association of Washington (RHAWA) says the ordinance is hurting the mom and pop landlords who only have a few units, and who are providing much-needed housing in Seattle neighborhoods.
The association filed a lawsuit Tuesday, which seeks to overturn the Seattle law capping move-in fees.
Seattle landlords can charge no more than the first months' rent for a security deposit and move-in fees. The law capping those fees took effect in January, and supporters say it provides better access to housing for people who cannot afford potentially thousands of dollars in costs before they even move in.
The RHAWA says the ordinance violates a state ban on rent control and takes away people’s property rights. They argue small landlords, who own just a few units, cannot afford the extra risk they take on when they don’t have the ability to charge fees that they feel are appropriate for their renters.
“Our members own the triplex in Ballard or the duplex in the North U District. They're not equipped to deal with the new regulatory burdens, so what they do is they sell,” said Sean Flynn, president of RHAWA.
Flynn says when landlords put their properties on the market, developers move in and turn the land into expensive condos or townhomes, which don't provide the kind of affordable housing Seattle so badly needs.
“Our input has fallen on deaf ears. This (city) council seems bent on regulating the small landlord out of business, and that's why we brought the suit,” Flynn said.
In response to the lawsuit, the City Attorney's Office would only say that it intends to defend the ordinance vigorously.
The group Washington CAN! issued a statement saying fee caps have nothing to do with rent control.
“The decision to file a lawsuit over this modest legislation demonstrates that RHAWA doesn't care if people of color, single moms, seniors, people with disabilities, and low-income families are no longer able to live in this great city,” said Mary Nguyen, executive director.
