Opinion: HB 1217 – Rent control is law … or is it?

Vancouver resident Bill Black says whether you’re for or against rent control, we should all agree on one thing: laws should not go into effect unless they’re properly funded and enforceable

Bill Black
for Clark County Today

This is the big one for Washington landlords.

House Bill 1217, passed and signed into law on May 7, 2025, is being hailed by supporters as a tenant protection measure — but make no mistake, this bill is a game-changer, and not in a good way. In my opinion, this law will stifle investment, halt renovation projects, and further cripple new housing development in a state already struggling with a severe housing shortage.

And here’s the kicker: it might not even be enforceable yet.

Let’s talk about Section 303

Buried at the very end of the bill is this key clause:

“If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2025, in the omnibus appropriations act, this act is null and void.”

Let’s break that down.

One can argue that this means:

• If the state doesn’t explicitly allocate funding for HB 1217 in the 2025–2027 budget and reference it by name — the law is dead.
• If it’s not funded by June 30, the law is null and void by its own language.

As of today — May 16, 2025 — I have found no confirmed evidence that HB 1217 has been funded.

I’m not an attorney, but I’ve reached out to several for clarification. Many agree: until it’s funded, it’s not enforceable.

You be the judge

Here’s how I interpret that last paragraph:

• HB 1217 is not enforceable unless it’s funded.
• Until it is funded, landlords are not required to comply with its restrictions.
• The 7% + CPI rent cap is not binding at this time.

And yet, others in the industry are already acting as if this is the law. Some landlords are viewing this as a green light to increase rents 7% annually, regardless of need — fearing they’ll be stuck with below-market rents they can’t ever raise again. Ironically, that could cause immediate and unnecessary rent hikes, the opposite of the bill’s intent.

What HB 1217 would require (if funded)

• No rent increases in the first 12 months of a new tenancy.
• After the first year: Rent capped at 7% + CPI, up to a maximum of 10% per year.
90 days’ notice required for all rent increases.
• Landlords may still charge market-rate fees for move-ins, late payments, and deposits.
• Vacancy decontrol is allowed — meaning rents can still reset between tenants.

Lease caps:

Landlords can’t charge more than 5% higher for month-to-month leases vs. fixed-term leases on the same unit.

Penalties (if enforced):

If you go over the cap, tenants can request a reduction or break the lease with 20 days’ notice.

Damages:

• Up to 3 months’ rent + legal fees, capped at $7,500.
• The Attorney General can also go after you.

Exemptions:

• Buildings 12 years old or newer
• Owner-occupied 4-plexes
• Nonprofits and public housing

Final thoughts

If you’re a small housing provider — especially someone improving older buildings or investing in new projects — this law, if enforced, will crush the incentive to build or renovate. And that’s exactly what we need to solve Washington’s housing crisis.

Instead of encouraging more housing, we’ve created a policy that makes it riskier and more expensive to provide it.

Whether you’re for or against rent control, we should all agree on one thing: laws should not go into effect unless they’re properly funded and enforceable. Anything less is legislative malpractice.

As of May 16, 2025, HB 1217 is signed but not yet funded. Until it is, it’s not enforceable.

You be the judge.

Bill Black is an area senior mortgage broker, real estate investor, and concerned housing provider. He can be reached at bill@billcblack.com