By Lorilyn Lirio

The Olympia City Council tackled the proposed rental housing registration and inspection program, which aims to improve housing quality, tenant protection, and education.

At the city council study session held Tuesday, Housing Program Specialist Christa Lenssen briefed the councilmembers on the proposed program, which one of the key features is the introduction of regular property inspections to ensure that basic health, safety, and environment standards are met.

“Many renters reported seeing steep rent increases over the last couple of years without seeing any significant improvements to the properties they are renting,” Lenssen said, adding that the program would proactively address issues around rental housing.

The program would be operated on a five-year inspection cycle for different property types. Rental property owners are required to register annually and obtain a business license. Certified third-party inspectors would inspect the properties. The inspection will involve a safety, health, and energy efficiency checklist.

According to Lenssen, the program also aligns with the city’s climate goals by enhancing the energy efficiency of a residence. She said residential energy use is currently the region’s largest source of greenhouse emissions. Inspections will have added value in helping to meet climate program goals to establish a rental housing energy efficiency baseline.

Landlords would shoulder registration and inspection fees, with projected revenue based on compliance rates.

Lenssen presented a table that reflects the projected cost to property owners under the rental housing registration and inspection program. Likewise, tables were provided showing the expected revenues for the city at $30/unit and $35/unit rates.

Lenssen said the funds could be allocated towards education on landlord-tenant laws and legislative changes, incentives, and initiatives to protect tenants, such as relocation assistance.

While Lenssen maintained that the program’s intention is not to penalize landlords but rather to work with them in safeguarding the housing stock, the staff made additional recommendations for consideration:

• Failure to comply with the program is a defense to eviction (no license or noncompliance with the inspection program)
• Prohibition on forwarding charges to tenants for requirements of the registry program (i.e. inspection costs)
• Prohibition on retaliation against a tenant for exercising their rights under OMC 5.82
• Cap on late fees (which includes any notice fees)

Councilmembers’ concern

Councilmember Lisa Parshley raised concerns about the inspection aspect, asking if different inspections would be required for health and safety codes and energy efficiency. She is concerned about the extra cost that it could incur by having both of those inspections.

Lenssen said landlords would shoulder the energy audits, but the city would have some ability to pay for repairs through the Community Development Block Grant (CDBG) funds if the property qualifies as renting to lower-income tenants.

Lenssen added that the city intends to establish a certification process. Private inspectors would undergo training to be certified by the city, covering administrative procedures and checklist requirements.

Lenssen said they could also provide or refer them to other needed training or certification.

“That is something that we will continue to work on and talk with the Climate [program] staff, who are better suited to the kind of certifications that would be needed for that program,” Lenssen said.

Addressing Councilmember Dontae Payne’s inquiry about the low support from the landlords for the registry program, Lenssen noted that landlords expressed concerns about increased regulations which they say is an additional burden in terms of time and costs associated with the program.

Darian Lightfoot, director of Housing Homeless Response, connected the proposed registry program to the overarching objective of preventing homelessness, saying that it aims to stabilize rental rates and ensure people can maintain their housing situations.

Mayor Selby shares concerns as a landlord

Mayor Cheryl Selby expressed her reservations about the proposed program’s effectiveness. She pointed out that a similar program had resulted in some landlords selling their properties due to increased regulations.

The mayor was worried that the new program could lead to a loss of housing stock, especially for small landlords. She said it would not achieve affordability and would do the opposite.

“What is the problem we are trying to solve here?” asked Selby, who admitted that she and her husband own some rental properties.

Selby described the proposed rental housing registry and inspection program as “aggressive, punitive, and does not support housing affordability.”

“I would support a registry, if it’s a service to landlords to help us navigate, to help us educate, help us work and have a community of landlords who can talk through problems with each other,” Selby recounted telling Lenssen when they were discussing the program.

“I think we just dumped a whole bunch of regulations on the housing market,” said Selby.