Tacoma City Council Considers Changes to Tenant Protections

City officials in Tacoma are evaluating potential revisions to existing tenant protections as they seek to address concerns about the local rental market’s stability. This initiative follows the passage of the Landlord Fairness Code Initiative (LFCI) in 2023, which aimed to safeguard families and tenants while simultaneously reducing homelessness. The LFCI introduced some of the state’s most robust renter protections, including caps on late fees, prohibitions on winter and school-year evictions, and requirements for landlords to cover relocation costs when rent increases exceed 5%.

During a study session on Tuesday, city council members discussed amendments to the LFCI in response to challenges that have arisen since its implementation. Although the LFCI received considerable support from advocacy groups like Tacoma For All, it has also been met with criticisms regarding its impact on the rental market.

One of the proposed changes includes raising the late fee cap for tenants from $10 to a maximum of $75. Another amendment suggests reducing the notice period for eviction due to damages or other reasons from two written notices over a 210 to 180-day period to a single 120-day written notice. The council is also contemplating shortening the eviction moratorium from five months to three months during the winter season, a move some council members believe may not adequately protect vulnerable populations.

Council Member Jamika Scott advocated for extending the moratorium from November 15 to March 15, arguing that this timeframe aligns better with the area’s cold season.

Concerns have been raised regarding the LFCI’s unintended consequences, particularly its financial impact on low-income housing providers. Reports indicate that these providers are facing increased budgetary strain, with some landlords citing a rise in property damage and longer vacancies. Additionally, landlords with fewer units feel disproportionately affected by the financial strain caused by prolonged unpaid rents, leading to more stringent tenant screening processes.

Despite the initial voter support for the LFCI, the Tacoma City Council retains the authority to amend or repeal the initiative two years after its adoption. Some city leaders argue that changes are necessary to prevent further financial difficulties for affordable housing providers, who report that tenants are increasingly falling behind on rent payments.

The council is scheduled to revisit the LFCI for a first reading on December 2, 2023, with a final vote anticipated on December 9, 2023. As Tacoma navigates these complex issues, the outcome will likely influence not only the local rental market but also the lives of many residents.