AN ORDINANCE relating to new residential rental tenancies; giving a tenant a right of first refusal of a new tenancy after the expiration of a tenancy for a specified time; requiring a landlord to have just cause for declining to give a tenant the right of first refusal; requiring notice in advance of asserting just cause; creating a private right for action for the tenant; providing a defense to eviction when a landlord fails to give a tenant a right of first refusal; allowing a tenant to rescind a termination agreement; and amending Sections 7.24.030, 14.08.050, and 22.206.160 of the Seattle Municipal Code.
Agenda Item five Council Bill 120090 An ordinance relating to new residential rental tenancies. Giving a tenant a right of first refusal of a new tenancy after the expiration of a tenancy for a specified time. Requiring a landlord to have just cause for declining to give a tenant the right of first refusal requiring notice in advance of asserting just cause. Creating a private right for action for the tenant. Providing a defense to eviction. When a landlord fails to give a tenant a right of first refusal, allowing a tenant to rescind a termination agreement and amending section 7.24.30 14.0 8.050 and 22.20 6.160 of the Seattle Municipal Code. The committee recommends the bill pass with a divided report with Council member Sergeant Morales and Lewis in favor and Council Peterson opposed. Thank you, Madam Clerk. Councilmember Sala and Morales is customer Morales going to take the lead on addressing this one or are you just one? Oh, since we're both sponsoring, I'll speak as committee chair then of course, Councilman Morales and also Luis, I'm sure will want to add points. Perfect. Take it away. Thank you. This bill, as I said, is jointly sponsored by Councilmember Morales, his office and my office and co-sponsored by Councilmember Lewis. This bill creates a right of first refusal for renters to renew their lease unless a landlord has a just cause for refusing to renew the lease. As I've said before, this issue has been discussed by the Sustainable Living and Renters Rights Committee since March, and I really appreciate members engaging on this issue and appreciate being able to work alongside the Councilmember Morales office on this bill. We've heard as a committee from two panels of impacted renters and renter rights activists. We also discussed two previous draft of the legislation developed by our two offices, and through those discussions and technical feedback, it has become clear that what renters really need in these situations is the right of first refusal, where a landlord is required to give the current tenant the first chance to sign a new lease before offering that lease to any other renters unless there is a just cause. When there is need a new lease long before there's any question of eviction. I mean, we've heard from hundreds of renters who've been in the situation or who are about to be in this situation and who are strongly advocating for the passage of this bill to make sure that Seattle, just those protections cover all renters. Few renters who are told by their landlord that they will not have their lease renewed are going to refuse to leave because the law says they cannot be evicted because in real life, renters will end up doing what's called self eviction, which is starting to look for a new place to live, even though they know that it's unjust and that they cannot be evicted because understandably they don't feel confident with having to potentially fight it out in court. And in the course of discussing our bill in the committee, we heard from dozens of renters who called in for public comment and several who testified at the committee table who all recognize this legislation as basic common sense. And I wanted to express my gratitude to all the rank and file renters, not only those who testified publicly, but also who signed the petition community petition release from my office and just hundreds of rank and file renters who have spoken up about this issue. But I wanted to quote Lee, who is a Starbucks worker and a trans activist who also testified at our committee who said, quote, As a barista in this city, I struggled for months to find an affordable apartment to rent. Now, the apartment that I moved into has become less affordable each time I renew Molly's because they raise the rent every year. I'm afraid each time my lease is up that they will refuse to renew my lease, essentially putting me on the street and quote and maddeningly whom I quoted earlier, a public school educator who spoke in favor of the ban on solo evictions, but also spoke in favor of this bill, who said for the first time that I was evicted. It was after living in the house along with five roommates through two full six month leases without any problems filling. Our rooms are paying rent on time. After the conclusion of the second lease, however, our landlord abruptly decided that he would not renew our lease and that we would all be having to move out. The second time I was evicted, my landlord told us he was planning to convert our unit into an Airbnb and that we would not be able to renew our lease despite having no problems with us as tenants, unquote. So this bill puts the right of first refusal into the part of Seattle's law, which is Chapter 7.24 of the Seattle Municipal Code. The Seattle Department of Construction and Inspections has the power to enforce. That means that if the landlord does not offer a new lease and does not have a just cause 60 to 90 days before the end of the lease, that's called the date that they can back up in court. Then CCI has the power to follow up, investigate the other landlord that they either need to offer a new lease or present a just cause not do. Is DCA going to issue a citation or a notice of violation and started showing fines if a landlord refuses to follow the law, all this can happen before the lease ends . So ideally these issues can be resolved and the renter can get a new lease without anyone going to eviction court. And besides discussing with renters, we also discussed in my office with some landlords who contacted us that as I resigned from the council this morning, several small landlords we have spoken to support renters like legislation. Some even signed our community petitions, but some landlords that we talked to oppose this legislation. One of the landlords made an argument to us against this legislation where he said they are that some renters are a quote unquote headache and the end of the lease is a convenient time to get rid of the so-called headache renters. But the fact is, over the last seven years, my office has supported many renters facing abuse from their landlord. So when I hear claims like renters are a headache, I would ask what that means. I mean, this legislation allows landlords to refuse to a new lease if they have a just cause to refuse to do so. But, you know, it's a question of having been complying with Seattle just cause the list of just causes to review refused to renew this lease, not just any headache. So, in other words, if a renter reports a landlord to the Seattle Department of Construction inspections or housing code violations or violating the renters rights, that might be a headache for the landlord, but it is completely legal and just for the rent out you seek redressal. And it's not a just cause to kick out the renter. And as I said before, it is not a hypothetical example. This is a case that we've seen happen many times. Just in closing and the initial remarks, of course, I speak in closing again. But but last week's Councilmember Morales, his office in my office distributed four technical amendments to this legislation, clarifying the language. The amendments are attached to the agenda, and none of them make any substantive change. And after Councilmember Morales and Lois make introductory remarks, we can move those technical amendments. If Dr. Morales wants to move those amendments, that's. Thank you. Great. Thank you so much, Councilmember. Silent for the initial introduction of that particular bill, Councilmember Morales or Lewis, do you have any additional comments you'd like to make? Yeah. Morales, please. Q I'll be brief. I do think, Councilmember Salmon, for providing a good overview of the technical aspects of how this will work. And I think, you know, for 40 years, tenants have benefited from some kind of just cost protection in the city, which is has been great. Those protections for no guarantee that their home will continue to be their home once their current lease ends. And that's what we are trying to solve for here. So this bill brings, I think, the best elements of the two previous bills that councilmembers and I were working on, and much like the prior legislation, proposes a really simple fix that will ensure all tenants, regardless of where they are in their lease term or what kind of contract they have, that they'll be protected from a threat of no fault, no cause removal from their homes. It provides tenants the first right of refusal to either stay in their home on a new lease or a month to month lease or to voluntarily leave. And it also allows landlords to pursue removal if they have reason to cause reason for doing so. And then lastly, it does strengthen the tenants bargaining power by allowing them to rescind a mutual this termination in the case where they were pressured into signing one. So this is another way to make sure that we are keeping folks, our neighbors who rent, keeping some protections for them, extending protections from them, and also ensures that more renters in our city will benefit from tenant relocation assistance that is offered by the city. So, you know, as we as we start to move through recovery, as the emergency tenant protections are lifted, it's important that our neighbors who rent continue to receive some stability. And this is another way for us to make sure that that happens. I do want to thank Devon Silver now on my staff. He's been a trooper, really making sure that all these different tenant protections, the work that we're doing to try to protect our homeless neighbors all reflect what we are hearing from community and from our our houseless neighbors and from our renters in communities. So I really want to thank him for helping Shepherd bring their ideas into our council office and before full council today. And he is all I have, Councilman. That's all, Alex. Thank you so much, Councilman Morales. Because we're. Lewis, please. Thank you, Madam President. I'm going to be brief on this and rest mostly on my comments that I made a committee. You know, I did have the opportunity then to address that. Several of the issues that have been raised by a lot of folks that have concerns over this bill are are mostly. Addressed by the. Fact that with with just cause there can be notice provided. So it's not a, you know, if you still do not want to, for whatever reason, renew a lease. So this is a pretty reasonable change to make sure that the spirit of our just cause eviction protections are defending tenants when they. Are. Seeking a renewal to roll their tenancy that they've depended on and the place where they have found community and living as our neighbors. And to continue to do that, I think we in a lot of ways tend to take for granted the the investment the tenants make when they really put down roots and become part of the neighborhoods in our city. And this is really making sure that we continue to hold tenants as as equal members of our neighborhoods and not somehow folks that that are more fungible and that don't deserve the kind of security that folks who own homes can enjoy. And I think this gets us one step closer to that. And I'm happy to support this. And I don't really have anything else to add, but the co-sponsors did not add. So in the interest of time, I think I'll leave it there. Thank you so much, Customer Louis. Are there any additional comments before we close out debate? Actually, we're not going to close that debate because we have four amendments we need to consider. So I. I got ahead of myself there. Okay. So looks like there's no additional comments from the sponsors of the bill. So now we're going to go ahead and consider we have four different amendments to consider, and I am going to hand it back over to council. So want to give me some direction on who is going to advance those amendments. But it doesn't matter to me. Councilmember Rawlins, did you want to move the first three amendments and I'll move the last one. Sure works for me. Shall I? I move. Amendment 1/2. All right. It's been moved and seconded to adopt a proposed amendment one where. Morales, would you like to describe Amendment One? Sure. As I said, this is a technical amendment that acknowledges that federal law supersedes local law in this matter. Three. Any comments or questions on proposed Amendment one? Hearing none. Will the court please call the rule on the adoption of Amendment One? Or as I. Lewis. I. Morales Yes. Mosquito I. PETERSON Hi. Suzanne. Yes. Council President Gonzales. I. Seven in favor and then oppose. The motion carries the amendment is adopted and the amended bill an amended bill is before the Council proposed amendment to Councilor Morales. I move amendment to. Is there a second chicken? It's been moved and seconded to amend the bill is presented on amendments to. I'm going to hand it back over to Councilmember Morales to address Amendment two and then we'll take comments. Sure. This amendment just clarifies that a new lease will start on the day following the expiration of the previous lease. Pretty straightforward. Are there any additional comments on proposed amendment to. Hearing none will accept. Please call the role on the adoption of amendment to. Whereas. I. Lewis. I. Morales. S. Was scary. I. Peterson I. Want yes council president Giddens follows. I. Seven and seven unopposed oppose. The motion carries the amendment is adopted and the amended bill is before the council. I'm going to hand it back over to Councilman Morales for Amendment three. No. I move Amendment three. Is there a second? Second. It's been moved and seconded to amend the bill. Wanted an Amendment three. So Casmir Morales I'll let you quickly address it and then we'll take comments, if any. Sure. This just clarifies that a landlord and tenant can agree to a new lease before the 60 to 90 day window mandated in this legislation. Any comments or questions on proposed Amendment three? Harry. None will accept. Please call a vote on the adoption of Amendment three. Whereas I. Lewis. I. Morales as mosquera. I. Petersen I. So want. Yes. Council President Nicholas. I. Seven in favor and unopposed. The motion carries. The amendment is adopted and bill is before the council. Council Member So once you have amendments, once. I move amendment for. The second. Second. It's been moved and seconded to amend. The bill is presented on Amendment four because they were silent. Would you like to address Amendment four? Yes. This is also a technical amendment it refutes if it removes redundant language about how mutual termination agreements work when the renter has a housing voucher. Are there any additional comments or questions on proposed amendments for. Hearing that all the parties call the roll on the adoption of Amendment four. Whereas I. Lewis. Hi. MORALES Yes. Must to. I. Peterson. Hi. Swan. Yes. Council President Gonzales. I seven in favor and unopposed. The motion carries, the amendment is adopted and the amended bill is before the council. Okay. That does cover all of the proposed amendments. So we now have a fully amended bill before the Council. Are there any additional comments on the bill as amended? Councilmember Peterson, please. Thank you. Council President I think I would have been able to support this legislation. Council 4120090 Especially with these technical and these good technical amendments today. If a similar state law had not recently passed, but a similar state law has recently passed House Bill one, two, three, six and in my opinion, counts 4120090 is preempted by the state law, which includes but is not limited to that House Bill 1236. As I understand it, local laws are generally preempted by state laws that conflict on the same subject matter, even if the state law does not expressly include a preemption clause. So it's not clear to me why the city council is proceeding to adopt a city law that could burden the city with substantial legal risk. So consistent with my vote at the committee level, I'll be voting no on Council Bill 1290090 because of the concerns of preemption in state government. Thank you. Thank you. Councilmember Peterson, are there any other comments about the bill as amended? Right. I'm not seeing any hands raised because, remember, Sam wants more Alice or Lewis. Any closing remarks? I do the closing remarks, but I'm going to do all this to. She's saying she doesn't have anything else she wants to say. And I'm not seeing Councilmember Lewis. So you get the last word, councilmember silent and then we'll call this bill to a vote. Okay. Thank you, Contreras and Gonzalez. And thank you again to Member Morales for your office's work on this alongside our office. It's really important that we have brought this bill to potential passage in a few minutes. And thank you, Councilmember Lewis, for co-sponsoring. This bill is part of the overall important victories that renters are winning today in Seattle as protection from unjust and devastating eviction. With this bill, we are closing the loophole, as Morales said, for decades left renters on external leases like a one year lease or a six month lease with zero protections at the end of the lease . And, you know, we we in this council meeting, we passed legislation providing renters with additional eviction protections for rent due to COVID eviction protections for children during the school year. And we've urged the mayor and the governor to extend the eviction moratorium. These are all crucial victories. But we also need to be clear that eviction is only one issue renters face. It's a very crucial issue. But in addition to that, we also know that renters are facing unaffordable rent increases. And as far as the corporate landlord lobby is concerned, it's going to be business as usual. Now that vaccinations have been available and the economy is starting to go back to what seems like a little bit of normalcy since the last year. But nationwide, we're seeing every time average rents increase. And this was pre-pandemic, every time average rent increase by $100. Homelessness increases by 15%. The staggering causal link between rent increase and homelessness increase and rent in Seattle have increased by $100 many times over. So as I've informed the city council before, my office has prepared several renters rights bills related to rent increases. Including rent control that we will be bringing to the Sustainability and Renters Rights Committee later this month. But first, what we are. What we have is a bill that we will introduce requiring landlords to give renters six months notice for rent increases, which has been a successful measure in cities around the world. So we won't be charting new terrain here. We will be following other cities that have already passed such a law. We also have sent to the City Attorney's Office for introduction a bill that creates relocation assistance for renters who are forced to move by unacceptable rent increases. And as I said, we showed a draft rent control bill that will limit rent reasons to more no more than the rate of inflation and is devoid of the many problematic loopholes that laws in New York or California have introduced, which end up affecting renters badly and also damages the credibility of the ability of rent control to actually provide protections. For the last several years, I've called for a renter's bill of rights centering around rent control, but also including all these other issues. And I thank Morales for also calling for such a bill of rights that is really important. And once again, I want to thank our in our office everyone in my office specifically want to recognize Eduardo and Jonathan Rosenblum, who were part of really making sure that we had everything ready and making sure that we had all our technical work and our organizing work ready to go. I wanted to thank Adam, Jim Koski and Nick Jones, and sarcasm are also and also the volunteers who have been working with our office and talking to renters around the city. I wanted to thank everyone who called in support of the renters rights bills today and in the previous committee meetings. And I urge everybody who is watching to join us at the next meeting of the Sustainability and Renters Rights Committee on June 22nd to begin the discussion of the upcoming Renters Rights Bill. Thank you. It's so much conspiracy and that does conclude debate on this particular bill. So I'm going to ask that the clerk please call the role on the passage of the amended bill. Whereas now. Lewis. Yes. MORALES Yes. Mesquita I. Peterson So. Excellent. Yes. Council President Gonzalez. High. Five in favor. Two opposed the bill passes as amended and the chair will sign it. Will the caucuses affect my signature to the legislation on my behalf? Other business? Is there any other further business to come before the Council? Hearing than colleagues. This does conclude the items of business on today's agenda. Our next regularly scheduled city council meeting is on Tuesday. I'm sorry, is that right? Tuesday? I think it's a monday. Monday, June 14th. Monday, June 14th, 2021 at 2:00 PM. I hope that you all have a wonderful afternoon. We're adjourned. Thank you so much. Thank you. Bye bye.