Tacoma committee reviews rental-housing and Landlord Fairness Code overlay after new state law

Tacoma staff told the Community Vitality and Safety Committee on June 12 that city landlords must follow three overlapping sets of rules — Tacoma’s rental housing code (TMC 1.95), the locally adopted Landlord Fairness Code initiative (LFCI, cited in the packet as TMC 1.1 hundred) and the state’s new rent-stabilization law, House Bill 1217, which took effect May 7, 2025.

The committee’s chair opened the briefing by thanking staff: “I appreciate the work staff did to provide us today's briefing,” and said the session was intended to build a shared factual baseline before any policy decisions. Shaqueta Elder, landlord–tenant coordinator for the City of Tacoma’s Community and Economic Development (CED) department, gave the presentation and described the three regulatory layers, compliance challenges and next steps.

Why it matters: The three sets of rules include overlapping protections but differ in timing, enforcement and triggers for tenant relocation assistance. The differences affect notice periods landlords must give, how late fees are calculated, and when relocation payments are owed — all items that affect tenants’ housing stability and landlords’ operations.

Most important facts

- Tacoma’s rental housing code (TMC 1.95) was updated and went into effect on July 23, 2023; it standardizes tenant screening criteria, rental-agreement rules, deposit and fee standards, business-license and health-and-safety requirements.

- The Landlord Fairness Code initiative (referred to in the packet as TMC 1.1 hundred) adds tenant protections that include limits on fees, requirements for notices before increasing rent, relocation-assistance triggers for significant rent increases, prohibitions on certain winter- and school-year evictions, and civil remedies and penalties for violations.

- State law (House Bill 1217) became effective May 7, 2025. The committee was told HB 1217 caps increases at 7% plus the change in the Consumer Price Index (CPI), with a maximum of 10% for nonexempt landlords, allows rent increases no more frequently than every 12 months, and requires written notice 90 days before an increase. HB 1217 also authorizes civil enforcement by tenants or the attorney general for statutory violations.

- Where the three rules differ, staff said Tacoma landlords must follow the most restrictive local provision for rent-increase notices; the city’s landlord-fairness provisions remain applicable inside Tacoma even when state law also applies.

Staff presentation and committee questions

Elder summarized the codes and noted specific areas of conflict between local and state rules: notice periods for rent increases, late-fee calculations, and the threshold and formula that trigger relocation assistance. Staff explained the rental-housing code includes an administrative enforcement process (for civil remedies and penalties administered by city staff), while the Landlord Fairness Code relies primarily on civil enforcement by private parties.

Council members asked for clarifications on several topics: which landlords are exempt from the state cap; how relocation assistance is calculated; who enforces violations; whether data exists about eviction timing and caseloads; and how Tacoma’s local measures compare with Seattle and Olympia. Elder said exemptions are listed in HB 1217 and provided examples discussed in the meeting (new construction, owner-occupied small buildings and certain public housing exemptions were mentioned generally), and that staff could provide a clearer list of common exemptions in a follow-up table.

Relocation-assistance formula: staff restated the local Landlord Fairness Code formula discussed in the packet — for rent increases of 5% to 7.5% the required relocation assistance is 1.5 months’ rent; for 7.5% to 10% it is two months’ rent; and for increases above 10% it is three months’ rent. Staff said tenants have up to 210 days to decide whether to accept a relocation offer tied to a rent increase.

Data and next steps

Staff said a study group overseeing the Landlord Fairness Code distributed two surveys (one for landlords, one for tenants). Responses are due June 16; the raw survey responses will be sent to Evergreen State College for analysis, and a report is anticipated in October 2025. Staff will also continue to track relevant city casework through 311 and the city’s case‑management system, and they plan trainings and information sessions in the third and fourth quarters of 2025.

Staff emphasized they will act as subject‑matter experts and provide analyses of potential unintended consequences of reforms. Committee members requested comparative information about Seattle’s implementation and enforcement practices and asked staff to assemble a clearer side‑by‑side table showing where Tacoma’s local rules would preserve additional tenant protections if the council were to rely primarily on state law.

Ending

Committee members did not adopt any ordinance or amendment at the June 12 meeting. Staff said they will return with additional data, an exemption summary, and a packet of comparative enforcement information; the presenter indicated a target of bringing policy proposals for council consideration later in the year with a goal of a December work plan or ordinance introduction if the council wishes to move forward.