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Council amends anti-displacement ordinance, sets 120‑day notice for large rent increases
Summary
After public comment and staff presentation, the council amended Ordinance 267 to require 120 days' notice for rent increases exceeding a cumulative 3% in any 12-month period and scheduled a second reading for June 16; relocation assistance remains capped at $2,000.
The Mercer Island City Council advanced an amended anti-displacement ordinance at its June 2 meeting, voting to schedule a second reading on June 16 after agreeing to two council amendments. The ordinance implements measures directed by the Growth Management Hearings Board and ties landlord operating requirements to the business-license renewal process for properties in town-center and multifamily zones.
Principal Planner Adam Zach outlined the ordinance and the displacement risk evaluation that prompted it, saying the ordinance focuses on renter, low-income and cost-burdened households in areas where zoning changes could increase displacement risk. Zach described the core elements: landlord certification at license renewal; an advanced-notice requirement for rent increases over 3%; relocation assistance for eligible low-income tenants in specified relocation events; a dispute-resolution process; and misdemeanor penalties for violations.
"The Residential Landlord Tenant Act... caps relocation assistance at $2,000," Adam Zach said, summarizing state-law limits and the ordinance's reimbursement structure that allows landlords to apply for city reimbursement for half of that amount.
Resident Stephanie Ford urged caution with an extended notice period. "A six-month notice does not provide six-month availability," she said, arguing longer notice may create timing uncertainty without increasing actual housing availability and could push renters to seek housing off-island.
During council deliberations Council Member Androl moved to amend the ordinance to reduce the advanced-notice requirement for rent increases over 3% from 180 days to 120 days; Council Member Reynolds then proposed clarifying language to make the 3% threshold cumulative in any 12-month period. Both amendments passed on roll-call votes, each recorded as unanimous (7-0). The council then set a second reading of the amended ordinance for June 16.
Key operational points in the ordinance as discussed by staff include: the 120-day (amended) notice requirement for increases exceeding 3% in a 12-month period; a $2,000 cap on relocation assistance for eligible low-income tenants, with a city reimbursement mechanism for half of that amount; a dispute-resolution process handled by the hearing examiner with a 30-day decision window; and misdemeanor fines up to $500 per offense per day for violations. The ordinance applies only in the town-center and multifamily zones and would be implemented with outreach to landlords and updates to the Department of Revenue licensing portal if adopted.
