RUC, rent control dominate discussion among Chamber’s Policy Council
Rent control and road-usage charges were at the top of folks’ minds at the Bellevue Chamber’s most recent Policy Council meeting, as the group welcomed some new members, and received their scheduled update from the Chamber’s Olympia lobbyist, Lyset Cadena.
The New Members:
The Legislative Update:
As the 105-day Olympia legislative session recently kicked off, over 500 bills have already been introduced, with more expected in the coming weeks. The most controversial of which include a rent control bill — which we will touch on below — as well as a bill concerning unemployment benefits and insurance for striking workers. A massive gap in our state budget has also led legislators to discussions of how to increase revenue, which could come to fruition as a wealth tax, statewide payroll tax, increased B&O tax, or something of that nature.
The Meat & Bones:
On the topic of rent control …
Noting that it would prevent rent increases for the first 12 months of a lease, require a 180-day notice for any increase beyond 3%, and cap annual increases at 7%, Kevin Wallace of Wallace Properties warned that the legislation could significantly reduce rental supply, as smaller property owners could leave the market, while larger investors may not create new projects.
“It applies to everything,” he cautioned. “All the mom and pops will have to stop renting their properties, and then the big guys are not going to be able to invest in new apartments. So you're going to have it off both ends: the existing supply goes away and new supply is not coming … It’s the most serious apartment bill I’ve seen.”
On the topic of road-use charges …
For alternative ways to fund transportation, Washington legislators are looking at a potential road usage bill. This bill would be set to start July of 2027, and it would charge 2.5 cents per mile (although it would be voluntary until 2035 for EVs and hybrids). Brad Jones from Visit Bellevue raised equity issues about the bill for the thousands of workers that are the lower earners in our community.
“I don't see a lot owning electric vehicles, because they're not affordable for their lifestyle, and so I just don't understand the thinking in Olympia when it comes to this, because this is basically to refill the gas tax that's not coming in,” he said. “So, I just think there needs to be some equity conversation around this and the impacts, and who it will impact the most.”
As Cadena mentioned, the session is still young, and we are “still anticipating some pretty big bills being dropped.” Stay tuned for a recap of our next Policy Council meeting, and be sure to check out Cadena’s weekly legislative updates on the Chamber blog.