Protect Renters from Huge Rent Increases - Bellingham

Initiative 2023-02: Economic Displacement Assistance

Status: Passed & In Effect

Why This Policy Matters

Rising rent isn't just an abstract economic issue—it affects families and individuals in very real ways. In Bellingham, the combination of low vacancy rates and increasing housing costs forces many renters to choose between absorbing a steep rent hike or facing the disruptive and costly process of relocating. Studies show that even moderate rent increases can lead to a significant rise in homelessness, as the added expenses—such as deposits, first/last month's rent, and various fees—can quickly overwhelm household budgets. This initiative ensures that the financial burden of sudden, significant rent hikes is shifted from tenants to landlords.

How Economic Displacement Assistance Works

Eligibility:

Tenants qualify for relocation assistance if they meet the following criteria:

  • Substantial Rent Increase: Their rent or associated housing costs increase by 8% or more within a 12-month period.
  • Timely Request: They submit a written request for relocation assistance within 45 days of receiving the rent increase notice.
  • Relocation Deadline: They relocate within a designated 5-month period following receipt of the assistance.

Support Provided:

Once a tenant qualifies, the landlord is obligated to provide relocation assistance calculated as the greater of:

  • Fair Market Comparison: Three times the current fair market monthly rent for a comparable unit in Bellingham, or
  • Tenant's Current Rent: Three times the tenant's existing monthly rent.

This assistance is intended to cover moving-related expenses, including:

  • Moving costs and labor,
  • Deposits for new housing (security, utility, etc.),
  • First and last month's rent,
  • Any applicable fees such as pet fees.

Mandatory Relocation and Repayment:

Relocation assistance is provided exclusively to help tenants cover the costs of relocating when a significant rent increase forces them to move. If a tenant opts to remain in the dwelling unit after receiving relocation assistance, they are required to:

  • Repay the relocation assistance, and
  • Begin paying the increased rent as specified in the landlord's notice.

This provision ensures that the benefit is specifically targeted to tenants who are forced to relocate due to abrupt rent hikes.

Key Benefits

Preserves Market Flexibility:

The initiative does not restrict how much a landlord can charge. Instead, it reallocates the financial impact of a steep rent hike so that tenants aren't left to bear the full cost of relocation.

Ensures Tenant Stability:

By providing targeted financial support for moving, the policy helps prevent displacement and reduces the risk of homelessness throughout Whatcom County. Tenants who are forced to relocate due to sudden rent increases can access the assistance they need, while those who remain will repay any assistance received and continue with the adjusted rent.

Proven Success Elsewhere:

Similar programs in cities such as Seattle and Portland have delivered essential financial support to hundreds of renters without disrupting housing markets. Bellingham's initiative builds on these successful models.

Enforcement & Accountability

Even if local authorities aren't actively enforcing the ordinance through routine monitoring, several safeguards ensure tenant protection:

Legal Recourse:

Tenants retain the right to pursue legal action if a landlord fails to provide the required relocation assistance. This includes the potential to claim damages up to twice the amount of the assistance, along with recovering actual costs and legal fees.

Community Oversight:

Advocacy organizations, such as Community First Whatcom, are monitoring compliance, advising tenants on their rights, and prompting landlords to adjust practices to avoid triggering the assistance requirement. This community involvement adds an extra layer of accountability.

City Reporting and Future Enforcement Potential:

The ordinance requires landlords to notify the city of all requests for and payments of relocation assistance. This transparency creates a record for accountability and lays the groundwork for enhanced enforcement if needed.

Injunctive Relief and Civil Infractions:

The city is authorized to issue notices of civil infraction and order injunctive relief, with escalating fines for repeat violations. These measures help ensure that any non-compliance is addressed promptly.