Vicky Rosier: Proposals would hurt Spokane’s market

Spokane continues to see record population growth and there aren’t enough rental homes for everyone who needs one.

In the last 10 years, 13,000 new residents called Spokane home. That’s an increase of over 6%.

We are part of a major influx of new people moving to Washington. Since 2010, our state has seen a sharp population increase of 12%. To keep up with that demand, we need to create about 10,000 new rental homes per year at every price point by 2030.

Unfortunately, we are already starting way behind.

A combination of restrictive zoning and new laws that make it even harder to provide rental housing resulted in the underproduction of 225,642 homes between 2000 and 2015.

The results have predictably been higher prices, fewer housing options, and reduced mobility for people who need rental housing. We urgently need to solve these problems.

The solution is threefold.

First, we must create all types of housing that meets the needs of everyone through investments in public/private partnerships and smart incentives for housing providers that keep rents well below market rate.

Second, we should help keep families in their current homes with short-term rental assistance that can kick in if they are about to fall behind on rent and just need a little help for a few months. A medical bill or unexpected car trouble shouldn’t mean a notice to pay or vacate.

Third, we can create smart polices that give residents the flexibility and time they need to find a new home. Earlier this year, small landlords worked with legislators in Olympia to mandate 120 days’ notice for residents of buildings that will be rehabilitated or rebuilt. This law is an example of a targeted approach of solving a challenging issue we must confront as we manage the extraordinary growth that Spokane faces.

What we already know doesn’t work is creating new rules and fees that drive up the cost of housing and reduce the availability of homes that Spokane desperately needs. Want to see where that leads us? Take a look at Seattle.

A recent study by the University of Washington reported that 40% of landlords in Seattle have left, or are planning to leave, the rental housing market due to onerous city regulations and fees. The result is an overall reduction in housing, making the housing situation worse by the day.

Small landlords – like myself – are providers of mass affordable housing. We barely break even after mortgage, repairs and property taxes. Even little changes to fees and laws have a big impact on us. We can’t absorb costs like big apartment owners can.

So, what do we do? We convert to Airbnb or we sell our extra house or condo and it becomes owner-occupied. Yet another affordable rental home off the market, which puts us that much further away from our 10,000-per-year apartment goal.

That’s why I am concerned about two new proposals in Spokane that would make it harder for landlords to provide rental housing. In one ordinance, the law would require me to pay my tenant if I have to increase the rent more than 5% because of increased operating costs. Remember, in 2018, Spokane property taxes increased on average 10%. Another ordinance, so-called just cause rules, would make it more difficult to remove problem residents who cause ongoing hardship for their neighbors. This proposal takes away the landlords’ ability to alleviate criminal activity or ask problem residents to leave.

Whatever the intent of the idea, the reality is it’s one more law that makes it harder to provide an affordable rental home. When it becomes too hard, it’s easier to get out of the game and stop providing a rental home. That is the predictable result and we’re already seeing it happen on the other side of the mountains.