Lawsuit filed in Spokane County seeks to block recently passed rent control bill

OLYMPIA – Lori and Guy Miller envisioned a 14-lot property in Spokane Valley as part of their retirement plan when they purchased it in 2012.

However, they say a new law that caps by how much landlords can increase rents on a yearly basis prompted them to sell the property last year after they determined it was no longer feasible to keep it.

“They’re making it impossible to operate, and that’s bad for affordable housing. That’s terrible for the people that can afford it the least,” Guy Miller said in an interview. “I mean, it sounds like it’s a good thing, it has terrible consequences.”

The law, which took effect last year, caps yearly rent increases at 7% plus inflation or 10%, whichever is less, each year. Landlords will be required to provide a 90-day notice of rent increases. Under the legislation, new construction is exempt for 12 years, and affordable housing managed by nonprofit organizations and public housing authorities is also exempt.

A Washington organization representing mobile homeowners and managers filed a lawsuit late last month to block the state from enforcing a cap on rent increases, which was passed by the Legislature last session.

Mike Faulk, a spokesperson for the attorney general’s office, said that the office is “still reviewing this filing.”

“We look forward to defending Washington law and are confident that this law will be upheld,” Faulk said.

The law also caps rent increases at manufactured housing communities at 5% per year, which the Manufactured Housing Communities of Washington alleged in a lawsuit filed in Spokane County Superior Court is unconstitutional and singles out manufactured homeowners.

“This law isn’t just bad policy, it’s unconstitutional, unworkable, and actively undermining the long-term stability of manufactured housing communities across Washington,” the organization wrote in a statement. “It offers no safety valve, no hardship exemption, and no due process for property owners facing rising costs, emergencies, or infrastructure failures.”

According to the lawsuit, members of the organization with mobile home parks in Spokane County “have been the subject of threatened enforcement actions” by the state. The lawsuit says that some owners have opted to sell their mobile home parks rather than comply with the rent cap requirements.

The Millers are among those who sold their mobile home park after the law took effect. In an interview following the lawsuit, Lori Miller said several of her friends are in the process of selling their properties, too.

Following the lawsuit, Guy Miller said that while their yearly expenses had increased by 22%, the 5% cap on rent increases left them at negative 17% for the year.

“We didn’t want to go bankrupt, so that’s why we had to sell. And it wasn’t our intention to sell, we wanted to keep it for our retirement,” Guy said. “We couldn’t operate like that.”

The couple first explored selling the property to their tenants, as required by a state law passed in 2023. While the residents explored purchasing the property, they ultimately were unable to come to an agreement.

Lori Miller said the couple opted to sell because they “don’t have deep pockets like some other parks do.”

“It’s been a hardship on us, and I’m sure it’s been a hardship on the tenants, as well,” Lori Miller said.

According to the lawsuit, the state has issued cease and desist letters and threatened legal action against park owners in who have issued rent increase notices above 5% that are compliant with previous lease agreements.

The lawsuit alleges Washington’s law capping rents is unique when compared to other states and does not provide exceptions for unforeseen circumstances, and landlords cannot appeal.

The lawsuit is seeking to block the rent control bill from being enforced.