By our count, more than 70 bills were introduced in state legislatures in 2023 seeking to adopt statewide rent control, overturn existing laws preempting local governments from adopting rent control or tighten existing rent control laws. Several rent control measures were also introduced at county and municipal levels across the country. Even the federal government got in on the action, with a proposal out of the Federal Housing Finance Agency (FHFA) asking for public comment about regulating rents on mortgages backed by Fannie Mae and Freddie Mac. NMHC and others in the housing industry are working to defeat this effort.
On the positive side, few bills in state legislatures gained traction thanks to the good work being done by state and local housing industry associations. In fact, two states – Florida and Montana – adopted or tightened rent control preemption laws. Thirty-two states without rent regulation now maintain statewide preemption.
One threat we are watching closely is the alarming trend at the municipal level, with rent control advocates pursuing workarounds to statewide preemption. In Bellingham, WA, a ballot measure was adopted requiring property owners to pay relocation assistance equal to three months’ rent when seeking a rent increase of more than eight percent. Likewise, a successful ballot measure in Tacoma, WA, requires property owners to provide at least six months’ notice before raising rent and provide significant relocation assistance if rent increases exceed five percent. The Oregon Supreme Court found that a similar law in Portland did not violate the state’ preemption on cities enacting rent regulation. These “relocation assistance” workarounds may serve as models for advocates to pursue in other jurisdictions where rent control is preempted.
Source: NMHC | 2024 Rent Control Outlook
