From A Seattle Housing Provider: Don’t Extend and Expand Eviction Ban
I own and manage rental property in your area. I urge you not to vote for the suspension and/or forgiveness of rental payments from tenants to landlords due to the Covid-19 lockdown. The lockdown is unfortunate for everyone but the economic ramifications should not be disproportionately carried by landlords.
As housing providers our responsibilities have not gone away— providing a place to live that meets the city’s stringent Rental Registration & Inspection Ordinance (RRIO) requirements, paying Seattle Public Utility bills, paying property taxes, and paying mortgages. In fact, our responsibilities continue to increase. As an example, this year my property taxes went up by 21%. I must collect a full 2 months rent just to pay the property taxes.
I have read that banks are delaying mortgage payments for 3 months but this does not mean the banks are forgiving the mortgages — the missed mortgages are due as a balloon payment at the end of the 3 month period. I contacted the city and was told that my property taxes are not being suspended and are still due by April 30th.
As housing providers we entered into binding agreement with our residents. Both sides were aware of their responsibilities and agreed to the terms of the leases. Now both sides need to follow through. As a housing provider I rely on rent in order to meet my obligations. Please vote down any suspension or forgiveness of rent in Seattle. Without your help the housing crises will only get worse as landlords will be increasingly unable to meet the city’s RRIO criteria and will be unable to pay utility bills, property taxes and mortgages.
Thank you for your consideration.
Gonzalez Proposal Damaging, Morales Resolution Just Politics
Not that long ago I got a few emails and texts telling me that Seattle City Councilmember Tammy Morales is proposing a moratorium on paying rent in Seattle. After swearing a few times (I had just finished a lengthy summary of eviction actions across the country), I thought, “It never stops!” But here’s the good news: Councilmember Morales is just making noise. Her resolution doesn’t have any effect. What’s she’s asking for is action from Governor Jay Inslee and President Donald Trump. Her resolution doesn’t make law, it calls for the City’s lobbyists to send a message. Here is the action that the Council is likely to approve on Monday (you can read the full text here):
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEATTLE THAT:
Section 1. The Seattle City Council calls on Governor Inslee:
A. To use emergency powers to impose an immediate moratorium on residential and commercial rent payments, such that no Seattleite should be required to pay rent during this health emergency or accumulate debt for unpaid rent; and
B. To call on federal legislators and President Trump’s administration to impose an immediate moratorium on residential and commercial mortgage payments, such that no owner of Seattle property should be required to pay mortgage during this health emergency or accumulate additional debt for unpaid mortgage payments.
Councilmember Morales’ Proposed Resolution
You’ll notice a lot of calling going on in this resolution. It has no effect. While it is an unhelpful distraction, in some ways if it were reality upon passage, many people could breathe a sigh of relief. Suddenly nobody would have to pay rent or mortgage; residents and housing providers could just let everything slide until the emergency is over, whenever that is. If nobody has to pay anything during that period, then, conceivably nobody gets hurt.
However, Councilmember Lorena Gonzalez’ proposal to extend and expand the current eviction ban is real, would have effect, and would be disastrous. You can read more about that proposal here and you can send a message to council here. Gonzalez’ proposal needs all of our attention now, not Morales’ effort to try to be like San Francisco.
Must See TV: Multifamily Policy Update COVID-19 Edition
You’ve always had lots of time on your hands, but now you realize just how much that time really feels like when you’re confined at home. We have something to push to the top of your watch list of old movies, streaming series, and Facebook videos: a riveting webinar hosted by the Seattle Multifamily Team at Kidder. While it may not be as compelling at 2001: A Space Odyssey or as funny as A Bit of Fry and Laurie, you really should watch it.
Here We Go: Sawant Uses Crisis to Call for Rent Control
Rent control in the United States began with an emergency: World War II. New York and many other cities around the country still have it. Not wasting the chaos in the moment, Councilmember Sawant has written a letter to Governor Jay Inslee.
I urge you to immediately enact a rent freeze through the rest of 2020. Additionally, I urge you to suspend all rent, mortgage, and utility payments for as long as the pandemic lasts.
Sawant Rent Control Letter
You can read the whole letter here:
Update: No Construction Allowed During “Stay at Home” Order
From the plain language in Governor Inslee’s “Stay at Home” proclamation, it seemed like residential construction was exempted, and that residential construction — building housing — is essential and could continue. That’s what we posted earlier, and it’s what the Seattle Times reported.
Inslee’s order contained a wide-ranging exemption for construction of health-care facilities, transportation infrastructure, housing and other “essential” projects.
Seattle Times, March 24, 2020
But yesterday, the Governor issued a memo clarifying this issue.
In general, commercial and residential construction is not authorized under the Proclamation because construction is not considered to be an essential activity.
Governor’s Memo, March 25, 2020
The order apparently considers non-profit housing essential as well as toad work or construction on public facilities. Some companies had voluntary shut down. Still this will have a big impact on housing production all over the state and will complicate recovery when the emergency is passed.
