Low-income housing company sues Seattle, claims ‘toxic cocktail’ of renter laws
Low-income housing provider sues Seattle
A low-income housing company has sued the City of Seattle, claiming that a series of renter protection laws has created an unsustainable environment for affordable housing operators.
SEATTLE - A low-income housing company has sued the City of Seattle, claiming that a series of renter protection laws has created an unsustainable environment for affordable housing operators.
The company, GRE Downtowner LLC, calls the regulations a "toxic cocktail" that has severely impacted their ability to maintain their property and generate enough revenue to cover operating costs.
The lawsuit targets six ordinances passed between 2018 and 2022, which were designed to protect vulnerable tenants. These include measures like the 180-day rent increase notification and eviction bans during the winter and school year.
The 254-unit "rent-stabilized" complex at the heart of the lawsuit, located in Seattle’s Chinatown International District, is owned by GRE Downtowner. The building, which is over a century old, underwent more than $20 million in renovations in 2012. According to the company, prior to 2018, the revenue from rent was enough to cover operating costs.
However, the housing provider claims that the ordinances have led to decreased occupancy rates, lower rent collections, and rising maintenance and security expenses. GRE Downtowner also argues that the complex has become unsafe due to an inability to properly screen tenants or manage the building.
The 41-page legal complaint alleges that the City of Seattle is responsible for damages caused by the ordinances and seeks compensation to cover losses.
The City of Seattle has not yet responded to the lawsuit.
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