v.
City Of Seattle, Resp/x-app
THE COURT OF APPEALS FOR THE STATE OF WASHINGTON
RENTAL HOUSING ASSOCIATION; No. 82469-4-I ELENA BRUK; SCOTT DOLFAY; CJD INVESTMENTS, LLC; ZELLA DIVISION ONE APARTMENTS, LLC, PUBLISHED OPINION Appellants, v. CITY OF SEATTLE, Respondents.
ANDRUS, A.C.J. — In early 2020, the Seattle City Council passed three ordinances: one limiting a landlord’s ability to evict a tenant for nonpayment of rent during three winter months, one prohibiting a landlord from evicting a tenant for nonpayment of rent for six months after the end of the COVID-19 civil emergency, and one requiring the landlord to accept installment payments of unpaid rent for a certain period of time after the end of the civil emergency. The Rental Housing Association of Washington (RHAWA) and several landlords challenge the constitutionality of these ordinances.
On summary judgment, the trial court concluded that a provision banning the accrual of interest on unpaid rent during the civil emergency and for one year
Citations and pin cites are based on the Westlaw online version of the cited material. No. 82469-4-I/2 thereafter was preempted by state law. It upheld the remaining provisions of the three challenged ordinances.
We conclude that the ordinance prohibiting a landlord from evicting a tenant for nonpayment of rent for six months after the end of the civil emergency, without affording the landlord the opportunity to challenge a tenant’s self-certification of a financial hardship, violates the landlord’s right to procedural due process. We otherwise affirm.
FACTUAL BACKGROUND
In February 2020, the Seattle City Council enacted Ordinance 126041, now codified as SMC 22.205.080, precluding certain evictions during the winter months (“winter eviction ban”). The winter eviction ban provides:
[I]t is a defense to eviction if:
A. The eviction would result in the tenant having to vacate the housing unit at any time between December 1 and March 1; and
B. The tenant household is a moderate-income household as defined in Section 23.84A.016; 1 and C. The housing unit that the tenant would have to vacate is owned by a person who owns more than four rental housing units in The City of Seattle. For purposes of this subsection 22.205.080.C, "owns" includes having an ownership interest in the housing units. SMC 22.205.080(A)-(C). The stated goal of the ordinance is to “protect the public health, safety, and welfare by reducing the number of individuals and families
1 SMC 23.84A.016 defines “[h]ousehold, moderate-income” as “a household whose income does not exceed median income.” SMC 23.84A.025 defines “median income” as median family income for the area as determined by the U.S. Department of Housing and Urban Development (HUD) The Landlords presented evidence that under HUD regulations, the median family income in Seattle, Washington, in 2019 was $108,600.00 for a four-person household.
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entering into homelessness during the wintertime” and to lower “the number of people at higher risk of developing exposure-related conditions.”
In March 2020, the COVID-19 pandemic began. Governor Jay Inslee and Seattle’s then Mayor Jenny Durkan issued emergency declarations banning residential rental evictions. Shortly thereafter, the City Council passed Ordinance 126368 codifying the mayor’s COVID-19 eviction ban. SMC 22.205.100 provides:
A. Subject to the requirements of subsection 22.205.100.B, it is a defense to eviction if the tenant fails to pay rent due during the civil emergency proclaimed by Mayor Durkan on March 3, 2020, [that] the tenant has suffered a financial hardship during the civil emergency proclaimed by Mayor Durkan on March 3, 2020, and the reason for terminating the tenancy is:
1. The tenant fails to comply with a 14-day notice to pay rent or vacate pursuant to RCW 59.12.030(3) for rent due during the civil emergency proclaimed by Mayor Durkan on March 3, 2020; or
2. The tenant habitually fails to pay rent resulting in four or more pay-or-vacate notices in a 12-month period . . . .
B. The tenant may invoke the defense provided in subsection 22.205.100.A only if the tenant submits a declaration or self- certification asserting the tenant has suffered a financial hardship and was therefore unable to pay rent during the civil emergency proclaimed by Mayor Durkan on March 3, 2020. Mayor Durkan extended the civil emergency and eviction moratorium to January 15, 2022. 2 After taking office in January 2022, the newly elected mayor, Bruce Harrell, extended the moratorium to February 14, 2022, 3 then again to February
2 City of Seattle, Office of the Mayor, Executive Order 2021-07, Executive-Order-2021-07- Continued-Extension-of-COVID-19-Closures-and-Relief-Policies.pdf (seattle.gov) 3 City of Seattle, Office of the City Clerk, Executive Order 2022-01, http://clerk.seattle.gov/search/results?s6=executive+adj+order&l=200&Sect1=IMAGE&Sect2=TH ESON&Sect3=PLURON&Sect4=AND&Sect5=CFCF1&Sect6=HITOFF&d=CFCF&p=1&u=%2Fse arch%2Fclerk-files&r=3&f=G.
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28, 2022. 4 This provision precluded residential evictions in Seattle if tenants could establish they suffered a financial hardship as a result of the pandemic. The Landlords do not challenge this eviction restriction.
The City Council, however, took the eviction ban a step further. Recognizing that the “economic impacts from the COVID-19 emergency are likely to last much longer than the civil emergency itself,” on May 4, 2020, the City Council enacted Ordinance 126075, extending the eviction ban for an additional six months after the mayor lifts the eviction moratorium (“six-month eviction ban extension”). Ordinance 126075, codified as SMC 22.205.090, is similar but not identical, to SMC 22.205.100. It provides:
A. Subject to the requirements of subsection 22.205.090.B, it is a defense to eviction if the eviction would result in the tenant having to vacate the housing unit within six months after the termination of the Mayor's eviction moratorium, and if the reason for terminating the tenancy is:
1. The tenant fails to comply with a 14-day notice to pay rent or vacate pursuant to RCW 59.12.030(3) for rent due during, or within six months after the termination of, the Mayor's residential eviction moratorium; or
2. The tenant habitually fails to pay rent resulting in four or more pay-or-vacate notices in a 12-month period . . . .
B. The tenant may invoke the defense provided in subsection 22.205.090.A only if the tenant has submitted a declaration or self-certification asserting the tenant has suffered a financial hardship and is therefore unable to pay rent.
4 City of Seattle, Office of the City Clerk, Executive Order 2022-03, http://clerk.seattle.gov/search/results?s6=executive+adj+order&l=200&Sect1=IMAGE&Sect2=TH ESON&Sect3=PLURON&Sect4=AND&Sect5=CFCF1&Sect6=HITOFF&d=CFCF&p=1&u=%2Fse arch%2Fclerk-files&r=1&f=G.
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Notably, the six-month eviction ban extension drops the requirement that the tenant prove they suffered a financial hardship during the COVID-19 civil emergency. While the tenant must submit a “self-certification” to assert a financial hardship, there is no provision requiring the tenant to actually prove the existence of such a hardship, as there appears to be under SMC 22.205.100.
Then, on May 11, 2020, the City Council enacted Ordinance 126081, the “payment plan ordinance.” 5 It provides:
A. A tenant who fails to pay rent when due during, or within six months after the termination of, the civil emergency proclaimed by Mayor Durkan on March 3, 2020, may elect to pay such overdue rent in installments. The tenant shall pay one month or less of overdue rent in three consecutive, equal monthly installments. The tenant shall pay over one month and up to two months of overdue rent in five consecutive, equal monthly payments. The tenant shall pay over two months of overdue rent in six consecutive, equal monthly payments. Any remainder from an uneven division of payments will be part of the last payment. The tenant may propose an alternative payment schedule, which, if the landlord agrees to it, shall be described in writing and signed by the tenant and landlord and deemed an amendment to any existing rental agreement.
B. No late fee, interest, or other charge due to late payment of rent shall accrue during, or within one year after the termination of, the civil emergency proclaimed by Mayor Durkan on March 3, 2020. ....
E. Failure of the owner to accept payment under the installment schedule provided in subsection 2.A of this ordinance is a defense to eviction. Ord. 126081 sec. [2]. The City Council stated that the purpose of both the six-month eviction ban extension and this payment plan requirement is to reduce financial
5Ordinance 126081 has yet to be codified into the Seattle Municipal Code. The full text of the ordinance can be accessed here: http://clerk.seattle.gov/search/ordinances/126081.
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In September 2020, RHAWA and several Seattle landlords brought suit challenging the constitutionality of these ordinances. On cross-motions for summary judgment, the trial court largely upheld the ordinances, but ruled that state law preempts the payment plan ordinance’s ban on the accrual of interest on unpaid rent during and for a year after the civil emergency. The Landlords appealed and the City cross-appealed the invalidation of the interest accrual ban.
ANALYSIS
We review a summary judgment order de novo and perform the same inquiry as the trial court. Borton & Sons, Inc. v. Burbank Props., LLC, 196 Wn.2d 199, 205, 471 P.3d 871 (2020). Constitutional questions are issues of law and are also reviewed de novo. City of Redmond v. Moore, 151 Wn.2d 664, 668, 91 P.3d 875 (2004).
The Landlords present facial constitutional challenges to the ordinances. In facial challenges, we consider only if the ordinances’ language violates the constitution and not whether the ordinance would be constitutional “as applied” to the facts of a particular case. JJR Inc. v. City of Seattle, 126 Wn.2d 1, 3-4, 891 P.2d 720 (1995). We reject a facial claim “if there are any circumstances where the [challenged law] can constitutionally be applied.” Wash. State Republican Party v. Wash. State Pub. Disclosure Comm’n, 141 Wn.2d 245, 282 n.14, 4 P.3d 808 (2000).
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A. Preemption
The Landlords first argue that the ordinances conflict with and are therefore preempted by state law. The trial court ruled that state law only preempts the payment plan ordinance’s ban on interest accruing on unpaid rent due during and within one year of the termination of the mayor’s civil emergency proclamation. We agree with the trial court and conclude that the remaining provisions of the ordinances can be harmonized with state law.
“Any county, city, town or township may make and enforce within its limits all such local police, sanitary and other regulations as are not in conflict with general laws.” Const. art. XI, sec. 11. “[A] state statute preempts an ordinance on the same subject if the statute occupies the field, leaving no room for concurrent jurisdiction, or if a conflict exists such that the statute and the ordinance may not be harmonized.” Lawson v. City of Pasco, 168 Wn.2d 675, 679, 230 P.3d 1038 (2010). The Landlords here only argue conflict preemption, which “arises when an ordinance permits what state law forbids or forbids what state law permits.” Id. at 682. An ordinance is constitutionally invalid if it “directly and irreconcilably conflicts with the statute.” Brown v. City of Yakima, 116 Wn.2d 556, 561, 807 P.2d 353 (1991). “If the two may be harmonized, however, no conflict will be found.” Lawson, 168 Wn.2d at 682. “[A] local ordinance may go further in its prohibition than state law.” Rabon v. City of Seattle, 135 Wn.2d 278, 293, 957 P.2d 621 (1998).
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[*8]The Landlords maintain that the winter eviction ban and the six-month eviction ban extension conflict with these statutory provisions by precluding them from obtaining a court order of eviction or ejectment after the nonpayment of rent. But our Supreme Court has held that state landlord/tenant laws do not preempt local ordinances that allow tenants to raise defenses to eviction in unlawful detainer proceedings.
In Kennedy v. City of Seattle, 94 Wn.2d 376, 617 P.2d 713 (1980), owners of two houseboat moorage sites challenged a Seattle ordinance limiting the right to evict houseboat occupants to six specified reasons. Id. at 379-80. 7 The landlords argued that the ordinance was preempted by the unlawful detainer statute and the RLTA because it placed limitations on their ability to evict tenants. Id. at 383-84. The court disagreed:
There is no preemption expressly or by implication, nor is there an irreconcilable conflict between the statutes and the ordinance. A defendant in an unlawful detainer action may assert any defenses available. RCW 59.16.030; 59.18.380. The ordinance does not raise further procedural barriers between landlord and tenant but simply represents another defense for the tenant. Id. at 384. Under Kennedy, a municipality may enact defenses to eviction without coming into conflict with the unlawful detainer statute or RLTA.
The Supreme Court extended the holding in Kennedy in Margola Assoc. v. City of Seattle, 121 Wn.2d 625, 652, 854 P.2d 23 (1993) (abrogated on other
7 These are: (1) failure to pay rent; (2) breach of covenant (excluding the obligation to surrender the site); (3) failure to abate a nuisance or causing a substantial damage to the moorage or substantially interfering with the comfort, safety or enjoyment of other floating home properties at the moorage; (4) failure to execute a lease not in excess of 5 years at a reasonable rent; (5) a change in use of the moorage (with several further restrictions) with 6 months' advance notice; and (6) if the moorage owner, with 6 months' notice, wishes to occupy the moorage site and finds the displaced houseboat owner another lawful moorage site within the City of Seattle. Id.
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grounds by Yim v. City of Seattle, 194 Wn.2d 682, 703, 451 P.3d 694 (2019)). There, the court rejected a preemption challenge from landlords who argued that the RLTA preempted a Seattle ordinance prohibiting the eviction of tenants if the landlord failed to register the building as rental housing. Id. at 651. As in Kennedy, the court held that “[t]he registration ordinance likewise creates an additional affirmative defense for a tenant” and is thus not preempted by state law. Id. at 652. This was the case despite the fact that the registration ordinance created a defense to eviction for any reason, including nonpayment of rent. Id. at 632.
The Landlords distinguish Kennedy and Margola, arguing that in Kennedy, the ordinance specifically allowed for eviction based on the tenant’s failure to pay rent. 94 Wn.2d at 379. And in Margola, the Landlords argue, the defense to eviction was linked to the landlord’s failure to comply with registration requirements, and not to the nonpayment of rent. They further argue that under the RLTA, tenants may not exercise their rights to any remedies available under the RLTA unless they are current in the payment of rent. RCW 59.18.080. But RCW 59.18.080, by its language, applies only to a tenant’s remedies under the RLTA, not to remedies or defenses arising from other laws or ordinances. And the Landlord’s efforts to distinguish Kennedy and Margola are unpersuasive.
First, neither the unlawful detainer statute nor the RLTA limits the defenses available to a tenant in an unlawful detainer action. As in Kennedy, the ordinances here do not prevent landlords from filing unlawful detainer actions; each explicitly provides that they offer a new defense to such an action. And the ordinance at issue in Margola allowed a tenant to raise as a defense to eviction the landlord’s
- 10 - No. 82469-4-I/11 noncompliance with the registration ordinance, even when the unlawful detainer action was based on the nonpayment of rent. Second, the ordinances do not remove a tenant’s obligation to pay rent, prevent a landlord from bringing an unlawful detainer action, or eliminate a tenant’s liability for their unlawful detainer under RCW 59.12.030(3). Instead, they provide a temporary defense to evictions, even where the tenant is in arrears, in certain limited circumstances. There is nothing in the unlawful detainer statute that requires that an eviction occur within any specific period of time. Under the winter ban, a landlord can file an unlawful detainer action, obtain an order finding the tenant to be in unlawful detainer status, and ask the court to schedule the issuance of a writ of restitution for execution after March 1. Under the COVID six-month eviction ban extension, the landlord could similarly initiate an unlawful detainer action at any time, obtain an order finding the tenant to be in arrears on rent and request the court to schedule the issuance of a writ of restitution after the six-month extension period expires. Because the ordinances do not erect new procedural barriers to unlawful detainer but merely determine the timing of the issuance of writs of restitution, we conclude that the defenses to eviction provided in the ordinances do not irreconcilably conflict with state law.