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Last week, we focused on the transportation and operating budgets, where lawmakers are working to reconcile over $83 billion in requests from state agencies with more constrained spending targets in the $70 billion range. That discussion centered on how the state raises and allocates revenue to support its institutions and infrastructure.
This week, we turn to two different but consequential developments:
- The advancement of EHB 1217, a statewide rent control bill that would formalize long-term restrictions on pricing in the housing market; and
- A detailed look at the capital budget proposals for the 4th Legislative District, including which local projects are currently funded in one or both chambers’ plans.
These updates reflect broader questions about the state’s role in shaping both private markets and public investment—and how those policies converge in places like Spokane County.
🏠 EHB 1217 – Key Burdens for Housing Providers
EHB 1217 introduces statewide rent control measures with direct impacts on housing operations, project feasibility, and market dynamics. For property managers, real estate investors, and developers, the following provisions are particularly significant.
7% Annual Rent Cap (5% for manufactured housing)
- Limits revenue growth even in high-inflation environments. No rent increases allowed in the first year of tenancy, which affects turnover strategies.
Mandatory Rent Parity Across Lease Types
- Caps rent variation between month-to-month and fixed-term leases at 5%. Eliminates flexibility used by property managers to manage risk and stabilize occupancy.
New Legal Exposure and Enforcement Risk
- Tenants or the Attorney General can sue for triple damages, attorneys’ fees, and civil penalties up to $7,500 per violation. AG may issue civil investigative demands for records or testimony.
Complex Compliance Requirements
- Standardized rent increase notices must include detailed justifications for exemptions. Missed steps could trigger liability.
📍 Spokane Market Impact
Reduces Financial Viability of New Projects
- Rent caps constrain future cash flow projections, undermining underwriting for new multifamily development.
Pushes Capital Toward Idaho
- With no rent control in adjacent Idaho markets (Post Falls, Coeur d’Alene), developers may redirect projects away from Spokane.
Adds Regulatory Burden to Small-Scale Operators
- Many Spokane landlords operate 2–4 unit properties. They will face the same regulatory and legal exposure as institutional owners, with far fewer resources.
🏗️ Understanding Public Investment in the 4th Legislative District
As discussions on the operating and transportation budgets continue, attention is also turning to the capital budget, where funding decisions shape the region’s physical and civic infrastructure.
- Below is a detailed look at proposed capital investments in the 4th Legislative District for the 2025–27 biennium.
This section highlights where the House and Senate agree—and where reconciliation will be required to ensure priority projects move forward.
✅ Projects with Consensus
Supported in both chambers with identical or near-identical allocations:
1. Healing Lodge of the Seven Nations
Holistic treatment facility for Native American youth
• House: $5,000,000 | Senate: $5,050,000
2. Freedom Center
Anti-trafficking service hub and headquarters in Spokane Valley
• House: $338,000 | Senate: $338,000
3. LP Balfour Playground and Spray Park
Public recreation facility for local families
• House: $500,000 | Senate: $500,000
4. Mt. Spokane – Riley Creek Properties Phase 1
Land acquisition for public access to natural areas
• House: $489,000 | Senate: $489,000
5. Mt. Spokane Road Improvements
Safety and accessibility enhancements in Mt. Spokane State Park
• House: $938,000 | Senate: $938,000
6. Colbert Landfill Remediation
Environmental cleanup of Superfund site
• House: $114,000 | Senate: $114,000
⚖️ Projects Requiring Reconciliation
Included in only one chamber’s proposal:
Liberty Lake Municipal Library
- House: $937,000 | Senate: Not Included
Mt. Spokane – ADA & Asbestos Improvements
- House: $700,000 | Senate: Not Included
Spokane Valley Heritage Museum
- House: $206,000 | Senate: Not Included
Trent Elementary Community Upgrades
- House: $225,000 | Senate: Not Included
ICSVPAC Box Office Lobby
- House: Not Included | Senate: $878,000
Inland Grange
- House: Not Included | Senate: $98,000
Mission Avenue Frontage Improvements
- House: Not Included | Senate: $1,030,000
Newman Lake Revitalization
- House: Not Included | Senate: $120,000
Spokane Valley Sport Courts
- House: Not Included | Senate: $415,000
HUB Sports Synthetic Fields North
- House: Not Included | Senate: $843,000
📣 Call to Action
As budget and policy negotiations reach a pivotal stage, it’s important that regional voices stay engaged.
Whether you’re focused on policy changes like the rent control bill or on securing capital budget support for community projects, now is the time to connect with your legislators, ask questions, and advocate for policies that reflect the priorities and realities for local businesses.
We’ll continue monitoring all proposals and providing analysis throughout session. Stay informed by subscribing to our GAC updates or contacting our policy team directly.
