WATCH: Court hears Washington's mobile home rent cap lawsuit

Manufactured housing park owners filed the lawsuit arguing the rent cap is unconstitutional and unworkable because it lacks hardship exemptions, violates the U.S. Constitution's contract clause, and nullifies existing lease agreements.

Government Affairs and Advocacy Director for the Rental Housing Association of Washington Kevin Schilling told The Center Square manufactured housing is not being treated fairly by the law.

“You cannot create an affordable housing environment in the state of Washington if you are establishing rules for the most naturally occurring housing option to be handcuffed in a more difficult way than all the other housing is,” said Schilling.

“They're treating manufactured housing in a more stringent way, when at the same time, national leaders are saying manufactured housing is the best path forward for more affordability,” she added.

Washington’s statewide rent stabilization law, passed during the 2025 legislative session, was backed by tenant unions and progressive lawmakers. Key supporters included the Washington Low Income Housing Alliance and state legislators including Sen. Emily Alvarado, who championed the law to protect renters from price hikes and displacement.

“Housing is not a luxury; it is a basic human need. Everyone in this state deserves a stable and affordable home,” said Alvarado during a May 7, 2025, signing for HB 1217.

The cap doesn’t apply to all homes. New construction is not covered for the first 12 years. Public housing authorities and low-income developments are also exempt.

Schilling argues it’s unfair to cap rents for manufacturing at half the cap for other rental properties, and says it will ultimately hurt tenants.

“It doesn’t benefit the tenant because you handcuff owners of manufacturing housing communities from being able to spend more money on maintenance, spend more money on retrofits, and improve the property.”

“So ultimately what we're going to see is people will leave the market and then not provide housing anymore. Then there'll be less naturally occurring affordable housing because people can't afford to operate that housing,” Schilling said.

There have been dozens of landlords accused of violating the rent caps since the law took effect last year.

“To date we have entered into 57 court-filed resolutions with Washington landlords regarding HB 1217 violation matters,” wrote Mike Faulk in the office of Attorney General Nick Brown via email to The Center Square.

In most cases, the property owners have been spared fines, by complying with the law.

In their defendant’s motion for summary judgement in the lawsuit, the attorney general's office argued property owners for manufactured housing lots have the upper hand.

“Manufactured housing communities are attractive to private equity and other investors because of their dependable revenues, primarily because manufactured homes are difficult or impossible to move and can be difficult to sell. In response to rising rents, many residents have few options other than to pay, even if it means cutting other essential expenses,” noted the legal filing.

Schilling says he’s convinced rent control is about advancing socialism.

“We're having elected officials at all levels of government decide that the path forward should be this direction towards socialism, and public ownership of private property. We’re pushing back and saying, no. That is not what the law allows, and you are pushing out good actors from an industry that are housing people.”

There were about 260,000 manufactured homes in Washington in 2024, or 8% of the state’s housing stock, according to Office of Financial Management estimates.