Spokane-based real estate agency NAI Black circulated emails among employees in March and April urging them to publicly oppose a rent stabilization law that Governor Bob Ferguson signed into law on May 7, according to internal emails RANGE obtained.
NAI Black is one of the most prominent real estate developers in the Inland Northwest, meaning the company has a vested interest in curbing rent stabilization laws. Though the series of at least four emails — sent to employees by NAI Black CEO Dave Black and certified property manager Jason Dolloph March 13, March 20, April 2 and April 11 — acknowledge the law is “well-intended,” they claim limits on rent are bad for the economy, and advocate for the state to allow landlords to hike rent as much as they want.
The bill, HR 1217, is now law, but a real estate company asking its employees to oppose rent stabilization is a clear example of an industry trying to exert influence over employees and state lawmaking.
The new law, tries to slow the increase in housing costs for Washington renters, which is eating up more of their income. In 2023, more than 50% of Spokane renters spent more than 30% of their monthly income on housing costs, and 28.3% spent more than half of their monthly income on housing costs.
When income is taken into consideration, the housing landscape in the state gets even worse: to afford a one-bedroom apartment at the fair market rate without being considered “rent burdened,” — spending more than 30% of your income on housing — a Washington renter earning the minimum wage would have to work 83 hours per week.
The NAI Black emails included messages from business lobbying groups, like the Rental Housing Association of Washington (RHAWA). Specifically, the emails argued rent control would dampen the housing market in a state beset by a dramatic homelessness crisis.
One email sent March 13 forwarded an anti-rent stabilization campaign message from Melissa Canfield, the deputy director of RHAWA urging recipients to share the campaign in their professional and personal networks, testify against the bill at a Senate hearing scheduled for March 19 and write their lawmakers.
Certified property manager Jason Dolloph said in the forwarded message, “Below is another opportunity to voice your opinion on rent control. It only takes a moment for you to be heard.”
The Washington law was not “rent control,” as the term is normally used. The law is a form of “rent stabilization.” It’s not just a semantic difference: rent control caps the amount a landlord can charge for a unit, while rent stabilization caps the percentage a landlord can increase rent over time. This means landlords can still hike rent, but the amount they can do so to a current tenant is limited. In between tenants, however, landlords can hike rent as much as they want, which is where rent stabilization differs significantly from rent control.
Still, NAI Black officials maintained the law would hurt the housing market.
“Developers build apartments for a profit and for a return on investment,” David Black, who leads several companies that operate under the umbrella of NAI Black, told RANGE. “If they can’t get that, they’re not gonna build.”
NAI Black is a subsidiary of NAI Global, an international real estate firm based in New York City. Black is a third-generation developer whose family is synonymous with the real estate industry in Eastern Washington and North Idaho. His online profile characterizes him and the company this way: “David R. Black is CEO and a Principal of Black Realty, Inc.; Black Commercial, Inc.; Black Realty Management, Inc., and Black Management Services, Inc, all doing business as NAI Black.”
Black said times are tough for landlords, but not all landlords agree. Though some lobbyists did show up at the April 4 legislative hearing to oppose the law, which originated in the state House of Representatives, most of the testimony that day supported it, including that of Roger Jones, a mobile home park manager based in Duvall, Washington.
“In my experience, a 5% annual rent increase is more than sufficient to remain profitable in [the real estate] industry,” Jones said during his testimony in the Ways & Means Committee. “I’m also a responsible landlord and with full integrity, I can state that for the 65 tenants who rent from me, the affordable housing we provide is crucial, and without it, a vast majority of these individuals would be homeless.”
Data generated by the housing tech company Redfin’s rental market comparison tool show housing in Kootenai County is consistently more expensive than in Spokane County.
Four landlords who rent properties in Seattle, Tacoma and Bothell wrote a guest column in The Seattle Times on March 20 urging lawmakers to vote for HB 1217.
Black, who forwarded one of the emails on March 20 with no commentary, asserted that regulations on development are driving Eastern Washington developers to Idaho because the latter state doesn’t regulate so strictly.
A friendlier regulatory environment for development in Idaho has not translated into lower housing prices for renters, though. According to the real estate tech company Zillow, the median rent in Spokane County, increased $5 whereas across the border in Kootenai County, Idaho, costs ballooned by $435.
Median household income is slightly higher in Kootenai County, but per-capita income is slightly lower. At the bottom of the labor market, though, the gap grows considerably. The minimum wage in Washington is $16.66 per hour. The minimum wage in Idaho is $7.25 per hour.
Proponents of the law argue rent stabilization is needed to keep people from becoming unhoused due to rent increases. In Spokane, the number one cause of eviction proceedings is failure to pay rent. The city of Spokane released data this year saying more than 7,000 people accessed some form of homeless services in 2024, up from just more than 2,000 people in 2023. Those numbers reflect more robust counting efforts by the city, but anyone paying attention to conditions in downtown Spokane can witness the housing crisis.
HB 1217, which will expire in 2045, does the following:
- Mandates that landlords keep rent hikes below 7% plus inflation, three times the national rate of inflation of 2.3% in the last year.
- Gives the state attorney general’s office explicit authority to take actions against landlords who violate state rental laws.
- Requires the Department of Commerce to assess the rental vulnerability of communities.
Among the emails circulated at NAI Black was a message from Gavin Cooley, the CEO of the Spokane Business Association, which Black forwarded to employees on March 20, reiterating that HB 1217 would worsen the housing crisis.
“As citizens and leaders deeply invested in Spokane’s future, it is crucial to address the pressing issue of housing affordability,” according to an email Cooley sent to potential opponents of the law. “House Bill 1217, currently progressing to the State Senate floor, proposes a variety of rental restrictions with the intention of enhancing housing stability. While well-intentioned, in the long run this bill will exacerbate Spokane’s already severe housing crisis and contribute to the very conditions that have led to some of the highest homelessness rates in that nation.”
The Canfield email sought to raise $100,000 in funding for an advertising campaign to oppose HB 1217.
“Let’s work united to make sure our voices are heard and safeguard the future of housing in Washington state,” Canfield wrote. “Your participation is vital!”
Canfield’s campaign message said, “We oppose HB 1217 because it threatens housing availability and exacerbates affordability challenges amid an existing housing crisis in Washington, projected to have a deficit of 1.1 million homes by 2044.”
Neither Cooley nor Canfield returned our requests for comment by press time, but we will update the story if they do.
Dolloph, the certified property manager who works in the commercial division of NAI Black, told RANGE in a phone interview that there are many costs associated with property management that are not reflected in the inflation rate. He used the example of landlord insurance:
“Insurance itself has gone up 30, 40, 50%,” Dolloph said. “And some landlords might be doing more. Taxes go up. Utilities go up.”
