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Court Ruling Upholds Seattle's Tenant Relocation Ordinance

by Jon Gould

Although the judicial system has not been much of a friend to Washington tenants in the last decade, a recent federal court decision gives tenants something to cheer about. On August 18, United States District Court Judge Barbara Rothstein ruled that Seattle's Tenant Relocation Assistance Ordinance (TRAO) and the state Growth Management Act (GMA) authorization for tenant relocation do not violate the constitutional rights of property owners who are required to pay cash relocation assistance. The TRAO provides 90 days notice and financial assistance (currently $1,071) to low-income tenants displaced for renovation, demolition, or change of use.
Judge Rothstein's decision breaks the trend of more than a decade of conservative court rulings that have restricted Seattle's ability to hold property owners accountable for the impacts of demolishing and renovating housing. Seattle City Council members have repeatedly pointed to hostile court rulings as justification for Seattle's absence of a housing preservation policy.
In June of 1993, the city of Seattle suddenly stopped enforcing the requirement of owners to pay $1,071 of relocation assistance to very low-income tenants displaced for renovation, demolition, or change of use. At the time, city officials feared that the owner-payment requirement was unconstitutional. When it was clear that the city was not going to defend its own ordinance, the Tenants Union, a local non-profit organization that led the effort to pass the TRAO in 1990, mobilized.
In January of 1994, more than 30 tenants who did not receive the owner'share of assistance filed over $300,000 worth of damage claims against the city of Seattle. When the city continued to ignore the requirement of owners to assist displaced tenants, preparation for the lawsuit began with the assistance of Evergreen Legal Service and other local attorneys. In March 1994, the Tenants Union, Seattle Displace-ment Coalition, and affected tenants filed a class action lawsuit in federal court. Days later, the city council passed an ordinance that changed the TRAO so that owners would no longer be required to pay relocation assistance to eligible tenants.
On May 20, 1994, landlords filed a lawsuit against the city of Seattle, alleging that the TRAO is unconstitutional and seeking refunds of relocation money paid and damages. Because both lawsuits sought a ruling on the constitutionality of the TRAO's owner-payment requirement, the two cases were consolidated.
Judge Rothstein's ruling states that the TRAO and GMA: (1) do not violate the substantive due process protections of the state and federal constitutions; (2) do not violate the guarantees of equal protection under the state and federal constitutions; and (3) do not take property in violation of the state or federal constitution; and (4) do not violate Artitle VII, Section 1 of the Washington State Constitution as an illegal tax. Owners have 30 days in which to appeal the decision to the Court of Appeals.
The ruling now clears the way for Judge Rothstein to decide the question of whether the city's action to suspend the owner-payment requirement was a violation of the tenants' rights. Her next ruling will determine whether or not tenants who were denied full assistance get reimbursement.
A city council resolution (#28900) passed on April 4, 1994 states that the "city council believes that having the city and landlords assist their displaced tenants continues to serve a valid public purpose." With Judge Rothstein's ruling, the city's questions about the constitutionality of theTRAO should be thoroughly answered.
Since June of 1993, scores of very low-income tenants have not received the full amount ($2,000) of relocation assistance that the city determined in a 1990 study was necessary for successful relocation. With the legal barriers eliminated, the requirement of owners to pay relocation assistance to displaced tenants under the TRAO can be immediately reinstated by legislation.



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Contents on this page were published in the October/November, 1995 edition of the Washington Free Press.
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