What happened
On October 26, 2026, Division One of the Washington State Court of Appeals reversed a lower court decision that had dismissed a lawsuit against the City of Seattle. The case was brought by GRE Downtowner, LLC, owner of the Addison on Fourth, a 254-unit affordable housing community in Seattle’s Chinatown-International District.
The lawsuit, filed in October 2024, says six rental ordinances passed by the Seattle City Council between 2018 and 2021 made the property unprofitable to operate and increased its vacancy rate. The appeals court found that the owner "pleaded sufficient facts" to support its claims, so the case can move forward.
The six ordinances in the case
- Fair Chance Housing Ordinance, which limits the use of criminal history in tenant screening
- Roommate Ordinance, which allows additional occupants beyond those on the lease
- Winter eviction ban
- COVID-19 eviction moratorium
- Six-month notice requirement for rent increases
- Relocation assistance when a rent increase exceeds 10 percent
What the ruling does not do
It does not strike down any of these rules. They remain in effect in Seattle while the case continues. The decision means the owner’s claims will now be heard. The Seattle City Attorney’s office can ask the Washington State Supreme Court to review the decision and has said it is reviewing its next steps.
Why it matters in the South Sound
Seattle’s rules often preview what other Puget Sound cities discuss. Tacoma has its own rental housing code, and state law has changed in recent years. For owners, the practical lesson is the same everywhere: know exactly which rules apply to each property, document every notice and decision, and plan for rules that can change through councils and courts.
Our view
Housing works best when residents have stable homes and owners can keep properties funded, maintained and well run. Clear, workable rules serve both. We follow cases like this one so the owners we work with don’t have to, and we keep every property we manage compliant with the rules in its city while the courts sort out the rest.
Questions about how local rules affect your property? Email marketing@starboard.realestate or request a free property analysis.
Sources: KOMO News, Lawsuit challenging Seattle’s rental regulations can move forward after court reversal, October 29, 2026 and Rental Housing Journal, Seattle landlord wins appeal over city regulations.