Seattle Landlord Can Press 'Taking' Claim as Owners Say Renter Rules Wrecked a $39 Million Affordable Housing Project
A Washington appeals court let GRE Downtowner pursue its claim that Seattle's rental ordinances took its property. The owners say rent collections fell from 93.9% to 44.1% before a receiver took over.
The owners of a 254-unit Seattle apartment building for lower-income residents have won a round in court in their fight against the city's renter-protection laws, Fox News reports.
The ruling. The Washington Court of Appeals ruled Monday that GRE Downtowner LLC, the company behind the Addison on Fourth development, can proceed with claims that Seattle's rental regulations amounted to an unconstitutional taking of private property. GRE points in particular to an ordinance requiring landlords to accommodate certain additional occupants without their consent.
The numbers GRE cites. According to court filings, the building produced positive cash flow from 2015 through 2018. GRE says that as Seattle restricted criminal-background checks, expanded tenants' ability to add occupants, limited some evictions and required relocation help after certain rent increases, rent collections fell from 93.9% in 2018 to 44.1% in 2023. It puts cumulative operating losses at nearly $5.8 million. A federal judge appointed a receiver in January 2026 after a mortgage default.
The housing group's view. Sean Flynn of the Rental Housing Association of Washington, who is working with GRE, called the city's ordinances a "toxic cocktail of legislation." He said, "No one will invest to build more housing if they believe that the government can come in and effectuate a taking."
An outside view. George Mason law professor Ilya Somin told Fox the ruling is "only moderately significant" but reaches beyond the parties, because courts in other states could weigh it in similar cases. He called a trip to the U.S. Supreme Court fairly unlikely.
Other cities. Fox notes that San Francisco, New York City, Portland and Philadelphia also have strong renter rules.
Keep in mind. The appeals court only let the claim go forward. It did not rule that Seattle took the property, and the loss figures are GRE's allegations. The text we read did not include a response from the city.