SHB 1927
In CommitteeHouse
Rent payment reporting
Facilitating positive rent payment information to consumer reporting agencies at tenant request.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill establishes a pilot program to let tenants voluntarily share their rent payment history—including on-time, late, or missed payments—with credit reporting agencies, potentially helping them build credit. Landlords must opt in and agree to report payments for at least 14 months, and the state will evaluate the program’s impact before deciding whether to continue it.
- Creates a rent credit reporting pilot program administered by the Department of Financial Institutions to report tenants’ rent payment history to consumer reporting agencies (like Equifax, Experian, and TransUnion).
- Only voluntary participation: tenants and landlords must both agree in writing to join; tenants can opt out at any time, but cannot rejoin once they leave.
- The program will recruit up to 10 landlords and at least 100 tenants, with priority given to underserved and underrepresented populations.
- Landlords must report only rent payments made *after* the tenant joins the program, and only for the duration of the pilot (through April 1, 2028).
- The program includes a reimbursement option for landlords’ reasonable costs, and requires the state to submit a detailed report to the legislature by July 1, 2028.
Who is affected
- Landlords (specifically those who join the pilot program) — Landlords who voluntarily join the program must agree to report tenants' rent payments to credit bureaus, may receive reimbursement for reasonable costs, and must participate for at least 14 months.
- Tenants (specifically those who join the pilot program) — Tenants who opt in allow their rent payment history—including on-time, late, or missed payments—to be shared with credit reporting agencies, which may help build or improve their credit history.
- Washington State Department of Financial Institutions — The Department of Financial Institutions will manage the program, contract with an administrator, create rules, and report results to the legislature.
- Contractors (third-party administrators) — Third-party administrators hired by the state will run the pilot program—including recruiting landlords and tenants, providing education, and collecting data.
Pro/Con Analysis
Potential Benefits (5)
The pilot program gives low-income and credit-invisible tenants the voluntary opportunity to build or improve credit through rent reporting—potentially expanding access to credit, rental housing, and financial services otherwise denied due to thin or no credit files. This is especially valuable for historically excluded groups.
FinancialPeopleRef: Sec. 2(3)(a) and Sec. 2(4)The requirement for a standardized, voluntary opt-in form—including clear disclosures about what data will be reported, how to opt out, and the irreversible nature of opting out—enhances transparency and consumer autonomy in credit reporting, a sector where consent is often opaque.
Rights & LibertiesPeopleRef: Sec. 3(3)(a)-(e)By evaluating the program’s aggregate impact on tenants’ credit, the required legislative report may inform future policy to reduce financial exclusion—potentially improving long-term economic stability and reducing reliance on high-cost alternatives like payday loans or predatory rent-to-own schemes.
Public SafetyPeopleRef: Sec. 4(1)(h)The contractor’s mandate to provide education and recruitment support helps raise awareness about credit-building tools among landlords and tenants—potentially increasing financial literacy and empowering tenants to take control of their credit profiles.
EducationPeopleRef: Sec. 2(3)(d) and Sec. 2(5)(b)The possibility of reimbursement for reasonable costs may encourage small landlords to participate, especially those managing 5+ units, by reducing perceived administrative burden—though the appropriation contingency limits reliability.
Business & EmploymentLean peopleRef: Sec. 2(6)
Potential Concerns (5)
The program prohibits landlords from charging tenants fees for participation, which may disincentivize small landlords from joining—especially those operating on thin margins—since they may bear unreimbursed administrative costs without compensation. While reimbursement is allowed, it is contingent on appropriation and limited to “reasonable expenses,” which may not fully offset actual costs.
FinancialPeopleRef: Sec. 2(3)(b)(ii)The requirement that landlords commit to reporting for at least 14 months without flexibility (e.g., early exit) may burden small landlords with high tenant turnover or those facing operational disruptions, potentially deterring participation despite the voluntary framing.
Business & EmploymentLean peopleRef: Sec. 2(3)(b)(i) and Sec. 2(3)(b)(ii)Reimbursement for landlords is explicitly contingent on appropriation, meaning it is not guaranteed—creating uncertainty for participating landlords and potentially shifting net costs to them, especially those with limited resources.
FinancialPeopleRef: Sec. 2(6)The program reports *all* rent payments—including late or missed—to credit agencies, and tenants cannot opt out once they leave. This risks harming credit scores for vulnerable tenants who experience temporary hardship, with no path to rejoin, potentially reinforcing cycles of financial exclusion.
Rights & LibertiesPeopleRef: Sec. 3(2)(a)The program’s focus on “underserved and underrepresented populations” is laudable, but the small scale (≤10 landlords, ≥100 tenants) and short duration (through April 2028) severely limit its real-world impact—making it unlikely to meaningfully improve housing stability or credit access for most low-income Washingtonians.
HousingPeopleRef: Sec. 2(3)(a)
Who Is Most Affected
Low- and moderate-income tenants who join the program may gain credit history and improve access to credit, housing, and financial services—but those who experience late or missed payments risk credit damage with no path to reverse it.
Small landlords (5+ units) may benefit from reimbursement and tenant recruitment support, but face mandatory 14-month reporting commitments and uncertain cost recovery; larger property management firms may view participation as low-risk and low-reward due to scale.
The Department of Financial Institutions gains operational responsibility and data-gathering authority, but faces budgetary uncertainty due to reimbursement contingent on appropriation and no dedicated funding stream.
Third-party administrators stand to gain contracts and data access, but must navigate complex reporting requirements and evaluate program effectiveness under tight deadlines.
Credit reporting agencies (Equifax, Experian, TransUnion) gain new data streams from Washington renters, potentially improving their credit models—but face no new obligations under this bill.