Drafter
Clerk 08/28/2025
Title
AN ORDINANCE relating to prohibiting algorithmic rent fixing; and adding a new chapter to K.C.C. Title 12.
Body
SECTION 1. Sections 2 through 4 of this ordinance should constitute a new chapter in K.C.C. Title 12.
NEW SECTION. SECTION 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
A. "Coordinating services" means a service provider:
1. Collecting historical, anticipated, or contemporary prices, price changes, supply levels, occupancy rates, or lease or rental contract termination and renewal dates of residential dwelling units from two or more landlords, from private databases, or from public databases; and
2. Analyzing or processing the information described in subsection A.1. of this section through the use of a system or software that utilizes an algorithmic or other automated process to provide recommendations regarding rental prices, lease renewal terms, or occupancy levels to more than one landlord. "Coordinating services" does not include publishing rental price estimates that are solely based on publicly available information; are equally available to all members of the public; and do not require a contract or agreement to obtain.
B. "Dwelling unit" has the same meaning as "dwelling unit" in K.C.C. 12.25.010.
C. "Landlord" has the same meaning as "landlord" in K.C.C. 12.25.010.
D. "Person" means an individual, firm, corporation, association, governmental entity, or partnership and its agents or assigns.
E. "Service provider" means a person that performs a coordinating service. NEW SECTION. SECTION 3.
A. It is a violation of this chapter for two or more landlords to coordinate to establish rental prices.
B. It is a violation of this chapter for a landlord, in or affecting commerce, to contract with or otherwise exchange anything of value in return for the coordinating services of a service provider.
C. It is a violation of this chapter for a service provider, in or affecting commerce, to provide coordinating services to two or more landlords.
D. It is not a violation of this chapter for a landlord to use a system or software recordkeeping tool absent otherwise prohibited conduct under this chapter.
NEW SECTION. SECTION 4. A person injured by a violation of this chapter may bring a civil action in a court of competent jurisdiction against a landlord or other service provider violating this chapter to recover damages up to seven thousand five hundred dollars per violation in addition to any actual damages incurred. Each instance of coordinating services for each dwelling unit may be considered a separate violation. The court may award reasonable attorneys' fees and costs to any person injured by a violation of this chapter if that person is the prevailing party.
SECTION 5.
A. The executive shall prepare a rent-fixing enforcement study report.
B. The report shall include, but not be limited to:
1. An evaluation of options for enforcing the requirements of this ordinance, including a discussion of potential county agencies that could be tasked with fielding and investigating complaints and making referrals to the prosecuting attorney's office;
2. The estimated cost of each option evaluated, and potential funding sources for each option;
3. A recommended approach for enforcing the new chapter created by this ordinance;
4. An assessment of possible strategies for educating landlords about the requirements of this ordinance, including the identification of existing points of contact with landlords such as during permitting processes; and
5. A discussion of whether property management companies have an unfair advantage when setting rental prices and whether there are additional actions the county could consider to protect renters against rent-fixing.
C. The executive shall electronically file the report no later than March 31, 2026, with the clerk of the council, who shall retain an electronic copy and provide an electronic copy to all councilmembers, the council chief of staff, and the lead staff for the health, housing, and human services committee, or its successor. If legislative action is necessary to implement the recommendations of the report, a proposed ordinance shall be transmitted with the report.
SECTION 6. Severability. If any provision of this ordinance or its application to
any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected.