A Seattle affordable-housing operator can proceed with a lawsuit alleging that city rental regulations caused severe financial losses, following an Oct. 26 ruling by the Washington Court of Appeals.
The court reversed the dismissal of claims brought by GRE Downtowner LLC, which operates Addison on Fourth, a 254-unit low-income apartment complex.
The company argues that the combined effects of Seattle’s rental ordinances—including eviction restrictions, rent-increase notice requirements and relocation-assistance rules—amounted to an unconstitutional taking of its property requiring compensation.
According to allegations outlined in the opinion, the owner invested approximately $39 million in purchasing and renovating the property. It alleges that operating losses approached $6 million through 2023 and that rent collections fell below 45% that year.
The appeals court concluded that the company alleged sufficient facts for its claims to survive an initial motion to dismiss.
The decision allows the litigation to continue; it does not establish that Seattle owes compensation or broadly invalidate the city’s rental regulations. The property owner must still prove its claims.
Source: Washington Court of Appeals, GRE Downtowner LLC v. City of Seattle, No. 87886-7-I, Oct. 26, 2026.
