Nor'West Village, V Traci Schuler

CourtCourt of Appeals of Washington
DecidedMay 19, 2026
Docket60212-1
StatusUnpublished

This text of Nor'West Village, V Traci Schuler (Nor'West Village, V Traci Schuler) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nor'West Village, V Traci Schuler, (Wash. Ct. App. 2026).

Opinion

Filed Washington State Court of Appeals Division Two

May 19, 2026

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II NOR’WEST VILLAGE by and through its No. 60212-1-II agent, CASCADE MANAGEMENT INC.,

Respondent,

v. UNPUBLISHED OPINION

TRACI SCHULER and ALL OTHER OCCUPANTS,

Appellants.

CHE, J. — A residential landlord, Nor’West Village, appeals the trial court’s dismissal of

its unlawful detainer action after granting Traci Schuler’s motion for reconsideration.

Schuler rented a residential property from Nor’West, beginning in 2015. At the time, she

received federal housing assistance benefits. In 2023, her benefits were terminated, but she

continued to live on the property. In May 2024, Nor’West delivered both a 30-day comply or

quit notice and a 30-day pay or vacate notice to Schuler. The notices alleged she had violated

lease terms, city codes, and had not paid her rent since April 2023. No. 60212-1-II

After a trial, the trial court initially ruled in Nor’West’s favor, restoring its right to

possess the property. Schuler moved for reconsideration, raising several new arguments. The

trial court granted her motion, dismissing Nor’West’s unlawful detainer action.

On appeal, Nor’West argues the trial court should not have considered the arguments

Schuler raised for the first time in her motion for reconsideration. In the alternative, it argues the

trial court abused its discretion by concluding the pay or vacate notice was legally insufficient

and granting Schuler’s motion. Both parties request attorney fees.

We hold that the trial court properly considered Schuler’s arguments, but that it erred by

concluding the pay or vacate notice was insufficient and abused its discretion by granting

Schuler’s motion. We deny both requests for attorney fees.

Accordingly, we reverse and remand for action consistent with this opinion.

FACTS

I. BACKGROUND AND LEASE TERMS

In 2015, Schuler signed a residential lease agreement with Nor’West. The lease term

began on November 11, 2015, and continued for 12 months, subject to automatic renewal for

successive terms of 12 months.

At the time, Schuler received federal housing assistance benefits. To remain eligible for

assistance, Schuler had to recertify on an annual basis. The first page of the lease explained that

because the lease applied to residential units financed with assistance from the United States

Department of Agriculture (USDA), Rural Housing Service, it was subject to USDA, Rural

Housing Service regulations and 7 C.F.R. 3560, “the provisions of which are incorporated

herein.” Ex. 1, at 254 (Lease Agreement).

2 No. 60212-1-II

The lease set Schuler’s monthly “note rate” rent at $820, her monthly “basic” rent at

$575, and her “utility allowance” at $82. Ex. 1, at 256. It set her monthly “tenant contribution”

at $575. Ex. 1, at 256. The lease explained that under certain conditions, the tenant contribution

could be increased or decreased. Ex. 1, at 256. A provision specifically noted,

if the Rental Assistance agreement executed by the Owner and USDA, Rural Housing Service expires, Tenant understands and agrees that the monthly Tenant Contribution may be adjusted to no less than Basic rent nor more than Note Rate Rent during the remaining term of this Lease, except that, based on the Escalation Clause in this Lease, these rates may be changed by a USDA, Rural Housing Service approved rent change.

Ex. 1, at 256 (some capitalization omitted).

A provision of the lease titled, “Rental Assistance,” explained that the USDA, Rural

Housing Service would pay a portion of Schuler’s tenant contribution directly to Nor’West.

Ex. 1, at 257 (boldface and underscore omitted). However, the provision specifically stated,

“Not applicable if not receiving Rental Assistance.” Ex. 1, at 257 (boldface, underscore, and

some capitalization omitted). The lease further explained that termination of the rental assistance

paid to Nor’West on Schuler’s behalf would not change Schuler’s net tenant contribution.

The lease’s escalation clause explained that due to increasing or decreasing costs,

Nor’West could be allowed by the USDA, Rural Housing Service to increase or decrease the

basic and note rate rents. However, if Nor’West did so, it was required to give Schuler 30 days’

notice. The lease also explained that if Schuler failed to pay her tenant contribution amount by

the sixth of the month, Nor’West could deliver notice to pay or vacate, and that if she then did

not pay the full amount by the tenth day of the month, Nor’West could require her to pay a late

fee of “$10.00 or 5% of the Tenant Contribution, whichever is greater.” Ex. 1, at 258 (boldface

and underscore omitted).

3 No. 60212-1-II

Another section outlined how either Schuler or Nor’West could terminate the lease.

Nor’West could terminate or refuse renewal of the lease based on “material non-compliance”

with lease terms or “good cause.” Ex. 1, at 265. The lease listed “non-payment or repeated late

payment of rent or other financial obligations due under the Lease” as an example of material

non-compliance. Ex. 1, at 265. Good cause included, among other things, actions by the tenant

that result in physical damage to the rental unit or common areas, create physical hazards, and

failure to maintain the rental unit in clean condition.

Following the definitions of “material non-compliance” and “good cause,” was a sub-

section titled, “Notices,” which read in its entirety,

Prior to termination of the Lease, Landlord must provide Tenant with written notice of the violation, with specific reference to the provisions of the Lease or Rule(s) that have been violated. In addition:

Lease Violation notices must: 1) Provide Tenant an opportunity to correct the violation 2) Advise that the Tenant’s conduct is grounds for termination of tenancy 3) Advise the Tenant of their right to respond to the notice within ten (10) calendar days after the date of the notice 4) Advise the Tenant of their right to a hearing in accordance with 7 C.F.R. 3560.160

Lease Termination notices must: 1) Specify the date the Lease will be terminated 2) Include a statement that the Landlord may initiate judicial action to enforce the Lease termination

A suit for unpaid rent and possession of the rental unit is not an action to terminate the Lease, and may be pursued by Landlord under State law, without regard to the requirements of this Section.

In accordance with 7 C.F.R. 3560.160(e), both the Notice of Violation and the Notice of Termination must be delivered to the Tenant by certified mail, return receipt requested, or hand delivered with a signed and dated acknowledgement of receipt from the Tenant. Any termination of the Lease by the Landlord must be

4 No. 60212-1-II

carried out in accordance with 7 C.F.R. 3560.159, State and local law, and the terms of this Lease. Tenant shall remain liable for all rent payments and other obligations under this Lease through the full Lease term, subject to Landlord’s obligation to mitigate its losses.

Ex.

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