APARTMENT ADVOCATE
NATIONAL APARTMENT ASSOCIATION /
NATIONAL MULTIFAMILY HOUSING COUNCIL
Security Deposits See Renewed
Legislative Focus
The fallout from the nationwide
shutdown has been severe, with
economic stagnation expected
for the foreseeable future. As tens of
millions now file for unemployment,
many Americans are asking their elected
officials what government will do to ease
their heavy financial burden. Policymakers
have responded by enacting measures that
allow renters to apply their security deposit
to rent and give them broad flexibility in
paying these upfront costs. While wellintentioned,
these approaches could
leave rental housing providers with less
protection against damage and default.
Security deposits and other upfront
costs have long been seen as barriers
to prospective renters’ housing choice
and access. Thus, it is no surprise that
supporters have been advocating for
changes to security deposit laws through
the lens of “renters’ choice” legislation.
Cincinnati was the first to require housing
providers to accept security deposit
insurance at the request of an applicant or
maintain flexibility in payment amounts
in lieu of a traditional security deposit or
surety bond.
Since the COVID-19 pandemic began,
renters’ choice policies have seen renewed
fervor. Gov. Andrew Cuomo of New York
and Gov. Phil Murphy of New Jersey
have issued executive orders providing
renters security deposit flexibility during
the pandemic, while similar legislation
was introduced in the Pennsylvania State
Assembly recently via House Bill 2427.
Policymakers see relaxing security deposit
requirements as a way to quickly open
up financial resources for struggling
communities. This takes the onus off
of diminishing state and local coffers.
SERVICES
Insurance Restoration
Capital Improvements
Construction Defect Repairs
Roofing
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26 | TRENDS JULY 2020 www.aamdhq.org