In the state of California, landlords have the legal right to request renters to provide security deposits surpassing $10,000 before granting access to a new apartment. However, a new bill currently under review in Sacramento aims to address this issue and put an end to exorbitant charges by capping security deposits at one month’s rent for most apartments, condos, and single-family homes.
The proposed legislation, known as Assembly Bill 12, has gained significant support, particularly from advocates seeking relief for the state’s roughly 17 million renters who already face challenges affording California’s high rental prices. Matt Haney, a Democratic state assemblymember from San Francisco and a strong proponent of the bill, argues that these excessive security deposits force families into debt or inadequate and potentially unsafe housing situations.
Assembly Bill 12 recently passed the state Assembly with strong support and is now being considered by the Senate. While most Republican assembly members voted against the bill, proponents argue that it is a necessary step, especially as rent prices have been on the rise after a temporary decrease during the peak of the pandemic, which led many people to leave urban centers. According to Apartment List, the median cost of a two-bedroom apartment in the Bay Area ranges from over $2,500 in San Jose and San Francisco to around $1,750 in Oakland.
In the nine-county region, nearly half of all renters spend more than 30% of their income on housing costs, classifying them as “rent burdened” by federal standards, according to researchers with the Bay Area Equity Atlas. The bill seeks to alleviate this burden and create a more affordable rental landscape.
The proposed legislation has garnered inspiration from the experiences of California residents. One such example is a retiree on a fixed income, who faced difficulty affording a high security deposit for a low-income apartment in San Francisco. Assemblymember Haney, driven by the stories of constituents, seeks to ensure that renters are not trapped in unsuitable living conditions due to financial constraints.
While some opponents, primarily landlords, argue that existing security deposit regulations are already stringent, proponents of the bill assert that a one-month security deposit should be sufficient to cover damages in most cases, given the high rental prices in the state. It is important to note that a dozen states across the nation, including Alabama, Delaware, and New York, have implemented similar laws, demonstrating their viability and effectiveness.
Assemblymember Haney remains open to refining the bill, including potential exemptions for small landlords renting single-family homes. However, he is confident that the core objectives of the legislation will be upheld.
Assembly Bill 12 solely focuses on security deposits and does not introduce changes to property owners’ ability to recoup damages or determine rental charges. It aims to establish a common-sense and fair approach to ensure that California residents can access and afford suitable housing.
In conclusion, while the bill aims to address the burdensome issue of high security deposits, it is important to recognize the need for further efforts in expanding and creating more affordable housing options. The proposed legislation is a step in the right direction to alleviate the immediate financial strain faced by renters in the state.