Federal

DEPOSIT Act

Source: Congress.gov · 878 words in original text

What This Bill Does

This bill authorizes the federal government to provide money to help low-income families pay for security deposits and moving costs when renting homes. The bill creates new ways to fund this assistance through two existing federal housing programs and directs the government to study alternatives to traditional security deposits.

Who It Affects

Low-income families renting homes, public housing agencies that manage rental assistance programs, property owners who rent to assisted families, and the U.S. Department of Housing and Urban Development.

Key Provisions

• The Secretary of Housing and Urban Development shall provide extra funds to public housing agencies to help families pay reasonable security deposits for rental units, as long as Congress provides money for this purpose in advance (Sec. 2(A)). • Property owners must return any unused security deposit money when a family moves out, and agencies can only use returned money for security deposit assistance (Sec. 2(A)). • The Secretary may provide extra funds to public housing agencies to help families pay reasonable moving costs into new rental units (Sec. 2(B)). • Communities can use existing federal housing funds to give loans or grants to low and very low-income families for security deposits, whether or not the families receive other rental help (Sec. 3(a)). • The Secretary of Housing and Urban Development must study alternatives to security deposits, including monthly insurance products, and how these alternatives affect renters of different races, incomes, ages, genders, and disabilities (Sec. 4(a)).

What Changes

If this bill becomes law, public housing agencies will have new federal money available to pay security deposits and moving costs for low-income families. Communities will also be allowed to use existing housing funds for security deposit assistance. The government will conduct a study on security deposit alternatives within 180 days of the bill becoming law.

Important Definitions

• Security deposit: money paid to cover costs of repairs to a rental unit. • Moving costs: reasonable expenses for a family to move into a new rental unit.

I 118TH CONGRESS 1ST SESSION H. R. 1087 To authorize security deposit and moving costs assistance for low-income households, and for other purposes. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 17, 2023 Ms. LEE of California introduced the following bill; which was referred to the Committee on Financial Services A BILL To authorize security deposit and moving costs assistance for low-income households, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Delivering Essential 4 Protection, Opportunity, and Security for Tenants Act’’ 5 or ‘‘DEPOSIT Act’’. 6 VerDate Sep 11 2014 23:28 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1087.IH H1087 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1087 IH SEC. 2. RENTAL SECURITY DEPOSIT AND MOVING COST AS- 1 SISTANCE FOR HOUSING CHOICE VOUCHER 2 HOLDERS. 3 Section 8(q) of the United States Housing Act of 4 1937 (42 U.S.C. 1437f(q)) is amended by adding at the 5 end the following new paragraph: 6 ‘‘(6) SUPPLEMENTS FOR SECURITY DEPOSIT 7 AND MOVING COST ASSISTANCE.— 8 ‘‘(A) SECURITY DEPOSITS.—The Secretary 9 shall, to the extent amounts are provided in ad- 10 vance in appropriations Acts for assistance 11 under this subparagraph, provide supplemental 12 fees under this subsection to public housing 13 agencies for the costs of providing, on behalf of 14 families assisted under subsection (o), assist- 15 ance to cover the costs of a reasonable security 16 deposit for the assisted dwelling unit of such 17 family. The agency shall require the owner to 18 return any unused amounts of security deposit 19 assistance upon the termination of such family’s 20 tenancy and may make such returned amounts 21 available only for assistance under this subpara- 22 graph. 23 ‘‘(B) MOVING COSTS.—The Secretary may 24 provide supplemental fees under this subsection 25 to public housing agencies for the costs of pro- 26 VerDate Sep 11 2014 23:28 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1087.IH H1087 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1087 IH viding, on behalf of families assisted under sub- 1 section (o), assistance to cover the reasonable 2 costs of moving into a new assisted dwelling 3 unit. 4 ‘‘(C) AUTHORIZATION OF APPROPRIA- 5 TIONS.—There is authorized to be appropriated 6 to the Secretary such sums as may be necessary 7 for assistance under subparagraphs (A) and 8 (B).’’. 9 SEC. 3. RENTAL SECURITY DEPOSIT ASSISTANCE UNDER 10 HOME PROGRAM. 11 (a) ELIGIBLE USE.—Section 212(a) of the Cranston- 12 Gonzalez National Affordable Housing Act (42 U.S.C. 13 12742(a)) is amended by inserting after paragraph (3) the 14 following new paragraph: 15 ‘‘(4) SECURITY DEPOSIT ASSISTANCE.—A par- 16 ticipating jurisdiction may use funds provided under 17 this subtitle to provide loans or grants to very low- 18 and low-income families for security deposits for 19 rental of dwelling units, regardless of whether such 20 family is provided tenant-based rental assistance 21 pursuant to paragraph (3). The jurisdiction shall re- 22 quire the owner to return any unused amounts of se- 23 curity deposit assistance upon the termination of 24 VerDate Sep 11 2014 23:28 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1087.IH H1087 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1087 IH such family’s tenancy and may use such returned 1 amounts only for assistance under this paragraph.’’. 2 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 3 authorized to be appropriated to the Secretary of Housing 4 and Urban Development such sums as may be necessary 5 for assistance under subtitle A of title II of the Cranston- 6 Gonzalez National Affordable Housing Act (42 U.S.C. 7 12741 et seq.), to be made available only for providing 8 security deposit assistance under paragraph (4) of section 9 212(a) of such Act (as added by the amendment made 10 by subsection (a) of this section). 11 SEC. 4. STUDY ON ALTERNATIVES TO SECURITY DEPOSITS. 12 (a) STUDY.—The Secretary of Housing and Urban 13 Development shall conduct a study to identify and ana- 14 lyze— 15 (1) alternatives to rental housing security de- 16 posits, including products that require a tenant of a 17 dwelling unit to pay a monthly insurance premium 18 to cover costs of repairing damage to the dwelling 19 unit; and 20 (2) the impact that such alternatives have on 21 the rental housing market and tenants, including 22 how such alternatives affect tenants based on tenant 23 race, income, age, sex, disability, and other demo- 24 graphic characteristics. 25 VerDate Sep 11 2014 23:28 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1087.IH H1087 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1087 IH (b) REPORT.—Not later than the expiration of the 1 180-day period beginning on the date of the enactment 2 of this Act, the Secretary shall submit to Congress a re- 3 port setting forth the findings and conclusions of the 4 study. 5 Æ VerDate Sep 11 2014 23:28 Mar 10, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H1087.IH H1087 kjohnson on DSK79L0C42PROD with BILLS

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