Aid is sought for renters’ security deposits

When renters weigh a potential move, many no longer just consider whether they can keep up with the monthly rent, but whether they can afford to walk in the door.

Rep. Barbara Lee wants the federal government to assist low-income renters with paying security deposits, a rare federal effort to address rising housing costs.

As housing prices have skyrocketed in recent years, so too have security deposits. In California, where the average statewide rent is about $2,950, according to Zillow, that could mean paying $5,900 or more upfront. Security deposits in the state are currently capped at two months’ rent.

For unhoused or lowincome people, getting that money together can be the factor determining whether they can rent an apartment.

Former President George W. Bush created a program to provide federal assistance for home down payments in 2003, and Lee, D-Oakland, imagines a similar program could help renters, her communications director, Sean Ryan, told The Chronicle.

“Renters face huge barriers to secure housing and make monthly rent. Security deposits can be one of the biggest barriers to securing housing for low-income renters,” Lee told The Chronicle. “Young people or the elderly in particular lack access to the amount of cash necessary to pay double their monthly rent at the start of a lease — and with housing costs and general cost of living skyrocketing, there should be relief for folks to ensure they have shelter.”

At least 18 states — including South Dakota, Connecticut and Utah — have provided security deposit assistance to residents. Some began doing so during the pandemic and have stopped accepting applications as the pandemic has subsided.

Lee’s proposal would expand the housing choice voucher program, known as Section 8, to provide security deposit assistance to those in the program. The bill would also provide security deposit funding to those who earn below a threshold of the median family income in that area.

The bill could provide assistance to 2.26 million people with Section 8 vouchers and 14.7 million very low-income renters.

Section 8 recipients typically receive assistance as a lump sum paid directly to the landlord.

Much of U.S. housing policy has been left to states and localities in recent decades. The federal government’s biggest role in housing policy has typically been in giving states money to address it, and letting local governments dictate the specifics.

Lee argues her bill would solve the fragmented approach by making assistance widely available and consistent to help millions of low-income Americans get housing. She plans to introduce the bill Friday, and she is working to enlist the support of landlords and House Republicans, her spokesperson said.

State lawmakers are also hoping to alleviate the burden of steep security deposits. California Assembly Member Matt Haney, D-San Francisco, introduced legislation in December to limit security deposits to no more than one month’s rent.