DEPOSIT Act

To authorize security deposit and moving costs assistance for low-income households, and for other purposes. 1. Short title This Act may be cited as the Delivering Essential Protection, Opportunity, and Security for Tenants Act DEPOSIT Act 2. Rental security deposit and moving cost assistance for housing choice voucher holders Section 8(q) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(q) (6) Supplements for security deposit and moving cost assistance (A) Security deposits The Secretary shall, to the extent amounts are provided in advance in appropriations Acts for assistance under this subparagraph, provide supplemental fees under this subsection to public housing agencies for the costs of providing, on behalf of families assisted under subsection (o), assistance to cover the costs of a reasonable security deposit for the assisted dwelling unit of such family. The agency shall require the owner to return any unused amounts of security deposit assistance upon the termination of such family’s tenancy and may make such returned amounts available only for assistance under this subparagraph. (B) Moving costs The Secretary may provide supplemental fees under this subsection to public housing agencies for the costs of providing, on behalf of families assisted under subsection (o), assistance to cover the reasonable costs of moving into a new assisted dwelling unit. (C) Authorization of appropriations There is authorized to be appropriated to the Secretary such sums as may be necessary for assistance under subparagraphs (A) and (B). . 3. Rental security deposit assistance under HOME program (a) Eligible use Section 212(a) of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12742(a) (4) Security deposit assistance A participating jurisdiction may use funds provided under this subtitle to provide loans or grants to very low- and low-income families for security deposits for rental of dwelling units, regardless of whether such family is provided tenant-based rental assistance pursuant to paragraph (3). The jurisdiction shall require the owner to return any unused amounts of security deposit assistance upon the termination of such family’s tenancy and may use such returned amounts only for assistance under this paragraph. . (b) Authorization of appropriations There is authorized to be appropriated to the Secretary of Housing and Urban Development such sums as may be necessary for assistance under subtitle A of title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12741 et seq. 4. Study on alternatives to security deposits (a) Study The Secretary of Housing and Urban Development shall conduct a study to identify and analyze— (1) alternatives to rental housing security deposits, including products that require a tenant of a dwelling unit to pay a monthly insurance premium to cover costs of repairing damage to the dwelling unit; and (2) the impact that such alternatives have on the rental housing market and tenants, including how such alternatives affect tenants based on tenant race, income, age, sex, disability, and other demographic characteristics. (b) Report Not later than the expiration of the 180-day period beginning on the date of the enactment of this Act, the Secretary shall submit to Congress a report setting forth the findings and conclusions of the study.

Summary: Delivering Essential Protection, Opportunity, and Security for Tenants Act or DEPOSIT Act This bill provides access to rental security deposit and moving cost assistance for participants in certain low-income housing programs. Specifically, the Department of Housing and Urban Development (HUD) must provide public housing agencies (PHAs) funding for rental security deposit assistance for families in Section 8 tenant-based rental assistance (TBRA) programs (i.e., the Housing Choice Voucher Program). Upon tenancy termination, any unused security deposit amounts must be returned to a PHA to remain available for use as security deposits. HUD may also provide funding to PHAs to provide assistance with reasonable moving costs for families moving into an assisted dwelling unit. Under current law, security deposit assistance (i.e., loans or grants) is available in the HOME Investment Partnerships Program for families participating in a TBRA program. This bill expands access to security deposit assistance by allowing participating jurisdictions to provide these loans or grants to very low- and low-income families regardless of participation in a TBRA program. In addition, HUD must study and report on (1) alternatives to rental housing security deposits, including requiring a tenant to pay a monthly insurance premium; and (2) the impact that such alternatives have on the rental housing market and tenants, including how such alternatives affect tenants based on tenant demographics (e.g., race, age, sex, and disability).