DEPOSIT Act

Bill: 118-s-1814
Sponsor: full_name: Sen. Heinrich, Martin [D-NM]
Introduced: 2023-06-06
Policy area: Housing and Community Development
Latest action: action_date: 2023-06-06
text: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Summaries:
action_date: 2023-06-06
action_desc: Introduced in Senate
text: <p><b>Delivering Essential Protection, Opportunity, and Security for Tenants Act or DEPOSIT Act</b></p> <p>This bill provides access to rental security deposit and moving cost assistance for participants in certain low-income housing programs.</p> <p>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.</p> <p>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.</p> <p>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).</p>

tv_txt: II 118th CONGRESS 1st Session S. 1814 IN THE SENATE OF THE UNITED STATES June 6, 2023 Mr. Heinrich (for himself, Mr. Luján , Mr. Welch , and Mr. Padilla ) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL 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 or the 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) ) is amended by adding at the end the following: (6) Supplements for security deposit and moving cost assistance (A) Security deposits (i) In general 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 the family. (ii) Requirement Each public housing agency that receives supplemental fees under clause (i)— (I) shall require the owner of a dwelling unit for which security deposit assistance is provided under that clause to return any unused amounts of security deposit assistance upon the termination of the family’s tenancy; and (II) 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) ) is amended by inserting after paragraph (3) the following new paragraph: (4) Security deposit assistance (A) In general 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 the family is provided tenant-based rental assistance pursuant to paragraph (3). (B) Requirement Each participating jurisdiction that provides loans or grants under subparagraph (A)— (i) shall require the owner of the dwelling unit for which security deposit assistance is provided under that subparagraph to return any unused amounts of security deposit assistance upon the termination of the family’s tenancy; and (ii) 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. ), to be made available only for providing security deposit assistance under paragraph (4) of section 212(a) of such Act ( 42 U.S.C. 12742(a) ) (as added by the amendment made by subsection (a) of this section). 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 the alternatives described in paragraph (1) have on the rental housing market and tenants, including how the alternatives affect tenants based on tenant race, income, age, sex, disability, and other demographic characteristics. (b) Report Not later than 180 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall submit to Congress a report setting forth the findings and conclusions of the study conducted under subsection (a).