Boise council considers ‘greatly needed’ protection for renters. What does it entail?
Boise is considering adding another legal protection for the city’s many renters, this time targeted at security deposits.
A new ordinance being considered by the City Council would require landlords to put security deposits into a specific financial account, accompanied by a list of who paid the deposit and how much it was.
The goal is to protect tenants’ security deposits if a property is sold or if a property owner enters bankruptcy. Mary Grant, an attorney for the city, told the council during a Tuesday work session that a separate account would help ensure that a security deposit is not lost.
When a court looks at a bank account, “it’s difficult to be able to trace whose (money) that was and whether it was money that was ownership by the landlord or money that was ownership by the tenant,” Grant said. “Requiring that these be housed in a separate fund, and .. that the landlord would have to provide an accounting of what funds were deposited and withdrawn, helps provide that tracing aspect.”
Advocates say the ordinance could help cut down on the number of deposits that are improperly withheld from tenants after they move out, thereby making it easier for renters to move into new housing.
Council Member Lisa Sánchez introduced the ordinance — her second measure to protect renters in the span of about a year. The first capped the application fees paid by potential tenants.
She argued that with the current economic insecurity in the U.S., renters warrant more safeguards.
“As we’ve learned over the last few years, renters really don’t have many protections in our community,” said Sánchez, herself a renter. “Anything that we can offer to provide security to our renters is greatly needed.”
Advocates with the Intermountain Fair Housing Council say the ordinance is a good first step. The nonprofit, which is funded through grants awarded by the U.S. Department of Housing and Urban Development, works to ensure renters and home buyers do not face discrimination.
“It’s part of a slow, arduous process of finding people willing to push tiny incremental bids toward a more just relationship” between landlords and tenants, said Anthony Yenason, a community engagement specialist with housing council and an organizer of the group Boise Renters United.
A similar piece of legislation was considered by the Idaho Legislature during its regular session this year, but Yenason said the bill failed because of other requirements tied to it. In a memorandum to the rest of the Boise City Council, Sánchez wrote that she expects a statewide version will come to the Legislature again next year. She said she wanted to “ensure that our renters have this protection” in the meantime.
Paul Smith, executive director of the Idaho Apartment Association, said his group opposes city efforts to regulate deposits, rents or fees. He argued that it’s a state role rather than the city’s job.
“Rental operators incur tremendous risk, and security deposits are a necessary risk-mitigation tool,” he said in an email. “In cases where landlords or tenants have conflict over security deposits, the courts are the remedy. Onerous regulation from the city is unnecessary and punitive.”
Council President Elaine Clegg said she liked the ordinance but wanted to make sure it would be enforceable. She wants the process to begin with education for landlords so they know how to comply.
“I think it’s a great idea,” Clegg said. “I really would like to see it come forward. I just want to make sure that we’re doing it in a way that allows the folks who really do want to comply to be able to do that.”
It’s not clear when the proposed ordinance might receive a public hearing or be voted on by the council.
This story was originally published September 29, 2020 at 6:55 PM.
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