Idaho bill that would bar Boise’s caps on rental fees moves forward. A House vote is next
Currently, those looking to rent in Boise don’t have to pay more than $30 for an application fee when applying due to a 2019 city of Boise ordinance. But a bill that would eliminate that restriction — and caps on rentals fees of any kind — is one step closer to becoming law.
The House Business Committee overwhelmingly approved House Bill 442 on Tuesday, with proponents saying the bill would protect the free market interest of landlords and property managers.
Rep. Joe Palmer, a Meridian Republican, sponsored the bill and told committee members the proposed law would protect the rights of landlords to charge fees for their business.
“Whenever you involve government in business, and they start setting your prices for the product you’re selling, it’s going to cause problems,” Palmer said.
The bill, which was introduced and shot down during last year’s legislative session, amends current state law to prevent local governments from creating any regulations on fees and bills for rental properties across Idaho.
The proposed legislation followed closely after Boise approved its limitation on application fees in 2019, which was referred to several times by lawmakers Tuesday. Boise’s ordinance also requires landlords only to take fees for units available in 30 days or less, and prohibits fees from being taken after a unit is offered to another tenant.
The bill comes as Boise and the whole of the Treasure Valley have become one of the most unaffordable housing markets in the country, due to skyrocketing prices and a dwindling supply of available housing.
Representatives from the city of Boise testified against the bill, including City Council Member Lisa Sanchez, who drafted the original ordinance. She said the bill would exacerbate difficulties faced by renters in Idaho, many of whom have to pay large application fees in hopes of finding a place to live.
“They’re finding themselves dealing with housing instability for the first time in their lives,” Sanchez said. “Our community needs to do better by them.”
Republicans on the committee, though, seem unswayed by Sanchez’s testimony. Several said that instances of exorbitant application fees were outliers.
But Michael Prentiss, who said he owns a property management company in Boise, told representatives that passing the bill would allow predatory landlords to charge extremely high fees. He said he saw fees soar as high as $190 before Boise’s ordinance took effect.
“I don’t care what your political persuasion, I don’t think we want to push anybody else towards the edge of being homeless,” Prentiss said.
Rep. Steve Berch, a Boise Democrat, was one of two representatives that voted against the bill. He said he thought the bill went far beyond Boise’s original ordinance and favored potentially exploitative landlords.
The bill will now go to the House floor for a vote. Should it pass, it will then head to a Senate committee for consideration.
This story was originally published February 1, 2022 at 5:06 PM.
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