‘Citizens are being exploited’: House passes bill to bar Boise’s caps on rental fees
The Idaho House on Monday overwhelmingly passed a bill that would prevent local governments from restricting rental fees.
The bill, sponsored by Rep. Joe Palmer, a Meridian Republican, would bar local governments from creating regulations on fees, deposits and other bills imposed by landlords. Currently, only the city of Boise regulates rental application fees.
“Since when do we no longer trust our consumers or our businesses?” Palmer said during Monday’s debate. “To put it on the back of government to come in and watch out for us, I think that’s a bad idea.”
Currently, Boise renters don’t have to pay more than $30 for an application fee due to a 2019 city ordinance. The Treasure Valley is consistently ranked one of the most unaffordable housing markets in the U.S. due to skyrocketing prices and a dwindling supply of available housing.
Rep. Colin Nash, a Boise Democrat, said he’s likely one of the few legislators who is a long-term renter. For a three-bedroom home, his family expects to pay about $2,500 a month, Nash said.
“This is only compounding the issues for those who are seeking housing,” he said of Palmer’s bill. “And instead of adding arrows to the quiver of local government to help combat this crisis, we’re disabling local government from responding and intervening. Their citizens are being exploited.”
Palmer’s bill would nullify Boise’s ordinance and allow landlords to charge any amount for application fees. Landlords collect fees to cover the cost of background and credit checks on potential tenants.
Rep. Chad Christensen, an Iona Republican, compared regulating that process to communism, a political theory that advocates for public ownership of property.
The House voted, 54-14, to pass the bill; it now heads to the Senate.
Ten Democrats and four Republicans opposed it. The Republican “no” votes were from Reps. Clark Kauffman, of Filer, Ryan Kerby, of New Plymouth, Scott Syme, of Caldwell, and Fred Wood, of Burley.
Kerby said he’s in favor of barring regulation on rent, which is already banned by Idaho law. But in some cases landlords are collecting fees on dozens of applications for a couple units and keeping the fees from applications that aren’t accepted.
“That just bothers me,” he said. “I’m not sure exactly why we would protect those folks.”
Democratic Reps. James Ruchti, of Pocatello, and Ned Burns, of Bellevue, did not join their fellow party members in opposing the legislation. Ruchti, a personal injury attorney, voted in favor of the bill, and Burns, a real estate agent, was absent.
Last year, the same bill introduced by Rep. Greg Ferch, a Boise Republican, didn’t get a hearing and never made it to the House floor.
Boise city officials oppose bill
Boise city officials testified against the bill during a committee hearing last week. City Council Member Lisa Sánchez, a renter who drafted the original ordinance, said the bill would exacerbate difficulties faced by renters in Idaho.
“They’re finding themselves dealing with housing instability for the first time in their lives,” Sánchez said. “Our community needs to do better by them.”
Michael Prentiss, who said he owns a property management company in Boise, told representatives during last week’s committee hearing that passing the bill would allow predatory landlords to charge 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.
Idaho Statesmen reporter Joni Auden Land contributed to this report.
This story was originally published February 7, 2022 at 1:37 PM.
