The DEPOSIT Act helps low-income families afford the upfront costs of renting a home. Right now, when you want to rent an apartment, landlords typically require a security deposit—money held to cover any damage you might cause. For families struggling financially, coming up with this deposit can be a major barrier to finding housing. This bill makes it easier for these families to get help paying for security deposits and moving costs.

The bill works by giving money to local housing agencies so they can offer security deposit assistance to families in the Housing Choice Voucher Program (a federal program that helps low-income people afford rent). If a family moves out and gets their deposit back, that money goes back to the housing agency to help the next family. The bill also expands this assistance beyond just voucher program participants—other very low- and low-income families can now access these deposit loans or grants too. Additionally, the government can help families pay for reasonable moving expenses when they relocate to a new rental unit.

Beyond immediate assistance, the bill requires the government to study alternatives to traditional security deposits, like having tenants pay monthly insurance premiums instead. This research will examine how these alternatives affect the rental market and whether they impact different groups of people—such as renters of different races, ages, or people with disabilities—differently. Essentially, this bill removes a major financial hurdle that keeps struggling families from accessing stable housing.

DEPOSIT Act

Heinrich, Martin

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).