Heinrich, Simon Introduce Bicameral Legislation to Improve Access to Rental Housing for Working Families

WASHINGTON - U.S. Senator Martin Heinrich (D-N.M.) and U.S. Representative Lateefah Simon (D-Calif.) introduced the Delivering Essential Protection, Opportunity, and Security for Tenants (DEPOSIT) Act, bicameral legislation to provide targeted assistance to help low-income renters afford the upfront cost of moving into a new home.

Americans are struggling to find affordable places to live and put down roots in their communities. One of the biggest hurdles to renting is affording a security deposit, which can be a costly barrier that puts housing out of reach for many working families.

The DEPOSIT Act will make federal resources available to state, local, and Tribal housing authorities to establish revolving funds to provide security deposit assistance to low- and very low-income renters in the Housing Choice Voucher Program and the HOME Investment Partnerships (HOME) Program. Additionally, it will require the U.S. Department of Housing and Urban Development (HUD) to conduct a new study on alternatives to security deposits to make housing more accessible.

"We need to bring down the steep upfront costs of housing that keep too many working families from finding a place they can afford," said Heinrich. "This legislation tackles one piece of this puzzle by helping renters cover security deposits, which can be one of the early barriers low-income renters face. Families deserve to settle into a safe place to call home so that they can build a stable foundation for the future."

"Housing is a basic human right and having secure housing can fundamentally change lives and open new doors. But, currently there are too many significant hurdles for low-income renters trying to access affordable housing, including upfront security deposits in addition to a month or two of rent," said Congresswoman Lateefah Simon. "We need to tackle the barriers that functionally prohibit families from accessing stable housing and provide relief, especially when housing and living costs are at an all-time high. I'm excited to lead on this legislation with Senator Heinrich as a step towards addressing the affordable housing crisis in my district in the Bay Area and nationwide."

Out of nearly 45 million families renting in the United States, the National Low Income Housing Coalition has found that 11 million families have extremely low incomes - incomes at or below either the federal poverty guideline or 30% of the area median income, whichever is higher. Security deposit assistance programs for these families are an inconsistent patchwork across the country, with only some state and local housing authorities supplementing assistance through non-profits and community organizations.

HUD's Housing Choice Voucher Program helps more than 5 million individuals afford housing in the private market, including: low-income families, elderly persons, veterans and disabled individuals. In New Mexico, an estimated 12,000 New Mexico households receive Housing Choice Vouchers. These vouchers help low-income Americans afford rental housing by paying landlords the difference between what a household can afford to pay for rent and utilities and the market rate of housing units.

HUD's HOME Program provides formula grants to states and localities that communities use to fund a wide range of activities, including building, buying, and rehabilitating affordable housing for rent or homeownership. The program also provides direct rental assistance to low-income people. HOME is the largest federal block grant to state and local governments that is designed exclusively to create affordable housing for low-income households.

The bill has been endorsed by 15 organizations, including the National Low Income Housing Coalition, National Housing Law Project, National Affordable Housing Management Association, National Apartment Association, National Alliance to End Homelessness, Gen Z for Change, Albuquerque Housing Authority, New Mexico Coalition to End Homelessness, Albuquerque Health Care for the Homeless, San Juan County Partnership, Community Action Agency of Southern New Mexico, Mesilla Valley Community of Hope, HEART of Taos, Fair Housing Advocates of Northern California, and East Bay Housing Organization.

"Albuquerque residents struggle to find safe and affordable housing in the current competitive housing market. Albuquerque Housing Authority has experienced firsthand the impact that housing search assistance funds, like what would be provided through the DEPOSIT ACT, can have in helping households with a voucher be competitive in this housing market," said Linda Bridge, Albuquerque Housing Authority Executive Director.

"The DEPOSIT Act is critically important for ensuring that low- and very low-income renters have equitable access to safe and stable housing. Security deposits are often a significant barrier for families in San Juan County and across the County," said Anna Krutsky, San Juan County Partnership Executive Director. "By expanding federal resources through the Housing Choice Voucher Program and the HOME Investment Partnership Program, the DEPOSIT Act will provide the revolving funds needed to establish sustainable deposit assistance programs for renters who need it most."

"HEART of Taos supports the Deposit Act because it helps many working low-income families and individuals gain access to critical housing which helps them avoid homelessness. The financial support is crucial for many families who can't save a large deposit within the timeframe needed. It provides them a chance to regain stability for themselves and their children," said Kimberly Park, HEART of Taos Executive Director.

"Renters with the lowest incomes continue to face a dire shortage of affordable housing options nationwide, and security deposits are one of the many fees renters face in their search for affordable housing," said Renee M. Willis, president and CEO of the National Low Income Housing Coalition. "Creating a revolving security deposit assistance fund within the Section 8 Housing Choice Voucher Program and HOME Investment Partnerships Program would help provide some stability for low-income renters as they move to communities of their choice. By enacting the 'DEPOSIT Act,' Congress can take a necessary step to alleviate the burden low-income renters face when seeking a home."

A one-pager of the bill is here.

The text of the bill is here.

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