The overall cost of rent could be increasing in the Yellowhammer State.
Legislation has been introduced in the Alabama Senate that would effectively remove price caps on security deposits for renters across the state.
The bill, SB 242, is being sponsored by Sen. Keith Kelley (R-Anniston).
Some believe the bill could make an already difficult situation for renters worse. This includes the Low Income Housing Coalition of Alabama (LIHCA).
“LIHCA’s asserts that SB 242’s impact on low-income renters in Alabama would be significantly negative, particularly given the state’s already high housing costs and shortage of affordable and available rental homes,” the group said in a statement. “If passed, SB 242 would remove the state enforced one-month’s rent cap on security/rent deposits and prohibit cities and counties in Alabama from imposing local restrictions on security deposits.”
“These changes would have a disproportionate negative impact on low-income renters in Alabama, who are already struggling to find affordable and safe housing.”
Others believe the bill is needed because renters are taking advantage of land lords.
“We favor the legislation because some tenants are higher risk and one month won’t cover damages or total balanced owed,” said Greg D’Alessio, President of the Alabama Real Estate Investors Association.
Currently, under the Alabama Residential Landlord and Tenant Act, security deposits can not exceed the price of a single month’s rent at the same property.
The bill will now be reviewed by the Fiscal Responsibility and Economic Development Committee. A date has not yet been set for the review.
Attempts to contact Kelley regarding his legislation were unsuccessful.
Austen Shipley is a staff writer for Yellowhammer News.
