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California bill aims to rein in high security deposits

Most renters know securing housing isn’t as simple as finding the perfect place.

California’s renters must save up thousands of dollars to provide security deposits that can legally be as much as two months’ rent, or three months’ for furnished units.

Add in the requirement that renters put up the first month’s rent before they can move in and low-income families are most likely to give up hope of finding a home.

The state Assembly on May 22 passed a proposal that could change that.

Assembly Bill 12 would limit security deposits to one month’s rent, regardless of whether a unit is furnished or not. If the bill passes and gets Gov. Gavin Newsom’s signature, California could become the 12th state to limit security deposits.

“Security deposits present barriers for people to move into apartments, which can lead them to stay in apartments (and) in homes that are too small, crowded or even unsafe,” said Matt Haney, the Democratic Assemblymember from San Francisco who authored the bill. “In other cases, people take on debt or financial burden that leaves them unable to afford other necessities.”

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