I will vote to sustain the Mayor’s Veto of 21-0022

Statement on the 21-0022 Security Deposits Alternatives bill.

In addition to the work we have done on tax sale, legislation to help homeowners, addressing homelessness, and working to resolve community issues like illegal dumping, nuisance properties, and more, I have spent hours reflecting on bill number 21-0022 Security Deposit Alternatives.

We need to alleviate barriers to renters having good quality housing. The idea of renter’s choice is a good one which drew me initially to this bill. This legislation provides for landlords to offer one of two options as alternatives to first month’s rent to be offered by the landlord - installment plans and a security deposit “insurance.”  

The installment plans make sense. The bill says that if landlords offer this option, the security deposit can be paid in three monthly installments. That could help families move into an apartment easier with less financial stress. We should be implementing this part of the bill. The security deposit insurance sounds great - the tenant pays a few dollars a month for the “insurance” rather than a full month’s rent at the outset of the tenancy, and if no damages, walks away from the unit when it is time to move. In fact we know of a few people who this option has helped since it is already available in Maryland.

I have learned more and more about the security deposit insurance - which is not really an insurance. While it sounds like car insurance - where everyone pays into a pool of funds and if there is a claim, that fund pays for the damages - that’s not what it is. It is a surety bond. While the tenant only pays a few dollars a month instead of a full month’s rent for security deposit, if the landlord makes a claim for damages or non-payment of rent, the landlord gets paid and the bond company goes after the tenant for the damages. There are a few other components that I’ve learned about that may not make this a good option for renters.

We have an opportunity - and an obligation - to help tenants.  I’m proud to have voted for two bills that will help renters in this crisis - postponing late fees for people who have social security or other benefits and preventing landlords from not renewing leases during the pandemic. These are two excellent pieces of legislation that, along with two pieces I’ll bring up soon related to renters - will have an important impact. 

I will be voting to sustain the Mayor’s veto. We need to start over with the security deposits bill.

I have been working for justice in housing my entire career. I look forward to using my skills and experience to work with my colleagues in the City Council and in the General Assembly on providing ways to ensure that renters can still enter into a lease agreement without the barrier of a security deposit as the same amount as first month’s rent.

I learned a lot during this process, and made a ton of mistakes. I very much valued the experience of going through this process.

Please feel free to contact me with any questions or concerns 410-396-4814 or odette.ramos@baltimorecity.gov