Struggling Philly renters are getting more assistance thanks to two bills City Council just passed
Both bills that passed were part of larger legislative packages meant to help with high rental costs and dangerous housing conditions.
City Council passed two bills Thursday meant to help renters on the move: one that allows tenants to pay a portion of their security deposit in installments and one that creates a fund to give money to tenants who are forced from unsafe homes.
The security deposit bill passed by a vote of 13-3, and the bill to create an anti-displacement fund for renters passed unanimously.
After each passed, renters and renter advocates in the audience in Council chambers cheered.
Reducing up-front costs
Councilmember Rue Landau introduced the security deposit bill as part of an effort to reduce renters’ up-front costs, which can be barriers for households that can afford monthly payments but not expenses associated with moving into a new home.
The bill compels landlords to allow renters to pay a portion of their security deposit in installments if the deposit is more than one month’s rent. Renters can choose to pay the rest of the cost beyond one month’s rent in equal installments over three months. Landlords are allowed by state law to charge two months’ rent.
“Having worked as a housing lawyer for decades, I know that the up-front costs of moving can be the difference between staying put and giving yourself a fresh start,” Landau said during the Council meeting.
The bill excludes landlords with one or two rental units, a concession Landau made after fellow Council members objected to their inclusion during a vote last week.
“We are very thankful to Councilmember Landau for including that exemption,” said Paul Cohen, general counsel for HAPCO Philadelphia, the city’s largest association of rental property owners. The majority of members have one or two rental units.
In addition to the bill, renters have another way to get help paying their security deposits.
A pilot program called FreshStartPHL is covering the equivalent of three months’ rent for eligible renters who are moving to a new home and giving them up to $1,000 for moving expenses. For eligibility requirements and to apply to the program, renters can go to https://phdcphila.org/freshstartphl/.
Last week, Council passed another of Landau’s bills to address up-front renter costs. That bill caps rental application fees at $50. Her office found that application fees can range from $50 to $150 per tenant.
In a statement released after the Council votes on Thursday, Landau said her bills are “a win-win for renters, who will have more financial breathing room, and landlords, who will have a larger pool of potential tenants to rent their properties.”
An anti-displacement fund
On Thursday, Council also passed a bill that authorizes the city to create an anti-displacement fund for renters. The fund would help tenants with relocation costs when the city determines their rental homes are unsafe and they must evacuate.
But Council did not allocate money for the fund in the next city budget, which members passed on Thursday.
The bill was part of a legislative package meant to improve rental conditions that was introduced by Councilmember Nicolas O’Rourke and written in partnership with advocacy groups OnePA Renters United Philadelphia and Philly Thrive.
At a Council hearing to discuss the package, renters and advocates shared stories of unsafe and unhealthy rental conditions, including leaks and mold, cracks and holes in walls, and a lack of adequate heat.
Council’s housing committee advanced the bill to create the fund but held two other bills for further review.
One would provide tenants who complain about issues in their homes with additional protections against retaliation and harassment by their landlords. The other would authorize the city’s Department of Licenses and Inspections to create a program to proactively inspect rental units instead of relying on tenants’ complaints to trigger inspections.
“I’m thankful for the trust of organized tenants and homeowners who brought their experience to the drafting process” for the bill that passed, O’Rourke said in a statement. He said he was excited to move his other bills forward in the fall.
The Council bills that create the anti-displacement fund, allow installments for security deposits, and cap rental application fees take effect 90 days after they become law.