Second-month deposit idea bounced by lawmakersState law currently limits the amount of deposit to an amount equal to one month. The House Judiciary Committee decided that is enough.
By: Staff reports, Republic Capitol Bureau
PIERRE — Tenants won’t be charged a security deposit of two months of housing rent, a legislative committee decided Monday.
State law currently limits the amount of deposit to an amount equal to one month. The House Judiciary Committee decided that is enough.
The panel Monday set aside a proposal by Rep. Hal Wick, R-Sioux Falls, to allow a deposit amount equal to two months. The vote against HB 1105 was 9-4.
One factor in the decision was Mark Lauseng, executive director for the South Dakota Housing Authority, who testified as an opponent. He said average rent in Sioux Falls is about $700. That would mean a renter would need $2,100 for the first month rent and deposit. Lauseng said that is a lot of money for a low-income working family. State law already allows for rental contracts to reflect special circumstances, such as an additional deposit for a renter with a pet.