CA AB 2785

Title: Tenancy: application fees and security deposits.
Author: Lori D. Wilson

Summary
AB 2785, as introduced, Wilson. Tenancy: application fees and security deposits. Existing law regulates the terms and conditions of residential tenancies, including authorizing a landlord to hold security for any tenant who is a party to the lease or agreement, subject to specified requirements. Existing law defines security as any payment, fee, deposit, or charge that is imposed, as specified, to reimburse the landlord for costs associated with processing a new tenant or that is imposed as an advance payment of rent, used for any purpose. Existing law authorizes a landlord to claim any of the security in the amount reasonably necessary for the above-described purposes. Existing law requires the landlord to, among other things, return any remaining portion of the security to the tenant.This bill would require a landlord to, within 30 days of receiving a tenant’s security, deposit the sum into an account of a bank or other financial institution regulated by the state or federal government, subject to specified requirements, including that any balance originating from the security that remains in the account after reimbursement to the landlord as described above, including interest accrued on that balance, is payable to the tenant, as specified.Existing law authorizes a landlord or their agent to charge an applicant an application screening fee, as defined, to cover the costs of obtaining information about the applicant, including personal reference checks and consumer credit reports, as specified, when they receive a request to rent a residential property from an applicant. Existing law prohibits the application screening fee charged by the landlord from exceeding $30 per applicant, and authorizes the landlord to adjust the fee annually, as specified. Existing law requires the landlord to return any amount of the screening fee that is not used for the above-described purposes if the landlord or their agent does not perform a personal reference check or does not obtain a consumer report.This bill would, instead, prohibit the above-described application screening fee from exceeding $50 per applicant, and remove the provision authorizing the landlord to adjust the application screening fee annually. The bill would also require the landlord to return any amount of the screening fee if the landlord does not select the applicant for tenancy or if the fee collected exceeds the above-described amount. The bill would require the landlord to include in all tenancy application forms a clear provision that notifies prospective applicants of a refund policy, as specified.

Status
From committee: Amend, and do pass as amended. (Ayes 8. Noes 3.) (April 2).

Bill Documents
CA AB 2785 - 02/15/24 - Introduced
02/15/24 - CA AB 2785 (02/15/24 - Introduced)