Baltimore City will cover the cost of security deposits up to $2,000 per unit for tenants in Baltimore starting this fall, Mayor Brandon Scott announced on Thursday.
The $3.3 million security deposit fund, which will run from September 2021 to September 2022, is part of an expansion of the city’s Eviction Prevention Program.
“All Baltimoreans deserve safe and stable housing. As we emerge from this pandemic, we must address barriers to long-term housing stability for our residents, like unaffordable security deposits,” Scott said in a statement. “This expansion of eviction prevention resources — including a dedicated fund for security deposits — is the result of months of collaboration between the Mayor’s Office, Mayor’s Office of Children and Family Success, and the Department of Housing and Community Development to support Baltimore families while also safeguarding the rights of renters.”
The city will fund the security deposit program using supplemental funds from a Fiscal Year 2020 Community Services Block Grant (CSBG).
Applicants must have an income of 125% of the federal poverty level to be eligible for the program. They must also be paying a security deposit on a rental unit that is registered and licensed with Baltimore City, have a signed lease, and provide documentation of a security deposit requirement.
The announcement comes over three weeks after Scott vetoed a controversial security deposit bill.
The bill’s supporters argued that the legislation would give tenants more options for paying their security deposits, while renters’ advocates said the bill would allow New York-based company Rhino to take advantage of tenants.
After Scott’s veto, some of the city council members who initially supported the bill changed their positions, resulting in the veto being unable to be overturned and the bill ultimately failing to be passed.
The Mayor’s Office of Children and Family Success (MOCFS) through Baltimore City’s Community Action Partnership (CAP) centers oversees the Eviction Prevention Program.
MOCFS Executive Director Tisha Edwards said in a statement that the security deposit find “strengthens our overall efforts to achieve housing stability in Baltimore City.”
“From the time we launched the program last fall we have witnessed a continuous increase in need, and to meet that need we have been investigating funding sources that would allow us to expand opportunities to provide families the chance to find safe, secure and stable housing,” Edwards said. “Providing funds to cover the cost of their security deposit is one key way to do just that.”
Acting Housing Commissioner Alice Kennedy added that the fund will alleviate one of the challenges that tenants face with securing long-term, stable housing.
“The ability to pay a security deposit is a known barrier to obtaining affordable housing, and this effort will further our goals to promote housing stability throughout Baltimore City and help our most vulnerable residents secure safe and affordable housing,” Kennedy said in a statement.
MOCFS and United Way of Central have also partnered to redirect $16 million in state funds to direct rental assistance this summer.
“United Way will make bulk payments to landlords of multifamily housing properties with large numbers of tenants,” city officials said.
