Momentum builds to end security deposit theft

California is a deep-blue state, with a Democratic Governor and a two-thirds super-majority in both houses of the legislature.  It is the home to 15 million tenants in an overheated rental market, and ground-zero in the nation’s foreclosure crisis.  Now is the time to get real change in the Golden State.

But when it comes to common-sense tenant rights laws, too many Democrats vote the wrong way.  They take large donations from the real estate lobby, which wields undeserved clout in Sacramento.  Even some “progressive” Democrats who represent deep-blue, urban districts are not our best allies.

At Tenants Together we're working to change how tenants are treated in Sacramento. On Tuesday May 7th, dozens of Tenants Together members took to the Capitol for a “Day of Action” to urge State Senators to support SB 603, a bill to promote security deposit reform. While tenants were walking the halls of the Capitol, the Senate Judiciary approved the bill by a vote of 4-1, a key step toward passage of the law. The “Day of Action” was a show of force by tenants in a capital often dominated by real estate industry lobbyists.

Members who participated in the Day of Action were victims of security deposit theft and allies. One member, Sebrina, flew in from San Diego to make sure Senators heard her story. Sebrina says, “My deposit was partially withheld for cleaning and unnamed “damages.”  I left the place cleaner than it was when I moved in.  As for damages, I have no idea what the landlord was talking about and they never explained or documented any repair expenses.  The apartment sits now, almost 3 years later, as storage for odds and ends and paint, tools, unused carpet and so on. No one has ever lived there since I moved.”

At the Senate Judiciary Hearing Sen. Mark Leno (D – San Francisco) emphasized how many tenants across the state are suffering under the unfair treatment of tenant security deposits, and now is the time to act. Chair of the Committee, Noreen Evans (D – Santa Rosa), said that she herself had experienced unfair deposit withholding as a renter and felt this was an important bill to pass. Votes in favor were Sen. Evans, Sen. Bill Monning (D – Monterey), Sen. Ellen Corbett (D – East Bay), and Sen. Leno.

Supporters and advocates who could not make lobbying efforts participated in the “Day of Action” by writing letters and making calls to their senators. SB 603 now moves to the Senate floor where a vote is expected before the end of May.

The real estate industry has lobbyists every day in the State Capitol, many of whom are shameless about spreading misinformation and trying to intimidate Democratic legislators in voting against tenant protections.  With your help, we can make sure that Sacramento listens to the state’s 15 million renters – by voting “yes” on SB 603. We need every tenant in California to call their Senator NOW!

To learn more about SB 603 – Security Deposit Fairness visit:
YourDeposit.org, Estudinero.org, or follow the campaign on Twitter @EndDepositTheft

Check out all our photos from Lobby Day on Facebook.

Check out all our photos from Lobby Day on Facebook.

New Report Shows Lack of Accountability for Improper Security Deposit Withholding

Tenants Together has released a new report on security deposit withholding by California landlords. Entitled No Deterrent: Improper Security Deposit Withholding in California, the report finds widespread deposit withholding with virtually no accountability for wrongful withholding.

According to the report, California landlords hold an estimated $5 billion of tenant security deposits, and annually in excess of $1 billion of deposit money is in play when tenants vacate their homes and landlords must decide whether to return deposits. Sixty percent of the tenants surveyed reported experiencing unfair deposit withholding. The report includes an analysis of small claims cases revealing that only in the rarest cases do courts impose penalties on landlords that improperly withhold deposits.

The report contains the following findings from a survey of Tenants Together members from across the state:

• 60% experienced unfair withholding of some or all of their deposit;
• 53% did not receive any of their deposit funds within 21 days of vacating the last time they moved;
• 36% reported that their entire deposit was never returned the last time they moved.

The report also analyses of the outcomes of security deposit cases filed by tenants in small claims courts to recover their deposits. The three-courthouse study, the first of its kind in California, found:

• Tenants prevailed in over 70% of the cases that went to judgment;
• In only 3.5% of the security deposit cases filed by tenants was a landlord assessed a penalty by the court.

The report recommends two reforms to ensure that tenants are not unfairly deprived of their deposits. First, it is recommended that tenant deposits be kept in accounts that are separate from the landlord's personal. Second, it is recommended that mandatory penalties be imposed for improper retention of security deposit funds by landlords. Together these reforms will help ensure that deposit funds are preserved until the end of the tenancy and are returned as required by law.

Responding to complaints of unfair security deposit withholding across the state, Senator Mark Leno (D - San Francisco) introduced Senate Bill 603 earlier this year. This statewide bill would make the changes recommended in the new report (requiring separate accounts for deposits and mandatory penalties for improper withholding), and also address a longstanding inequity regarding security deposit interest. SB 603 is co-sponsored by Tenants Together, Western Center on Law and Poverty and California Rural Legal Assistance Foundation. SB 603 will be heard in the Senate Judiciary Committee on May 7, 2013.

April Tenant News Roundup

News Across California:

Statewide: FTC Warns Tenant Blacklisting Websites
Five years after Tenants Together complained about the violations of the Fair Credit Reporting Act, the FTC has issued warning letters to several "tenant screening" websites.

Merced: Tioga Apartment Residents Told to Pay Up or Get Out
Tenants in a Merced apartment building were served with "pay or quit" notices demanding payment of rent they don't owe. One of the building's managers was allegedly embezzling funds from the management company.

Sacramento: Critics Question Investment Fund's Sacramento Rental Venture
Concerns that Blackstone, one of the large investment groups in the US, will have negative consequences for the housing market in Sacramento's single-family rental market. Tenants Together's Executive Director is interviewed for the article.
  

Notable Nationwide Tenant News:   

Nebraska: Tenants in Apartment Complex Will Not Have to Move Tuesday
Tenants in a foreclosed apartment complex were served with a Writ of Possession, giving them only four days to move, though the Federal Protecting Tenants at Foreclosure Act allows for longer. Occupy Lincoln and other community support forced Fannie Mae to delay the evictions.

Minnesota: City Buckles Down on Landlords
The Minneapolis City Council is attempting to craft an ordinance that would force landlords to maintain their properties without revoking the landlords' licenses. Revoking the license closes down the building and forces tenants to move. Some investors who bought foreclosed properties, in particular, are failing to maintain their buildings.

Tioga Residents and Merced Tenants Together Win Against Management Over Bogus Eviction Notices

by Susan, member of Merced Tenants Together

On April 1, 2013, our local chapter of Tenants Together, Merced Tenants Together (MTT), received word from one of our members, a resident at the Tioga Apartments, that many of the tenants received unfounded 3-Day Notices to Pay or Quit. The notices stated they owed money for rent even though the rent had previously been paid. The tenants even had receipts to prove this. MTT immediately took action by notifying reporter Josh Emerson Smith of the Merced Sun-Star of the issue and proceeded to organize the building’s tenants.

On April 2, 2013 MTT held an initial meeting with one of the tenants who received a 3-day notice. With the assistance of two of the residents, MTT went door-to-door to investigate further and recruit residents to meet to decide how to tackle the problem. We discovered that at least 27 residences of 91 were served the notices. A few residents moved without fighting, afraid of an eviction on their record. One tenant paid the extra money. All these tenants had paid their rent in full! This was outrageous!

More than thirty residents attended a building meeting where we discussed how to proceed. The group decided to start a tenants association in order to take action collectively. The first formal association meeting was planned for Friday, April 12.

In the interim, we met informally during the week to keep the residents plugged in about the issue and continued to discuss concerns. We discovered many of the units had serious needs for repairs and rampant pest infestations. We saw hundreds of roaches while visiting tenants during the day. On Wednesday, the Merced Sun Star put the issue on the front page and before noon, KSEE channel 24 was out interviewing the residents about the 3-Day Notices. The story made both 6pm and 11pm news that day.

KSEE was also stunned by the Tioga’s pest problems, and the next day Angela Greenwood from KSEE returned to cover the living conditions at the Tioga.

In response, management went door to door to inspect apartment conditions, rescinded the 3-Day Notices, and issued a letter of apology to each of the residents.

The Tioga Resident Association and MTT secured a swift and awesome victory against the bogus 3-day notices. If it were not for Merced Tenants Together organizing The Tioga building, more tenants may have moved out of fear or paid extra rent they didn’t owe. Inspired by our victory at the Tioga, Merced residents are joining MTT with the desire to take action against other slumlords.

Tonight is the Merced City Council meeting and we look forward to bringing the Tioga living conditions to their attention. City of Merced Code Enforcement says they have received previous requests about the roach problem but they have not inspected or cited the owner. We will tell them it is an emergency and ask that they should send Code Enforcement in to inspect. We will keep you posted. Tioga Residents are ready to fight, and Tenants Together is ready to help in any way we can!

TT to receive Community Justice Award

Tenants Together is proud to receive Centro Legal de la Raza's Community Justice Award at this year's 44th Anniversary Gala on Friday April 12th. We have been given the award in "honor of [our] commitment to advancing the rights of California’s tenants." Thank you Centro Legal de la Raza for this recognition!

Centro Legal de la Raza was founded in 1969 by Latino law students from Boalt Hall at UC Berkeley, and is a comprehensive legal services agency protecting and advancing the rights of immigrant, low-income and Latino communities through bilingual legal representation, education, and advocacy.

Attorney General Kamala D. Harris Announces $1 Million Grant to Benefit California Homeowners & Tenants

Attorney General Kamala D. Harris last week announced a $1 million California Homeowner Bill of Rights implementation grant to The National Housing Law Project.

“Californians were hit hard by the mortgage crisis and many people are still struggling to stay in their homes,” Attorney General Harris said. “The California Homeowner Bill of Rights gives borrowers more opportunities to stay in their homes, and this grant will help make sure the law is applied across the state and that everyone gets the protection they are entitled to.”

The California Homeowner Bill of Rights (HBOR) is a set of landmark laws that extend key mortgage and foreclosure protections to California homeowners and borrowers. The laws, which took effect at the beginning of this year, restrict dual-track foreclosures, guarantee struggling homeowners a reliable point of contact at their lender, impose civil penalties on fraudulently signed mortgage documents and require loan servicers to document their right to foreclose.

This grant will maximize consumer benefits from the HBOR, while minimizing abuses of the law by providing training to California consumer and housing attorneys from both private and non-profit firms.

The National Housing Law Project will partner with Western Center on Law and Poverty, National Consumer Law Center and Tenants Together to implement this grant.

The National Housing Law Project and its partners will use the grant to:

• Provide high-quality, on-site trainings and webinars to consumer and housing attorneys on how to maximize the HBOR’s protections.
• Train more than 800 lawyers.
• Provide support in cases that raise important legal issues or have potential for broad impact.
• Create a library of litigation materials to help attorneys maximize the HBOR’s benefits.
• Produce a report that analyzes the HBOR’s statewide impact and identifies compliance problems.

Funds provided through this grant were secured by Attorney General Harris through the $18 billion National Mortgage Settlement.

Established in 1968, The National Housing Law Project seeks to advance housing justice by advocating for affordable housing, litigating to uphold homeowners’ and tenants’ rights and offering technical assistance to legal aid attorneys who work with low-income families.

The State Bar has partnered with the Attorney General’s Office to administer the grant and monitor compliance. The National Housing Law Project will provide quarterly financial and program reports to the State Bar and the Attorney General’s Office.

See our tenant rights counselors in action

Our new cohort of volunteer counselors, who went through an initial training in January, brushed up on their skills together last Friday afternoon. Central to the training was reviewing the basic rights for tenants in foreclosure situations and getting clarity on what can often be a confusing, inhumane situation caused by banks, investment companies, and their real estate representatives. Photos from the day:

Group shot of everyone in the office Friday 3/22

Gold team takes a stab at the tenant foreclosure rights and process flow chart.

Blue team puts forth their best effort.

Counselors in attendance and their supervisor, Aimee.

Our counselors come from all walks of life, including students at local law schools, tenant rights activists, recently graduated public interest lawyers, and retired advocates for justice. With their passion and commitment, it's possible for us to help thousands of tenants across the state understand and assert their rights each year.

We work to help tenants demand necessary repairs, get their security deposit back, and fight back against unfair evictions, harassment, discrimination, and retaliation. If you are a California tenant, call us at 888-495-8020 to reach a counselor.

We're back! Open thread

Tenants Together has renewed its commitment to "Rents & Rants" and we've started posting regularly on Wednesdays and refreshed our layout a bit. Check back weekly for the latest news and commentary!

The best blogs foster a vibrant community as well as us providing fresh content.

In that spirit, we're opening up the comments section in this post to two topics:
1. What kind of content would you like to see on this blog?
2. What other blogs should we be following? We're thinking blogs focused on tenant rights, CA's progressive community, or vibrant community blogs.

Please share your thoughts and opinions in the comments!

Senator Leno Introduces Bill to Promote Fair Treatment of Tenant Security Deposits

Senator Mark Leno (D - San Francisco) has announced the introduction of SB 603, a bill to promote fair treatment of tenant security deposits. SB 603 would require deposit funds to be held separate accounts, require interest payments to tenants on any funds held, and impose penalties if deposit funds are improperly withheld at the conclusion of a tenancy.

"One the biggest complaints California's 15 million renters voice when a lease ends is that they have little recourse in dealing with a landlord who refuses to return their deposits," said Senator Leno, D-San Francisco. "At a time when deposits can be $5,000 or more, the failure to pay interest or properly return a security deposit can be a significant and unnecessary financial burden on many renters. SB 603 protects tenants in this situation by encouraging landlords to return security deposits in a timely manner, as required by law," he said.

SB 603 is co-sponsored by Tenants Together, Western Center on Law and Poverty and California Rural Legal Assistance Foundation. The bill responds to widespread complaints from tenants across the state that their deposits are unfairly withheld. According to a recent survey of Tenants Together members, 60% reported that some or all of their security deposit had been improperly withheld.

"It's gotten so bad that tenants paying their security deposits don't ever expect to see that money again," commented Dean Preston, Executive Director of Tenants Together, California's statewide organization for renters' rights. "California's 15 million renters deserve better when it comes to the billions of their dollars being held as deposits," commented Preston.

Security deposits are among the largest financial assets, and sometimes the only asset, that many tenants have. Deposits can be thousands of dollars, particularly in Senator Leno's 11th Senate District that encompasses San Francisco.

Brain Augusta, Legislative Advocate at the Western Center on Law and Poverty, noted the unfairness of depriving tenants of interest on deposits. "Landlords who hold tenants' money, sometimes for years, should be required to pay the renter interest," said Augusta. "This isn't just a landlord-tenant issue. It's about basic consumer protection." Currently, only a handful of jurisdictions in California require that tenants be paid interest on security deposits.

The cause has quickly attracted broad support. Tenants Together recently launched www.YourDeposit.org, a new website to educate tenants and protect deposits. Already, 20 community organizations including tenant groups, unions, civil rights groups, and consumer advocates have signed onto the effort.

SB 603 will be heard in the Senate Judiciary Committee this spring.

March Tenant News Roundup

News across California:

San Luis Obispo: 40 students displaced after safety violations found at SLO condos
Students in SLO displaced by slum conditions and illegal property divisions that caused overcrowding. According to the article, these conditions had existed at the property since at least 1994.

Alameda: Council members: Rising rents could prompt controls
Tenants in a multi-unit building in the city of Alameda are facing rent increases of 55% or more after a change of ownership. Some council members open to considering rent control in response.

Fresno: Assessor Mailed More Than 2,000 Foreclosure Fact Sheets
Fresno County is one of only two counties in California where the government warns tenants that the property in which they live may be going into foreclosure. The Fresno Assessor provides information for both homeowners and tenants in distressed properties.

LA County: Courts Plan Will Hurt Poor Tenants, Advocates Say
The decision to reduce the number of courts hearing eviction cases will have a detrimental impact on low-income tenants, as they will have to travel long distances to the court hearing their cases. In some cases tenants would have to take public transportation from the San Fernando Valley to Santa Monica for a hearing.


Notable nationwide tenant news:

Your New Landlord Works on Wall Street
More investment companies taking up the business of being landlords, driving up the cost of rent in many communities. Many companies can be absentee landlords who make minimal cosmetic repairs.

R.I. Pols to Talk Tenants' Rights Bill
Rhode Island politicians are discussing a "just cause" eviction bill for tenants in foreclosed properties there. Last year a similar bill passed the Rhode Island House of Representatives, but failed in the State Senate.

Union Members Fight Foreclosure Evictions with Sit-downs and Blockades
Community organizations and unions have been working to stop evictions of homeowners in foreclosed properties.