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DEPOSIT Act
1/11/2024, 8:30 AM
Summary of Bill HR 1087
One of the key provisions of the DEPOSIT Act is the establishment of a grant program that would provide funding to banks and credit unions to open new branches or expand existing ones in underserved areas. This is intended to help improve access to basic banking services, such as checking and savings accounts, for individuals and businesses in these communities.
Additionally, the DEPOSIT Act includes measures to promote financial literacy and education in underserved areas, with the goal of empowering residents to make informed decisions about their finances. This includes funding for programs that provide financial education workshops and resources to help individuals better understand banking products and services. Overall, the DEPOSIT Act is aimed at promoting financial inclusion and economic development in underserved communities by increasing access to banking services and promoting financial literacy. It is a bipartisan effort to address the challenges faced by individuals and businesses in underserved areas and to help them build a stronger financial future.
Congressional Summary of HR 1087
Delivering Essential Protection, Opportunity, and Security for Tenants Act or DEPOSIT Act
This bill provides access to rental security deposit and moving cost assistance for participants in certain low-income housing programs.
Specifically, the Department of Housing and Urban Development (HUD) must provide public housing agencies (PHAs) funding for rental security deposit assistance for families in Section 8 tenant-based rental assistance (TBRA) programs (i.e., the Housing Choice Voucher Program). Upon tenancy termination, any unused security deposit amounts must be returned to a PHA to remain available for use as security deposits. HUD may also provide funding to PHAs to provide assistance with reasonable moving costs for families moving into an assisted dwelling unit.
Under current law, security deposit assistance (i.e., loans or grants) is available in the HOME Investment Partnerships Program for families participating in a TBRA program. This bill expands access to security deposit assistance by allowing participating jurisdictions to provide these loans or grants to very low- and low-income families regardless of participation in a TBRA program.
In addition, HUD must study and report on (1) alternatives to rental housing security deposits, including requiring a tenant to pay a monthly insurance premium; and (2) the impact that such alternatives have on the rental housing market and tenants, including how such alternatives affect tenants based on tenant demographics (e.g., race, age, sex, and disability).
