Long Beach : Plan for Interest on Rent Deposits Dies in Committee

A proposal to give renters interest on their deposits died this week after receiving strong opposition from landlords.

The Long Beach City Council’s Legislation Committee voted 2 to 1 against recommending the proposal that would have earned renters 5% interest on deposits held by landlords for at least six months.

Councilman Evan Anderson Braude, who first made the interest proposal last year, was the sole supporter. Councilmen Jeffrey Kellogg and Les Robbins voted against it.

Of the 20 to 25 speakers Tuesday afternoon, most were apartment owners or landlord representatives--including the Apartment Owner Assn. of Southern California--who said that the plan was too burdensome and would cost too much to administer, according to Braude. Supporters included the Long Beach Area Citizens Involved activist group and the Legal Aid Foundation of Long Beach.

Braude, who represents the downtown area, said: “It seemed to me that 90% of my district are tenants, and they feel they have a right to receive some return” on their deposits.