That’s $200 more per person than the biggest stimulus checks sent out in March, and it’s being done without help from D.C. and without taking a penny from the federal coffers.
Our Renter Stimulus Plan works by unlocking $45 billion currently trapped in security deposits across the US. This money is sitting in escrow accounts, unused by tenants and landlords alike. Our bill requires that renters be given the choice between paying a traditional one-time security deposit or purchasing a low-cost monthly insurance plan instead.
The plan is available to new and existing renters in municipalities where the renter stimulus is available. It requires the landlord to allow tenants to claim back their security deposits, and then gives renters 90 days to purchase a low-cost insurance policy to protect the landlord. There are no criteria for renters who choose to purchase the insurance policy. If a renter is taking advantage of this program, they will have cash for the insurance policy because they will have just received the cash back from their deposit. These insurance policies are minimal so it’s extremely unlikely a renter would be in a financial position to rent an apartment without being able to afford the insurance.
By opting into the monthly insurance plan, we can put security deposits back into the pockets of renters, creating an instant stimulus that can be used toward mounting bills, building emergency savings or even paying next month’s rent, while keeping landlords protected. In short, while the federal government continues to delay, we’re bringing about the single largest rent relief initiative in the country.
To our fellow mayors, city councilmen and governors: Join us. Fix this. Winter is coming hard and fast and we can’t wait to bring relief to the American people.