Long Beach : Interest on Tenant Deposits

A proposal to make landlords pay interest on their tenants’ security deposits will soon be considered by the Long Beach City Council’s three-member Legislation Committee.

At the request of Councilman Evan Anderson Braude, the council voted 7 to 1 Tuesday night to send the matter to the Legislation Committee, headed by Braude. The council also asked City Manager James Hankla to review the proposal, which would force landlords to pay 5% annual interest on security deposits held for at least six months.

Vice Mayor Warren Harwood voted against the idea. Harwood said in an interview that paying a tenant interest would be “terribly cumbersome in terms of record-keeping” because of extra forms the landlords would have to file with the Internal Revenue Service.

Councilman Edd Tuttle was absent from the meeting.