We have a growing problem in America.  The homeless.

Just the other day, Washington, DC eradicated a village of folks living under the train tracks on K Street a 1^st.  TheDonald tries to blame the homeless problem in California on the governor and the mayor.  (They are all part of the mutual denigration society.)

But, it’s everywhere.

Part of the problem is the expensive security deposit required to move into an apartment.  All cash.

Now, if you are the landlord, that makes perfect sense.  You don’t want to rent your property to someone who may disappear and leave you with a vacant, non-paying property.  Or, find significant damage to your property when the souls depart at the end of the lease.

I also recall (from decades ago), leaving an apartment in which I lived for more than a few years and having the landlord claim that it was my responsibility to have the apartment repainted. There was no damage to the walls or the floors, just general wear and tear.  Like that would never happen after 40 to 50 months.

But, I digress.

Given that rent now runs about 30% of one’s pretax income, there are some computations to consider. And, the fact that rents have skyrocketed by 36% nationally over the past decade.  And,  there are pockets across the USA where that rise would be a welcome relief to the dramatically increased rents.

Remember, too that rent averages about 30% of pretax income- which means it’s at least 40% of one’s net income.  And, if the landlord expects the first and last month’s rent to get that apartment,  that means 80% of one’s cash for the month to move into an apartment.  And, that’s before any moving expenses! (You do know that some rental properties demand TWO months of security!)  Moreover, 25% of renters actually shell out 50% of their monthly income in rent.  (The typical middle income family have around a $3000 savings hoard. So, if rent is $ 1500 or more- with the security deposit, they are wiped out.)

So, it’s not surprising that those from the bottom 50% of the income strata find it mighty difficult to garner safe housing.

Which is why our lawmakers are finally trying to figure out a better system.  Letting millennials and those strapped for cash find (and keep) decent housing.  After all, TheDonald and his minions are gutting Section 8 subsidized housing.  This past year he tried to eradicate $ 6 billion from housing programs (almost as much as he is stealing from the military to build his fakokta wall).

New York State just passed a law that stipulated rental deposits can only be one month’s security.  (Yet, with the current rent, that still could be 80% of someone’s cash on hand.)

Cincinnati now requires alternatives to a cash deposit. (The city elders believe that some $ 100 million is tied up in security deposits.)  It stipulates the use of payment plans (6 months term to cover the deposit) or insurance as an alterantive. But, the insurance providers must have state approval, charge monthly premiums and guarantee the policy (assuming it’s paid) for the entire lease term.  A similar bill was proposed for the Commonwealth of Virginia.  Joining the bandwagon (perhaps) are Connecticut, New Hampshire, and Alabama.  (Alabama!)

Right now, at least one insurance company has a program that charges $ 5 a month for each $ 1000 in security deposit.

Landlords, on the other hand, are leery of being stuck with damages at the end of the term.  Or, worse yet, having to bicker with the insurance company to be paid for their valid claims.

We need to work these kinks out.  To get those folks off the street.

(Please note.  Many of these folks are veterans, suffering from PTSD.  Who are not running to find a rental solution.  Instead, they need to receive adequate care and nurture from the Veterans Administration.)