Limiting local governments’ authority over rent and rental deposit fees is the goal of a new measure that was submitted to the Arkansas Senate on January 23.
With the help of co-sponsors Representative David Ray (R-Maumelle), Senator Joshua Bryant (R-Rogers), and Representative Brit McKenzie (R-Rogers), Senator Clint Penzo (R-Springdale) introduced Senate Bill 91, which seeks to strip local county, city, village, or township governments of their power to control the amount of rent, rental application fees, or rental deposits on private residential or commercial properties.
If approved, the measure will effectively give landlords and property owners more discretion over rental fees and deposits by prohibiting local governments from imposing restrictions or regulations on these costs. Cities like Fayetteville, which has already taken action to solve what it refers to as a housing crisis, may be greatly impacted by this idea.
Rising rental prices and a dearth of reasonably priced housing options in the area prompted the Fayetteville City Council to proclaim a housing crisis in April 2024.
In an effort to allay these worries, the city has begun enacting rules that control certain expenses associated with housing. For example, the council enacted an ordinance in October 2024 capping background check fees at $20 and rental application fees at $40. The policy is set to go into effect in March 2025.
Senate Bill 91 may supersede these municipal initiatives and restrict Fayetteville’s capacity to enact similar fee policies if it is approved.
The bill’s supporters contend that by prohibiting different towns from passing disparate laws that would make things more difficult or expensive for property owners, it would contribute to the creation of a more uniform and business-friendly environment for property owners throughout the state.
However, the bill’s opponents contend that it would make it more difficult for local governments to deal with particular housing issues in their areas, particularly in places like Fayetteville where there is a dearth of affordable housing.
The measure draws attention to the continuous discussion about how much authority local governments should have to control the housing market, especially in light of the growing concerns about the affordability of rental housing.
The bill’s supporters contend that it would stop disparate municipal laws, while its detractors fear that by denying localities the authority to enact tenant-friendly rules, it may result in higher rents.
It is anticipated that the law would generate a great deal of interest and discussion as it passes through the legislative process, especially in places like Fayetteville that are struggling with the housing issue.
The outcome of this measure may establish a precedent for future local government handling of deposit and rent laws in Arkansas.
“This has a direct relationship because the only city in the state of Arkansas who has tried to be looking at this is the city of Fayetteville and so I have incredible concerns about the overreach this causes,” Sarah Moore of Ward 2 stated.
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Ward 1’s Robert Stafford made the following declaration:
“When we did pass it, we took the risk of seeing if it was allowable. It turned out it was, otherwise they (state legislature) would not be doing what they are doing.”
The bill was referred to the City, County & Local Affairs Committee after being read twice.
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