AN ACT PROHIBITING A LANDLORD FROM REQUIRING A SECURITY DEPOSIT IN EXCESS OF ONE MONTH'S RENT FROM ANY TENANT.

HB 5257 limits security deposits for residential renters to one month's rent, effective October 1, 2026. It directly affects all residential tenants and landlords in the state by prohibiting landlords from requiring deposits exceeding this amount. The bill also creates a security deposit guarantee program for low-income renters (earning 60% or less of the state median income) to cover up to one month's rent, prioritizing veterans and those with documented financial need. This replaces previous provisions that allowed higher deposits for some tenants and establishes a new administrative process for the guarantee program.