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Boise City Council and state lawmakers show interest in regulating late rent fees

Idaho has no laws regulating what a landlord can charge a tenant as penalty for a late rent payment.

BOISE, Idaho — Boise City Councilmember Lisa Sánchez proposed a city ordinance to cap late rent fees at $50 or 5% of the monthly rental rate. Landlords can choose to charge the greater dollar figure.

The Boise City Council discussed the proposed ordinance in Tuesday's work ahead meeting. Councilmember Patrick Bageant critiqued specific language in the ordinance to bolster its standing.

Bageant suggested striking a line from the statement of purpose that attributes the need of this ordinance to the current housing market. Bageant expressed certain landlords could use this language to defend breaking the ordinance in the future if/when housing becomes more available.

"In my mind, protecting vulnerable consumers is always of value, regardless of how tight the housing market is," Bageant said.

Other councilmembers expressed concern that this regulation should be left up to the state legislature. Council President Pro Tem Holli Woodings is in favor of waiting through the 2023 Legislative Session and allowing state lawmakers to address this issue first.

"The place for this being the State ideally. Perhaps, giving that a chance to go through the state before we did something city level. I think that's my initial reaction to it," Woodings said.

Council President Elaine Clegg echoed Woodings' position. However, state lawmakers have already tried to pass such a law in previous years.

Senate Bill 1088 aimed to enforce "reasonable fees" in the 2021 legislative session. The Bill passed the Senate, but died on the House floor.

Senator Ali Rabe (D-Boise) confirmed to KTVB she is actively working on draft legislation to regulate late rent penalties similar to Senate Bill 1088. Idaho Asset Building Network (IABN) is also working on draft legislation for renter protections; however, the organization has no current language in their drafts to address late rent penalties specifically, according to IABN policy associate Kendra Knighten.

"I think there is nothing wrong with us moving in tandem. If the Idaho State Legislature passes something - wonderful. Hopefully, it will be better than what we are shooting for at the city. And if for some reason [the state legislature] is not successful, the people in the City of Boise will have that protection," Sánchez said. "I’m gonna continue moving forward and completely welcome the support of my colleagues on the Boise City Council."

Sánchez does not have a firm timeline for when this ordinance could be enacted. She hopes to enact the ordinance by end of the year, or at least early next year.

Councilmember Sánchez is asking constituents with comments, questions, or concerns to contact her directly so she can better understand the needs of the community. She can be reached here through her city profile page.

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