The proposed General Assembly Raised Bill No. 5257 aims to limit the amount of security deposit that landlords can require from tenants to no more than one month's rent. This change will apply to all rental agreements entered into on or after October 1, 2026. The bill repeals existing provisions that allowed landlords to demand a security deposit of up to two months' rent, specifically removing the distinction between tenants under and over the age of sixty-two. Additionally, if a tenant who has paid a higher security deposit reaches the age of sixty-two, the landlord is required to return the excess amount upon request.

Furthermore, the bill introduces a security deposit guarantee program administered by the Commissioner of Housing, which will assist individuals and families with financial needs, including those receiving rental assistance. This program will provide guarantees equivalent to one month's rent, replacing the need for a traditional security deposit. The bill emphasizes prioritizing veterans and establishes eligibility criteria for applicants, ensuring that the program operates within available appropriations. Overall, the bill seeks to enhance tenant protections and improve access to housing for vulnerable populations.