Rep. Herb Adams's Bill to Protect Security Deposits Becomes Law

Measure will help both landlords and tenants

AUGUSTA - Renters and landlords will both enjoy new protections for
security deposits on rental properties under a new law sponsored by Rep.
Herb Adams, D-Portland, that takes effect later this month.

The measure, LD 330, "An Act to Protect the Integrity of Security
Deposits," will officially become Public Law 332 on Sept. 20. Under the
new law, when a building with rental units is sold or transferred, the old owner will have to present the new owner with written proof that the
building's security deposits have been legally transferred to the new
owner during the sale's final closing proceedings.

Adams introduced the bill in response to complaints from both landlords
and tenants who discovered after the sale of buildings that the old
owner had never turned over security deposit funds. New owners and
tenants had no recourse but to pursue old owners--many long gone--in
costly lawsuits, often in out-of-state courts.

"This is not pocket change," said Adams. "Security deposits can be in
the thousands of dollars for just one apartment, and in the tens of
thouands for one single building. Good landlords and good tenants both
need protection in today's turbulent real estate market."

Supporters of the bill included the Maine Apartment Managers and Owners
Association (MAOMA), the People's Regional Opportunity Program (PROP),
and the Office of the Maine Attorney General.

"We strongly support LD 330," Assistant Attorney General James McKenna
told the Legislature's Legal and Veterans Affairs Committee, which
considered the bill. "It closes a loophole that is unfair and harmful to
Maine's many hardworking families who struggle to come up with the sum
for a security deposit."

Adams represents Portland's Parkside, Bayside, and East Bayside
neighborhoods and the foot of Munjoy Hill, home to Maine's largest
percentage of rental housing stock and some of the oldest, with large
ethnic diversity and high turnover rates.

Adams's bill received the unanimous support of the Legal and Veterans
Committee and both bodies of the Legislature.

Measures passed by the first session of the Legislature officially
become law 90 days after the Legislature formally adjourns. For 2007
that date falls on Sept. 20.

-Contact Rep. Herb Adams at 772-2565.