HB1563 establishes minimum habitability standards for residential rental property. Raising standards for housing is a lofty goal. Unfortunately, this bill and its myriad of procedures is likely to have negative effects on tenants and low rent housing.

There is no doubt the bill will cause rents to increase. Landlords cannot be expected to absorb the cost of new requirements and burdensome procedures. One landowner told legislators “he had already sent letters to all of his tenants, promising to raise their rents by $75 to $100 to pay for pest control required under HB1563.”[i] He was only addressing one requirement, not the overall cost to him under the bill. Increased rents may outweigh benefit to tenants in general.

The effort required for landlords to navigate through the bill’s procedures will be frustrating and expensive. We think the new procedures, even more than the additional costs, will discourage the private ownership of rental housing, especially low rent housing. If there are less low rent housing options how do you address the need other than to expand government with even more government housing.

Free market rules and current government housing facilities are adequate to address a less than perfect utopia which is sought by the sponsors of this bad bill.

The balance between landlord/tenant was heavily debated in 2007 and at that time the legislature passed Act 1004 of 2007 which was a good compromise for both sides. Unfortunately, the current bill is not a good compromise and will likely increase rents, grow government, and discourage ownership of residential rental property.

The bill made it out of committee with only three Republicans joining Democrats in passing the bill.[ii] One of the three Republicans, Rep. Jimmy Gazaway (R-Paragould) is the lead sponsor of the bill.

HB1563 is on the agenda to be voted by the Arkansas House of Representatives TODAY (Monday, 3/22/2021)!

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[i] House to consider rules establishing housing standards, Democrat Gazette, 3/18/2021

[ii] House to consider rules establishing housing standards, Democrat Gazette, 3/18/2021