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Grand Rapids trying to protect renters with new application fee regulations

Landlords could be fined up to $200 for violating the regulations.

GRAND RAPIDS, Mich. -- Renters navigating the Grand Rapids housing market may receive protections from "predatory" application fees by landlords.

City leaders are considering regulations that would force landlords to refund fees to applicants denied without just cause. The ordinance would require rental property owners to list, "in writing, the criteria on which the applicant will be judged."

The proposal includes fines for landlords who don't refund those applicants. The penalties would range $50-$200.

"The non-refundable fees in this market add up quickly," said Samika Pickens, who is on her second apartment hunt in two years.

"[My family] looked into almost every property management company here in Grand Rapids," Pickens said. "We've spent anywhere from $450 to $500 on fees [in our first apartment search]."

The ordinance gives some power back to the renters, said Talor Musil, co-facilitator of Grand Rapids Homes for All, an affordable housing advocacy group.

"[Some people are] applying for housing, not knowing what the criteria is and spending money they could've saved on houses they would be eligible for," Musil said.

The ordinance is the first local attempt at regulating application fees, said Interim City Manager Eric DeLong.

The proposal, part of the city's Housing NOW initiative, also prohibits the fee from exceeding the cost of screening the applicant. Screening, the document reads, "may include but is not limited to, the cost of a credit reports, criminal report[s], rental history record and/or reference check [and an] eviction record and/or employment verification."

Applicants who believe a landlord violated the new rules would have to report complaints to the city manager's office. DeLong said he consulted with both Grand Rapids Homes for All and the Rental Property Owners Association when drafting the document.

Musil said her organization would like city leaders to add a provision in which applicants could request a receipt to learn more about the screening process that led to denials.

The proposal will likely be revised before commissioners vote on July 10, DeLong said.

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