(BCN) — A bill that limits how much landlords can charge for security deposits was signed into law by Gov. Gavin Newsom on Thursday. Assembly Bill 12 by Assemblymember Matt Haney, D-San Francisco, limits the amount of security deposits to the equivalent of one month’s rent.

“This new law is a simple common sense change that will have an enormous impact on housing affordability for families in California, while also balancing a landlord’s need to protect themselves against potential liability,” Haney said in a news release.

The law goes into effect July 1, 2024, and exempts landlords with only two properties with a total of no more than four units. Landlords will still be able to seek damages from tenants who are responsible for harm to the property that exceeds the amount of the security deposit.

“By capping high security deposits, AB 12 advances a measure of equity and empowers immigrants and people of color across the state, who contribute daily to making our diverse state thrive,” said California Immigrant Policy Center executive director Masih Fouladi.

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