Pasadena Tenants to Receive 0.12% Interest on Security Deposits in 2025 – Pasadena Now
The Pasadena Rental Housing Board agreed Thursday to set the 2025 interest rate for tenant security deposits at 0.12%, a minimal return reflecting current low savings rates at local banks.
The decision came after City staff surveyed interest rates on savings accounts at seven FDIC-insured banks with branches in Pasadena, as required by the City's rent control law.
"We took the five top interest rates, as you can see here, all are FDIC and we came up with an interest rate of 0.12%," said Helen Morales, Executive Director of the Rent Stabilization Department.
The Board discussed using all seven bank rates or consistently identifying five banks for future years, but ultimately kept the top five approach.
Some Board Members questioned the minimal impact of the rate. Board member Arnie Siegel noted it amounts to "about $2" on a $2,000 security deposit.
Public comments suggested using all bank rates or throwing out the highest and lowest before averaging.
Morales reminded landlords that the security deposit interest rate for 2024, set last year at 0.41%, will be due to tenants by Jan. 1, 2025.
In other business, Morales unveiled the city's new online rental registry system, set to launch Monday. Landlords must register covered rental units and pay annual fees by Dec. 22.
"It is seven easy steps and to come in and register as quickly as possible and not wait until the deadline to register, that would be optimal," Morales urged property owners.
The Department is offering workshops and webinar training to help landlords navigate the registration process.
The Board also approved amendments to its rules of conduct, incorporating new state law provisions on removing disruptive individuals from public meetings.
Legal counsel Karen Tiedemann explained the changes align Board rules with recent Brown Act amendments defining disruptive behavior and procedures for removal.
In committee reports, upcoming stakeholder meetings on relocation assistance policy were announced for early October.
The Board opted to keep the public comment period at 30 minutes rather than reducing it to 20 minutes as initially proposed in changes to meeting rules.
