How have the rules on tenant security deposit interest changed?
A. The Rent Board amended Regulation 702 to provide an alternate rate of interest for tenant security deposits that are kept in accounts at savings institutions located in Berkeley. The amendment becomes effective on November 3, 2008. Q. What is the new alternate rate of interest? A. For security deposits held in a Berkeley account, the rate of interest will be equal to the 12-month average of the average rates of interest (APY) paid on the first business day of each month for six-month certificates of deposits ($5,000 minimum deposit) by insured commercial banks doing business in the City of Berkeley. Q. How does a landlord qualify to pay the alternate rate of interest when making the annual interest refund payment in December of each year? A. To qualify for the Berkeley CD rate for the December interest refund payment, a landlord must: 1. Place the tenant’s security deposit in an insured account at a bank or credit union physically located within the City of Berkeley; 2. Keep the dep
