LITTLE ROCK, Ark. — A new bill filed in the Arkansas legislature on January 23 seeks to limit local governments’ ability to regulate rent and rental deposit fees. Senate Bill 91, introduced by Senator Clint Penzo (R-Springdale) and co-sponsored by Senator Joshua Bryant (R-Rogers), Representative David Ray (R-Maumelle), and Representative Brit McKenzie (R-Rogers), aims to prevent county, city, village, or township governments from imposing controls on the cost of rent, rental application fees, or rental deposits for private residential or commercial property.
The bill, if passed, could have significant consequences for cities like Fayetteville, which recently declared a housing crisis and has been actively working to regulate rental costs within its jurisdiction. In October 2024, the Fayetteville City Council passed an ordinance that capped rental application and background check fees at $40 and $20, respectively. This ordinance, set to go into effect in March 2025, was seen as a response to rising rental costs in the area, which have made housing increasingly unaffordable for many residents.
Fayetteville officials have expressed concerns that Senate Bill 91 would undermine their ability to address local housing issues. “This has a direct relationship because the only city in the state of Arkansas who has tried to be looking at this is the city of Fayetteville, and so I have incredible concerns about the overreach this causes,” said Sarah Moore, a member of the Fayetteville City Council representing Ward 2.
Robert Stafford, a fellow council member from Ward 1, remarked, “When we did pass it, we took the risk of seeing if it was allowable. It turned out it was, otherwise they (state legislature) would not be doing what they are doing.”
Fayetteville’s mayor, Molly Rawn, has yet to comment publicly on the bill, though her office has confirmed they are monitoring the situation.
The proposed bill has already been read a first and second time in the Arkansas Senate and has been referred to the City, County & Local Affairs Committee for further review.
Supporters of Senate Bill 91 argue that local governments should not be able to interfere with the free market by imposing restrictions on rental fees. However, critics, particularly in cities experiencing housing shortages and affordability issues, contend that local governments should retain the authority to regulate housing costs in order to address their specific community needs.
As the legislative session continues, all eyes are on the bill’s progress and its potential impact on Arkansas cities working to mitigate housing challenges.