§1055 Waiver of Security Deposits for Members Renting Private Housing; Authority to Indemnify Landlord

Summary

Allows the Secretary of Defense to let military departments promise to pay a landlord for lease breaches or damage caused by a service member if the landlord agrees to waive the security deposit. The department can sign such agreements only when Congress provides the money in advance. The agreement stays in effect for the lease and any renewals, the member does not pay a deposit, and the department will pay for breach or damage by the member or the member’s guest or dependent. Payments cannot exceed the amount the landlord would have required as a security deposit. The landlord must first try all available remedies against the member, including binding arbitration by a panel of military and private members, before the department pays. If the department pays, it can take over the landlord’s rights to recover the loss. The Secretary of Defense must issue rules for the program. If the department pays a landlord, it may order withholding from the member’s pay under section 1007 of title 37, but the member must get the same notice and chance for a hearing as under 5 U.S.C. 5514(a)(2). “Landlord” means a person who leases a rental unit to a service member.