29-01-2025
City attorney says Fayetteville rental fee cap ordinance ‘likely' violates state code
FAYETTEVILLE, Ark. (KNWA/KFTA) — The Fayetteville City Council will likely have to repeal an ordinance it passed in October to help combat the ongoing housing crisis.
Fayetteville city attorney Kit Williams and Arkansas Attorney General Tim Griffin agree that Ordinance 6800, which limits rental application and background check fees to $40, 'likely' violates Arkansas state code. Municipalities can't 'regulate prices for goods, rentals, or services sold or performed within the municipality by individuals or firms,' A.C.A. § 14-43-608 states.
''Services' is a very, very broad term,' Williams said. 'I believe that the courts would very likely say that reviewing an application is a service that the landlord's providing to the tenant, and, therefore, we cannot regulate the cost of that.'
Fayetteville City Council cuts costs associated with renting
The city could be sued if it doesn't repeal the rental application and background check fee ordinance, Williams said.
State Sen. Clint Penzo of Springdale filed Senate Bill 91 that would prevent local governments from regulating or controlling 'the amount charged for a rental application fee or rental deposit for private residential or commercial property.'
State Sen. Joshua Bryant is one of the bill's co-signers and said filing it was in response to Fayetteville's recently passed ordinance.
'While I applaud them for looking at the cost of housing, I'm just not a fan of getting in the relationship between private businesses,' Bryant said. 'I think those can be addressed through Deceptive Trade Practices and Consumer Protections, rather than just putting a blanket fee cap on that relationship.'
If the bill is passed in the Senate, it will go to the Arkansas House of Representatives and then to Gov. Sarah Huckabee Sanders. Bryant said the Senate could hear the bill within 'the next couple weeks.'
If you disagree with Fayetteville's Ordinance 6800 being repealed, Williams said to contact your local state representative.
The ordinance repealing can be read here.
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