New Bill Guarantees Joint Utility Accounts for Roommates and Waives Early Lease Fees for Victims of Violence

The Financial Empowerment and Protection Act introduces two major changes aimed at improving financial transparency for people sharing living costs and providing critical safety measures for victims of violence in housing. Specifically, the bill mandates that “covered companies”—a broad list including utilities, internet providers, landlords, and lenders—must allow consenting adults who cohabitate to open joint accounts specifically for managing shared services and bills. Crucially, this joint account must be in both names, and both parties must have full access to all account information, bills, and online portals.

The Roommate Clause: Making Shared Bills Transparent

Section 2 of the bill is a win for anyone who’s ever tried to split the gas bill with a roommate or partner without the utility company recognizing both parties. If you and your cohabitating adult agree, the covered company has to set up a joint account for services like electricity, water, or internet. This isn't just about splitting the bill; it’s about equal access and responsibility. The company must provide both account holders with access to everything—every bill, every notice, and the online portal. Before setting up the account, the company must also clearly detail what information will be shared. If a covered company fails to comply with these rules, the bill creates a clear enforcement path: either account holder can sue and potentially collect up to $1,000 for each failure. This provision starts 180 days after the bill becomes law, giving providers time to adjust their systems.

Escape Clause: Protecting Victims from Penalty Fees

Section 3 addresses a serious issue for people trying to leave dangerous living situations. This section amends the Violence Against Women Act to prohibit landlords and covered housing programs from charging early lease termination fees to tenants who are victims of domestic violence, dating violence, sexual assault, or stalking. If a victim needs to break a lease to secure their safety, they cannot be penalized financially, even if the original lease agreement says otherwise. This is a huge relief, especially for victims in housing that receives federal assistance, ensuring that the financial burden of moving doesn't trap them in an unsafe environment.

Who Carries the Cost of Compliance?

While the bill offers significant protections, the administrative lift falls on the “covered companies.” This includes everyone from your local water utility to major mortgage servicers. They now have to update their systems to allow for these specific joint accounts and train staff on the new information-sharing requirements and the 180-day implementation deadline. Landlords, in particular, will need to update their lease termination policies to comply with the new fee prohibition for victims of violence. The potential for a $1,000 penalty per violation under the joint account section means companies must take these new compliance requirements seriously, which could translate into higher administrative costs for them.