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Are they charging this as a "pet fee"?
It is a violation of the ADA to discriminate against a person with a working service animal or to charge a pet deposit, as these animals are not considered pets.
Here is local law: http://www.caresks.com/documents/kpas.pdf
Also, the Fair Housing Act prohibits pet fees for service animals. Service and assistance animals are not technically pets and owners do not have to pay pet fees. The landlord, however, can charge a security deposit and may still seek money from the tenant if there is any damage caused by the animal to the home.
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