Texas House Bill HB175

Texas 2019 - 86th Regular

Caption

Relating to the amount of late fees that may be charged to certain tenants.

Impact

The implementation of HB 175 will significantly alter the legal landscape for rental agreements in Texas. By capping late fees for tenants on housing choice vouchers, the bill seeks to foster greater fairness in rental practices, helping to ensure that financial penalties do not become prohibitive barriers for those who may already be struggling economically. The law will apply to all late fees charged on or after its effective date, thereby providing immediate protection to affected tenants.

Summary

House Bill 175 aims to regulate the late fees that landlords may charge tenants participating in the housing choice voucher program. Specifically, the bill stipulates that landlords cannot impose an initial late fee or daily late fees that exceed five percent of the rent owed during any given rental pay period. This regulation is designed to protect vulnerable tenants, particularly those reliant on federal assistance for housing, from excessive late fees that can exacerbate their financial difficulties.

Contention

While supporters of HB 175 laud it as a much-needed reform to assist low-income tenants, critics may argue that such regulations could discourage landlords from renting to voucher holders due to perceived financial risks. The bill, while aiming to protect tenants, may also result in unintended consequences for the rental market. The balance between protecting tenant rights and ensuring landlord interests remains a point of contention, with discussions around whether the regulation could lead to higher rents or reduced availability of rental housing for those utilizing housing vouchers.