TX
Texas House Bill HB3564

Texas 2019 - 86th Regular

Texas House Bill HB3564 Compare Versions

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1-86R22248 PMO-F
1+86R6239 PMO-F
22 By: Farrar H.B. No. 3564
3- Substitute the following for H.B. No. 3564:
4- By: Collier C.S.H.B. No. 3564
53
64
75 A BILL TO BE ENTITLED
86 AN ACT
97 relating to remedies after certain casualty losses to residential
108 rental premises.
119 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1210 SECTION 1. Section 92.054, Property Code, is amended by
1311 amending Subsections (b) and (c) and adding Subsections (b-1),
14- (b-2), (b-3), (b-4), (b-5), (d), (e), (f), (g), (h), and (i) to read
15- as follows:
12+ (b-2), (b-3), (b-4), (b-5), (d), (e), (f), and (g) to read as
13+ follows:
1614 (b) If after a casualty loss the rental premises are as a
1715 practical matter totally unusable for residential purposes and if
1816 the casualty loss is not caused by the negligence or fault of the
1917 tenant, a member of the tenant's family, or a guest or invitee of
2018 the tenant, either the landlord or the tenant may terminate the
2119 lease by giving written notice to the other any time before repairs
2220 are completed.
23- (b-1) A notice described by Subsection (b) must be sent:
21+ (b-1) A notice described by Subsection (b) must be provided:
2422 (1) to a landlord:
25- (A) by hand delivery to the landlord or the
26- landlord's representative;
27- (B) on the same day by:
28- (i) e-mail to an e-mail address that the
29- tenant and the landlord regularly used to communicate about the
30- rental premises; and
31- (ii) the method described by Paragraph (C);
32- (C) by mail to:
33- (i) the forwarding address that the
34- landlord provided to the tenant by e-mail or otherwise; or
35- (ii) if the landlord did not provide a
36- forwarding address to the tenant, the place where the tenant
37- normally pays rent; or
38- (D) by any other method, manner, or means of
39- delivery to which the landlord and tenant agree after the casualty
40- loss; or
23+ (A) by hand delivery or mail to a forwarding
24+ address that the landlord provides to the tenant by e-mail or
25+ otherwise; or
26+ (B) if a forwarding address has not been provided
27+ as described by Paragraph (A):
28+ (i) by hand delivery to the landlord or the
29+ landlord's representative at another location; or
30+ (ii) by mail to the place where the tenant's
31+ rent is normally paid; or
4132 (2) to a tenant:
42- (A) by hand delivery;
43- (B) on the same day by:
44- (i) e-mail to an e-mail address that the
45- tenant and the landlord regularly used to communicate about the
46- rental premises; and
47- (ii) the method described by Paragraph (C);
48- (C) by mail to:
49- (i) the forwarding address that the tenant
50- provided to the landlord by e-mail or otherwise; or
51- (ii) if the tenant did not provide a
52- forwarding address to the landlord, the tenant's rental premises;
53- or
54- (D) by any other method, manner, or means of
55- delivery to which the landlord and tenant agree after the casualty
56- loss.
33+ (A) by hand delivery or mail to a forwarding
34+ address that the tenant provides to the landlord by e-mail or
35+ otherwise; or
36+ (B) if a forwarding address has not been provided
37+ as described by Paragraph (A):
38+ (i) by hand delivery to the tenant at
39+ another location; or
40+ (ii) by mail to the tenant's rental
41+ premises.
5742 (b-2) A termination of a lease as authorized by Subsection
58- (b) may not take effect before the seventh day after the date the
43+ (b) may not take effect before the 15th day after the date the
5944 notice is delivered. If more than one method under Subsection (b-1)
6045 is used to provide notice, the method under which the notice was
6146 delivered on the earliest date applies for purposes of this
6247 subsection.
6348 (b-3) A landlord may not charge rent for the rental premises
64- and rent for the rental premises may not accrue after the date:
65- (1) the lease is terminated under this section; and
66- (2) the tenant has vacated the rental premises.
67- (b-4) Subject to Subsection (b-5), the landlord, not later
68- than the 30th day after the date [If] the lease is terminated under
69- this section and the tenant has vacated the rental premises, shall
70- refund to the tenant any prepaid rent and prorated [is entitled only
71- to a pro rata refund of] rent and all deposits, less lawful
72- deductions. A landlord may not include in the lawful deductions any
73- damages incurred due to the casualty loss [from the date the tenant
74- moves out and to a refund of any security deposit otherwise required
75- by law].
76- (b-5) If a landlord is unable to send to the tenant a refund
77- under Subsection (b-4) because the tenant has not provided a
78- forwarding address to the landlord, the 30-day period under
79- Subsection (b-4) is tolled until the date the tenant provides a
80- forwarding address to the landlord.
49+ and rent for the rental premises may not accrue after the date the
50+ premises became as a practical matter totally unusable for
51+ residential purposes as a result of a casualty loss.
52+ (b-4) Subject to Subsection (b-5) and notwithstanding that
53+ the termination of the lease has not taken effect under Subsection
54+ (b-2), if a notice to terminate [If] the lease is provided under
55+ this section [terminated], the landlord shall pay to the tenant not
56+ later than the fifth day after the date the notice is delivered:
57+ (1) a refund of any prepaid rent;
58+ (2) [is entitled only to] a pro rata refund of rent
59+ from the date the rental premises became as a practical matter
60+ totally unusable for residential purposes as a result of a casualty
61+ loss; [tenant moves out] and
62+ (3) [to] a full refund of any security deposit
63+ [otherwise required by law].
64+ (b-5) If a tenant has not provided the landlord a forwarding
65+ address as described by Subsection (b-1)(2)(A), the period for
66+ providing the refund amounts specified by Subsection (b-4) is
67+ tolled until the tenant provides the landlord a written statement
68+ by e-mail or otherwise of the tenant's forwarding address for the
69+ purpose of refunding those amounts. A tenant that provides notice
70+ under Subsection (b) may provide the written statement of the
71+ tenant's forwarding address in that notice. A landlord that
72+ provides notice under Subsection (b) must include a statement
73+ informing the tenant of the requirement of this subsection.
8174 (c) If after a casualty loss the rental premises are
8275 partially unusable for residential purposes and if the casualty
8376 loss is not caused by the negligence or fault of the tenant, a
8477 member of the tenant's family, or a guest or invitee of the tenant,
85- the tenant is entitled to reduction in the rent in an amount that is
86- proportionate to the extent the premises are unusable because of
87- the casualty loss for the month in which the casualty loss occurs
88- and any subsequent months in the lease term in which the rental
89- premises are partially unusable for residential purposes[, but only
90- on judgment of a county or district court. A landlord and tenant may
91- agree otherwise in a written lease].
92- (d) A tenant entitled to a reduction in rent under
93- Subsection (c) must give written notice to the individual to whom or
94- the entity to which the tenant normally pays rent. The notice must:
95- (1) identify the portion of the rental premises that
96- is partially unusable for residential purposes;
97- (2) state the proposed amount of reduction in rent
98- that the tenant believes is appropriate; and
99- (3) state that the tenant intends to file suit against
100- the landlord if the landlord does not agree to the proposed
101- reduction in rent on or before the 10th day after the date the
102- landlord receives the notice under this subsection.
103- (e) Not later than the 10th day after the date the landlord
104- receives the notice under Subsection (d), the landlord must provide
105- to the tenant a written response agreeing or objecting to the
106- tenant's right to a reduction in rent due to casualty loss and the
107- proposed amount. A landlord's failure to timely provide a written
108- response under this subsection is considered an agreement by the
109- landlord to the tenant's right to a reduction in rent and the
110- proposed amount of the reduction and the tenant may withhold the
111- proposed amount from a rent payment.
112- (f) If the landlord and tenant are unable to agree on
113- whether the tenant is entitled to a reduction in rent or on the
114- amount of the proposed reduction, either party may file suit in
115- justice, county, or district court. The court shall determine
116- whether the tenant is entitled to a reduction in rent and, if so,
117- the amount of the reduction that is proportionate to the extent the
118- premises are unusable due to the casualty loss.
119- (g) If a suit is filed under Subsection (f), the tenant is
120- liable for rent due under the lease until the date the court enters
121- a final judgment in the action or the parties reach an agreement to
122- settle the dispute.
123- (h) If a suit is filed in a justice court under Subsection
124- (f), the justice court shall conduct a hearing on the matter not
125- earlier than the sixth day after the date of service of citation and
126- not later than the 10th day after that date.
127- (i) It is a defense in a proceeding to recover possession of
128- a rental premises after the landlord terminates a lease under
129- Subsection (b) that the premises are usable for residential
130- purposes.
78+ the tenant is entitled to reduction in the rent for the month in
79+ which the casualty loss occurs and any subsequent months in the
80+ lease term in which the rental premises are partially unusable for
81+ residential purposes. The tenant is entitled to determine the
82+ amount of the reduction in the rent, provided that the tenant must
83+ determine [in] an amount that is proportionate to the extent the
84+ premises are unusable because of the casualty loss [, but only on
85+ judgment of a county or district court]. A tenant entitled to a
86+ reduction in rent may deduct and withhold from a rent payment the
87+ amount determined by the tenant [A landlord and tenant may agree
88+ otherwise in a written lease].
89+ (d) It is a defense in a proceeding to recover unpaid rent
90+ for a rental premises, including a proceeding to recover possession
91+ of a rental premises for nonpayment of rent, that a rent payment was
92+ reduced, deducted, and withheld in accordance with Subsection (c).
93+ (e) If a tenant asserts a defense under Subsection (d), the
94+ court shall determine the amount of the reduction in the rent that
95+ is proportionate to the extent the premises are unusable because of
96+ the casualty. If the tenant withheld an amount less than the amount
97+ determined by the court, the court shall enter a judgment for the
98+ tenant in an amount equal to the amount the tenant overpaid. If the
99+ tenant withheld an amount greater than the amount determined by the
100+ court, the court:
101+ (1) may assess late fees in accordance with the lease
102+ if the court finds that the tenant acted in bad faith in reducing or
103+ withholding the rent payment;
104+ (2) shall order the tenant to pay into the registry of
105+ the court or, if the landlord consents in writing, directly to the
106+ landlord:
107+ (A) an amount equal to the amount the tenant
108+ underpaid; and
109+ (B) any late fees assessed under Subdivision (1);
110+ (3) may not enter a final judgment in the proceeding
111+ before the 10th business day after the date the court issued the
112+ order of payment under Subdivision (2); and
113+ (4) shall dismiss the proceeding against the tenant if
114+ the tenant complies with the order of payment under Subdivision (2)
115+ before the 10th business day after the date the court issued the
116+ order of payment under Subdivision (2).
117+ (f) It is a defense in a proceeding to recover possession of
118+ a rental premises after the landlord terminates a lease under this
119+ section that the premises are totally or partially usable for
120+ residential purposes.
121+ (g) A provision of a lease is void if the provision purports
122+ to:
123+ (1) waive a right or exempt a party from a liability or
124+ duty under this section; or
125+ (2) expand a party's right to unilaterally terminate a
126+ lease under this section.
131127 SECTION 2. The changes to law made by this Act apply only to
132128 a lease entered into or renewed on or after the effective date of
133129 this Act. A lease entered into or renewed before the effective date
134130 of this Act is governed by the law as it existed immediately before
135131 the effective date of this Act, and that law is continued in effect
136132 for that purpose.
137133 SECTION 3. This Act takes effect September 1, 2019.