86R6239 PMO-F
By: Zaffirini S.B. No. 518
A BILL TO BE ENTITLED
AN ACT
relating to remedies after certain casualty losses to residential
rental premises.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 92.054, Property Code, is amended by
amending Subsections (b) and (c) and adding Subsections (b-1),
(b-2), (b-3), (b-4), (b-5), (d), (e), (f), and (g) to read as
follows:
(b) If after a casualty loss the rental premises are as a
practical matter totally unusable for residential purposes and if
the casualty loss is not caused by the negligence or fault of the
tenant, a member of the tenant's family, or a guest or invitee of
the tenant, either the landlord or the tenant may terminate the
lease by giving written notice to the other any time before repairs
are completed.
(b-1) A notice described by Subsection (b) must be provided:
(1) to a landlord:
(A) by hand delivery or mail to a forwarding
address that the landlord provides to the tenant by e-mail or
otherwise; or
(B) if a forwarding address has not been provided
as described by Paragraph (A):
(i) by hand delivery to the landlord or the
landlord's representative at another location; or
(ii) by mail to the place where the tenant's
rent is normally paid; or
(2) to a tenant:
(A) by hand delivery or mail to a forwarding
address that the tenant provides to the landlord by e-mail or
otherwise; or
(B) if a forwarding address has not been provided
as described by Paragraph (A):
(i) by hand delivery to the tenant at
another location; or
(ii) by mail to the tenant's rental
premises.
(b-2) A termination of a lease as authorized by Subsection
(b) may not take effect before the 15th day after the date the
notice is delivered. If more than one method under Subsection (b-1)
is used to provide notice, the method under which the notice was
delivered on the earliest date applies for purposes of this
subsection.
(b-3) A landlord may not charge rent for the rental premises
and rent for the rental premises may not accrue after the date the
premises became as a practical matter totally unusable for
residential purposes as a result of a casualty loss.
(b-4) Subject to Subsection (b-5) and notwithstanding that
the termination of the lease has not taken effect under Subsection
(b-2), if a notice to terminate [If] the lease is provided under
this section [terminated], the landlord shall pay to the tenant not
later than the fifth day after the date the notice is delivered:
(1) a refund of any prepaid rent;
(2) [is entitled only to] a pro rata refund of rent
from the date the rental premises became as a practical matter
totally unusable for residential purposes as a result of a casualty
loss; [tenant moves out] and
(3) [to] a full refund of any security deposit
[otherwise required by law].
(b-5) If a tenant has not provided the landlord a forwarding
address as described by Subsection (b-1)(2)(A), the period for
providing the refund amounts specified by Subsection (b-4) is
tolled until the tenant provides the landlord a written statement
by e-mail or otherwise of the tenant's forwarding address for the
purpose of refunding those amounts. A tenant that provides notice
under Subsection (b) may provide the written statement of the
tenant's forwarding address in that notice. A landlord that
provides notice under Subsection (b) must include a statement
informing the tenant of the requirement of this subsection.
(c) If after a casualty loss the rental premises are
partially unusable for residential purposes and if the casualty
loss is not caused by the negligence or fault of the tenant, a
member of the tenant's family, or a guest or invitee of the tenant,
the tenant is entitled to reduction in the rent for the month in
which the casualty loss occurs and any subsequent months in the
lease term in which the rental premises are partially unusable for
residential purposes. The tenant is entitled to determine the
amount of the reduction in the rent, provided that the tenant must
determine [in] an amount that is proportionate to the extent the
premises are unusable because of the casualty loss [, but only on
judgment of a county or district court]. A tenant entitled to a
reduction in rent may deduct and withhold from a rent payment the
amount determined by the tenant [A landlord and tenant may agree
otherwise in a written lease].
(d) It is a defense in a proceeding to recover unpaid rent
for a rental premises, including a proceeding to recover possession
of a rental premises for nonpayment of rent, that a rent payment was
reduced, deducted, and withheld in accordance with Subsection (c).
(e) If a tenant asserts a defense under Subsection (d), the
court shall determine the amount of the reduction in the rent that
is proportionate to the extent the premises are unusable because of
the casualty. If the tenant withheld an amount less than the amount
determined by the court, the court shall enter a judgment for the
tenant in an amount equal to the amount the tenant overpaid. If the
tenant withheld an amount greater than the amount determined by the
court, the court:
(1) may assess late fees in accordance with the lease
if the court finds that the tenant acted in bad faith in reducing or
withholding the rent payment;
(2) shall order the tenant to pay into the registry of
the court or, if the landlord consents in writing, directly to the
landlord:
(A) an amount equal to the amount the tenant
underpaid; and
(B) any late fees assessed under Subdivision (1);
(3) may not enter a final judgment in the proceeding
before the 10th business day after the date the court issued the
order of payment under Subdivision (2); and
(4) shall dismiss the proceeding against the tenant if
the tenant complies with the order of payment under Subdivision (2)
before the 10th business day after the date the court issued the
order of payment under Subdivision (2).
(f) It is a defense in a proceeding to recover possession of
a rental premises after the landlord terminates a lease under this
section that the premises are totally or partially usable for
residential purposes.
(g) A provision of a lease is void if the provision purports
to:
(1) waive a right or exempt a party from a liability or
duty under this section; or
(2) expand a party's right to unilaterally terminate a
lease under this section.
SECTION 2. The changes to law made by this Act apply only to
a lease entered into or renewed on or after the effective date of
this Act. A lease entered into or renewed before the effective date
of this Act is governed by the law as it existed immediately before
the effective date of this Act, and that law is continued in effect
for that purpose.
SECTION 3. This Act takes effect September 1, 2019.