87R3383 NC-F
By: Huffman S.B. No. 314
A BILL TO BE ENTITLED
AN ACT
relating to notice requirements for leased residential property,
manufactured home lots, or commercial property located in a flood
zone.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 91, Property Code, is amended by adding
Section 91.007 to read as follows:
Sec. 91.007. NOTICE FOR LEASED PROPERTY LOCATED IN FLOOD
ZONE. (a) In this section:
(1) "Commercial property" means real property not
zoned or otherwise authorized for use as residential property.
(2) "Dwelling" has the meaning assigned by Section
92.001.
(3) "Flood zone" means any area of land designated by
the Federal Emergency Management Agency under the National Flood
Insurance Act of 1968 (42 U.S.C. Section 4001 et seq.) as an area of
land that is susceptible to being inundated by water from any
source, including:
(A) a 100-year floodplain;
(B) a 500-year floodplain; or
(C) a floodway.
(4) "Manufactured home lot" has the meaning assigned
by Section 94.001.
(b) Before signing a written lease agreement or entering
into an oral lease agreement for a dwelling, manufactured home lot,
or commercial property with a prospective tenant, a landlord or
landlord's agent must provide the written notice described by
Subsection (d) to the prospective tenant if any part of the
following is located in a flood zone:
(1) the dwelling, manufactured home lot, or commercial
property, as applicable;
(2) a building in which the dwelling or commercial
property is located, as applicable;
(3) the parking area that will be available to the
prospective tenant or the tenant's guests or customers; or
(4) if the leased property is a dwelling, the storage
area for personal property that will be available to the
prospective tenant.
(c) If a leased dwelling, lot, property, building, or other
area described by Subsection (b) is located in an area designated by
the Federal Emergency Management Agency as a flood zone during the
term of the lease, the landlord or the landlord's agent shall
provide the written notice described by Subsection (d) to each
affected tenant in that area not later than the 30th day after the
date the flood zone is designated.
(d) The written notice must:
(1) clearly state which dwelling, lot, property,
building, or areas listed under Subsection (b) relevant to the
tenant's lease are located in a flood zone and whether the area is
located in a 100-year floodplain, 500-year floodplain, floodway, or
other area susceptible to flooding;
(2) if applicable, clearly state that flooding in a
100-year or 500-year floodplain can and does occur on a more
frequent basis than once every 100 or 500 years, respectively;
(3) if the leased property is a dwelling, clearly
state that most tenant insurance policies do not cover damages or
loss incurred in a flood event;
(4) recommend that the tenant seek appropriate
insurance coverage that would cover losses caused by a flood;
(5) affirm that the landlord or landlord's agent
provided the notice:
(A) before the lease agreement was entered into;
or
(B) if Subsection (c) applies, not later than the
30th day after the date the flood zone is designated; and
(6) be signed and dated by the landlord or landlord's
agent and tenant.
(e) If a landlord or a landlord's agent violates this
section:
(1) the tenant may terminate the lease agreement and
avoid liability for future rent and any other sums due under the
agreement for terminating the agreement and vacating the property
before the end of the lease term; and
(2) if the tenant suffers loss of or damage to the
tenant's personal property as a result of a flood, the tenant is
entitled to recover from the landlord the following amounts, less
any delinquent rent or other sum for which the tenant is liable to
the landlord:
(A) the tenant's actual damages;
(B) the greater of one month's rent or $1,000;
and
(C) reasonable attorney's fees and court costs
incurred in recovering the amounts in Paragraphs (A) and (B).
SECTION 2. Section 91.007, Property Code, as added by this
Act, applies only to a lease agreement entered into or renewed on or
after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2021.