| 1 | 1 | | 89R3199 JBD-D |
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| 2 | 2 | | By: Simmons H.B. No. 2904 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to restrictions on, and required disclosures relating to, |
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| 10 | 10 | | rent increases for residential and manufactured home tenancies. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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| 13 | 13 | | amended by adding Section 92.027 to read as follows: |
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| 14 | 14 | | Sec. 92.027. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO |
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| 15 | 15 | | TENANT. (a) In this section, "affordable housing" means housing |
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| 16 | 16 | | that is affordable to a household earning 70 percent or less of the |
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| 17 | 17 | | area median family income, adjusted for household size, as |
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| 18 | 18 | | determined annually by the United States Department of Housing and |
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| 19 | 19 | | Urban Development. |
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| 20 | 20 | | (b) Except as otherwise provided by this section, a landlord |
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| 21 | 21 | | may not increase the rent for a dwelling from one lease term to a |
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| 22 | 22 | | subsequent lease term by more than: |
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| 23 | 23 | | (1) five percent, for a lease for affordable housing; |
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| 24 | 24 | | or |
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| 25 | 25 | | (2) 10 percent, for a lease for other housing, unless |
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| 26 | 26 | | the dwelling or the premises to which the tenant has access under |
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| 27 | 27 | | the lease undergoes major renovation in the 12 months immediately |
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| 28 | 28 | | preceding the subsequent lease term. |
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| 29 | 29 | | (c) A landlord who increases rent in violation of Subsection |
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| 30 | 30 | | (b) is liable to the tenant for each violation in an amount equal to |
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| 31 | 31 | | three times the amount of rent charged above the authorized |
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| 32 | 32 | | increase, plus the tenant's actual damages. |
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| 33 | 33 | | (d) Each rental period a violation of Subsection (b) |
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| 34 | 34 | | continues is considered a separate violation. |
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| 35 | 35 | | (e) A landlord who increases rent for a dwelling by the |
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| 36 | 36 | | maximum amount authorized under Subsection (b) shall provide to the |
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| 37 | 37 | | tenant a written, general description of the economic conditions, |
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| 38 | 38 | | major renovations, or other circumstances that necessitate the rent |
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| 39 | 39 | | increase. |
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| 40 | 40 | | SECTION 2. Subchapter A, Chapter 94, Property Code, is |
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| 41 | 41 | | amended by adding Section 94.013 to read as follows: |
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| 42 | 42 | | Sec. 94.013. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO |
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| 43 | 43 | | TENANT. (a) In this section, "affordable housing" means housing |
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| 44 | 44 | | that is affordable to households earning 70 percent or less of the |
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| 45 | 45 | | area median family income, adjusted for household size, as |
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| 46 | 46 | | determined annually by the United States Department of Housing and |
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| 47 | 47 | | Urban Development. |
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| 48 | 48 | | (b) Except as otherwise provided by this section, a landlord |
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| 49 | 49 | | may not increase the rent for a manufactured home lot from one lease |
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| 50 | 50 | | term to a subsequent lease term by more than: |
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| 51 | 51 | | (1) five percent, for a lease for affordable housing; |
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| 52 | 52 | | or |
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| 53 | 53 | | (2) 10 percent, for a lease for other housing, unless |
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| 54 | 54 | | the manufactured home lot or the premises to which the tenant has |
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| 55 | 55 | | access under the lease undergoes major renovation in the 12 months |
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| 56 | 56 | | immediately preceding the subsequent lease term. |
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| 57 | 57 | | (c) A landlord who increases rent in violation of Subsection |
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| 58 | 58 | | (b) is liable to the tenant for each violation in an amount equal to |
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| 59 | 59 | | three times the amount of rent charged above the authorized |
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| 60 | 60 | | increase, plus the tenant's actual damages. |
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| 61 | 61 | | (d) Each rental period a violation of Subsection (b) |
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| 62 | 62 | | continues is considered a separate violation. |
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| 63 | 63 | | (e) A landlord who increases rent for a manufactured home |
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| 64 | 64 | | lot by the maximum amount authorized under Subsection (b) shall |
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| 65 | 65 | | provide to the tenant a written, general description of the |
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| 66 | 66 | | economic conditions, major renovations, or other circumstances |
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| 67 | 67 | | that necessitate the rent increase. |
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| 68 | 68 | | SECTION 3. The changes in law made by this Act apply only to |
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| 69 | 69 | | a lease entered into or renewed on or after the effective date of |
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| 70 | 70 | | this Act. A lease entered into or renewed before the effective date |
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| 71 | 71 | | of this Act is governed by the law in effect immediately before the |
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| 72 | 72 | | effective date of this Act, and that law is continued in effect for |
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| 73 | 73 | | that purpose. |
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| 74 | 74 | | SECTION 4. This Act takes effect January 1, 2026. |
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