89R3199 JBD-D
By: Simmons H.B. No. 2904
A BILL TO BE ENTITLED
AN ACT
relating to restrictions on, and required disclosures relating to,
rent increases for residential and manufactured home tenancies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 92, Property Code, is
amended by adding Section 92.027 to read as follows:
Sec. 92.027. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO
TENANT. (a) In this section, "affordable housing" means housing
that is affordable to a household earning 70 percent or less of the
area median family income, adjusted for household size, as
determined annually by the United States Department of Housing and
Urban Development.
(b) Except as otherwise provided by this section, a landlord
may not increase the rent for a dwelling from one lease term to a
subsequent lease term by more than:
(1) five percent, for a lease for affordable housing;
or
(2) 10 percent, for a lease for other housing, unless
the dwelling or the premises to which the tenant has access under
the lease undergoes major renovation in the 12 months immediately
preceding the subsequent lease term.
(c) A landlord who increases rent in violation of Subsection
(b) is liable to the tenant for each violation in an amount equal to
three times the amount of rent charged above the authorized
increase, plus the tenant's actual damages.
(d) Each rental period a violation of Subsection (b)
continues is considered a separate violation.
(e) A landlord who increases rent for a dwelling by the
maximum amount authorized under Subsection (b) shall provide to the
tenant a written, general description of the economic conditions,
major renovations, or other circumstances that necessitate the rent
increase.
SECTION 2. Subchapter A, Chapter 94, Property Code, is
amended by adding Section 94.013 to read as follows:
Sec. 94.013. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO
TENANT. (a) In this section, "affordable housing" means housing
that is affordable to households earning 70 percent or less of the
area median family income, adjusted for household size, as
determined annually by the United States Department of Housing and
Urban Development.
(b) Except as otherwise provided by this section, a landlord
may not increase the rent for a manufactured home lot from one lease
term to a subsequent lease term by more than:
(1) five percent, for a lease for affordable housing;
or
(2) 10 percent, for a lease for other housing, unless
the manufactured home lot or the premises to which the tenant has
access under the lease undergoes major renovation in the 12 months
immediately preceding the subsequent lease term.
(c) A landlord who increases rent in violation of Subsection
(b) is liable to the tenant for each violation in an amount equal to
three times the amount of rent charged above the authorized
increase, plus the tenant's actual damages.
(d) Each rental period a violation of Subsection (b)
continues is considered a separate violation.
(e) A landlord who increases rent for a manufactured home
lot by the maximum amount authorized under Subsection (b) shall
provide to the tenant a written, general description of the
economic conditions, major renovations, or other circumstances
that necessitate the rent increase.
SECTION 3. The changes in 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 in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 4. This Act takes effect January 1, 2026.