89R5561 JAM/AMF/SCR/DRS-D
By: Bryant H.B. No. 5166
A BILL TO BE ENTITLED
AN ACT
relating to housing; providing property tax exemptions and relief
relating to housing; providing a civil penalty; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. PROGRAMS AND FINANCIAL ASSISTANCE FOR AFFORDABLE
HOUSING
SECTION 1.01. Section 2306.202, Government Code, is amended
to read as follows:
Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
department, through the housing finance division, shall use the
housing trust fund to provide loans, grants, or other comparable
forms of assistance to local units of government, public housing
authorities, nonprofit organizations, land trusts, and
income-eligible individuals, families, and households to:
(1) finance, acquire, rehabilitate, adapt, preserve,
and develop decent, safe, and sanitary housing, including
cooperative housing, assisted housing, and transitional or
emergency housing;
(2) provide down payment assistance and rental
assistance; and
(3) provide financial assistance for weatherization,
emergency repairs, or other housing-related services.
(b) In each biennium the first $2.6 million available
through the housing trust fund for loans, grants, or other
comparable forms of assistance shall be set aside and made
available exclusively for local units of government, public housing
authorities, and nonprofit organizations. Any additional funds may
also be made available to for-profit organizations provided that at
least 45 percent of available funds, as determined on September 1 of
each state fiscal year, in excess of the first $2.6 million shall be
made available to nonprofit organizations for the purpose of
acquiring, rehabilitating, and developing decent, safe, and
sanitary housing. The remaining portion shall be distributed to
nonprofit organizations, for-profit organizations, and other
eligible entities.
(c) Notwithstanding any other section of this chapter, but
subject to the limitations in Section 2306.251(c), the department
may also use the fund to acquire property to endow the fund.
(d) [(b)] Use of the fund is limited to providing:
(1) assistance for individuals and families of
extremely low and very low income;
(2) technical assistance and capacity building to
nonprofit organizations engaged in developing housing for
individuals and families of extremely low and very low income; and
(3) security for repayment of revenue bonds issued to
finance housing for individuals and families of extremely low and
very low income.
SECTION 1.02. Subchapter K, Chapter 2306, Government Code,
is amended by adding Sections 2306.2515 and 2306.2516 to read as
follows:
Sec. 2306.2515. DOWN PAYMENT ASSISTANCE PROGRAM. (a) In
this section, "first-time homebuyer" means a person who:
(1) resides in this state on the date on which an
application is filed; and
(2) has not owned a home during the three years
preceding the date on which an application under this section is
filed.
(b) The department shall establish a program to provide down
payment assistance in the form of a $10,000 grant to first-time
homebuyers.
(c) To be eligible for down payment assistance provided
under this section, a homebuyer must:
(1) qualify as a first-time homebuyer under this
section;
(2) have paid rent on time for the two years preceding
the date on which an application under this section is filed;
(3) submit an application to the department; and
(4) meet any additional requirements or limitations
prescribed by the department.
(d) The department shall adopt rules necessary to implement
the program established by this section.
Sec. 2306.2516. TEXAS RENT RELIEF PROGRAM. (a) The
department shall establish and administer the Texas rent relief
program to provide financial assistance to residents of this state
who live in rental housing and who have unpaid rent or utility
bills.
(b) The department shall adopt rules necessary to implement
the program established by this section, including rules
establishing eligibility requirements for participation in the
program.
SECTION 1.03. Section 2306.6711(f-1), Government Code, is
amended to read as follows:
(f-1) The board may allocate housing tax credits to more
than one development in a single community only if the community is
part of a high opportunity area and each development is located in
the area or if:
(1) the community is located in:
(A) a municipality with a population of two
million or more; and
(B) an area that is a federally declared disaster
area; and
(2) the governing body of the municipality containing
the development:
(A) has by vote specifically authorized the
allocation of housing tax credits for the development; and
(B) is authorized to administer disaster
recovery funds as a subgrant recipient.
SECTION 1.04. Section 2306.6725(a), Government Code, is
amended to read as follows:
(a) In allocating low income housing tax credits, the
department shall score each application using a point system based
on criteria adopted by the department that are consistent with the
department's housing goals, including criteria addressing the
ability of the proposed project to:
(1) provide quality social support services to
residents;
(2) demonstrate community and neighborhood support as
defined by the qualified allocation plan;
(3) consistent with sound underwriting practices and
when economically feasible, serve individuals and families of
extremely low income by leveraging private and state and federal
resources, including federal HOPE VI grants received through the
United States Department of Housing and Urban Development;
(4) serve traditionally underserved areas;
(5) demonstrate support from local political
subdivisions based on the subdivisions' commitment of development
funding;
(6) rehabilitate or perform an adaptive reuse of a
certified historic structure, as defined by Section 172.101(b)(1)
[171.901(1)], Tax Code, as part of the development;
(7) remain affordable to qualified tenants for an
extended, economically feasible period; [and]
(8) comply with the accessibility standards that are
required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
Section 794), and specified under 24 C.F.R. Part 8, Subpart C;
(9) implement eviction prevention policies;
(10) reduce the vulnerability of tenants to hazards
affecting the habitability of the unit;
(11) reduce barriers to accessing supportive housing;
and
(12) for a project that rehabilitates an existing
development, provide opportunities for tenant participation in the
decision-making process regarding the rehabilitation.
SECTION 1.05. Subchapter D, Chapter 392, Local Government
Code, is amended by adding Section 392.0556 to read as follows:
Sec. 392.0556. HOUSING CHOICE VOUCHER PROGRAM ASSISTANCE
POLICIES. (a) In this section, "housing voucher" means a
tenant-based housing choice voucher provided through the housing
choice voucher program established under Section 8, United States
Housing Act of 1937 (42 U.S.C. Section 1437f).
(b) An authority shall provide to each adult tenant detailed
guidance on how to complete all forms and worksheets that are
necessary to obtain a housing voucher.
(c) An authority shall establish and maintain an
Internet-based portal that allows:
(1) landlords to list available rental properties
where housing vouchers are accepted; and
(2) prospective tenants to sort by zip code listings
made under Subdivision (1).
(d) A listing made under Subsection (c)(1) must include
recent photographs of the unit and information about the unit,
including the square footage of the unit, the number of bedrooms and
bathrooms in the unit, the main amenities in the unit, and whether
the unit has heating or air conditioning.
(e) An authority may charge a fee to landlords for use of the
portal to list available rental properties where housing vouchers
are accepted.
ARTICLE 2. CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES
SECTION 2.01. Subchapter C, Chapter 86, Education Code, is
amended by adding Sections 86.531 and 86.532 to read as follows:
Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME
PURCHASES, RENTALS, AND SALES BY CERTAIN CORPORATE OWNERS. (a) In
this section, "corporate owner," "rental property," and
"single-family home" have the meanings assigned by Section 5.251,
Property Code.
(b) Using existing available data and deed records, the
center shall compile information related to corporate owners'
purchases, rentals, and sales of single-family homes in this state
for each calendar year. The information must include:
(1) the number of single-family homes each corporate
owner had an interest in during the calendar year;
(2) the number of single-family homes purchased by
each corporate owner during the calendar year and the total number
purchased in each county and municipality;
(3) the number of single-family homes described by
Subdivisions (1) and (2) acquired through foreclosure;
(4) the number of single-family homes described by
Subdivisions (1) and (2) sold by each corporate owner during the
calendar year;
(5) the number of single-family homes described by
Subdivisions (1) and (2) used as rental properties during the
calendar year;
(6) the municipality and county in which each
single-family home described by Subdivisions (1) and (2) is
located;
(7) the appraised value of each single-family home
described by Subdivisions (1) and (2);
(8) the name, assumed name, business association type,
registered office address, telephone number, and registered agent
of each corporate owner of a single-family home; and
(9) the name, address, and contact information for the
landlord or third-party lessor, sublessor, management company, or
managing agent of each single-family home described by Subdivision
(5).
(c) In addition to the information required by Subsection
(b), the center may compile additional information at the
recommendation of the legislature or that the center determines is
relevant based on market trends.
(d) Not later than June 1 of each year, the center shall
submit a report to the lieutenant governor, the speaker of the house
of representatives, and each member of the legislature. The report
must contain:
(1) a summary of the information compiled under
Subsection (b) for the preceding calendar year;
(2) an assessment of any trends or patterns relating
to the relative number of purchases by corporate owners, including
whether the corporate owners fall into any readily observable
groups based on the number of purchases or other appropriate
criteria; and
(3) an analysis of:
(A) the impact of corporate owners on the cost of
housing; and
(B) the advantages and disadvantages, if any,
that corporate owners have over individual buyers in the real
estate market.
(e) After completing the initial report under this section,
the center may compile information from any calendar years
preceding 2025 to create and submit reports for those years that
include the information listed in Subsections (b) and (d).
Sec. 86.532. DATABASE OF CORPORATE OWNERS. (a) The center
shall create and maintain a statewide database that retains and
shows the cumulative information from each category described by
Section 86.531(b). The center shall make the database available in
a searchable format on its Internet website in a conspicuous
location.
(b) The center shall update information in the database each
month. The center shall enter into the database for access by the
public the updated information described by Section 86.531(b) not
later than the 30th business day after the date the center finds or
obtains the information.
(c) The center may consult with the appropriate agent of, or
other person representing, each corporate owner to obtain the
information necessary to operate and update the database.
(d) The center may consult with a state agency or political
subdivision to obtain assistance with collecting, aggregating, and
updating the data required by this section.
(e) The center may not charge a fee to the public to access
the database.
SECTION 2.02. Chapter 5, Property Code, is amended by
adding Subchapter H to read as follows:
SUBCHAPTER H. CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES
Sec. 5.251. DEFINITIONS. In this section:
(1) "Corporate owner" means a corporation, limited or
general partnership, limited liability company, business trust,
investment asset manager, real estate investment trust, joint
venture, joint stock company, or bank that holds an interest in
multiple single-family homes in this state that are offered or used
as a rental property to produce income directly or indirectly from a
residential tenant. The term includes an entity engaged in the
business of investing the pooled capital of investors in financial
securities.
(2) "Rental property" means real property used or
intended to be used:
(A) as a primary residence for 30 or more
consecutive days by a residential tenant under an oral or written
lease or rental agreement; or
(B) for occupancy for tourist or transient
accommodations for fewer than 30 consecutive days, where the
property does not serve as a residential tenant's primary
residence.
(3) "Residential tenant" means any person who does not
own but is authorized to use a single-family home in exchange for
consideration paid to a corporate owner or to a third-party lessor,
sublessor, management company, managing agent, or operator of a
hosting platform that derives revenues, including booking fees or
advertising revenues, from providing or maintaining a marketplace
that is used to facilitate the rental of a single-family home.
(4) "Single-family home" means a residential
structure with a yard or public way on not less than two sides that
is separated from any adjacent housing unit by a ground-to-roof
wall, does not share a heating, air-conditioning, or utility system
or a backyard, and does not have a housing unit located above or
below. The term does not include a mobile home or manufactured
home.
Sec. 5.252. LIMITATION ON PURCHASE OF SINGLE-FAMILY HOMES.
(a) A corporate owner may not enter into an executory contract to
purchase a single-family home that is listed for sale before the
30th day after the date the home is listed.
(b) A corporate owner may not enter into an executory
contract to purchase a single-family home if the corporate owner
has purchased 50 or more homes within the boundaries of the tax
appraisal district in which the home is located during the calendar
year.
(c) A contract entered into in violation of this section is
voidable by the seller at any time before the contract is fully
executed.
(d) This section does not apply to ownership of
single-family homes by:
(1) an agency of this state, a political subdivision
of this state, or the United States;
(2) a nonprofit organization exempt from federal
income taxation under Section 501(a), Internal Revenue Code of
1986, as a charitable organization under Section 501(c)(3) of that
code; or
(3) a person licensed to own and operate group homes
for people with disabilities and special health care needs.
Sec. 5.253. CORPORATE OWNER REPORT. (a) In this section,
"department" means the Texas Department of Housing and Community
Affairs.
(b) A corporate owner who purchases more than 15
single-family homes during a calendar year shall not later than
January 15 of the following year file a report with the department.
A report filed under this section must include:
(1) the number of single-family homes purchased by the
corporate owner during the calendar year;
(2) the number of single-family homes purchased during
the calendar year by the corporate owner that the corporate owner
sold during the same year;
(3) the number of single-family homes purchased by the
corporate owner during the calendar year that the corporate owner
uses as rental properties;
(4) the city and county where each single-family home
purchased by the corporate owner during the calendar year is
located;
(5) the number of single-family homes purchased by the
corporate owner during the calendar year in each city and county;
(6) the appraised value of each single-family home
purchased by the corporate owner during the calendar year; and
(7) the corporate owner's name, registered office
address, and telephone number and the name of the corporate owner's
registered agent, as applicable.
(c) The department shall make a report filed under
Subsection (b) available on its Internet website not later than
seven days after the report is filed.
(d) The department shall compile all reports submitted
under Subsection (b) into a single final report showing the
cumulative data from each category described in Subsection (b). The
department shall make the final report available on its Internet
website not later than February 15 of the year in which the reports
under Subsection (b) are due.
(e) The department shall adopt rules as necessary to
implement this section.
Sec. 5.254. ENFORCEMENT. (a) The attorney general, a
county or district attorney, independently or on behalf of an
affected municipality or county, or an appropriate agency of an
affected municipality or county may investigate an alleged
violation if there is reason to believe that a corporate owner has
violated Section 5.252 or has taken substantial steps to purchase a
single-family home in violation of Section 5.252.
(b) A corporate owner who violates Section 5.252 is liable
for a civil penalty of $50,000 for each single-family home
purchased in excess of the amount allowed under Section 5.252.
(c) A county attorney, a district attorney, or the attorney
general may bring an action to collect a civil penalty under this
section in the district court in which any single-family home
related to the violation is located and may recover reasonable
expenses, including court costs, attorney's fees, investigative
costs, witness fees, and deposition expenses, incurred in relation
to the action. A county or district attorney may bring the action
in the name of the state or on behalf of an affected municipality or
county.
(d) Except as provided by this subsection, a civil penalty
recovered in an action brought under this section shall be
deposited in the state treasury to the credit of the general revenue
fund. A civil penalty recovered by a county or district attorney in
an action brought on behalf of a municipality or county under this
section shall be divided equally between the state and the
municipality or county, with 50 percent of the recovery to be paid
to the general revenue fund and the other 50 percent to be paid to
the municipality or county on whose behalf the suit was brought.
(e) The parties in an action under this section may agree to
a settlement that allows the corporate owner to achieve compliance
with Section 5.252(a) by selling any rental property owned by the
corporate owner, regardless of whether the corporate owner was in
violation of Section 5.252 when the property was purchased.
SECTION 2.03. (a) As soon as practicable after the
effective date of this Act, the Texas Real Estate Research Center at
Texas A&M University shall take any actions necessary to implement
Sections 86.531 and 86.532, Education Code, as added by this Act,
and submit the initial report required under Section 86.531(d),
Education Code, as added by this Act, not later than June 1, 2026.
(b) The Texas Real Estate Research Center at Texas A&M
University shall establish and make available the database required
by Section 86.532, Education Code, as added by this Act, not later
than the seventh day after the date the initial report under Section
86.531 is completed.
SECTION 2.04. Section 5.252, Property Code, as added by
this Act, applies only to an executory contract entered into on or
after the effective date of this Act.
ARTICLE 3. TENANT PROTECTIONS
SECTION 3.01. Subchapter A, Chapter 27, Government Code, is
amended by adding Section 27.007 to read as follows:
Sec. 27.007. ACCESS TO JUSTICE COURTS FOR PROVISION OF PRO
BONO LEGAL SERVICES. On request of a legal aid office or other
provider of pro bono legal services, each justice of the peace shall
permit one or more representatives of the office or provider to be
present in the justice court, including during in-person or remote
proceedings, to conduct intakes or provide information, referrals,
or other legal services to eligible litigants in residential
eviction suits.
SECTION 3.02. Section 38.12, Penal Code, is amended by
adding Subsection (h-1) to read as follows:
(h-1) It is a defense to prosecution under Subsection (d)
that the attorney is engaged in conduct authorized under Section
27.007, Government Code.
SECTION 3.03. The heading to Section 24.005, Property Code,
is amended to read as follows:
Sec. 24.005. NOTICE TO CURE DEFAULT FOR NONPAYMENT OF RENT;
NOTICE TO VACATE PRIOR TO FILING EVICTION SUIT.
SECTION 3.04. Section 24.005, Property Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(a-3) to read as follows:
(a) Except as provided by Subsections (a-1) and (a-2), if
[If] the occupant is a tenant under a written lease or oral rental
agreement, the landlord must give a tenant who defaults or holds
over beyond the end of the rental term or renewal period at least
three days' written notice to vacate the premises before the
landlord files a forcible detainer suit, unless the parties have
contracted for a shorter or longer notice period in a written lease
or agreement. A landlord who files a forcible detainer suit on
grounds that the tenant is holding over beyond the end of the rental
term or renewal period must also comply with the tenancy
termination requirements of Section 91.001.
(a-1) The landlord must give a residential tenant who
defaults for nonpayment of rent 10 days' written notice and an
opportunity to cure the default by paying any delinquent rent
before issuing the notice to vacate under Subsection (a-2). The
written notice must include, in all capital letters in an easily
readable font and type size, the words "YOU ARE IN DEFAULT OF THE
LEASE FOR NONPAYMENT OF RENT. YOU HAVE 10 DAYS AFTER THE DATE THIS
NOTICE WAS DELIVERED TO PAY THE RENT BEFORE A NOTICE TO VACATE MAY
BE ISSUED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR
IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE
AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL
ASSISTANCE."
(a-2) After a landlord gives a tenant an opportunity to cure
under Subsection (a-1), the landlord must give the tenant at least
14 days' written notice to vacate the premises before the landlord
files a forcible detainer suit. The notice to vacate must state the
reason for the notice and must include, in all capital letters in an
easily readable font and type size, the words "THIS IS NOT AN
EVICTION ORDER. THIS IS A DEMAND FOR POSSESSION OF THE PROPERTY.
AN EVICTION CASE MAY BE FILED AGAINST YOU 14 DAYS AFTER THE DATE
THIS NOTICE WAS DELIVERED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT
1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT
AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST
LEGAL ASSISTANCE."
(a-3) If applicable, the written notice to vacate must
inform a residential tenant of the tenant's right to cure the
default for nonpayment of rent under Section 24.00605.
SECTION 3.05. Chapter 24, Property Code, is amended by
adding Sections 24.00605, 24.012, and 24.013 to read as follows:
Sec. 24.00605. RESIDENTIAL TENANT'S RIGHT TO CURE BEFORE
WRIT OF POSSESSION EXECUTED. (a) Except as provided by Subsection
(b), a residential tenant who is in default for nonpayment of rent
under a written or oral lease may cure the default and reinstate the
lease by paying all rent, court costs, and attorney's fees not later
than the date a writ of possession is executed.
(b) Unless the lease provides otherwise, a tenant may not
cure a default if the tenant cured a default under this section in
the 12-month period preceding the date the writ of possession is
executed.
Sec. 24.012. ACCESS TO EVICTION CASE INFORMATION. (a) In
this section:
(1) "Eviction case" means a lawsuit brought under this
chapter to recover possession of leased or rented residential real
property from a tenant.
(2) "Eviction case information" means all records and
files related to a filing of an eviction case, including petitions
and dispositions.
(b) This section applies to an eviction case in which an
order granting limited dissemination of eviction case information
has not been entered under Section 24.013.
(c) The court clerk shall allow access to eviction case
information only to:
(1) a party to the action, including a party's
attorney;
(2) a person who provides the clerk with:
(A) the names of at least one plaintiff and one
defendant; and
(B) the address of the premises, including any
apartment or unit number;
(3) a resident of the premises who:
(A) provides the clerk with the name of one of the
parties or the case number; and
(B) shows proof of residency;
(4) a person in accordance with a court order, which
may be granted ex parte, issued on a showing of good cause;
(5) a person in accordance with a court order issued at
the time the judgment in the case is entered, if the judgment is
entered:
(A) for the plaintiff after a trial; and
(B) after the 60th day after the date the
complaint was filed; or
(6) any other person after the 60th day after the date
the complaint was filed:
(A) if the plaintiff prevailed in the action
before the 60th day after the date the complaint was filed; or
(B) if the case involved residential real
property purchased at a foreclosure sale and judgment against all
defendants was entered for the plaintiff after a trial.
(d) If a default or default judgment is set aside after the
60th day after the date the complaint was filed, this section
applies as if the complaint had been filed on the date the default
or default judgment is set aside.
(e) This section may not be construed to prohibit the court
from issuing an order that bars access to eviction case information
if stipulated by the parties to the case.
(f) For purposes of this section, good cause for access to
eviction case information includes the gathering of:
(1) newsworthy facts by a journalist as defined by
Article 38.11, Code of Criminal Procedure; and
(2) evidence by a party to the eviction case solely for
the purpose of filing a request for judicial notice.
(g) After the filing of an eviction case, the court clerk
shall mail notice to each defendant named in the case. The notice
must be mailed to the address provided in the complaint. The notice
must contain a statement that an eviction case has been filed
against the defendant and that access to the eviction case
information will be delayed for 60 days except to a party, an
attorney for one of the parties, a person who has good cause for
access as determined by a court, or any other person who provides to
the clerk:
(1) the names of at least one plaintiff and one
defendant in the case and provides to the clerk the address,
including any applicable apartment or unit number, of the subject
premises; or
(2) the name of one of the parties in the case or the
case number and can establish through proper identification that
the person resides at the address identified in the case.
(h) The notice must also contain:
(1) the name and telephone number of the county bar
association for the county in which the case is filed;
(2) the name and telephone number of any entity that
requests inclusion on the notice and demonstrates to the
satisfaction of the court that the entity has been certified by the
State Bar of Texas as a lawyer referral service and maintains a
panel of attorneys qualified in the practice of landlord-tenant law
under the minimum standards for a lawyer referral service
established by the State Bar of Texas and Chapter 952, Occupations
Code;
(3) the following statement: "The State Bar of Texas
certifies lawyer referral services in Texas and publishes a list of
certified lawyer referral services. To locate a lawyer referral
service in your area, access the State Bar's Internet website at
www.texasbar.com or call 1-877-9TEXBAR.";
(4) the names and telephone numbers of offices that
provide legal services at low or no cost to low-income persons in
the county in which the action is filed; and
(5) a statement that a person receiving the notice may
call the telephone numbers described in the notice for legal advice
regarding the case.
(i) The court clerk shall mail a notice required under this
section not earlier than the 24th hour and not later than the 48th
hour after the time the eviction case is filed, excluding weekends
and holidays.
(j) The court clerk shall mail separately to the subject
premises one copy of the notice addressed to "all occupants." The
notice does not constitute service of the summons and complaint.
Sec. 24.013. LIMITED DISSEMINATION OF EVICTION CASE
INFORMATION. (a) In this section, "eviction case" and "eviction
case information" have the meanings assigned by Section 24.012.
(b) Concurrently with a final judgment or dismissal in an
eviction case or on petition of a defendant in an eviction case
after a final judgment or dismissal in the case, a court shall enter
an order of limited dissemination of the eviction case information
pertaining to the defendant if:
(1) the judgment is or was entered in favor of the
defendant;
(2) the eviction case is or was dismissed without any
relief granted to the plaintiff;
(3) the defendant is or was a tenant not otherwise in
default and the eviction case was brought by the landlord's
successor in interest following foreclosure; or
(4) at least three years have elapsed from the date of
the final judgment in the eviction case.
(c) Concurrently with a final judgment or dismissal in an
eviction case or on petition of a defendant in an eviction case
after a final judgment or dismissal in the case, a court may order
the limited dissemination of eviction case information pertaining
to the defendant if the court finds that:
(1) the limited dissemination of the eviction case
information is in the interest of justice; and
(2) the interest of justice is not outweighed by the
public's interest in knowing the eviction case information.
(d) If an order is entered granting limited dissemination of
eviction case information pertaining to a defendant under this
section:
(1) all courts or court clerks shall delete or redact
all index references to the name of the defendant that relate to the
eviction case information from the public records; and
(2) except to the extent permitted by federal law, a
credit reporting agency, a person who regularly collects and
disseminates eviction case information, or a person who sells
eviction case information may not:
(A) disclose the existence of the eviction case;
or
(B) use the eviction case information as a factor
in determining a score or recommendation in a tenant screening
report regarding the defendant.
(e) A person who knowingly violates Subsection (d) is liable
to an injured party for:
(1) actual damages;
(2) exemplary damages of $1,000; and
(3) reasonable attorney's fees and court costs.
(f) Notwithstanding Section 41.004(a), Civil Practice and
Remedies Code, a court shall award exemplary damages under
Subsection (e)(2) to the injured party irrespective of whether the
party is awarded actual damages.
SECTION 3.06. The heading to Section 92.011, Property Code,
is amended to read as follows:
Sec. 92.011. [CASH] RENTAL PAYMENTS.
SECTION 3.07. Section 92.011, Property Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) A landlord shall apply any payment received from a
tenant to unpaid rent before applying the payment to a fee, charge,
or other sum of money the tenant owes that is not rent. This
subsection applies without regard to the method of payment.
SECTION 3.08. Section 92.019(a-1), Property Code, is
amended to read as follows:
(a-1) For purposes of this section, a late fee is considered
reasonable if[:
[(1)] the late fee is not more than the lesser of [:
[(A) 12 percent of the amount of rent for the
rental period under the lease for a dwelling located in a structure
that contains not more than four dwelling units; or
[(B)] 10 percent of the amount of rent for the
rental period under the lease or $75 [for a dwelling located in a
structure that contains more than four dwelling units; or
[(2) the late fee is more than the applicable amount
under Subdivision (1), but not more than uncertain damages to the
landlord related to the late payment of rent, including direct or
indirect expenses, direct or indirect costs, or overhead associated
with the collection of late payment].
SECTION 3.09. The changes in law made by this article to
Chapters 24 and 92, Property Code, apply only to a lease or rental
agreement entered into or renewed on or after the effective date of
this article. A lease or rental agreement entered into or renewed
before the effective date of this article is governed by the law in
effect immediately before the effective date of this article, and
the former law is continued in effect for that purpose.
SECTION 3.10. Not later than January 1, 2026, the Texas
Supreme Court shall adopt the rules necessary to implement Sections
24.012 and 24.013, Property Code, as added by this article.
ARTICLE 4. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS
SECTION 4.01. Chapter 5, Tax Code, is amended by adding
Section 5.17 to read as follows:
Sec. 5.17. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS. (a)
In this section:
(1) "Fund" means the property tax relief to rental
households fund established under Section 30, Article VIII, Texas
Constitution.
(2) "Rental household" means a household that rents
the household's primary residence.
(b) The comptroller by rule shall establish a program to
provide annual payments to eligible rental households in an amount
determined under this section from money appropriated to the
comptroller for that purpose from the fund.
(c) A rental household is eligible to receive a payment
under this section if the rental household:
(1) has paid rent for the rental household's primary
residence to the same person for all 12 calendar months of the year
for which the rental household applies for the payment; and
(2) submits an application for the payment before a
date prescribed by comptroller rule.
(d) Not later than February 1 of each year, each person who
owns real property and leases that property to a rental household
for use as that household's primary residence shall file with the
comptroller an affidavit stating the amount of rent received by the
person from the rental household during the preceding calendar
year.
(e) Subject to Subsection (f), an eligible rental household
is entitled to receive a payment under this section each year on a
date prescribed by comptroller rule in an amount equal to 10 percent
of the total amount of rent the rental household paid for its
primary residence during the preceding calendar year.
(f) If the comptroller determines that the total amount of
payments from the fund to eligible rental households in a year as
determined under Subsection (e) would exceed an amount equal to 50
percent of the balance of the fund, the comptroller shall
proportionally reduce the amount of the payment to each eligible
rental household for that year by the amount necessary to prevent
the total amount of payments from the fund in that year from
exceeding 50 percent of the balance of the fund.
(g) The comptroller:
(1) by rule shall establish the procedure and
prescribe a form to be used by a rental household to apply for a
payment authorized by this section; and
(2) may adopt additional rules necessary for the
implementation and administration of this section.
ARTICLE 5. LEASED RESIDENTIAL REAL PROPERTY EXEMPTION
SECTION 5.01. Subchapter B, Chapter 11, Tax Code, is
amended by adding Section 11.136 to read as follows:
Sec. 11.136. LEASED RESIDENTIAL REAL PROPERTY. (a) In
this section:
(1) "Department" means the Texas Department of Housing
and Community Affairs.
(2) "Qualified residential real property" means real
property that:
(A) is a multifamily residential property that is
at least 15 years old and consists of or includes residential units
leased by the owner to lessees and used by those lessees as a
primary residence; and
(B) satisfies the eligibility requirements
prescribed by this section and department rule.
(b) Subject to Subsection (c), a person is entitled to an
exemption from taxation by a school district of:
(1) 50 percent of the appraised value of qualified
residential real property the person owns, excluding the portion of
the appraised value of the property described by Subdivision (2),
if applicable; and
(2) any increase in the appraised value of the
property that is attributable to the rehabilitation of the
property.
(c) An exemption authorized under this section for
qualified residential real property:
(1) is for a period of 15 consecutive tax years and may
be renewed as provided by department rule;
(2) once allowed, need not be claimed in subsequent
years and continues to apply to the property until the property
changes ownership or no longer qualifies as qualified residential
real property; and
(3) applies only to the value of that portion of the
property used for residential purposes of the lessee or lessees,
including common areas.
(d) The department shall adopt rules necessary to implement
and administer this section. The rules adopted by the department
must:
(1) designate the authority responsible for
determining eligibility for the exemption authorized by this
section in each appraisal district;
(2) require a property owner to submit an eligibility
application on a form prescribed by the department to the
designated authority not later than January 15 of the tax year for
which the person first applies for the exemption;
(3) require the designated authority to determine a
person's eligibility for the exemption, subject to the requirements
of Subsection (e); and
(4) require the designated authority to provide to the
property owner not later than April 30 of the tax year for which the
person first applies for the exemption a certificate demonstrating
that the owner is eligible for the exemption, which must be
submitted by the owner with the application for the exemption filed
with the applicable chief appraiser.
(e) The designated authority may not issue a certificate
described by Subsection (d)(4) to a property owner unless the owner
agrees in writing that, for the property that is the subject of the
eligibility application:
(1) the monthly rent for at least 20 percent of the
residential rental units in the property may not:
(A) exceed 30 percent of 60 percent of the area
monthly median income, adjusted for family size; or
(B) annually increase for an existing tenant by
more than the product of the rent in the preceding year and the
greater of three percent or the percentage increase in the consumer
price index in this state as determined by the comptroller;
(2) if applicable, the rental units described by
Subdivision (1) are distributed proportionally across different
unit types based on the number of bedrooms;
(3) a tenant may not be evicted without cause;
(4) the property owner will accept as tenants persons
who hold a voucher under Section 8, United States Housing Act of
1937 (42 U.S.C. Section 1437f), and market the property as
available for rent to persons who hold those vouchers;
(5) the department will conduct a comprehensive annual
inspection to determine if the property complies with local and
state building standards and, if the property fails the exemption,
the owner is not entitled to the exemption authorized under this
section in that tax year unless the identified violations are cured
within 90 days of the failed inspection;
(6) the owner will pay to the department an annual
compliance fee of $30 per residential rental unit subject to the
agreement to cover the costs associated with annual inspections and
monitoring;
(7) the owner will secure an independent annual audit
to establish compliance with the provisions of Subdivision (1),
following the procedures for audits under Section 11.1826;
(8) the owner will file in the real property records of
the county in which the property is located the agreement
prescribed by this subsection, which will constitute a restrictive
covenant for the property for each tax year the property receives an
exemption under this section; and
(9) the owner will satisfy any additional requirements
prescribed by department rule.
(f) The department may enter into an agreement or contract
with a county, municipality, or housing authority for the purpose
of administering the exemption authorized under this section.
(g) Except as provided by Subsection (h), a property owner
who receives an exemption authorized under this section for
qualified residential real property for a tax year must deliver a
copy of the notice of appraised value for the property required by
Section 25.19 for that tax year and a copy of the tax bill for the
property required by Section 31.01 for that tax year to each
residential lessee of the property. The owner must deliver the
copies of the appraisal notice and tax bill not later than the 30th
day after the date the owner receives each of those documents.
(h) The department may prescribe a form to be used by a
property owner who receives an exemption authorized by this section
for qualified residential real property to provide notice to a
lessee of the property of the appraised value of and taxes due on
the property for a tax year. If the department prescribes the form
described by this subsection, the property owner shall, not later
than November 1 of each tax year, deliver a copy of that form
applicable to the current tax year to each lessee instead of
delivering the notices required to be delivered under Subsection
(g).
SECTION 5.02. Section 11.43(b), Tax Code, is amended to
read as follows:
(b) Except as provided by Subsection (c) and by Sections
11.136, 11.184, and 11.437, a person required to apply for an
exemption must apply each year the person claims entitlement to the
exemption.
SECTION 5.03. Not later than January 1, 2026, the Texas
Department of Housing and Community Affairs shall adopt the rules
and forms necessary to implement Section 11.136, Tax Code, as added
by this article.
SECTION 5.04. The change in law made by this article applies
only to an ad valorem tax year that begins on or after January 1,
2026.
ARTICLE 6. EFFECTIVE DATES
SECTION 6.01. (a) Except as otherwise provided by this
section, this Act takes effect September 1, 2025.
(b) Except as provided by Subsection (c) of this section,
Article 3 of this Act takes effect January 1, 2026.
(c) Sections 3.01, 3.02, and 3.10 of this Act take effect
September 1, 2025.
(d) Articles 4 and 5 of this Act take effect January 1, 2026,
but only if the constitutional amendment proposed by the 89th
Legislature, Regular Session, 2025, to authorize the legislature to
provide for an exemption from ad valorem taxation by a school
district of a portion of the market value of certain leased
residential real properties, to establish and prescribe the
permissible uses of the property tax relief to rental households
fund, and to include payments from the property tax relief to rental
households fund in the exception of certain appropriations to pay
for ad valorem tax relief from the constitutional limitation on the
rate of growth of appropriations is approved by the voters. If that
amendment is not approved by the voters, Articles 4 and 5 of this
Act have no effect.