Texas 2025 - 89th Regular

Texas House Bill HB5166 Compare Versions

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Old	New	Differences
1	1	89R5561 JAM/AMF/SCR/DRS-D
2	2	By: Bryant H.B. No. 5166
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to housing; providing property tax exemptions and relief
10	10	relating to housing; providing a civil penalty; authorizing a fee.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	ARTICLE 1. PROGRAMS AND FINANCIAL ASSISTANCE FOR AFFORDABLE
13	13	HOUSING
14	14	SECTION 1.01. Section 2306.202, Government Code, is amended
15	15	to read as follows:
16	16	Sec. 2306.202. USE OF HOUSING TRUST FUND. (a) The
17	17	department, through the housing finance division, shall use the
18	18	housing trust fund to provide loans, grants, or other comparable
19	19	forms of assistance to local units of government, public housing
20	20	authorities, nonprofit organizations, land trusts, and
21	21	income-eligible individuals, families, and households to:
22	22	(1) finance, acquire, rehabilitate, adapt, preserve,
23	23	and develop decent, safe, and sanitary housing, including
24	24	cooperative housing, assisted housing, and transitional or
25	25	emergency housing;
26	26	(2) provide down payment assistance and rental
27	27	assistance; and
28	28	(3) provide financial assistance for weatherization,
29	29	emergency repairs, or other housing-related services.
30	30	(b) In each biennium the first $2.6 million available
31	31	through the housing trust fund for loans, grants, or other
32	32	comparable forms of assistance shall be set aside and made
33	33	available exclusively for local units of government, public housing
34	34	authorities, and nonprofit organizations. Any additional funds may
35	35	also be made available to for-profit organizations provided that at
36	36	least 45 percent of available funds, as determined on September 1 of
37	37	each state fiscal year, in excess of the first $2.6 million shall be
38	38	made available to nonprofit organizations for the purpose of
39	39	acquiring, rehabilitating, and developing decent, safe, and
40	40	sanitary housing. The remaining portion shall be distributed to
41	41	nonprofit organizations, for-profit organizations, and other
42	42	eligible entities.
43	43	(c) Notwithstanding any other section of this chapter, but
44	44	subject to the limitations in Section 2306.251(c), the department
45	45	may also use the fund to acquire property to endow the fund.
46	46	(d) [(b)] Use of the fund is limited to providing:
47	47	(1) assistance for individuals and families of
48	48	extremely low and very low income;
49	49	(2) technical assistance and capacity building to
50	50	nonprofit organizations engaged in developing housing for
51	51	individuals and families of extremely low and very low income; and
52	52	(3) security for repayment of revenue bonds issued to
53	53	finance housing for individuals and families of extremely low and
54	54	very low income.
55	55	SECTION 1.02. Subchapter K, Chapter 2306, Government Code,
56	56	is amended by adding Sections 2306.2515 and 2306.2516 to read as
57	57	follows:
58	58	Sec. 2306.2515. DOWN PAYMENT ASSISTANCE PROGRAM. (a) In
59	59	this section, "first-time homebuyer" means a person who:
60	60	(1) resides in this state on the date on which an
61	61	application is filed; and
62	62	(2) has not owned a home during the three years
63	63	preceding the date on which an application under this section is
64	64	filed.
65	65	(b) The department shall establish a program to provide down
66	66	payment assistance in the form of a $10,000 grant to first-time
67	67	homebuyers.
68	68	(c) To be eligible for down payment assistance provided
69	69	under this section, a homebuyer must:
70	70	(1) qualify as a first-time homebuyer under this
71	71	section;
72	72	(2) have paid rent on time for the two years preceding
73	73	the date on which an application under this section is filed;
74	74	(3) submit an application to the department; and
75	75	(4) meet any additional requirements or limitations
76	76	prescribed by the department.
77	77	(d) The department shall adopt rules necessary to implement
78	78	the program established by this section.
79	79	Sec. 2306.2516. TEXAS RENT RELIEF PROGRAM. (a) The
80	80	department shall establish and administer the Texas rent relief
81	81	program to provide financial assistance to residents of this state
82	82	who live in rental housing and who have unpaid rent or utility
83	83	bills.
84	84	(b) The department shall adopt rules necessary to implement
85	85	the program established by this section, including rules
86	86	establishing eligibility requirements for participation in the
87	87	program.
88	88	SECTION 1.03. Section 2306.6711(f-1), Government Code, is
89	89	amended to read as follows:
90	90	(f-1) The board may allocate housing tax credits to more
91	91	than one development in a single community only if the community is
92	92	part of a high opportunity area and each development is located in
93	93	the area or if:
94	94	(1) the community is located in:
95	95	(A) a municipality with a population of two
96	96	million or more; and
97	97	(B) an area that is a federally declared disaster
98	98	area; and
99	99	(2) the governing body of the municipality containing
100	100	the development:
101	101	(A) has by vote specifically authorized the
102	102	allocation of housing tax credits for the development; and
103	103	(B) is authorized to administer disaster
104	104	recovery funds as a subgrant recipient.
105	105	SECTION 1.04. Section 2306.6725(a), Government Code, is
106	106	amended to read as follows:
107	107	(a) In allocating low income housing tax credits, the
108	108	department shall score each application using a point system based
109	109	on criteria adopted by the department that are consistent with the
110	110	department's housing goals, including criteria addressing the
111	111	ability of the proposed project to:
112	112	(1) provide quality social support services to
113	113	residents;
114	114	(2) demonstrate community and neighborhood support as
115	115	defined by the qualified allocation plan;
116	116	(3) consistent with sound underwriting practices and
117	117	when economically feasible, serve individuals and families of
118	118	extremely low income by leveraging private and state and federal
119	119	resources, including federal HOPE VI grants received through the
120	120	United States Department of Housing and Urban Development;
121	121	(4) serve traditionally underserved areas;
122	122	(5) demonstrate support from local political
123	123	subdivisions based on the subdivisions' commitment of development
124	124	funding;
125	125	(6) rehabilitate or perform an adaptive reuse of a
126	126	certified historic structure, as defined by Section 172.101(b)(1)
127	127	[171.901(1)], Tax Code, as part of the development;
128	128	(7) remain affordable to qualified tenants for an
129	129	extended, economically feasible period; [and]
130	130	(8) comply with the accessibility standards that are
131	131	required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.
132	132	Section 794), and specified under 24 C.F.R. Part 8, Subpart C;
133	133	(9) implement eviction prevention policies;
134	134	(10) reduce the vulnerability of tenants to hazards
135	135	affecting the habitability of the unit;
136	136	(11) reduce barriers to accessing supportive housing;
137	137	and
138	138	(12) for a project that rehabilitates an existing
139	139	development, provide opportunities for tenant participation in the
140	140	decision-making process regarding the rehabilitation.
141	141	SECTION 1.05. Subchapter D, Chapter 392, Local Government
142	142	Code, is amended by adding Section 392.0556 to read as follows:
143	143	Sec. 392.0556. HOUSING CHOICE VOUCHER PROGRAM ASSISTANCE
144	144	POLICIES. (a) In this section, "housing voucher" means a
145	145	tenant-based housing choice voucher provided through the housing
146	146	choice voucher program established under Section 8, United States
147	147	Housing Act of 1937 (42 U.S.C. Section 1437f).
148	148	(b) An authority shall provide to each adult tenant detailed
149	149	guidance on how to complete all forms and worksheets that are
150	150	necessary to obtain a housing voucher.
151	151	(c) An authority shall establish and maintain an
152	152	Internet-based portal that allows:
153	153	(1) landlords to list available rental properties
154	154	where housing vouchers are accepted; and
155	155	(2) prospective tenants to sort by zip code listings
156	156	made under Subdivision (1).
157	157	(d) A listing made under Subsection (c)(1) must include
158	158	recent photographs of the unit and information about the unit,
159	159	including the square footage of the unit, the number of bedrooms and
160	160	bathrooms in the unit, the main amenities in the unit, and whether
161	161	the unit has heating or air conditioning.
162	162	(e) An authority may charge a fee to landlords for use of the
163	163	portal to list available rental properties where housing vouchers
164	164	are accepted.
165	165	ARTICLE 2. CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES
166	166	SECTION 2.01. Subchapter C, Chapter 86, Education Code, is
167	167	amended by adding Sections 86.531 and 86.532 to read as follows:
168	168	Sec. 86.531. ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME
169	169	PURCHASES, RENTALS, AND SALES BY CERTAIN CORPORATE OWNERS. (a) In
170	170	this section, "corporate owner," "rental property," and
171	171	"single-family home" have the meanings assigned by Section 5.251,
172	172	Property Code.
173	173	(b) Using existing available data and deed records, the
174	174	center shall compile information related to corporate owners'
175	175	purchases, rentals, and sales of single-family homes in this state
176	176	for each calendar year. The information must include:
177	177	(1) the number of single-family homes each corporate
178	178	owner had an interest in during the calendar year;
179	179	(2) the number of single-family homes purchased by
180	180	each corporate owner during the calendar year and the total number
181	181	purchased in each county and municipality;
182	182	(3) the number of single-family homes described by
183	183	Subdivisions (1) and (2) acquired through foreclosure;
184	184	(4) the number of single-family homes described by
185	185	Subdivisions (1) and (2) sold by each corporate owner during the
186	186	calendar year;
187	187	(5) the number of single-family homes described by
188	188	Subdivisions (1) and (2) used as rental properties during the
189	189	calendar year;
190	190	(6) the municipality and county in which each
191	191	single-family home described by Subdivisions (1) and (2) is
192	192	located;
193	193	(7) the appraised value of each single-family home
194	194	described by Subdivisions (1) and (2);
195	195	(8) the name, assumed name, business association type,
196	196	registered office address, telephone number, and registered agent
197	197	of each corporate owner of a single-family home; and
198	198	(9) the name, address, and contact information for the
199	199	landlord or third-party lessor, sublessor, management company, or
200	200	managing agent of each single-family home described by Subdivision
201	201	(5).
202	202	(c) In addition to the information required by Subsection
203	203	(b), the center may compile additional information at the
204	204	recommendation of the legislature or that the center determines is
205	205	relevant based on market trends.
206	206	(d) Not later than June 1 of each year, the center shall
207	207	submit a report to the lieutenant governor, the speaker of the house
208	208	of representatives, and each member of the legislature. The report
209	209	must contain:
210	210	(1) a summary of the information compiled under
211	211	Subsection (b) for the preceding calendar year;
212	212	(2) an assessment of any trends or patterns relating
213	213	to the relative number of purchases by corporate owners, including
214	214	whether the corporate owners fall into any readily observable
215	215	groups based on the number of purchases or other appropriate
216	216	criteria; and
217	217	(3) an analysis of:
218	218	(A) the impact of corporate owners on the cost of
219	219	housing; and
220	220	(B) the advantages and disadvantages, if any,
221	221	that corporate owners have over individual buyers in the real
222	222	estate market.
223	223	(e) After completing the initial report under this section,
224	224	the center may compile information from any calendar years
225	225	preceding 2025 to create and submit reports for those years that
226	226	include the information listed in Subsections (b) and (d).
227	227	Sec. 86.532. DATABASE OF CORPORATE OWNERS. (a) The center
228	228	shall create and maintain a statewide database that retains and
229	229	shows the cumulative information from each category described by
230	230	Section 86.531(b). The center shall make the database available in
231	231	a searchable format on its Internet website in a conspicuous
232	232	location.
233	233	(b) The center shall update information in the database each
234	234	month. The center shall enter into the database for access by the
235	235	public the updated information described by Section 86.531(b) not
236	236	later than the 30th business day after the date the center finds or
237	237	obtains the information.
238	238	(c) The center may consult with the appropriate agent of, or
239	239	other person representing, each corporate owner to obtain the
240	240	information necessary to operate and update the database.
241	241	(d) The center may consult with a state agency or political
242	242	subdivision to obtain assistance with collecting, aggregating, and
243	243	updating the data required by this section.
244	244	(e) The center may not charge a fee to the public to access
245	245	the database.
246	246	SECTION 2.02. Chapter 5, Property Code, is amended by
247	247	adding Subchapter H to read as follows:
248	248	SUBCHAPTER H. CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES
249	249	Sec. 5.251. DEFINITIONS. In this section:
250	250	(1) "Corporate owner" means a corporation, limited or
251	251	general partnership, limited liability company, business trust,
252	252	investment asset manager, real estate investment trust, joint
253	253	venture, joint stock company, or bank that holds an interest in
254	254	multiple single-family homes in this state that are offered or used
255	255	as a rental property to produce income directly or indirectly from a
256	256	residential tenant. The term includes an entity engaged in the
257	257	business of investing the pooled capital of investors in financial
258	258	securities.
259	259	(2) "Rental property" means real property used or
260	260	intended to be used:
261	261	(A) as a primary residence for 30 or more
262	262	consecutive days by a residential tenant under an oral or written
263	263	lease or rental agreement; or
264	264	(B) for occupancy for tourist or transient
265	265	accommodations for fewer than 30 consecutive days, where the
266	266	property does not serve as a residential tenant's primary
267	267	residence.
268	268	(3) "Residential tenant" means any person who does not
269	269	own but is authorized to use a single-family home in exchange for
270	270	consideration paid to a corporate owner or to a third-party lessor,
271	271	sublessor, management company, managing agent, or operator of a
272	272	hosting platform that derives revenues, including booking fees or
273	273	advertising revenues, from providing or maintaining a marketplace
274	274	that is used to facilitate the rental of a single-family home.
275	275	(4) "Single-family home" means a residential
276	276	structure with a yard or public way on not less than two sides that
277	277	is separated from any adjacent housing unit by a ground-to-roof
278	278	wall, does not share a heating, air-conditioning, or utility system
279	279	or a backyard, and does not have a housing unit located above or
280	280	below. The term does not include a mobile home or manufactured
281	281	home.
282	282	Sec. 5.252. LIMITATION ON PURCHASE OF SINGLE-FAMILY HOMES.
283	283	(a) A corporate owner may not enter into an executory contract to
284	284	purchase a single-family home that is listed for sale before the
285	285	30th day after the date the home is listed.
286	286	(b) A corporate owner may not enter into an executory
287	287	contract to purchase a single-family home if the corporate owner
288	288	has purchased 50 or more homes within the boundaries of the tax
289	289	appraisal district in which the home is located during the calendar
290	290	year.
291	291	(c) A contract entered into in violation of this section is
292	292	voidable by the seller at any time before the contract is fully
293	293	executed.
294	294	(d) This section does not apply to ownership of
295	295	single-family homes by:
296	296	(1) an agency of this state, a political subdivision
297	297	of this state, or the United States;
298	298	(2) a nonprofit organization exempt from federal
299	299	income taxation under Section 501(a), Internal Revenue Code of
300	300	1986, as a charitable organization under Section 501(c)(3) of that
301	301	code; or
302	302	(3) a person licensed to own and operate group homes
303	303	for people with disabilities and special health care needs.
304	304	Sec. 5.253. CORPORATE OWNER REPORT. (a) In this section,
305	305	"department" means the Texas Department of Housing and Community
306	306	Affairs.
307	307	(b) A corporate owner who purchases more than 15
308	308	single-family homes during a calendar year shall not later than
309	309	January 15 of the following year file a report with the department.
310	310	A report filed under this section must include:
311	311	(1) the number of single-family homes purchased by the
312	312	corporate owner during the calendar year;
313	313	(2) the number of single-family homes purchased during
314	314	the calendar year by the corporate owner that the corporate owner
315	315	sold during the same year;
316	316	(3) the number of single-family homes purchased by the
317	317	corporate owner during the calendar year that the corporate owner
318	318	uses as rental properties;
319	319	(4) the city and county where each single-family home
320	320	purchased by the corporate owner during the calendar year is
321	321	located;
322	322	(5) the number of single-family homes purchased by the
323	323	corporate owner during the calendar year in each city and county;
324	324	(6) the appraised value of each single-family home
325	325	purchased by the corporate owner during the calendar year; and
326	326	(7) the corporate owner's name, registered office
327	327	address, and telephone number and the name of the corporate owner's
328	328	registered agent, as applicable.
329	329	(c) The department shall make a report filed under
330	330	Subsection (b) available on its Internet website not later than
331	331	seven days after the report is filed.
332	332	(d) The department shall compile all reports submitted
333	333	under Subsection (b) into a single final report showing the
334	334	cumulative data from each category described in Subsection (b). The
335	335	department shall make the final report available on its Internet
336	336	website not later than February 15 of the year in which the reports
337	337	under Subsection (b) are due.
338	338	(e) The department shall adopt rules as necessary to
339	339	implement this section.
340	340	Sec. 5.254. ENFORCEMENT. (a) The attorney general, a
341	341	county or district attorney, independently or on behalf of an
342	342	affected municipality or county, or an appropriate agency of an
343	343	affected municipality or county may investigate an alleged
344	344	violation if there is reason to believe that a corporate owner has
345	345	violated Section 5.252 or has taken substantial steps to purchase a
346	346	single-family home in violation of Section 5.252.
347	347	(b) A corporate owner who violates Section 5.252 is liable
348	348	for a civil penalty of $50,000 for each single-family home
349	349	purchased in excess of the amount allowed under Section 5.252.
350	350	(c) A county attorney, a district attorney, or the attorney
351	351	general may bring an action to collect a civil penalty under this
352	352	section in the district court in which any single-family home
353	353	related to the violation is located and may recover reasonable
354	354	expenses, including court costs, attorney's fees, investigative
355	355	costs, witness fees, and deposition expenses, incurred in relation
356	356	to the action. A county or district attorney may bring the action
357	357	in the name of the state or on behalf of an affected municipality or
358	358	county.
359	359	(d) Except as provided by this subsection, a civil penalty
360	360	recovered in an action brought under this section shall be
361	361	deposited in the state treasury to the credit of the general revenue
362	362	fund. A civil penalty recovered by a county or district attorney in
363	363	an action brought on behalf of a municipality or county under this
364	364	section shall be divided equally between the state and the
365	365	municipality or county, with 50 percent of the recovery to be paid
366	366	to the general revenue fund and the other 50 percent to be paid to
367	367	the municipality or county on whose behalf the suit was brought.
368	368	(e) The parties in an action under this section may agree to
369	369	a settlement that allows the corporate owner to achieve compliance
370	370	with Section 5.252(a) by selling any rental property owned by the
371	371	corporate owner, regardless of whether the corporate owner was in
372	372	violation of Section 5.252 when the property was purchased.
373	373	SECTION 2.03. (a) As soon as practicable after the
374	374	effective date of this Act, the Texas Real Estate Research Center at
375	375	Texas A&M University shall take any actions necessary to implement
376	376	Sections 86.531 and 86.532, Education Code, as added by this Act,
377	377	and submit the initial report required under Section 86.531(d),
378	378	Education Code, as added by this Act, not later than June 1, 2026.
379	379	(b) The Texas Real Estate Research Center at Texas A&M
380	380	University shall establish and make available the database required
381	381	by Section 86.532, Education Code, as added by this Act, not later
382	382	than the seventh day after the date the initial report under Section
383	383	86.531 is completed.
384	384	SECTION 2.04. Section 5.252, Property Code, as added by
385	385	this Act, applies only to an executory contract entered into on or
386	386	after the effective date of this Act.
387	387	ARTICLE 3. TENANT PROTECTIONS
388	388	SECTION 3.01. Subchapter A, Chapter 27, Government Code, is
389	389	amended by adding Section 27.007 to read as follows:
390	390	Sec. 27.007. ACCESS TO JUSTICE COURTS FOR PROVISION OF PRO
391	391	BONO LEGAL SERVICES. On request of a legal aid office or other
392	392	provider of pro bono legal services, each justice of the peace shall
393	393	permit one or more representatives of the office or provider to be
394	394	present in the justice court, including during in-person or remote
395	395	proceedings, to conduct intakes or provide information, referrals,
396	396	or other legal services to eligible litigants in residential
397	397	eviction suits.
398	398	SECTION 3.02. Section 38.12, Penal Code, is amended by
399	399	adding Subsection (h-1) to read as follows:
400	400	(h-1) It is a defense to prosecution under Subsection (d)
401	401	that the attorney is engaged in conduct authorized under Section
402	402	27.007, Government Code.
403	403	SECTION 3.03. The heading to Section 24.005, Property Code,
404	404	is amended to read as follows:
405	405	Sec. 24.005. NOTICE TO CURE DEFAULT FOR NONPAYMENT OF RENT;
406	406	NOTICE TO VACATE PRIOR TO FILING EVICTION SUIT.
407	407	SECTION 3.04. Section 24.005, Property Code, is amended by
408	408	amending Subsection (a) and adding Subsections (a-1), (a-2), and
409	409	(a-3) to read as follows:
410	410	(a) Except as provided by Subsections (a-1) and (a-2), if
411	411	[If] the occupant is a tenant under a written lease or oral rental
412	412	agreement, the landlord must give a tenant who defaults or holds
413	413	over beyond the end of the rental term or renewal period at least
414	414	three days' written notice to vacate the premises before the
415	415	landlord files a forcible detainer suit, unless the parties have
416	416	contracted for a shorter or longer notice period in a written lease
417	417	or agreement. A landlord who files a forcible detainer suit on
418	418	grounds that the tenant is holding over beyond the end of the rental
419	419	term or renewal period must also comply with the tenancy
420	420	termination requirements of Section 91.001.
421	421	(a-1) The landlord must give a residential tenant who
422	422	defaults for nonpayment of rent 10 days' written notice and an
423	423	opportunity to cure the default by paying any delinquent rent
424	424	before issuing the notice to vacate under Subsection (a-2). The
425	425	written notice must include, in all capital letters in an easily
426	426	readable font and type size, the words "YOU ARE IN DEFAULT OF THE
427	427	LEASE FOR NONPAYMENT OF RENT. YOU HAVE 10 DAYS AFTER THE DATE THIS
428	428	NOTICE WAS DELIVERED TO PAY THE RENT BEFORE A NOTICE TO VACATE MAY
429	429	BE ISSUED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR
430	430	IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE
431	431	AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL
432	432	ASSISTANCE."
433	433	(a-2) After a landlord gives a tenant an opportunity to cure
434	434	under Subsection (a-1), the landlord must give the tenant at least
435	435	14 days' written notice to vacate the premises before the landlord
436	436	files a forcible detainer suit. The notice to vacate must state the
437	437	reason for the notice and must include, in all capital letters in an
438	438	easily readable font and type size, the words "THIS IS NOT AN
439	439	EVICTION ORDER. THIS IS A DEMAND FOR POSSESSION OF THE PROPERTY.
440	440	AN EVICTION CASE MAY BE FILED AGAINST YOU 14 DAYS AFTER THE DATE
441	441	THIS NOTICE WAS DELIVERED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT
442	442	1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT
443	443	AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST
444	444	LEGAL ASSISTANCE."
445	445	(a-3) If applicable, the written notice to vacate must
446	446	inform a residential tenant of the tenant's right to cure the
447	447	default for nonpayment of rent under Section 24.00605.
448	448	SECTION 3.05. Chapter 24, Property Code, is amended by
449	449	adding Sections 24.00605, 24.012, and 24.013 to read as follows:
450	450	Sec. 24.00605. RESIDENTIAL TENANT'S RIGHT TO CURE BEFORE
451	451	WRIT OF POSSESSION EXECUTED. (a) Except as provided by Subsection
452	452	(b), a residential tenant who is in default for nonpayment of rent
453	453	under a written or oral lease may cure the default and reinstate the
454	454	lease by paying all rent, court costs, and attorney's fees not later
455	455	than the date a writ of possession is executed.
456	456	(b) Unless the lease provides otherwise, a tenant may not
457	457	cure a default if the tenant cured a default under this section in
458	458	the 12-month period preceding the date the writ of possession is
459	459	executed.
460	460	Sec. 24.012. ACCESS TO EVICTION CASE INFORMATION. (a) In
461	461	this section:
462	462	(1) "Eviction case" means a lawsuit brought under this
463	463	chapter to recover possession of leased or rented residential real
464	464	property from a tenant.
465	465	(2) "Eviction case information" means all records and
466	466	files related to a filing of an eviction case, including petitions
467	467	and dispositions.
468	468	(b) This section applies to an eviction case in which an
469	469	order granting limited dissemination of eviction case information
470	470	has not been entered under Section 24.013.
471	471	(c) The court clerk shall allow access to eviction case
472	472	information only to:
473	473	(1) a party to the action, including a party's
474	474	attorney;
475	475	(2) a person who provides the clerk with:
476	476	(A) the names of at least one plaintiff and one
477	477	defendant; and
478	478	(B) the address of the premises, including any
479	479	apartment or unit number;
480	480	(3) a resident of the premises who:
481	481	(A) provides the clerk with the name of one of the
482	482	parties or the case number; and
483	483	(B) shows proof of residency;
484	484	(4) a person in accordance with a court order, which
485	485	may be granted ex parte, issued on a showing of good cause;
486	486	(5) a person in accordance with a court order issued at
487	487	the time the judgment in the case is entered, if the judgment is
488	488	entered:
489	489	(A) for the plaintiff after a trial; and
490	490	(B) after the 60th day after the date the
491	491	complaint was filed; or
492	492	(6) any other person after the 60th day after the date
493	493	the complaint was filed:
494	494	(A) if the plaintiff prevailed in the action
495	495	before the 60th day after the date the complaint was filed; or
496	496	(B) if the case involved residential real
497	497	property purchased at a foreclosure sale and judgment against all
498	498	defendants was entered for the plaintiff after a trial.
499	499	(d) If a default or default judgment is set aside after the
500	500	60th day after the date the complaint was filed, this section
501	501	applies as if the complaint had been filed on the date the default
502	502	or default judgment is set aside.
503	503	(e) This section may not be construed to prohibit the court
504	504	from issuing an order that bars access to eviction case information
505	505	if stipulated by the parties to the case.
506	506	(f) For purposes of this section, good cause for access to
507	507	eviction case information includes the gathering of:
508	508	(1) newsworthy facts by a journalist as defined by
509	509	Article 38.11, Code of Criminal Procedure; and
510	510	(2) evidence by a party to the eviction case solely for
511	511	the purpose of filing a request for judicial notice.
512	512	(g) After the filing of an eviction case, the court clerk
513	513	shall mail notice to each defendant named in the case. The notice
514	514	must be mailed to the address provided in the complaint. The notice
515	515	must contain a statement that an eviction case has been filed
516	516	against the defendant and that access to the eviction case
517	517	information will be delayed for 60 days except to a party, an
518	518	attorney for one of the parties, a person who has good cause for
519	519	access as determined by a court, or any other person who provides to
520	520	the clerk:
521	521	(1) the names of at least one plaintiff and one
522	522	defendant in the case and provides to the clerk the address,
523	523	including any applicable apartment or unit number, of the subject
524	524	premises; or
525	525	(2) the name of one of the parties in the case or the
526	526	case number and can establish through proper identification that
527	527	the person resides at the address identified in the case.
528	528	(h) The notice must also contain:
529	529	(1) the name and telephone number of the county bar
530	530	association for the county in which the case is filed;
531	531	(2) the name and telephone number of any entity that
532	532	requests inclusion on the notice and demonstrates to the
533	533	satisfaction of the court that the entity has been certified by the
534	534	State Bar of Texas as a lawyer referral service and maintains a
535	535	panel of attorneys qualified in the practice of landlord-tenant law
536	536	under the minimum standards for a lawyer referral service
537	537	established by the State Bar of Texas and Chapter 952, Occupations
538	538	Code;
539	539	(3) the following statement: "The State Bar of Texas
540	540	certifies lawyer referral services in Texas and publishes a list of
541	541	certified lawyer referral services. To locate a lawyer referral
542	542	service in your area, access the State Bar's Internet website at
543	543	www.texasbar.com or call 1-877-9TEXBAR.";
544	544	(4) the names and telephone numbers of offices that
545	545	provide legal services at low or no cost to low-income persons in
546	546	the county in which the action is filed; and
547	547	(5) a statement that a person receiving the notice may
548	548	call the telephone numbers described in the notice for legal advice
549	549	regarding the case.
550	550	(i) The court clerk shall mail a notice required under this
551	551	section not earlier than the 24th hour and not later than the 48th
552	552	hour after the time the eviction case is filed, excluding weekends
553	553	and holidays.
554	554	(j) The court clerk shall mail separately to the subject
555	555	premises one copy of the notice addressed to "all occupants." The
556	556	notice does not constitute service of the summons and complaint.
557	557	Sec. 24.013. LIMITED DISSEMINATION OF EVICTION CASE
558	558	INFORMATION. (a) In this section, "eviction case" and "eviction
559	559	case information" have the meanings assigned by Section 24.012.
560	560	(b) Concurrently with a final judgment or dismissal in an
561	561	eviction case or on petition of a defendant in an eviction case
562	562	after a final judgment or dismissal in the case, a court shall enter
563	563	an order of limited dissemination of the eviction case information
564	564	pertaining to the defendant if:
565	565	(1) the judgment is or was entered in favor of the
566	566	defendant;
567	567	(2) the eviction case is or was dismissed without any
568	568	relief granted to the plaintiff;
569	569	(3) the defendant is or was a tenant not otherwise in
570	570	default and the eviction case was brought by the landlord's
571	571	successor in interest following foreclosure; or
572	572	(4) at least three years have elapsed from the date of
573	573	the final judgment in the eviction case.
574	574	(c) Concurrently with a final judgment or dismissal in an
575	575	eviction case or on petition of a defendant in an eviction case
576	576	after a final judgment or dismissal in the case, a court may order
577	577	the limited dissemination of eviction case information pertaining
578	578	to the defendant if the court finds that:
579	579	(1) the limited dissemination of the eviction case
580	580	information is in the interest of justice; and
581	581	(2) the interest of justice is not outweighed by the
582	582	public's interest in knowing the eviction case information.
583	583	(d) If an order is entered granting limited dissemination of
584	584	eviction case information pertaining to a defendant under this
585	585	section:
586	586	(1) all courts or court clerks shall delete or redact
587	587	all index references to the name of the defendant that relate to the
588	588	eviction case information from the public records; and
589	589	(2) except to the extent permitted by federal law, a
590	590	credit reporting agency, a person who regularly collects and
591	591	disseminates eviction case information, or a person who sells
592	592	eviction case information may not:
593	593	(A) disclose the existence of the eviction case;
594	594	or
595	595	(B) use the eviction case information as a factor
596	596	in determining a score or recommendation in a tenant screening
597	597	report regarding the defendant.
598	598	(e) A person who knowingly violates Subsection (d) is liable
599	599	to an injured party for:
600	600	(1) actual damages;
601	601	(2) exemplary damages of $1,000; and
602	602	(3) reasonable attorney's fees and court costs.
603	603	(f) Notwithstanding Section 41.004(a), Civil Practice and
604	604	Remedies Code, a court shall award exemplary damages under
605	605	Subsection (e)(2) to the injured party irrespective of whether the
606	606	party is awarded actual damages.
607	607	SECTION 3.06. The heading to Section 92.011, Property Code,
608	608	is amended to read as follows:
609	609	Sec. 92.011. [CASH] RENTAL PAYMENTS.
610	610	SECTION 3.07. Section 92.011, Property Code, is amended by
611	611	adding Subsection (b-1) to read as follows:
612	612	(b-1) A landlord shall apply any payment received from a
613	613	tenant to unpaid rent before applying the payment to a fee, charge,
614	614	or other sum of money the tenant owes that is not rent. This
615	615	subsection applies without regard to the method of payment.
616	616	SECTION 3.08. Section 92.019(a-1), Property Code, is
617	617	amended to read as follows:
618	618	(a-1) For purposes of this section, a late fee is considered
619	619	reasonable if[:
620	620	[(1)] the late fee is not more than the lesser of [:
621	621	[(A) 12 percent of the amount of rent for the
622	622	rental period under the lease for a dwelling located in a structure
623	623	that contains not more than four dwelling units; or
624	624	[(B)] 10 percent of the amount of rent for the
625	625	rental period under the lease or $75 [for a dwelling located in a
626	626	structure that contains more than four dwelling units; or
627	627	[(2) the late fee is more than the applicable amount
628	628	under Subdivision (1), but not more than uncertain damages to the
629	629	landlord related to the late payment of rent, including direct or
630	630	indirect expenses, direct or indirect costs, or overhead associated
631	631	with the collection of late payment].
632	632	SECTION 3.09. The changes in law made by this article to
633	633	Chapters 24 and 92, Property Code, apply only to a lease or rental
634	634	agreement entered into or renewed on or after the effective date of
635	635	this article. A lease or rental agreement entered into or renewed
636	636	before the effective date of this article is governed by the law in
637	637	effect immediately before the effective date of this article, and
638	638	the former law is continued in effect for that purpose.
639	639	SECTION 3.10. Not later than January 1, 2026, the Texas
640	640	Supreme Court shall adopt the rules necessary to implement Sections
641	641	24.012 and 24.013, Property Code, as added by this article.
642	642	ARTICLE 4. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS
643	643	SECTION 4.01. Chapter 5, Tax Code, is amended by adding
644	644	Section 5.17 to read as follows:
645	645	Sec. 5.17. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS. (a)
646	646	In this section:
647	647	(1) "Fund" means the property tax relief to rental
648	648	households fund established under Section 30, Article VIII, Texas
649	649	Constitution.
650	650	(2) "Rental household" means a household that rents
651	651	the household's primary residence.
652	652	(b) The comptroller by rule shall establish a program to
653	653	provide annual payments to eligible rental households in an amount
654	654	determined under this section from money appropriated to the
655	655	comptroller for that purpose from the fund.
656	656	(c) A rental household is eligible to receive a payment
657	657	under this section if the rental household:
658	658	(1) has paid rent for the rental household's primary
659	659	residence to the same person for all 12 calendar months of the year
660	660	for which the rental household applies for the payment; and
661	661	(2) submits an application for the payment before a
662	662	date prescribed by comptroller rule.
663	663	(d) Not later than February 1 of each year, each person who
664	664	owns real property and leases that property to a rental household
665	665	for use as that household's primary residence shall file with the
666	666	comptroller an affidavit stating the amount of rent received by the
667	667	person from the rental household during the preceding calendar
668	668	year.
669	669	(e) Subject to Subsection (f), an eligible rental household
670	670	is entitled to receive a payment under this section each year on a
671	671	date prescribed by comptroller rule in an amount equal to 10 percent
672	672	of the total amount of rent the rental household paid for its
673	673	primary residence during the preceding calendar year.
674	674	(f) If the comptroller determines that the total amount of
675	675	payments from the fund to eligible rental households in a year as
676	676	determined under Subsection (e) would exceed an amount equal to 50
677	677	percent of the balance of the fund, the comptroller shall
678	678	proportionally reduce the amount of the payment to each eligible
679	679	rental household for that year by the amount necessary to prevent
680	680	the total amount of payments from the fund in that year from
681	681	exceeding 50 percent of the balance of the fund.
682	682	(g) The comptroller:
683	683	(1) by rule shall establish the procedure and
684	684	prescribe a form to be used by a rental household to apply for a
685	685	payment authorized by this section; and
686	686	(2) may adopt additional rules necessary for the
687	687	implementation and administration of this section.
688	688	ARTICLE 5. LEASED RESIDENTIAL REAL PROPERTY EXEMPTION
689	689	SECTION 5.01. Subchapter B, Chapter 11, Tax Code, is
690	690	amended by adding Section 11.136 to read as follows:
691	691	Sec. 11.136. LEASED RESIDENTIAL REAL PROPERTY. (a) In
692	692	this section:
693	693	(1) "Department" means the Texas Department of Housing
694	694	and Community Affairs.
695	695	(2) "Qualified residential real property" means real
696	696	property that:
697	697	(A) is a multifamily residential property that is
698	698	at least 15 years old and consists of or includes residential units
699	699	leased by the owner to lessees and used by those lessees as a
700	700	primary residence; and
701	701	(B) satisfies the eligibility requirements
702	702	prescribed by this section and department rule.
703	703	(b) Subject to Subsection (c), a person is entitled to an
704	704	exemption from taxation by a school district of:
705	705	(1) 50 percent of the appraised value of qualified
706	706	residential real property the person owns, excluding the portion of
707	707	the appraised value of the property described by Subdivision (2),
708	708	if applicable; and
709	709	(2) any increase in the appraised value of the
710	710	property that is attributable to the rehabilitation of the
711	711	property.
712	712	(c) An exemption authorized under this section for
713	713	qualified residential real property:
714	714	(1) is for a period of 15 consecutive tax years and may
715	715	be renewed as provided by department rule;
716	716	(2) once allowed, need not be claimed in subsequent
717	717	years and continues to apply to the property until the property
718	718	changes ownership or no longer qualifies as qualified residential
719	719	real property; and
720	720	(3) applies only to the value of that portion of the
721	721	property used for residential purposes of the lessee or lessees,
722	722	including common areas.
723	723	(d) The department shall adopt rules necessary to implement
724	724	and administer this section. The rules adopted by the department
725	725	must:
726	726	(1) designate the authority responsible for
727	727	determining eligibility for the exemption authorized by this
728	728	section in each appraisal district;
729	729	(2) require a property owner to submit an eligibility
730	730	application on a form prescribed by the department to the
731	731	designated authority not later than January 15 of the tax year for
732	732	which the person first applies for the exemption;
733	733	(3) require the designated authority to determine a
734	734	person's eligibility for the exemption, subject to the requirements
735	735	of Subsection (e); and
736	736	(4) require the designated authority to provide to the
737	737	property owner not later than April 30 of the tax year for which the
738	738	person first applies for the exemption a certificate demonstrating
739	739	that the owner is eligible for the exemption, which must be
740	740	submitted by the owner with the application for the exemption filed
741	741	with the applicable chief appraiser.
742	742	(e) The designated authority may not issue a certificate
743	743	described by Subsection (d)(4) to a property owner unless the owner
744	744	agrees in writing that, for the property that is the subject of the
745	745	eligibility application:
746	746	(1) the monthly rent for at least 20 percent of the
747	747	residential rental units in the property may not:
748	748	(A) exceed 30 percent of 60 percent of the area
749	749	monthly median income, adjusted for family size; or
750	750	(B) annually increase for an existing tenant by
751	751	more than the product of the rent in the preceding year and the
752	752	greater of three percent or the percentage increase in the consumer
753	753	price index in this state as determined by the comptroller;
754	754	(2) if applicable, the rental units described by
755	755	Subdivision (1) are distributed proportionally across different
756	756	unit types based on the number of bedrooms;
757	757	(3) a tenant may not be evicted without cause;
758	758	(4) the property owner will accept as tenants persons
759	759	who hold a voucher under Section 8, United States Housing Act of
760	760	1937 (42 U.S.C. Section 1437f), and market the property as
761	761	available for rent to persons who hold those vouchers;
762	762	(5) the department will conduct a comprehensive annual
763	763	inspection to determine if the property complies with local and
764	764	state building standards and, if the property fails the exemption,
765	765	the owner is not entitled to the exemption authorized under this
766	766	section in that tax year unless the identified violations are cured
767	767	within 90 days of the failed inspection;
768	768	(6) the owner will pay to the department an annual
769	769	compliance fee of $30 per residential rental unit subject to the
770	770	agreement to cover the costs associated with annual inspections and
771	771	monitoring;
772	772	(7) the owner will secure an independent annual audit
773	773	to establish compliance with the provisions of Subdivision (1),
774	774	following the procedures for audits under Section 11.1826;
775	775	(8) the owner will file in the real property records of
776	776	the county in which the property is located the agreement
777	777	prescribed by this subsection, which will constitute a restrictive
778	778	covenant for the property for each tax year the property receives an
779	779	exemption under this section; and
780	780	(9) the owner will satisfy any additional requirements
781	781	prescribed by department rule.
782	782	(f) The department may enter into an agreement or contract
783	783	with a county, municipality, or housing authority for the purpose
784	784	of administering the exemption authorized under this section.
785	785	(g) Except as provided by Subsection (h), a property owner
786	786	who receives an exemption authorized under this section for
787	787	qualified residential real property for a tax year must deliver a
788	788	copy of the notice of appraised value for the property required by
789	789	Section 25.19 for that tax year and a copy of the tax bill for the
790	790	property required by Section 31.01 for that tax year to each
791	791	residential lessee of the property. The owner must deliver the
792	792	copies of the appraisal notice and tax bill not later than the 30th
793	793	day after the date the owner receives each of those documents.
794	794	(h) The department may prescribe a form to be used by a
795	795	property owner who receives an exemption authorized by this section
796	796	for qualified residential real property to provide notice to a
797	797	lessee of the property of the appraised value of and taxes due on
798	798	the property for a tax year. If the department prescribes the form
799	799	described by this subsection, the property owner shall, not later
800	800	than November 1 of each tax year, deliver a copy of that form
801	801	applicable to the current tax year to each lessee instead of
802	802	delivering the notices required to be delivered under Subsection
803	803	(g).
804	804	SECTION 5.02. Section 11.43(b), Tax Code, is amended to
805	805	read as follows:
806	806	(b) Except as provided by Subsection (c) and by Sections
807	807	11.136, 11.184, and 11.437, a person required to apply for an
808	808	exemption must apply each year the person claims entitlement to the
809	809	exemption.
810	810	SECTION 5.03. Not later than January 1, 2026, the Texas
811	811	Department of Housing and Community Affairs shall adopt the rules
812	812	and forms necessary to implement Section 11.136, Tax Code, as added
813	813	by this article.
814	814	SECTION 5.04. The change in law made by this article applies
815	815	only to an ad valorem tax year that begins on or after January 1,
816	816	2026.
817	817	ARTICLE 6. EFFECTIVE DATES
818	818	SECTION 6.01. (a) Except as otherwise provided by this
819	819	section, this Act takes effect September 1, 2025.
820	820	(b) Except as provided by Subsection (c) of this section,
821	821	Article 3 of this Act takes effect January 1, 2026.
822	822	(c) Sections 3.01, 3.02, and 3.10 of this Act take effect
823	823	September 1, 2025.
824	824	(d) Articles 4 and 5 of this Act take effect January 1, 2026,
825	825	but only if the constitutional amendment proposed by the 89th
826	826	Legislature, Regular Session, 2025, to authorize the legislature to
827	827	provide for an exemption from ad valorem taxation by a school
828	828	district of a portion of the market value of certain leased
829	829	residential real properties, to establish and prescribe the
830	830	permissible uses of the property tax relief to rental households
831	831	fund, and to include payments from the property tax relief to rental
832	832	households fund in the exception of certain appropriations to pay
833	833	for ad valorem tax relief from the constitutional limitation on the
834	834	rate of growth of appropriations is approved by the voters. If that
835	835	amendment is not approved by the voters, Articles 4 and 5 of this
836	836	Act have no effect.