By Burnam                                       H.B. No. 2016

      75R6569 CAS-F                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain procedures concerning landlords and tenants of

 1-3     residential real property.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 92.056, Property Code, is amended to read

 1-6     as follows:

 1-7           Sec. 92.056.  LANDLORD LIABILITY AND TENANT REMEDIES.  (a)

 1-8     The landlord's duty under this subsection is subject to Section

 1-9     92.052(b) regarding conditions that are caused by the tenant and

1-10     Section 92.054 regarding conditions that are insured casualties.  A

1-11     landlord has a duty to repair or remedy a condition and is liable

1-12     to a tenant as provided by this subchapter if:

1-13                 (1)  the condition materially affects the physical

1-14     health or safety of an ordinary tenant;

1-15                 (2)  the tenant has given the landlord notice to repair

1-16     or remedy the condition as required by Subsection (a) of Section

1-17     92.052;

1-18                 (3)  the landlord has had a reasonable time to repair

1-19     or remedy the condition, considering the nature of the problem, the

1-20     time the landlord knew or should have known about the problem, and

1-21     the  reasonable availability of materials, labor, and utilities

1-22     from a utility company;

1-23                 (4)  [the tenant has given subsequent written notice to

1-24     the landlord, stating that the tenant intends to terminate the

 2-1     lease, exercise repair and deduct remedies, or pursue judicial

 2-2     remedies;]

 2-3                 [(5)]  the landlord has not made a diligent effort to

 2-4     repair or remedy the condition;  and

 2-5                 (5) [(6)]  the tenant was not delinquent in the payment

 2-6     of rent at the time the notice [notices] required by Subdivision

 2-7     [Subdivisions] (2) was [and (4) of this subsection were] given.

 2-8           [The landlord's duty under this subsection is subject to the

 2-9     provisions of Subsection (b) of Section 92.052 regarding conditions

2-10     which are caused by the tenant and Section 92.054 regarding

2-11     conditions which are insured casualties.]

2-12           (b)  Except as provided in Subsection (c) [of this section],

2-13     a tenant to whom a landlord is liable under Subsection (a) [of this

2-14     section] may:

2-15                 (1)  terminate the lease if the condition is not

2-16     repaired or remedied within seven days after the tenant's notice

2-17     given in accordance with Section 92.052(a) [of intent to

2-18     terminate];

2-19                 (2)  have the condition repaired or remedied according

2-20     to Section 92.0561;

2-21                 (3)  deduct from the tenant's rent, without necessity

2-22     of judicial action, the cost of the repair or remedy according to

2-23     Section 92.0561;  or [and]

2-24                 (4)  obtain judicial remedies according to Section

2-25     92.0563 if the condition is not repaired or remedied within seven

2-26     days after the tenant's notice given in accordance with Section

2-27     92.052(a) [of intent to repair or remedy].

 3-1           (c)  A tenant who elects to terminate the lease under

 3-2     Subsection (b) and vacates the premises not later than the 30th day

 3-3     after the date the lease is  terminated [of this section] is:

 3-4                 (1)  released from the obligation to pay rent and is

 3-5     entitled to a pro rata refund of rent from the date the tenant

 3-6     gives notice in  accordance with Section 92.052(a) [of termination

 3-7     or the date the tenant moves out, whichever is later];

 3-8                 (2)  entitled to [deduct the tenant's security deposit

 3-9     from the tenant's rent without necessity of lawsuit or obtain] a

3-10     refund of the tenant's security deposit according to law;  and

3-11                 (3)  not entitled to the other repair and deduct

3-12     remedies under Section 92.0561 or the judicial remedies under

3-13     Subdivisions (1) and (2) of Subsection (a) of Section 92.0563.

3-14           (d)  For purposes of Subsections (a)(3) and (4), a landlord

3-15     is presumed to have had a reasonable time and not made a diligent

3-16     effort to repair or remedy a condition if the landlord has not

3-17     responded to a tenant's written notice given in accordance with

3-18     Section 92.052(a) by mailing or otherwise delivering to the tenant

3-19     on or before the fifth day after the date the tenant's notice is

3-20     received a written notice that:

3-21                 (1)  denies the existence of the condition complained

3-22     of by the tenant, states the condition is one that the landlord

3-23     does not have a duty to repair or remedy as provided under Section

3-24     92.052(b), or states the condition is an insured casualty that the

3-25     landlord is not required or not yet required to repair, as

3-26     applicable, as provided under Section 92.054;

3-27                 (2)  denies the condition materially affects the

 4-1     physical health and safety of an ordinary tenant;

 4-2                 (3)  asserts the tenant's notice was given at a time

 4-3     the tenant was delinquent in paying rent; or

 4-4                 (4)  explains a plan of action to address the

 4-5     condition, including the activities to be performed and a specific,

 4-6     reasonable period for completion of each activity.

 4-7           (e)  If a landlord in bad faith sends a notice to a tenant

 4-8     under Subsection (d), the tenant is entitled to:

 4-9                 (1)  actual damages;

4-10                 (2)  additional damages not to exceed twice the actual

4-11     damages; and

4-12                 (3)  a civil penalty under Section 92.0563.

4-13           SECTION 2.  Sections 92.0561(b)-(d), Property Code, are

4-14     amended to read as follows:

4-15           (b)  The tenant's deduction for the cost of the repair or

4-16     remedy may not exceed the amount of two [one] month's rent under

4-17     the lease.  However, if the tenant's rent is subsidized in whole or

4-18     in part by a governmental agency, the deduction limitation of two

4-19     [one] month's rent shall mean the fair market rent for the dwelling

4-20     and not  the rent that the tenant pays.  The fair market rent shall

4-21     be determined by the governmental agency subsidizing the rent, or

4-22     in the absence of such a determination, it shall be a reasonable

4-23     amount of rent under the circumstances.

4-24           (c)  Repairs and deductions under this section may be made as

4-25     often as necessary so long as the total repairs and deductions in

4-26     any two-month period [one month] do not exceed two months' [one

4-27     month's] rent.

 5-1           (d)  Repairs under this section may be made only if all of

 5-2     the following requirements are met:

 5-3                 (1)  The landlord has a duty to repair or remedy the

 5-4     condition under Section 92.052, and the duty has not been waived in

 5-5     a written lease by the tenant under Subsection (e) or (f) of

 5-6     Section 92.006.

 5-7                 (2)  The tenant has given notice [notices] to the

 5-8     landlord as required by Section 92.056, and a [the second or last]

 5-9     notice by the tenant to the landlord states that the tenant intends

5-10     to repair or remedy the condition.  On written request by the

5-11     landlord, the tenant [The notice] shall give the landlord [also

5-12     contain] a  reasonable description of the intended repair or

5-13     remedy.

5-14                 (3)  Any one of the following events has occurred:

5-15                       (A)  There is [The landlord has failed to remedy

5-16     the] backup or overflow of raw sewage inside the tenant's dwelling

5-17     or [the] flooding from broken pipes or natural drainage inside the

5-18     dwelling.

5-19                       (B)  The landlord has expressly or impliedly

5-20     agreed in the lease to furnish potable water to the tenant's

5-21     dwelling and the water service to the dwelling has totally ceased.

5-22                       (C)  The landlord has expressly or impliedly

5-23     agreed in the lease to furnish heating or cooling equipment and [;]

5-24     the equipment is producing inadequate heat or cooled air[; and the

5-25     landlord has been notified in writing by the appropriate local

5-26     housing, building, or health official or other official having

5-27     jurisdiction that the lack of heat or cooling materially affects

 6-1     the health or safety of an ordinary tenant].

 6-2                       (D)  A [The landlord has been notified in writing

 6-3     by the appropriate local housing, building, or health official or

 6-4     other official having  jurisdiction that the] condition exists at

 6-5     the leased premises that materially affects the health or safety of

 6-6     an ordinary tenant.

 6-7           SECTION 3.  Subchapter B, Chapter 92, Property Code, is

 6-8     amended by adding Section 92.0564 to read as follows:

 6-9           Sec. 92.0564.  OTHER JUDICIAL REMEDIES.  (a) A governmental

6-10     entity or civic association acting on a tenant's behalf may give

6-11     notice and file suit against a landlord to enjoin a violation of

6-12     this subchapter.

6-13           (b)  A governmental entity or civic association that prevails

6-14     in a suit brought under Subsection (a) may recover court costs and

6-15     reasonable attorney's fees.

6-16           SECTION 4.  Section 92.201, Property Code, is amended by

6-17     adding Subsections (g) and (h) to read as follows:

6-18           (g)  Notwithstanding Subsection (e), a landlord who obtains

6-19     ownership of the dwelling rented by the tenant during the tenant's

6-20     lease term shall disclose in writing to the tenant the date of the

6-21     change in ownership and the information required under Subsection

6-22     (a)(1).  That disclosure must be made before the first day of the

6-23     month following the date of the change in ownership but not later

6-24     than the 15th day after the date of the change in ownership.

6-25           (h)  Notwithstanding Subsection (e), a landlord who begins

6-26     using or changes a management company to manage the dwelling

6-27     rented by the tenant during the tenant's lease term shall disclose

 7-1     in writing to the tenant the date of the change in management and

 7-2     the information required under Subsection (a)(2).  That disclosure

 7-3     must be made before the first day of the month following the date

 7-4     of the change in management but not later than the 15th day after

 7-5     the date of the change in management.

 7-6           SECTION 5.  (a)  This Act takes effect September 1, 1997.

 7-7           (b)  The changes in law made by this Act apply only to

 7-8     residential leases entered into or renewed on or after September 1,

 7-9     1997. Residental leases entered into or renewed before that date

7-10     are covered by the law as it existed at the time the lease was

7-11     entered into or renewed, and the former law is continued in effect

7-12     for that purpose.

7-13           SECTION 6.  The importance of this legislation and the

7-14     crowded condition of the calendars in both houses create an

7-15     emergency and an imperative public necessity that the

7-16     constitutional rule requiring bills to be read on three several

7-17     days in each house be suspended, and this rule is hereby suspended.