By Dukes H.B. No. 2015 76R867 PAM-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to regulating leasing in certain manufactured home 1-3 communities and to procedures for taking possession of a 1-4 manufactured home used as collateral; providing penalties. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Title 8, Property Code, is amended by adding 1-7 Chapter 94 to read as follows: 1-8 CHAPTER 94. MANUFACTURED HOME TENANCIES 1-9 SUBCHAPTER A. GENERAL PROVISIONS 1-10 Sec. 94.001. DEFINITIONS. In this chapter: 1-11 (1) "Landlord" means an owner or manager of a 1-12 manufactured home community, including an employee or agent of the 1-13 landlord. 1-14 (2) "Lease agreement" means an agreement between a 1-15 landlord and a tenant that establishes the terms, conditions, 1-16 rules, and other provisions for placing a manufactured home on the 1-17 premises of a manufactured home community. A lease agreement 1-18 includes an agreement renewing the terms of a lease. 1-19 (3) "Manufactured home" has the meaning assigned by 1-20 Section 3, Texas Manufactured Housing Standards Act (Article 5221f, 1-21 Vernon's Texas Civil Statutes). 1-22 (4) "Manufactured home community" means a parcel of 1-23 land: 1-24 (A) on which four or more lots are offered for 2-1 lease for installing and occupying manufactured homes; and 2-2 (B) for which the primary use is for residential 2-3 purposes. 2-4 (5) "Premises" means a tenant's manufactured home lot, 2-5 any area or facility the lease authorizes the tenant to use, and 2-6 the appurtenances, grounds, and facilities held out for the use of 2-7 tenants generally. 2-8 (6) "Tenant" means a person who is authorized by a 2-9 lease to occupy a lot in a manufactured home community. 2-10 Sec. 94.002. APPLICABILITY. (a) This chapter applies only 2-11 to the relationship between landlords and tenants in a manufactured 2-12 home community. 2-13 (b) Chapter 91 does not apply to this chapter. 2-14 Sec. 94.003. WAIVER OF RIGHTS AND OBLIGATIONS. A provision 2-15 in a lease agreement or a manufactured home community rule that 2-16 waives or limits a right granted to a tenant or an obligation 2-17 imposed on a landlord under this chapter is void and unenforceable. 2-18 Sec. 94.004. LANDLORD'S RIGHT OF ENTRY. (a) Except as 2-19 provided by this section, the landlord may not enter a tenant's 2-20 manufactured home or the leased premises unless: 2-21 (1) the tenant is present and gives consent; or 2-22 (2) the tenant has previously given written consent. 2-23 (b) The written consent under Subsection (a)(2) must specify 2-24 the date and time entry is permitted and is valid only for the date 2-25 and time specified. The tenant may revoke the consent without 2-26 penalty at any time by notifying the landlord in writing that the 2-27 consent has been revoked. 3-1 (c) The landlord may enter the tenant's manufactured home in 3-2 a reasonable manner and at a reasonable time if: 3-3 (1) an emergency exists; or 3-4 (2) the tenant abandons the manufactured home. 3-5 (d) The landlord may enter the lot leased to a tenant in a 3-6 reasonable manner and at a reasonable time if: 3-7 (1) an emergency exists; 3-8 (2) the tenant abandons the manufactured home; or 3-9 (3) maintenance of utilities, maintenance of the 3-10 premises, or protection of the manufactured home community is 3-11 required. 3-12 Sec. 94.005. COMMON AREA FACILITIES. Each common area 3-13 facility must be open or available to tenants at all reasonable 3-14 hours. The landlord shall post the hours of operation or 3-15 availability of the common area facility in a conspicuous place at 3-16 the facility. 3-17 Sec. 94.006. MANUFACTURED HOME COMMUNITY RULES. (a) A 3-18 landlord may adopt reasonable rules governing the use of the 3-19 manufactured home community premises, including rules to address a 3-20 bona fide emergency relating to the health and safety of the 3-21 tenants of the manufactured home community. 3-22 (b) A manufactured home community rule is considered part of 3-23 the lease agreement. 3-24 Sec. 94.007. TENANT MEETINGS. A landlord may not interfere 3-25 with meetings by tenants of the manufactured home community 3-26 relating to manufactured home living or social or educational 3-27 issues. 4-1 Sec. 94.008. CASH RENTAL PAYMENTS. (a) A landlord shall 4-2 accept a tenant's cash rental payment unless the lease requires the 4-3 tenant to make rental payments by check, money order, or other 4-4 traceable or negotiable instrument. 4-5 (b) A landlord who receives a cash rental payment shall: 4-6 (1) provide the tenant with a written receipt; and 4-7 (2) enter the payment date and amount in a record book 4-8 maintained by the landlord. 4-9 (c) A tenant or a governmental entity or civic association 4-10 acting on the tenant's behalf may file suit against a landlord to 4-11 enjoin a violation of this section. 4-12 Sec. 94.009. NOTICE TO TENANT AT PRIMARY RESIDENCE. (a) 4-13 If, at the time of signing a lease or lease renewal, a tenant gives 4-14 written notice to the tenant's landlord that the tenant does not 4-15 occupy the leased premises as a primary residence and requests in 4-16 writing that the landlord send notices to the tenant at the 4-17 tenant's primary residence and provides to the landlord the address 4-18 of the tenant's primary residence, the landlord shall mail to the 4-19 tenant's primary residence all notices required by the lease 4-20 agreement, by this chapter, or by Chapter 24. 4-21 (b) The tenant shall notify the landlord in writing of any 4-22 change in the tenant's primary residence address. Oral notices of 4-23 change are insufficient. 4-24 (c) A notice to a tenant's primary residence under 4-25 Subsection (a) may be sent by regular United States mail and is 4-26 considered as having been given on the date of postmark of the 4-27 notice. 5-1 (d) If there is more than one tenant on a lease, the 5-2 landlord is not required under this section to send notices to the 5-3 primary residence of more than one tenant. 5-4 (e) This section does not apply if notice is actually hand 5-5 delivered to and received by a person occupying the leased 5-6 premises. 5-7 Sec. 94.010. DISCLOSURE OF OWNERSHIP AND MANAGEMENT. (a) A 5-8 landlord shall disclose to a tenant, or to any governmental 5-9 official or employee acting in an official capacity, according to 5-10 this section: 5-11 (1) the name and either a street or post office box 5-12 address of the holder of record title, according to the deed 5-13 records in the county clerk's office, of the premises leased by the 5-14 tenant or inquired about by the governmental official or employee 5-15 acting in an official capacity; and 5-16 (2) if an entity located off-site from the 5-17 manufactured home community is primarily responsible for managing 5-18 the leased premises, the name and street address of that entity. 5-19 (b) Disclosure to a tenant under Subsection (a) must be made 5-20 by: 5-21 (1) giving the information in writing to the tenant on 5-22 or before the seventh day after the date the landlord receives the 5-23 tenant's request for the information; 5-24 (2) continuously posting the information in a 5-25 conspicuous place in the manufactured home community or the office 5-26 of the on-site manager or on the outside of the entry door to the 5-27 office of the on-site manager on or before the seventh day after 6-1 the date the landlord receives the tenant's request for the 6-2 information; or 6-3 (3) including the information in a copy of the 6-4 tenant's lease or in written rules given to the tenant before the 6-5 tenant requests the information. 6-6 (c) Disclosure of information to a tenant may be made under 6-7 Subsection (b)(1) or (2) before the tenant requests the 6-8 information. 6-9 (d) Disclosure of information to a governmental official or 6-10 employee must be made by giving the information in writing to the 6-11 official or employee on or before the seventh day after the date 6-12 the landlord receives the request from the official or employee for 6-13 the information. 6-14 (e) A correction to the information may be made by any of 6-15 the methods authorized and must be made within the period 6-16 prescribed by this section for providing the information. 6-17 (f) For the purposes of this section, an owner or property 6-18 manager may disclose either an actual name or names or an assumed 6-19 name if an assumed name certificate has been recorded with the 6-20 county clerk. 6-21 (g) A landlord who provides information under this section 6-22 violates this section if: 6-23 (1) the information becomes incorrect because a name 6-24 or address changes; and 6-25 (2) the landlord fails to correct the information on 6-26 or before the 15th day after the date the information becomes 6-27 incorrect. 7-1 Sec. 94.011. LANDLORD'S AGENT FOR SERVICE OF PROCESS. (a) 7-2 In a lawsuit by a tenant to enforce a legal obligation of the owner 7-3 as landlord of the manufactured home community, the owner's agent 7-4 for service of process is determined according to this section. 7-5 (b) The owner's management company, on-site manager, or rent 7-6 collector for the manufactured home community is the owner's 7-7 authorized agent for service of process unless the owner's name and 7-8 business street address have been furnished in writing to the 7-9 tenant. 7-10 Sec. 94.012. VENUE. Venue for an action under this chapter 7-11 is governed by Section 15.0115, Civil Practice and Remedies Code. 7-12 (Sections 94.013-94.050 reserved for expansion 7-13 SUBCHAPTER B. LEASE AGREEMENT 7-14 Sec. 94.051. INFORMATION TO BE PROVIDED TO PROSPECTIVE 7-15 TENANT. At the time a prospective tenant enters the premises of a 7-16 manufactured home community to discuss a prospective vacancy, the 7-17 landlord shall give the tenant a copy of: 7-18 (1) the proposed lease agreement for the manufactured 7-19 home community; and 7-20 (2) the manufactured home community rules. 7-21 Sec. 94.052. RIGHT TO CANCEL. A tenant who executes a lease 7-22 agreement may cancel the agreement by notifying the landlord in 7-23 writing not later than the fifth day after the date the tenant 7-24 executes the agreement. 7-25 Sec. 94.053. MINIMUM TERM OF LEASE. A lease agreement must 7-26 be for a term of at least four years. 7-27 Sec. 94.054. LEASE AMOUNT. During the first four-year lease 8-1 term, the landlord may set any rental amount, including an increase 8-2 in the rental amount, provided that the amount or method of 8-3 determining the increased amount is: 8-4 (1) fully and clearly determinable and disclosed in 8-5 the lease agreement; and 8-6 (2) binding on the landlord for the term of the lease 8-7 agreement. 8-8 Sec. 94.055. LEASE REQUIREMENTS AND DISCLOSURES. (a) A 8-9 lease agreement must be: 8-10 (1) written in plain language; 8-11 (2) printed in at least 10-point type or legible 8-12 handwriting; and 8-13 (3) signed by the landlord and the tenant. 8-14 (b) The landlord shall provide the tenant with a copy of the 8-15 lease agreement after the lease has been signed. 8-16 (c) A lease agreement must contain the following 8-17 information: 8-18 (1) a description of the tenant's manufactured home 8-19 lot, the address or number of the lot, and the number and location 8-20 of any accompanying parking spaces; 8-21 (2) the lease term and a disclosure informing the 8-22 tenant of the tenant's right to a four-year renewal term as 8-23 provided by Section 94.057; 8-24 (3) a prominent disclosure informing the tenant of the 8-25 tenant's statutory right to cancel the lease agreement as provided 8-26 by Section 94.052; 8-27 (4) the monthly rental amount and the method for 9-1 calculating the amount of any change in the rental amount during 9-2 the lease term, including clear and realistic examples of how the 9-3 calculation would apply in each year of the lease term or the 9-4 specific amount of any change in the rental amount during the lease 9-5 term; 9-6 (5) any late charge or fee or charge for any service 9-7 and facility and the method for calculating the amount of any 9-8 change in the fee or charge during the lease term, including clear 9-9 and realistic examples of how the calculation would apply in each 9-10 year of the lease term or the specific amount of any change in a 9-11 fee or charge during the lease term; 9-12 (6) the amount of any security deposit; 9-13 (7) a list of services and facilities the landlord 9-14 will provide; 9-15 (8) disclosure of the statutory warranty of 9-16 habitability provided by Section 94.151; 9-17 (9) a description of the landlord's maintenance 9-18 responsibilities; 9-19 (10) the name and telephone number of the person who 9-20 may be contacted for emergency maintenance; 9-21 (11) the landlord's name and address for the delivery 9-22 of official notices; 9-23 (12) the name and address of the owner of the 9-24 manufactured home community; 9-25 (13) the penalty the landlord may impose for the 9-26 tenant's early termination as provided by Section 94.201; 9-27 (14) the grounds for eviction as provided by 10-1 Subchapter E; 10-2 (15) a disclosure of the landlord's right to terminate 10-3 the lease agreement if there is a change in the land use of the 10-4 manufactured home community during the lease term as provided by 10-5 Section 94.205; 10-6 (16) the manufactured home community rules; 10-7 (17) a prominent disclosure informing the tenant that 10-8 Chapter 94, Property Code, governs certain rights granted to the 10-9 tenant and obligations imposed on the landlord by law; 10-10 (18) if there is a temporary zoning permit for the 10-11 land use of the manufactured home community, the date the zoning 10-12 permit expires; and 10-13 (19) any other terms or conditions of occupancy. 10-14 (d) A lease provision requiring an increase in rent or in 10-15 fees or charges during the lease term must be initialed by the 10-16 tenant or the provision is void. 10-17 (e) A lease agreement that contains a provision that is 10-18 illegal or unconscionable is void. 10-19 Sec. 94.056. STATUTORY LEASE TERMS IMPLIED AS MATTER OF LAW. 10-20 Each lease term required by this chapter is considered included in 10-21 a lease agreement as a matter of law. 10-22 Sec. 94.057. RENEWAL OF LEASE. (a) At the expiration of a 10-23 lease agreement, the agreement is automatically renewed for a term 10-24 of four years with the same terms as the previous lease agreement 10-25 unless: 10-26 (1) the tenant notifies the landlord not later than 10-27 the 30th day before the date the lease agreement terminates that 11-1 the tenant intends to surrender the premises; or 11-2 (2) the landlord changes the lease terms as provided 11-3 by this section. 11-4 (b) Six months before the date the lease agreement expires, 11-5 the landlord shall offer the tenant a renewal lease agreement with 11-6 a term of at least four years. The renewal offer must disclose the 11-7 proposed rental amount, any change in fees or charges, and any 11-8 other changes in the lease or the manufactured home community rules 11-9 for the renewal term. 11-10 Sec. 94.058. PENALTY FOR LATE PAYMENT. (a) A landlord may 11-11 assess a penalty for late payment of rent or another fee or charge 11-12 if the payment is not remitted before the 16th day after the date 11-13 the payment is due. 11-14 (b) The penalty for late payment may not exceed four percent 11-15 of the amount owed and may be imposed only once for each late 11-16 payment. 11-17 Sec. 94.059. USE-BASED FEES AND CHARGES. (a) For purposes 11-18 of this section, a use-based fee or charge is a fee or charge for a 11-19 service or facility that is based on the amount of the tenant's use 11-20 of the service or facility. A fee or charge is not use-based if a 11-21 tenant is assessed a fee or charge when the tenant does not use the 11-22 service or facility or if different tenants are assessed the same 11-23 fee or charge for using different levels of the service or 11-24 facility. 11-25 (b) A landlord may not assess a fee or charge to a tenant, 11-26 other than the rental payment, unless the fee or charge is a 11-27 use-based fee or charge disclosed in the lease agreement. 12-1 (c) A use-based fee or charge may only be increased as 12-2 disclosed in the lease agreement. Any increase must be reasonably 12-3 related to an increase in the landlord's costs for providing the 12-4 service or facility. 12-5 (d) The following fees and charges are prohibited, and a 12-6 provision in a lease agreement imposing the following fees or 12-7 charges is void: 12-8 (1) an entrance and exit fee or charge that exceeds 12-9 $30; 12-10 (2) a fee or charge for a tenant's resale of a 12-11 manufactured home, assignment of the lease, or sublease of the 12-12 premises that exceeds $30; and 12-13 (3) a fee or charge for renewing a lease. 12-14 Sec. 94.060. ASSIGNMENT OF LEASE AND SUBLEASE. (a) Except 12-15 as provided by this section, a tenant may: 12-16 (1) assign the lease agreement to the purchaser of the 12-17 tenant's manufactured home; or 12-18 (2) sublease the manufactured home lot. 12-19 (b) The tenant must provide the landlord with notice of an 12-20 assignment or sublease not later than the 30th day before the date 12-21 the assignment or sublease takes effect. Not later than the 12-22 seventh day before the date the assignment or sublease takes 12-23 effect, the landlord may refuse to permit the assignment or 12-24 sublease if: 12-25 (1) the landlord provides the tenant with a written 12-26 notice of the refusal that states the reasons for the refusal; and 12-27 (2) the reason for the refusal complies with 13-1 Subsection (c). 13-2 (c) The landlord may refuse to permit the assignment or 13-3 sublease only if the assignee or sublessee: 13-4 (1) is financially unable to pay the lease amount; or 13-5 (2) would pose a hazard to the safety or interfere 13-6 with the quiet enjoyment of the tenants of the manufactured home 13-7 community. 13-8 (d) The landlord may not: 13-9 (1) refuse to permit an assignment or sublease because 13-10 of the age or condition of the manufactured home; 13-11 (2) refuse to permit an assignment because the 13-12 assignment is from the tenant to the tenant's bona fide creditor; 13-13 or 13-14 (3) impose an application or other fee on the 13-15 prospective assignee or sublessee. 13-16 (Sections 94.061-94.100 reserved for expansion 13-17 SUBCHAPTER C. SECURITY DEPOSIT 13-18 Sec. 94.101. SECURITY DEPOSIT. In this chapter, "security 13-19 deposit" means any advance of money, other than a rental 13-20 application deposit or an advance payment of rent, that is intended 13-21 primarily to secure performance under a lease of a lot in a 13-22 manufactured home community that has been entered into by a 13-23 landlord and a tenant. 13-24 Sec. 94.102. SECURITY DEPOSIT PERMITTED. (a) At the time 13-25 the tenant executes the initial lease agreement, the landlord may 13-26 require a security deposit in an amount equal to no more than one 13-27 month's rent. 14-1 (b) The landlord shall keep accurate records relating to 14-2 security deposits. 14-3 Sec. 94.103. OBLIGATION TO REFUND. (a) Except as provided 14-4 by Section 94.104, the landlord shall refund the security deposit 14-5 not later than the 30th day after the date the tenant surrenders 14-6 the premises. 14-7 (b) The tenant's claim to the security deposit takes 14-8 priority over the claim of any creditor of the landlord, including 14-9 a trustee in bankruptcy. 14-10 Sec. 94.104. RETENTION OF SECURITY DEPOSIT. (a) Before 14-11 returning the security deposit, the landlord may deduct unpaid 14-12 rent, damages, and charges for which the tenant is liable under the 14-13 lease agreement. 14-14 (b) The landlord may retain a portion of the security 14-15 deposit if the tenant fails to surrender the premises in a 14-16 condition that is reasonably clean and free of debris. 14-17 (c) The landlord may not retain any portion of a security 14-18 deposit to cover normal wear and tear. In this subsection, "normal 14-19 wear and tear" means deterioration that results from intended use 14-20 of the premises, including breakage or malfunction due to age or 14-21 deteriorated condition, but the term does not include deterioration 14-22 that results from negligence, carelessness, accident, or abuse of 14-23 the premises, equipment, or chattels by the tenant, a member of the 14-24 tenant's household, or a guest or invitee of the tenant. 14-25 Sec. 94.105. ACCOUNTING. Not later than the 30th day after 14-26 the date the tenant surrenders the premises, the landlord shall 14-27 mail to the tenant at the tenant's most recent mailing address as 15-1 reflected in the landlord's records the balance of the security 15-2 deposit, if any, together with a written description and an 15-3 itemized list of all deductions. 15-4 Sec. 94.106. LIABILITY OF LANDLORD. A landlord who fails to 15-5 comply with this subchapter is not entitled to recover amounts that 15-6 may be due under this chapter and must immediately remit to the 15-7 tenant the full amount of the security deposit. 15-8 (Sections 94.107-94.150 reserved for expansion 15-9 SUBCHAPTER D. PREMISES CONDITION, MAINTENANCE, AND REPAIRS 15-10 Sec. 94.151. WARRANTY OF HABITABILITY. By executing a lease 15-11 agreement, the landlord covenants and warrants that the leased 15-12 premises is fit for human habitation. 15-13 Sec. 94.152. LANDLORD'S MAINTENANCE OBLIGATIONS. The 15-14 landlord shall: 15-15 (1) comply with any code, statute, ordinance, and 15-16 administrative rule applicable to the manufactured home community; 15-17 (2) maintain all common areas of the manufactured home 15-18 community in a clean and safe condition; 15-19 (3) maintain in good working order appliances and 15-20 recreational facilities and all electrical, plumbing, and sanitary 15-21 systems provided by the landlord; 15-22 (4) maintain all utility lines over which the landlord 15-23 has control to the point at which those lines connect to the 15-24 manufactured home; 15-25 (5) maintain in a secure location individual mailboxes 15-26 for the tenants; 15-27 (6) maintain roads within the manufactured home 16-1 community in good and safe condition, including providing snow 16-2 removal, adequate drainage, and water supply, and assume 16-3 responsibility for any damage to a vehicle that is the direct 16-4 result of an unrepaired or poorly maintained road within the 16-5 manufactured home community; 16-6 (7) exterminate rodents and other pests dangerous to 16-7 the health and safety of tenants in the common areas of the 16-8 manufactured home community or in the interior of a manufactured 16-9 home if the infestation in the home exists as a result of 16-10 infestation in the common areas; 16-11 (8) maintain the premises as necessary to prevent the 16-12 accumulation of stagnant water and the detrimental effects of 16-13 moving water; 16-14 (9) maintain the integrity of the foundation of the 16-15 tenant's manufactured home; 16-16 (10) maintain the common areas so that those areas are 16-17 free from plant growth that is detrimental to the health of the 16-18 tenants; and 16-19 (11) remove garbage and other waste incidental to the 16-20 occupancy of the leased premises. 16-21 Sec. 94.153. LANDLORD'S REPAIR OBLIGATIONS. (a) The 16-22 landlord shall make repairs the landlord is obligated to make as 16-23 provided by statute or by the lease agreement or enter into a 16-24 contract with a third party to make the repairs. 16-25 (b) The landlord shall provide each tenant with the name and 16-26 telephone number of the person who may be contacted for emergency 16-27 repairs. 17-1 Sec. 94.154. TENANT'S REPAIR AND DEDUCT REMEDY. (a) If the 17-2 landlord fails to comply with this subchapter, the tenant may 17-3 notify the landlord of the tenant's intent to correct the condition 17-4 at the landlord's expense. 17-5 (b) If the landlord does not correct the condition before 17-6 the 16th day after the date the tenant provides the notice under 17-7 Subsection (a) or more promptly as emergency conditions reasonably 17-8 require, the tenant may have the condition repaired or remedied by 17-9 a contractor and, after submitting to the landlord an itemized 17-10 statement, deduct the actual and reasonable cost of the work from a 17-11 subsequent rent payment. 17-12 (c) The tenant may recover damages as provided by Subchapter 17-13 I in addition to the remedy provided by this section. 17-14 (Sections 94.155-94.200 reserved for expansion 17-15 SUBCHAPTER E. TERMINATION, EVICTION, AND FORECLOSURE 17-16 Sec. 94.201. LANDLORD'S REMEDY FOR EARLY TERMINATION. (a) 17-17 Except as provided by Subsection (b), the maximum amount a landlord 17-18 may recover as damages for a tenant's early termination of a lease 17-19 agreement is an amount equal to three months' rent. 17-20 (b) If the tenant's leased premises is reoccupied before the 17-21 21st day after the date the tenant surrenders the premises, the 17-22 maximum amount the landlord may obtain as damages is an amount 17-23 equal to one month's rent. 17-24 Sec. 94.202. LANDLORD'S DUTY TO MITIGATE DAMAGES. (a) A 17-25 landlord has a duty to mitigate damages if a tenant abandons the 17-26 leased premises in violation of the lease. 17-27 (b) A provision of a lease that purports to waive a right or 18-1 to exempt a landlord from a liability or duty under this section is 18-2 void. 18-3 Sec. 94.203. LANDLORD'S TERMINATION OF LEASE PERMITTED IN 18-4 LIMITED CIRCUMSTANCES. A landlord may terminate or refuse to renew 18-5 a lease agreement only as provided by this subchapter. 18-6 Sec. 94.204. EVICTION PROCEDURES GENERALLY. (a) A landlord 18-7 may prevent a tenant from entering the leased premises, evict a 18-8 tenant, or require the removal of a manufactured home from the 18-9 leased premises only after obtaining a writ of possession under 18-10 Chapter 24. 18-11 (b) In addition to making the determinations required in a 18-12 forcible detainer action under Chapter 24, the court shall 18-13 determine if the grounds for eviction as provided by this 18-14 subchapter are established. 18-15 (c) If the court finds that the landlord initiated the 18-16 eviction proceeding to retaliate against the tenant in violation of 18-17 Section 94.302, the court may not approve the eviction of the 18-18 tenant. 18-19 (d) Notwithstanding other law, a court may not issue a writ 18-20 of possession in favor of a landlord before the 45th day after the 18-21 date the judgment for possession is rendered. 18-22 (e) Not later than the 10th day after the date a judgment 18-23 for possession is rendered in favor of the landlord, the landlord 18-24 shall send written notice that the judgment has been rendered to 18-25 the owner of the manufactured home if the tenant is not the owner 18-26 and if the landlord is given written notice of the owner's name and 18-27 address. 19-1 (f) If, after executing a writ of possession for the leased 19-2 premises, the landlord removes the manufactured home from the 19-3 leased premises, the landlord not later than the 10th day after the 19-4 date the manufactured home is removed shall send a written notice 19-5 regarding the location of the manufactured home to the tenant at 19-6 the tenant's most recent mailing address as reflected in the 19-7 landlord's records and, if different, to the owner if the landlord 19-8 is given written notice of the owner's name and address. 19-9 Sec. 94.205. TERMINATION FOR CHANGE IN LAND USE. (a) A 19-10 landlord may terminate a lease agreement to change the manufactured 19-11 home community's land use only if: 19-12 (1) not later than the 12th month before the date the 19-13 land use changes, the landlord sends notice to the tenant and, if 19-14 different, to the owner of the manufactured home: 19-15 (A) specifying the date that the land use will 19-16 change; and 19-17 (B) informing the tenant and owner that the 19-18 owner may relocate the manufactured home as provided by this 19-19 section; 19-20 (2) not later than the 12th month before the date the 19-21 land use changes, the landlord posts in a conspicuous place in the 19-22 manufactured home community a notice stating that the land use will 19-23 change and specifying the date that the land use will change; 19-24 (3) the landlord compensates or relocates the tenant 19-25 and, if different, the owner as provided by this section; and 19-26 (4) the landlord has taken action to change the land 19-27 use to a use other than use as a manufactured home community for at 20-1 least a two-year period. 20-2 (b) The landlord is required to give the owner of the 20-3 manufactured home notice under Subsection (a)(1) only if the 20-4 landlord is given written notice of the name and address of the 20-5 owner. 20-6 (c) Not later than the sixth month after the date the tenant 20-7 and, if different, the owner receive notice of the changed land use 20-8 as provided by Subsection (a)(1), the owner may: 20-9 (1) relocate the home as provided by Subsection (d); 20-10 and 20-11 (2) select any date for the relocation if that date 20-12 occurs before the date the land use changes. 20-13 (d) If the owner of the manufactured home chooses to 20-14 relocate the manufactured home, the landlord shall relocate the 20-15 home at the landlord's expense to any site designated by the owner 20-16 that is located within a 100-mile radius of the manufactured home 20-17 community. The landlord's duty to relocate includes: 20-18 (1) disconnecting and transporting the home to the new 20-19 location; 20-20 (2) establishing the home, including connecting the 20-21 home to utilities and performing any other site-related activities 20-22 such that the home is in substantially the same condition as before 20-23 the relocation; 20-24 (3) making any repairs to the home for damages that 20-25 occur during the relocation; and 20-26 (4) providing suitable substitute lodging for the 20-27 tenant until the relocation is completed. 21-1 Sec. 94.206. TERMINATION AND EVICTION FOR VIOLATION OF 21-2 MANUFACTURED HOME COMMUNITY RULE. A landlord may terminate the 21-3 lease agreement and evict a tenant for a violation of a 21-4 manufactured home community rule if: 21-5 (1) the rule is reasonable; and 21-6 (2) the tenant's violation of the rule: 21-7 (A) is likely to continue or reoccur; and 21-8 (B) would have a significant adverse impact on 21-9 the manufactured home community. 21-10 Sec. 94.207. TERMINATION AND EVICTION FOR DISORDERLY OR 21-11 CRIMINAL CONDUCT. A landlord may terminate the lease agreement and 21-12 evict a tenant for engaging in disorderly or criminal conduct if: 21-13 (1) the conduct: 21-14 (A) disrupts the quiet enjoyment of other 21-15 tenants in the manufactured home community; 21-16 (B) endangers other tenants or the manufactured 21-17 home community personnel; or 21-18 (C) causes substantial damage to the 21-19 manufactured home community premises; and 21-20 (2) there is a likelihood that future conduct would 21-21 also be grounds for eviction under this section. 21-22 Sec. 94.208. TERMINATION AND EVICTION FOR NONPAYMENT OF 21-23 RENT. (a) A landlord may terminate the lease agreement and evict 21-24 a tenant if: 21-25 (1) the tenant fails to timely pay rent; 21-26 (2) the landlord notifies the tenant in writing that 21-27 the rent is delinquent; and 22-1 (3) the tenant has not tendered the delinquent payment 22-2 to the landlord before the 21st day after the date the tenant 22-3 receives the notice. 22-4 (b) A landlord may not terminate the lease agreement and 22-5 evict the tenant if the tenant fails to timely pay a fee or charge, 22-6 including a late charge, required under the lease agreement. 22-7 (c) A payment made by a tenant to a landlord is attributed 22-8 first to any delinquent rent payment, then to the current rent 22-9 payment, and last to any fee or charge, including a late charge. 22-10 (d) If a court renders a judgment for possession in favor of 22-11 the landlord based solely on nonpayment of rent, the tenant may 22-12 cure the default and reinstate the lease by paying into the court 22-13 registry an amount equal to the delinquent rent payment and any 22-14 fees and costs owed as determined by the court. If the tenant 22-15 cures the default as provided by this subsection, the judgment for 22-16 possession is released and a writ of possession in favor of the 22-17 landlord may not be issued. 22-18 Sec. 94.209. AFFIRMATIVE DEFENSE TO EVICTION FOR NONPAYMENT 22-19 OF RENT. (a) It is an affirmative defense in an eviction action 22-20 for nonpayment of rent that the landlord has breached the statutory 22-21 warranty of habitability, breached a provision of the lease 22-22 agreement, or violated this subchapter. 22-23 (b) A tenant who establishes that the landlord breached the 22-24 statutory warranty of habitability, breached a provision of the 22-25 lease agreement, or violated this subchapter may recover damages, 22-26 including: 22-27 (1) an amount equal to the reduction in the fair 23-1 market rental value of the leased premises that results from the 23-2 breach or violation; 23-3 (2) any amount reasonably spent by the tenant to 23-4 repair defects in the leased premises; and 23-5 (3) any damages permitted under Section 94.351. 23-6 (Sections 94.210-94.250 reserved for expansion 23-7 SUBCHAPTER F. SALE OR LEASE OF MANUFACTURED HOME COMMUNITY 23-8 Sec. 94.251. NOTICE OF SALE OR LEASE. (a) A landlord shall 23-9 notify the tenants of the manufactured home community of: 23-10 (1) a listing of the manufactured home community with 23-11 a realtor; 23-12 (2) an advertisement or other public notice, including 23-13 a foreclosure notice, that the manufactured home community is for 23-14 sale or lease; or 23-15 (3) a bona fide offer to purchase or lease the 23-16 manufactured home community that the landlord intends to accept. 23-17 (b) The landlord shall provide the notice under Subsection 23-18 (a) not later than the seventh day after the date an event 23-19 described by Subsection (a) occurs. 23-20 Sec. 94.252. TENANT'S RIGHT OF FIRST REFUSAL. (a) Except 23-21 as provided by Subsection (d), tenants of the manufactured home 23-22 community have the right of first refusal to purchase or lease the 23-23 manufactured home community if: 23-24 (1) not later than the 60th day after the date the 23-25 landlord provides the notice under Subsection (a), the tenants 23-26 submit a proposed purchase or lease agreement with substantially 23-27 equivalent terms and conditions as the offer to purchase or lease 24-1 that the landlord intends to accept; and 24-2 (2) not later than the 60th day after the date the 24-3 purchase or lease agreement is submitted, the tenants: 24-4 (A) tender the purchase amount or the 24-5 appropriate lease amount; or 24-6 (B) obtain the necessary financing to purchase 24-7 or lease the manufactured home community. 24-8 (b) The landlord may not unreasonably refuse to enter into 24-9 or unreasonably delay the execution of a purchase or lease 24-10 agreement with the tenants who have complied with this section. 24-11 The landlord may require tenants offering to lease the manufactured 24-12 home community to place in escrow an amount necessary to pay the 24-13 lease for a period of no more than one year from the effective date 24-14 of the lease agreement. 24-15 (c) The right of first refusal authorized by this section 24-16 applies to: 24-17 (1) each substantially different bona fide offer to 24-18 purchase or lease the manufactured home community; and 24-19 (2) each substantially equivalent bona fide offer to 24-20 purchase or lease the manufactured home community that is made no 24-21 earlier than the 90th day after the date of the previous 24-22 substantially equivalent offer. 24-23 (d) This section does not apply to: 24-24 (1) a governmental taking by eminent domain or 24-25 negotiated purchase; 24-26 (2) a foreclosure action; 24-27 (3) a transfer by gift, devise, or operation of law; 25-1 or 25-2 (4) a sale to a person who would be entitled to an 25-3 interest in the property if the landlord died intestate. 25-4 Sec. 94.253. AFFIDAVIT OF COMPLIANCE. If the tenants of the 25-5 manufactured home community are not able to purchase or lease the 25-6 manufactured home community, the landlord who sold or leased the 25-7 property shall, not later than the seventh day after the date the 25-8 sale or lease agreement is executed: 25-9 (1) execute an affidavit stating the facts that 25-10 demonstrate that the landlord complied with this section; and 25-11 (2) file the affidavit with the county clerk of each 25-12 county in which all or part of the property is located. 25-13 (Sections 94.254-94.300 reserved for expansion 25-14 SUBCHAPTER G. PROHIBITED ACTS 25-15 Sec. 94.301. UNFAIR PRACTICES. (a) A landlord may 25-16 not engage in unfair or deceptive acts or practices or unfair 25-17 methods of competition. 25-18 (b) A violation of this section is considered a deceptive 25-19 trade practice for purposes of Subchapter E, Chapter 17, Business & 25-20 Commerce Code. 25-21 Sec. 94.302. RETALIATORY CONDUCT. (a) A landlord may not 25-22 retaliate against a tenant after the tenant: 25-23 (1) has complained or expressed an intention to 25-24 complain to a governmental agency regarding a condition in the 25-25 manufactured home community; 25-26 (2) has made a complaint in good faith to the 25-27 landlord; 26-1 (3) has filed or expressed an intention to file a 26-2 civil or administrative action against the landlord; 26-3 (4) has organized or joined a tenant association; or 26-4 (5) has performed or expressed an intention to perform 26-5 any other act to assert, protect, or invoke the protection of a 26-6 right granted to tenants by the lease or by federal, state, or 26-7 local law. 26-8 (b) A landlord creates a rebuttable presumption that the 26-9 landlord is retaliating against a tenant if, within six months 26-10 after the date the tenant has taken an action described by 26-11 Subsection (a), the landlord: 26-12 (1) files an eviction action, other than for 26-13 nonpayment of rent; 26-14 (2) deprives the tenant of the use of the leased 26-15 premises, other than for reasons authorized by law; 26-16 (3) decreases services to the tenant; 26-17 (4) increases the tenant's rent or terminates the 26-18 tenant's lease; 26-19 (5) refuses or threatens to refuse to renew the 26-20 tenant's lease; 26-21 (6) files or threatens to file a civil action against 26-22 the tenant; 26-23 (7) changes a manufactured home community rule; or 26-24 (8) engages in bad faith in conduct that materially 26-25 interferes with the tenant's rights under the lease. 26-26 Sec. 94.303. RESTRICTION ON CHOICE OF PROVIDER. (a) A 26-27 landlord may not: 27-1 (1) restrict the choice of providers from whom a 27-2 tenant may purchase goods or services; or 27-3 (2) engage in any conduct that discourages a tenant 27-4 from selecting the provider of the tenant's choice. 27-5 (b) This subsection does not apply to: 27-6 (1) a nondiscriminatory prohibition against sales 27-7 solicitations within the manufactured home community; or 27-8 (2) site-maintenance services, including lawn care and 27-9 snow removal, performed by the landlord if the tenant fails to 27-10 fulfill the tenant's site-maintenance obligations under the lease 27-11 agreement. 27-12 (c) For purposes of Subsection (b)(2), the landlord may not 27-13 impose a charge for site-maintenance services performed by the 27-14 landlord unless the tenant, if available, is given notice and a 27-15 reasonable opportunity to perform the tenant's obligation under the 27-16 lease agreement. Any charge for site-maintenance services 27-17 authorized under this subsection must be: 27-18 (1) reasonable; 27-19 (2) disclosed in the lease agreement; and 27-20 (3) limited to the landlord's actual costs for 27-21 providing the site-maintenance service. 27-22 (d) A landlord who provides cable or other television 27-23 services at a charge above that prevailing in the vicinity creates 27-24 a presumption that a manufactured home community rule restricting 27-25 antennas or otherwise restricting a tenant's access or choice of 27-26 television service is void. 27-27 Sec. 94.304. RESTRICTION ON SALE OF MANUFACTURED HOME. A 28-1 landlord may not: 28-2 (1) prohibit the owner of a manufactured home located 28-3 on the leased premises from selling the manufactured home; 28-4 (2) interfere with the sale of a manufactured home 28-5 located on the leased premises; 28-6 (3) require the owner of the manufactured home to 28-7 remove the manufactured home from the lot solely because of the 28-8 sale of the home; 28-9 (4) limit the sale of a manufactured home because of 28-10 the home's age or physical condition; 28-11 (5) require the owner of a manufactured home located 28-12 on the leased premises to contract with the landlord to act as 28-13 agent or broker in the sale of a manufactured home located on the 28-14 leased premises; 28-15 (6) require the owner to pay a commission or fee from 28-16 the sale of a manufactured home located on the leased premises; or 28-17 (7) place unreasonable, unfair, or discriminatory 28-18 restrictions: 28-19 (A) on a "For Sale" sign displayed in the 28-20 manufactured home community; or 28-21 (B) on access to the manufactured home community 28-22 by a prospective purchaser or a realtor. 28-23 (Sections 94.305-94.350 reserved for expansion 28-24 SUBCHAPTER H. REMEDIES 28-25 Sec. 94.351. TENANT'S REMEDIES. (a) A person may recover 28-26 from a landlord who violates this chapter: 28-27 (1) actual damages; 29-1 (2) a civil penalty in an amount equal to two months' 29-2 rent and $500; and 29-3 (3) reasonable attorney's fees and costs. 29-4 (b) If the court finds that a landlord recklessly violated 29-5 this chapter or acted in bad faith, the court shall award an amount 29-6 equal to at least treble the damages awarded under Subsection (a) 29-7 and may award additional punitive damages. A landlord who attempts 29-8 to unlawfully evict a tenant, terminate a tenant's utility service, 29-9 or prevent a tenant from entering the tenant's leased premises is 29-10 presumed to have acted in bad faith, knowingly, or recklessly. 29-11 (c) The court may order: 29-12 (1) appropriate injunctive relief to prevent a 29-13 violation or threatened violation of this chapter; and 29-14 (2) any other appropriate equitable relief, including 29-15 the appointment of a receiver to operate the manufactured home 29-16 community. 29-17 (d) A person has a lien against the property on which the 29-18 manufactured home community is located for: 29-19 (1) any amount owed the tenant under the lease; 29-20 (2) any amount owed to the tenant under this chapter; 29-21 and 29-22 (3) reasonable attorney's fees and costs associated 29-23 with enforcing the lien. 29-24 Sec. 94.352. LANDLORD'S REMEDIES. If the court finds that a 29-25 tenant filed or prosecuted a suit under this chapter in bad faith 29-26 or for purposes of harassment, the court shall award the landlord: 29-27 (1) an amount equal to one month's rent and $500; and 30-1 (2) reasonable attorney's fees and costs associated 30-2 with defending the action. 30-3 Sec. 94.353. STATE REMEDIES. (a) If a landlord has 30-4 violated or is threatening to violate this chapter, the attorney 30-5 general or the district or county attorney for a county in which 30-6 all or part of the manufactured home community is located may 30-7 institute an action for: 30-8 (1) injunctive relief; 30-9 (2) a civil penalty in the amount of $5,000 for each 30-10 violation or threatened violation; and 30-11 (3) restitution on behalf of a tenant injured by a 30-12 violation. 30-13 (b) The court shall award reasonable attorney's fees and 30-14 costs to the state if the state prevails in an action under 30-15 Subsection (a). 30-16 (c) The attorney general or the district or county attorney 30-17 for a county in which all or part of the manufactured home 30-18 community is located may request the court to appoint a receiver to 30-19 operate the manufactured home community if: 30-20 (1) the landlord is financially unable to operate the 30-21 manufactured home community; or 30-22 (2) the appointment is the most effective means of 30-23 ensuring compliance with a court order. 30-24 Sec. 94.354. CUMULATIVE REMEDIES. The provisions of this 30-25 chapter are not exclusive and are in addition to any other 30-26 procedure or remedy provided by other law. 30-27 Sec. 94.355. ADDITIONAL ENFORCEMENT BY LOCAL ORDINANCE. 31-1 This chapter does not prohibit the adoption of a local ordinance 31-2 that provides for additional enforcement of this chapter if the 31-3 local ordinance is consistent with this chapter. 31-4 SECTION 2. Section 9.503, Business & Commerce Code, is 31-5 amended to read as follows: 31-6 Sec. 9.503. SECURED PARTY'S RIGHT TO TAKE POSSESSION AFTER 31-7 DEFAULT. (a) Unless otherwise agreed a secured party has on 31-8 default the right to take possession of the collateral. 31-9 (b) In taking possession a secured party: 31-10 (1) must proceed by judicial process if the collateral 31-11 is a manufactured home as defined by Section 94.001, Property Code; 31-12 and 31-13 (2) may proceed without judicial process if this can 31-14 be done without breach of the peace or may proceed by action in all 31-15 other circumstances. 31-16 (c) If the security agreement so provides the secured party 31-17 may require the debtor to assemble the collateral and make it 31-18 available to the secured party at a place to be designated by the 31-19 secured party which is reasonably convenient to both parties. 31-20 (d) Without removal a secured party may render equipment 31-21 unusable, and may dispose of collateral on the debtor's premises 31-22 under Section 9.504. 31-23 SECTION 3. This Act takes effect September 1, 2000. 31-24 SECTION 4. (a) The changes in law made by Chapter 94, 31-25 Property Code, as added by this Act, apply only to a lease 31-26 agreement entered into on or after the effective date of this Act. 31-27 A lease agreement entered into before the effective date of this 32-1 Act is governed by the law in effect when the lease agreement was 32-2 entered into, and the former law is continued in effect for that 32-3 purpose. 32-4 (b) The change in law made by Section 9.503, Business & 32-5 Commerce Code, as amended by this Act, applies only to a default 32-6 that occurs on or after the effective date of this Act. A default 32-7 that occurred before the effective date of this Act is governed by 32-8 the law in effect when the default occurred, and the former law is 32-9 continued in effect for that purpose. 32-10 SECTION 5. The importance of this legislation and the 32-11 crowded condition of the calendars in both houses create an 32-12 emergency and an imperative public necessity that the 32-13 constitutional rule requiring bills to be read on three several 32-14 days in each house be suspended, and this rule is hereby suspended.