SRC-JBJ S.B. 1621 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1621
By: Barrientos
Jurisprudence
4/4/2001
As Filed


DIGEST AND PURPOSE 

Tenants living in federally-subsidized apartment complexes become eligible
for a federal housing voucher under the Section 8 Housing Choice Voucher
Program when an owner converts the property to market rate housing.  An
owner who converts a property is required by federal law to accept these
vouchers from residents who wish to remain in the building.  Under current
Texas law, there are no provisions regarding a property owner's violation
of the owner's duty to accept certain housing vouchers.  As proposed, S.B.
1621 establishes civil penalties that may be applied if an owner is found
to have violated this requirement. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 15, Property Code, by adding Chapter 302, as
follows: 

Sec. 302.001.  TITLE.  Authorizes this chapter to be cited as the Texas
Housing Conversion Act. 

Sec. 302.002.  APPLICATION.  Provides that this chapter applies to housing
conversion actions in multifamily housing subsidized or assisted by the
United States Department of Housing and Urban Development (HUD) and to
owners of multifamily dwellings who are prohibited by federal law, federal
regulations, a contract or a land use restrictive covenant from refusing to
lease a dwelling unit to a prospective tenant who holds a voucher or
certificate of eligibility for assistance under Section 8 of the United
States Housing Act of 1937, as amended. 

 Sec. 302.003.  HOUSING CONVERSION ACTION.  Defines "housing conversion."

Sec. 302.004.  VIOLATION OF NONDISCRIMINATION DUTY.  Requires an owner of a
multifamily dwelling, or an owner's agent, who is prohibited by federal
law, federal regulation, a contract or a land use restrictive covenant from
refusing to lease a dwelling unit to a prospective tenant who holds a
voucher or certificate of eligibility for assistance under Section 8 of the
United States Housing Act of 1937, as amended, because of the status of
such prospective tenant as the holder of a voucher or certificate and who
violates such prohibition to be liable as set forth in Sections 302.004 and
302.005. 

Sec. 302.005.  CIVIL ACTION.  Authorizes any person aggrieved by an owner
or owner's agent's violation of the prohibition described in Section
302.003 or a tenant of a property in which a housing conversion has
occurred who is aggrieved by the owner's failure or refusal to enter into a
lease agreement with the tenant under the Section 8 Housing Choice Voucher
Program (program) because of the tenant's participation in the Section 8
program to file a civil action in a court of appropriate jurisdiction. 
 
Sec. 302.006.  RELIEF GRANTED.  Requires the court, if the court finds that
an owner or an owner's agent has refused or failed to enter into a lease
agreement with a tenant under the Section 8 program at a property in which
a housing conversion has occurred because of the tenant's participation in
the Section 8 program, or that an owner or owner's agent has violated the
prohibition described in Section 302.003, to award to the aggrieved person
actual and punitive damages;  reasonable attorney's fees, court costs and
costs of litigation; a permanent or temporary injunction, temporary
restraining order, or other order, including an order enjoining the
defendant from engaging in the practice or ordering appropriate affirmative
action; and a statutory penalty of five times the fair market monthly rent
for the dwelling unit. 

SECTION 2.   Effective date: September 1, 2001.