By:  Barrientos                                       S.B. No. 1621
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to civil remedies for persons illegally denied the right
 1-3     to rent a dwelling using a Section 8 Housing voucher.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5     SECTION 1.  Title 15, Property Code is amended by adding Chapter
 1-6     302 as follows:
 1-7           Sec. 302.001.  Title.  This chapter may be cited as Texas
 1-8     Housing Conversion Act.
 1-9           Sec. 302.002.  Application.  This chapter applies to housing
1-10     conversion actions in multifamily housing subsidized or assisted by
1-11     the United States Department of Housing and Urban Development
1-12     ("HUD") and to owners of multifamily dwellings who are prohibited
1-13     by federal law, federal regulations, a contract or a land use
1-14     restrictive covenant from refusing to lease a dwelling unit to a
1-15     prospective tenant who holds a voucher or certificate of
1-16     eligibility for assistance under Section 8 of the United States
1-17     Housing Act of 1937, as amended.
1-18           Sec. 302.003.  Housing Conversion Action.  The term housing
1-19     conversion includes:
1-20                 (1)  Prepayment by an owner of a HUD-subsidized or
1-21     HUD-assisted mortgage;
1-22                 (2)  An opt-out of a Section 8 Project-Based or rent
1-23     supplement Project-Based contract by an owner's action in not
 2-1     renewing an expiring contract;
 2-2                 (3)  Termination of a Section 8 Project-Based Housing
 2-3     Assistance Payments contract by HUD for the owner's failure to
 2-4     comply with the terms of the Housing Assistance Payments contract
 2-5     or other HUD requirements;
 2-6                 (4)  Refusal by HUD to offer an owner the option to
 2-7     renew an expiring Section 8 Project-Based Housing Assistance
 2-8     Payments contract because of the owner's failure to comply with the
 2-9     terms of the Housing Assistance Payments contract or other HUD
2-10     requirements, and;
2-11                 (5)  Sale or other property disposition by HUD of
2-12     formerly HUD-subsidized or HUD-assisted multifamily properties.
2-13           Section 302.004.  Violation of Nondiscrimination Duty.  An
2-14     owner of a multifamily dwelling, or an owner's agent, who is
2-15     prohibited by federal law, federal regulation, a contract or a land
2-16     use restrictive covenant from refusing to lease a dwelling unit to
2-17     a prospective tenant who holds a voucher or certificate of
2-18     eligibility for assistance under Section 8 of the United States
2-19     Housing Act of 1937, as amended, because of the status of such
2-20     prospective tenant as the holder of a voucher or certificate and
2-21     who violates such prohibition shall be liable as set forth in
2-22     Sections 302.004 and 302.005.
2-23           Sec. 302.005.  Civil Action.  Any person aggrieved by the
2-24     violation by an owner or owner's agent of the prohibition described
2-25     in Section 302.003 or a tenant of a property in which a housing
2-26     conversion has occurred who is aggrieved by the owner's failure or
 3-1     refusal to enter into a lease agreement with the tenant under the
 3-2     Section 8 Housing Choice Voucher Program because of the tenant's
 3-3     participation in the Section 8 Housing Choice Voucher Program may
 3-4     file a civil action in a court of appropriate jurisdiction.
 3-5           Sec. 302.006.  Relief Granted.  If the court finds that an
 3-6     owner or an owner's agent has refused or failed to enter into a
 3-7     lease agreement with a tenant under the Section 8 Housing Choice
 3-8     Voucher Program at a property in which a housing conversion has
 3-9     occurred because of the tenant's participation in the Section 8
3-10     Housing Choice Voucher Program, or that an owner or owner's agent
3-11     has violated the prohibition described in Section 302.003, the
3-12     court shall award to the aggrieved person:
3-13                 (1)  Actual and punitive damages;
3-14                 (2)  Reasonable attorney's fees, court costs and costs
3-15     of litigation;
3-16                 (3)  A permanent or temporary injunction, temporary
3-17     restraining order, or other order, including an order enjoining the
3-18     defendant from engaging in the practice or ordering appropriate
3-19     affirmative action; and
3-20                 (4)  A statutory penalty of five times the fair market
3-21     monthly rent for the dwelling unit.
3-22           SECTION 2.  This Act takes effect September 1, 2001.