1-1 By: Barrientos S.B. No. 1621 1-2 (In the Senate - Filed March 9, 2001; March 14, 2001, read 1-3 first time and referred to Committee on Jurisprudence; 1-4 April 24, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 6, Nays 0; April 24, 2001, 1-6 sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1621 By: Duncan 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to discrimination against tenants of federally subsidized 1-11 or assisted housing converted to market rate housing. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Title 15, Property Code, is amended by adding 1-14 Chapter 302 to read as follows: 1-15 CHAPTER 302. DISCRIMINATION AGAINST TENANTS 1-16 OF CERTAIN FEDERALLY SUBSIDIZED OR ASSISTED HOUSING 1-17 Sec. 302.001. DEFINITIONS. In this chapter: 1-18 (1) "Housing conversion" means: 1-19 (A) prepayment of a mortgage by an owner of a 1-20 subsidized or assisted development; or 1-21 (B) nonrenewal of an expiring Section 8 1-22 project-based or rent supplement project-based contract by an owner 1-23 of a subsidized or assisted development. 1-24 (2) "Subsidized or assisted development" means a 1-25 multifamily housing development subsidized or assisted by the 1-26 United States Department of Housing and Urban Development under 1-27 Section 8, United States Housing Act of 1937 (42 U.S.C. Section 1-28 1437f). 1-29 Sec. 302.002. PROHIBITED DISCRIMINATION AGAINST TENANT OF 1-30 SUBSIDIZED OR ASSISTED DEVELOPMENT. An owner of a subsidized or 1-31 assisted development in which a housing conversion has occurred or 1-32 the owner's agent may not without good cause refuse or fail to 1-33 enter into a lease agreement with a tenant of the development under 1-34 the Section 8 Housing Choice Voucher Program for any reason related 1-35 to the tenant's participation in the program. 1-36 Sec. 302.003. CIVIL ACTION. A tenant of a subsidized or 1-37 assisted development in which a housing conversion has occurred may 1-38 bring a civil action against an owner of the development if the 1-39 owner or the owner's agent without good cause refuses or fails to 1-40 enter into a lease agreement with the tenant as described by 1-41 Section 302.002. 1-42 Sec. 302.004. RELIEF GRANTED. (a) If in an action brought 1-43 under Section 302.003 the court finds that an owner of a subsidized 1-44 or assisted development in which a housing conversion has occurred 1-45 or the owner's agent without good cause has refused or failed to 1-46 enter into a lease agreement with a tenant as described by Section 1-47 302.002, the court shall award to the tenant: 1-48 (1) actual damages; 1-49 (2) attorney's fees, court costs, and any other 1-50 reasonable costs incurred in bringing the action; and 1-51 (3) any appropriate injunctive relief, including 1-52 prohibiting the owner or the owner's agent from engaging in 1-53 discrimination as described by this chapter or ordering appropriate 1-54 affirmative action. 1-55 (b) The court may award a civil penalty of $100 plus three 1-56 times the tenant's fair market monthly rent if the court makes the 1-57 finding described by Subsection (a) and an additional finding that: 1-58 (1) the tenant, before bringing the action, gave the 1-59 owner or the owner's agent a written demand that the owner or the 1-60 owner's agent enter into a lease agreement with the tenant under 1-61 the Section 8 Housing Choice Voucher Program; and 1-62 (2) the owner or the owner's agent without good cause 1-63 refused or failed to enter into the lease agreement before the 1-64 expiration of the 10th day after the date of receipt of the 2-1 tenant's demand. 2-2 Sec. 302.005. DEFENSE TO FORCIBLE DETAINER ACTION. It is a 2-3 defense to a forcible detainer action under Chapter 24 that the 2-4 underlying basis of the claim for possession, in whole or in part, 2-5 is the refusal or failure of the owner of a subsidized or assisted 2-6 development in which a housing conversion has occurred or the 2-7 owner's agent to enter into a lease agreement with the defendant as 2-8 described by Section 302.002, absent good cause for the refusal or 2-9 failure. 2-10 Sec. 302.006. BURDEN ON OWNER OF DEVELOPMENT. The owner has 2-11 the burden of pleading and proving good cause to refuse or fail to 2-12 enter into a lease agreement with the tenant as described by 2-13 Section 302.002. 2-14 SECTION 2. This Act takes effect September 1, 2001. 2-15 * * * * *