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A BILL TO BE ENTITLED
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AN ACT
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relating to restrictions on, and required disclosures relating to, |
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rent increases for residential and manufactured home tenancies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 92, Property Code, is |
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amended by adding Section 92.027 to read as follows: |
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Sec. 92.027. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO |
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TENANT. (a) In this section, "affordable housing" means housing |
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that is affordable to a household earning 70 percent or less of the |
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area median family income, adjusted for household size, as |
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determined annually by the United States Department of Housing and |
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Urban Development. |
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(b) Except as otherwise provided by this section, a landlord |
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may not increase the rent for a dwelling from one lease term to a |
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subsequent lease term by more than: |
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(1) five percent, for a lease for affordable housing; |
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or |
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(2) 10 percent, for a lease for other housing, unless |
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the dwelling or the premises to which the tenant has access under |
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the lease undergoes major renovation in the 12 months immediately |
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preceding the subsequent lease term. |
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(c) A landlord who increases rent in violation of Subsection |
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(b) is liable to the tenant for each violation in an amount equal to |
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three times the amount of rent charged above the authorized |
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increase, plus the tenant's actual damages. |
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(d) Each rental period a violation of Subsection (b) |
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continues is considered a separate violation. |
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(e) A landlord who increases rent for a dwelling by the |
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maximum amount authorized under Subsection (b) shall provide to the |
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tenant a written, general description of the economic conditions, |
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major renovations, or other circumstances that necessitate the rent |
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increase. |
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SECTION 2. Subchapter A, Chapter 94, Property Code, is |
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amended by adding Section 94.013 to read as follows: |
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Sec. 94.013. MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO |
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TENANT. (a) In this section, "affordable housing" means housing |
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|
that is affordable to households earning 70 percent or less of the |
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|
area median family income, adjusted for household size, as |
|
|
determined annually by the United States Department of Housing and |
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|
Urban Development. |
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|
(b) Except as otherwise provided by this section, a landlord |
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|
may not increase the rent for a manufactured home lot from one lease |
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|
term to a subsequent lease term by more than: |
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(1) five percent, for a lease for affordable housing; |
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or |
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(2) 10 percent, for a lease for other housing, unless |
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the manufactured home lot or the premises to which the tenant has |
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|
access under the lease undergoes major renovation in the 12 months |
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immediately preceding the subsequent lease term. |
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|
(c) A landlord who increases rent in violation of Subsection |
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(b) is liable to the tenant for each violation in an amount equal to |
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|
three times the amount of rent charged above the authorized |
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|
increase, plus the tenant's actual damages. |
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|
(d) Each rental period a violation of Subsection (b) |
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|
continues is considered a separate violation. |
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(e) A landlord who increases rent for a manufactured home |
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lot by the maximum amount authorized under Subsection (b) shall |
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provide to the tenant a written, general description of the |
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economic conditions, major renovations, or other circumstances |
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that necessitate the rent increase. |
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SECTION 3. The changes in law made by this Act apply only to |
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a lease entered into or renewed on or after the effective date of |
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this Act. A lease entered into or renewed before the effective date |
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of this Act is governed by the law in effect immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect January 1, 2026. |