HB2904 - Relating to restrictions on, and required disclosures relating to, rent increases for residential and manufactured home tenancies.

  89R3199 JBD-D     By: Simmons H.B. No. 2904       A BILL TO BE ENTITLED   AN ACT   relating to restrictions on, and required disclosures relating to,   rent increases for residential and manufactured home tenancies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 92, Property Code, is   amended by adding Section 92.027 to read as follows:           Sec.   92.027.     MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO   TENANT.   (a)   In this section, "affordable housing" means housing   that is affordable to a household earning 70 percent or less of the   area median family income, adjusted for household size, as   determined annually by the United States Department of Housing and   Urban Development.           (b)     Except as otherwise provided by this section, a landlord   may not increase the rent for a dwelling from one lease term to a   subsequent lease term by more than:                 (1)     five percent, for a lease for affordable housing;   or                 (2)     10 percent, for a lease for other housing, unless   the dwelling or the premises to which the tenant has access under   the lease undergoes major renovation in the 12 months immediately   preceding the subsequent lease term.           (c)     A landlord who increases rent in violation of Subsection   (b) is liable to the tenant for each violation in an amount equal to   three times the amount of rent charged above the authorized   increase, plus the tenant's actual damages.           (d)     Each rental period a violation of Subsection (b)   continues is considered a separate violation.           (e)     A landlord who increases rent for a dwelling by the   maximum amount authorized under Subsection (b) shall provide to the   tenant a written, general description of the economic conditions,   major renovations, or other circumstances that necessitate the rent   increase.          SECTION 2.  Subchapter A, Chapter 94, Property Code, is   amended by adding Section 94.013 to read as follows:           Sec.   94.013.     MAXIMUM RENT INCREASE; LANDLORD DISCLOSURE TO   TENANT.   (a)   In this section, "affordable housing" means housing   that is affordable to households earning 70 percent or less of the   area median family income, adjusted for household size, as   determined annually by the United States Department of Housing and   Urban Development.           (b)     Except as otherwise provided by this section, a landlord   may not increase the rent for a manufactured home lot from one lease   term to a subsequent lease term by more than:                 (1)     five percent, for a lease for affordable housing;   or                 (2)     10 percent, for a lease for other housing, unless   the manufactured home lot or the premises to which the tenant has   access under the lease undergoes major renovation in the 12 months   immediately preceding the subsequent lease term.           (c)     A landlord who increases rent in violation of Subsection   (b) is liable to the tenant for each violation in an amount equal to   three times the amount of rent charged above the authorized   increase, plus the tenant's actual damages.           (d)     Each rental period a violation of Subsection (b)   continues is considered a separate violation.           (e)     A landlord who increases rent for a manufactured home   lot by the maximum amount authorized under Subsection (b) shall   provide to the tenant a written, general description of the   economic conditions, major renovations, or other circumstances   that necessitate the rent increase.            SECTION 3.  The changes in law made by this Act apply only to   a lease entered into or renewed on or after the effective date of   this Act.  A lease entered into or renewed before the effective date   of this Act is governed by the law in effect immediately before the   effective date of this Act, and that law is continued in effect for   that purpose.          SECTION 4.  This Act takes effect January 1, 2026.