Simmons Bill Caps Rent Increases At 10 Percent On Renewal

The text as introduced · 604 words

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.