No raises while the lease runs. Section 8 exception.
The bill bars owners of apartment complexes built with low income housing tax credits from raising a tenant's rent while that tenant's lease is still running. It touches tenants and owners in these tax-credit developments, with an exception for rent changes allowed under Section 8 voucher rules or similar rent subsidy programs. Starting with leases signed or renewed on or after September 1, 2025, rent in these developments stays fixed for the length of the lease.
Labels
Labels: ZOMBIE BILL. Died 2 times: 88R HB 1344 (Died in committee) and this bill (Died in committee). Checked against 88R only.BACK FROM THE DEAD. Same text as a bill filed before that died: 88R HB 1344 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.NEVER GOT A HEARING. Filed Nov 12, 2024 and referred to the House Intergovernmental Affairs committee. No public hearing. The bill died.
relating to prohibiting an increase in the rent of a tenant residing
in a development supported with a low income housing tax credit
allocation.
WHAT IT DOES
No raises while the lease runs. Section 8 exception.
The bill bars owners of apartment complexes built with low income housing tax credits from raising a tenant's rent while that tenant's lease is still running. It touches tenants and owners in these tax-credit developments, with an exception for rent changes allowed under Section 8 voucher rules or similar rent subsidy programs. Starting with leases signed or renewed on or after September 1, 2025, rent in these developments stays fixed for the length of the lease.
89R2626 JG-D
By: Rosenthal
H.B. No. 438
A BILL TO BE ENTITLED
AN ACT
relating to prohibiting an increase in the rent of a tenant residing
in a development supported with a low income housing tax credit
allocation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2306.6738(a), Government Code, is
amended to read as follows:
(a) Notwithstanding any other law, a development owner of a
development supported with a housing tax credit allocation may not:
(1) lock out or threaten to lock out any person
residing in the development except by judicial process unless the
exclusion results from:
(A) a necessity to perform bona fide repairs or
construction work; or
(B) an emergency; [ or ]
(2) seize or threaten to seize the personal property
of any person residing in the development except by judicial
process unless the resident has abandoned the premises ; or
(3) except as provided under the terms of a voucher
program under Section 8, United States Housing Act of 1937 (42
U.S.C. Section 1437f), or a similar rental subsidy program,
increase the rent paid by a person residing in the development
during the duration of the person's lease agreement .
SECTION 2. Section 2306.6738, Government Code, as amended
by this Act, applies only to a lease agreement entered into or
renewed on or after the effective date of this Act.
SECTION 3. This Act takes effect September 1, 2025.