HB 2904
AN ACT relating to restrictions on, and required disclosures relating to,
89th Regular Session
Jan 14, 2025 - Jun 2, 2025 • Session ended
Awaiting Committee Assignment
Bill filed, pending referral to House committee
Committee
Not yet assigned
Fiscal Note
Not available
What This Bill Does
Limits rent increases for residential and manufactured home tenancies to 5% for affordable housing and 10% for other housing, with exceptions for major renovations. Landlords must provide a written explanation for rent increases at the maximum allowed rate, and can be liable for up to three times the amount of an unauthorized rent increase plus damages if they exceed the specified limits. The law applies to new or renewed leases starting January 1, 2026, protecting tenants from excessive rent hikes while allowing landlords some flexibility for significant property improvements.
Subject Areas
Bill Text
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 (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; (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 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 (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; (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 SECTION 4. This Act takes effect January 1, 2026.
Bill History
Bill filed: AN ACT relating to restrictions on, and required disclosures relating to,
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