87R7275 JAM-F     By: Campos H.B. No. 4129       A BILL TO BE ENTITLED   AN ACT   relating to the establishment of a program administered by the   Texas Department of Housing and Community Affairs and certain   county housing authorities to incentivize landlords to accept   tenants participating in the housing choice voucher program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter K, Chapter 2306, Government Code, is   amended by adding Section 2306.2586 to read as follows:          Sec. 2306.2586.  HOUSING MOBILITY PROGRAM; LOANS AND GRANTS.   (a) The department shall establish a housing mobility program to   provide to county housing authorities of counties with a population   of more than 500,000 loans and grants to incentivize landlords to   accept tenants participating in the housing choice voucher program   under Section 8, United States Housing Act of 1937 (42 U.S.C.   Section 1437f).          (b)  The department may use any available revenue, including   legislative appropriations, appropriation transfers from the   trusteed programs within the office of the governor, including   authorized appropriations from the Texas Enterprise Fund,   available federal funds, and any other statutorily authorized and   appropriate funding sources transferred from the trusteed programs   within the office of the governor, to provide loans and grants under   the housing mobility program created under this section. The   department shall solicit and accept gifts and grants for the   purposes of this section.  The department shall use gifts and grants   received for the purposes of this section before using any other   revenue.          (c)  The department shall adopt rules to govern the   administration of the program, including rules that:                (1)  provide for the allocation of any available   funding; and                (2)  provide detailed guidelines regarding the scope of   the local programs in the counties described by Subsection (a).          SECTION 2.  Subchapter D, Chapter 392, Local Government   Code, is amended by adding Section 392.068 to read as follows:          Sec. 392.068.  HOUSING MOBILITY PROGRAM IN CERTAIN COUNTIES.   (a) A county housing authority in a county with a population of   more than 500,000 may apply for and receive loans or grants provided   by the Texas Department of Housing and Community Affairs through   the housing mobility program established under Section 2306.2586,   Government Code, for purposes of incentivizing landlords to accept   tenants participating in the housing choice voucher program under   Section 8, United States Housing Act of 1937 (42 U.S.C. Section   1437f).          (b)  An authority shall recruit families and landlords to   participate in the housing mobility program and shall coordinate   the implementation of housing mobility services to assist the   movement of tenants described by Subsection (a) from multifamily   housing into single-family housing under that program.          (c)  A landlord may participate in the program only if the   landlord agrees to provide, for a period of not less than three   years, housing in single-family homes to families that:                (1)  hold housing choice vouchers or are on the housing   choice voucher waitlist; or                (2)  are homeless or at risk of becoming homeless and   qualify for housing choice vouchers.          (d)  An authority shall:                (1)  conduct an initial inspection and annual   subsequent inspections of each single-family home a landlord   proposes to include in the program; and                (2)  coordinate with that landlord with respect to the   time and date of each inspection.          (e)  An authority shall prepare and make publicly available   an inspection checklist that:                (1)  includes a complete list specifying each item that   is required to be inspected for inclusion of the home in the   program, to determine whether the item is in satisfactory   condition; and                (2)  clearly and conspicuously categorizes each listed   item as an item that:                      (A)  is required to be in satisfactory condition   for the property to pass inspection;                      (B)  may be in noncompliance only if the landlord   agrees to bring the item into compliance not later than the 30th day   after the date of the inspection; or                      (C)  may be in noncompliance only if the landlord   agrees to bring the item into compliance before the next annual   inspection.          (f)  An authority may award to a landlord a grant in an amount   not to exceed $5,000 to be used to rehabilitate, for purposes of an   initial inspection, any single-family home the landlord proposes to   include in the program. A landlord may not receive more than one   grant under this section for each single-family home proposed for   inclusion in the program by the landlord. If a home for which a   landlord received a grant under this section does not pass the   initial inspection, the landlord must repay the grant not later   than the 30th day after the date of the failed inspection.          (g)  An authority shall screen and rank prospective tenants   based on:                (1)  credit history;                (2)  residential references;                (3)  criminal history;                (4)  civil judgment history;                (5)  employment verification;                (6)  household income;                (7)  a personal interview with the applicant and any   co-applicant;                (8)  a personal statement by the applicant regarding   other household members;                (9)  responses to questions tailored to the specific   applicant; and                (10)  any additional criteria recommended by landlords   participating in the program.          (h)  A prospective tenant who ranks in the top 10 percent of   applicants in the rankings described by Subsection (g) is   automatically eligible to participate in the program.          (i)  An authority shall:                (1)  require tenants in the program to attend a class   that presents information regarding:                      (A)  lease requirements and landlord   expectations;                      (B)  clarification of tenant liabilities   regarding repairs and maintenance;                      (C)  the importance of property management and   lawn maintenance;                      (D)  the role of neighborhood associations and   home ownership associations;                      (E)  utility assistance programs;                      (F)  early departure consequences;                      (G)  the tenant eviction process; and                      (H)  the lease renewal process; and                (2)  produce and mail to tenants a quarterly newsletter   containing the same information presented in the class under   Subdivision (1).          (j)  For a single-family home that is subject to the program,   a landlord may not charge rent that exceeds:                (1)  120 percent of the median rent for similar units in   the same zip code, if the property is located in a school district   assigned an overall performance rating of A or B for the most   recently completed school year by the commissioner of education   under Section 39.054, Education Code; or                (2)  100 percent of the median rent for similar units in   the same zip code, if the property is located in a school district   assigned an overall performance rating of C, D, or F for the most   recently completed school year by the commissioner of education   under Section 39.054, Education Code.          (k)  An authority shall:                (1)  collect the tenant's rental deposit and share of   the first month's rent and deliver the deposit amount and full   amount of the first month's rent to the landlord on or before the   move-in date;                (2)  deliver the full amount of the monthly rent to the   landlord on or before the first day of each month; and                (3)  collect the tenant's share of the monthly rent   within the first five days of the month.          (l)  An authority shall receive all complaints by tenants and   landlords and seek amicable and timely resolutions to complaints.          (m)  If an action of or failure to take action by a tenant   results in an unpaid fine, fee, or charge assessed by a neighborhood   association, homeowners association, municipal department, county   agency, utility company, or other legal entity against a landlord   with respect to a single-family home that is included in the   program, the authority shall:                (1)  pay the fine, fee, or charge; or                (2)  reimburse the landlord for the payment of the   fine, fee, or charge not later than the 30th day after the date the   landlord makes the payment.          (n)  An authority may initiate an eviction proceeding due to   late payment, nonpayment, noncompliance with the lease, written   request of the landlord, or any other reason considered appropriate   and legal by the authority.          (o)  A tenant shall provide notice of any departure or   nonrenewal of a lease on or before the 30th day before the tenant   vacates a single-family home under the program.          (p)  In addition to any other amount paid under this section,   an authority may pay to a landlord an amount not to exceed:                (1)  two months' rent for lost rent due to tenant   eviction, early lease termination, or last minute nonrenewal of a   lease; and                (2)  $2,500 to repair tenant-caused property damage if   the repair costs exceed the tenant's security deposit.          SECTION 3.  The Texas Department of Housing and Community   Affairs shall establish the housing mobility program required under   Section 2306.2586, Government Code, as added by this Act, not later   than January 1, 2022.          SECTION 4.  This Act takes effect September 1, 2021.