89R5561 JAM/AMF/SCR/DRS-D     By: Bryant H.B. No. 5166       A BILL TO BE ENTITLED   AN ACT   relating to housing; providing property tax exemptions and relief   relating to housing; providing a civil penalty; authorizing a fee.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:   ARTICLE 1.  PROGRAMS AND FINANCIAL ASSISTANCE FOR AFFORDABLE   HOUSING          SECTION 1.01.  Section 2306.202, Government Code, is amended   to read as follows:          Sec. 2306.202.  USE OF HOUSING TRUST FUND.  (a)  The   department, through the housing finance division, shall use the   housing trust fund to provide loans, grants, or other comparable   forms of assistance to local units of government, public housing   authorities, nonprofit organizations, land trusts, and   income-eligible individuals, families, and households to:                (1)  finance, acquire, rehabilitate, adapt, preserve,    and develop decent, safe, and sanitary housing, including   cooperative housing, assisted housing, and transitional or   emergency housing;                (2)  provide down payment assistance and rental   assistance; and                (3)  provide financial assistance for weatherization,   emergency repairs, or other housing-related services.          (b)  In each biennium the first $2.6 million available   through the housing trust fund for loans, grants, or other   comparable forms of assistance shall be set aside and made   available exclusively for local units of government, public housing   authorities, and nonprofit organizations.  Any additional funds may   also be made available to for-profit organizations provided that at   least 45 percent of available funds, as determined on September 1 of   each state fiscal year, in excess of the first $2.6 million shall be   made available to nonprofit organizations for the purpose of   acquiring, rehabilitating, and developing decent, safe, and   sanitary housing.  The remaining portion shall be distributed to   nonprofit organizations, for-profit organizations, and other   eligible entities.          (c)  Notwithstanding any other section of this chapter, but   subject to the limitations in Section 2306.251(c), the department   may also use the fund to acquire property to endow the fund.          (d) [(b)]  Use of the fund is limited to providing:                (1)  assistance for individuals and families of   extremely low and very low income;                  (2)  technical assistance and capacity building to   nonprofit organizations engaged in developing housing for   individuals and families of extremely low and very low income; and                (3)  security for repayment of revenue bonds issued to   finance housing for individuals and families of extremely low and   very low income.          SECTION 1.02.  Subchapter K, Chapter 2306, Government Code,   is amended by adding Sections 2306.2515 and 2306.2516 to read as   follows:          Sec. 2306.2515.  DOWN PAYMENT ASSISTANCE PROGRAM. (a) In   this section, "first-time homebuyer" means a person who:                (1)  resides in this state on the date on which an   application is filed; and                (2)  has not owned a home during the three years   preceding the date on which an application under this section is   filed.          (b)  The department shall establish a program to provide down   payment assistance in the form of a $10,000 grant to first-time   homebuyers.          (c)  To be eligible for down payment assistance provided   under this section, a homebuyer must:                (1)  qualify as a first-time homebuyer under this   section;                (2)  have paid rent on time for the two years preceding   the date on which an application under this section is filed;                (3)  submit an application to the department; and                (4)  meet any additional requirements or limitations   prescribed by the department.          (d)  The department shall adopt rules necessary to implement   the program established by this section.          Sec. 2306.2516.  TEXAS RENT RELIEF PROGRAM. (a) The   department shall establish and administer the Texas rent relief   program to provide financial assistance to residents of this state   who live in rental housing and who have unpaid rent or utility   bills.          (b)  The department shall adopt rules necessary to implement   the program established by this section, including rules   establishing eligibility requirements for participation in the   program.          SECTION 1.03.  Section 2306.6711(f-1), Government Code, is   amended to read as follows:          (f-1)  The board may allocate housing tax credits to more   than one development in a single community only if the community is   part of a high opportunity area and each development is located in   the area or if:                (1)  the community is located in:                      (A)  a municipality with a population of two   million or more; and                      (B)  an area that is a federally declared disaster   area; and                (2)  the governing body of the municipality containing   the development:                      (A)  has by vote specifically authorized the   allocation of housing tax credits for the development; and                      (B)  is authorized to administer disaster   recovery funds as a subgrant recipient.          SECTION 1.04.  Section 2306.6725(a), Government Code, is   amended to read as follows:          (a)  In allocating low income housing tax credits, the   department shall score each application using a point system based   on criteria adopted by the department that are consistent with the   department's housing goals, including criteria addressing the   ability of the proposed project to:                (1)  provide quality social support services to   residents;                (2)  demonstrate community and neighborhood support as   defined by the qualified allocation plan;                (3)  consistent with sound underwriting practices and   when economically feasible, serve individuals and families of   extremely low income by leveraging private and state and federal   resources, including federal HOPE VI grants received through the   United States Department of Housing and Urban Development;                (4)  serve traditionally underserved areas;                (5)  demonstrate support from local political   subdivisions based on the subdivisions' commitment of development   funding;                (6)  rehabilitate or perform an adaptive reuse of a   certified historic structure, as defined by Section 172.101(b)(1)    [171.901(1)], Tax Code, as part of the development;                (7)  remain affordable to qualified tenants for an   extended, economically feasible period; [and]                (8)  comply with the accessibility standards that are   required under Section 504, Rehabilitation Act of 1973 (29 U.S.C.   Section 794), and specified under 24 C.F.R. Part 8, Subpart C;                (9)  implement eviction prevention policies;                (10)  reduce the vulnerability of tenants to hazards   affecting the habitability of the unit;                (11)  reduce barriers to accessing supportive housing;   and                (12)  for a project that rehabilitates an existing   development, provide opportunities for tenant participation in the   decision-making process regarding the rehabilitation.          SECTION 1.05.  Subchapter D, Chapter 392, Local Government   Code, is amended by adding Section 392.0556 to read as follows:          Sec. 392.0556.  HOUSING CHOICE VOUCHER PROGRAM ASSISTANCE   POLICIES. (a) In this section, "housing voucher" means a   tenant-based housing choice voucher provided through the housing   choice voucher program established under Section 8, United States   Housing Act of 1937 (42 U.S.C. Section 1437f).          (b)  An authority shall provide to each adult tenant detailed   guidance on how to complete all forms and worksheets that are   necessary to obtain a housing voucher.          (c)  An authority shall establish and maintain an   Internet-based portal that allows:                (1)  landlords to list available rental properties   where housing vouchers are accepted; and                 (2)  prospective tenants to sort by zip code listings   made under Subdivision (1).          (d)  A listing made under Subsection (c)(1) must include   recent photographs of the unit and information about the unit,   including the square footage of the unit, the number of bedrooms and   bathrooms in the unit, the main amenities in the unit, and whether   the unit has heating or air conditioning.          (e)  An authority may charge a fee to landlords for use of the   portal to list available rental properties where housing vouchers   are accepted.   ARTICLE 2.  CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES          SECTION 2.01.  Subchapter C, Chapter 86, Education Code, is   amended by adding Sections 86.531 and 86.532 to read as follows:          Sec. 86.531.  ANNUAL STUDY AND REPORT ON SINGLE-FAMILY HOME   PURCHASES, RENTALS, AND SALES BY CERTAIN CORPORATE OWNERS. (a) In   this section, "corporate owner," "rental property," and   "single-family home" have the meanings assigned by Section 5.251,   Property Code.          (b)  Using existing available data and deed records, the   center shall compile information related to corporate owners'   purchases, rentals, and sales of single-family homes in this state   for each calendar year. The information must include:                (1)  the number of single-family homes each corporate   owner had an interest in during the calendar year;                (2)  the number of single-family homes purchased by   each corporate owner during the calendar year and the total number   purchased in each county and municipality;                (3)  the number of single-family homes described by   Subdivisions (1) and (2) acquired through foreclosure;                (4)  the number of single-family homes described by   Subdivisions (1) and (2) sold by each corporate owner during the   calendar year;                (5)  the number of single-family homes described by   Subdivisions (1) and (2) used as rental properties during the   calendar year;                (6)  the municipality and county in which each   single-family home described by Subdivisions (1) and (2) is   located;                (7)  the appraised value of each single-family home   described by Subdivisions (1) and (2);                (8)  the name, assumed name, business association type,   registered office address, telephone number, and registered agent   of each corporate owner of a single-family home; and                (9)  the name, address, and contact information for the   landlord or third-party lessor, sublessor, management company, or   managing agent of each single-family home described by Subdivision   (5).          (c)  In addition to the information required by Subsection   (b), the center may compile additional information at the   recommendation of the legislature or that the center determines is   relevant based on market trends.          (d)  Not later than June 1 of each year, the center shall   submit a report to the lieutenant governor, the speaker of the house   of representatives, and each member of the legislature. The report   must contain:                (1)  a summary of the information compiled under   Subsection (b) for the preceding calendar year;                (2)  an assessment of any trends or patterns relating   to the relative number of purchases by corporate owners, including   whether the corporate owners fall into any readily observable   groups based on the number of purchases or other appropriate   criteria; and                (3)  an analysis of:                      (A)  the impact of corporate owners on the cost of   housing; and                      (B)  the advantages and disadvantages, if any,   that corporate owners have over individual buyers in the real   estate market.          (e)  After completing the initial report under this section,   the center may compile information from any calendar years   preceding 2025 to create and submit reports for those years that   include the information listed in Subsections (b) and (d).          Sec. 86.532.  DATABASE OF CORPORATE OWNERS. (a) The center   shall create and maintain a statewide database that retains and   shows the cumulative information from each category described by   Section 86.531(b). The center shall make the database available in   a searchable format on its Internet website in a conspicuous   location.          (b)  The center shall update information in the database each   month. The center shall enter into the database for access by the   public the updated information described by Section 86.531(b) not   later than the 30th business day after the date the center finds or   obtains the information.          (c)  The center may consult with the appropriate agent of, or   other person representing, each corporate owner to obtain the   information necessary to operate and update the database.          (d)  The center may consult with a state agency or political   subdivision to obtain assistance with collecting, aggregating, and   updating the data required by this section.          (e)  The center may not charge a fee to the public to access   the database.          SECTION 2.02.  Chapter 5, Property Code, is amended by   adding Subchapter H to read as follows:   SUBCHAPTER H. CORPORATE OWNERSHIP OF SINGLE-FAMILY HOMES          Sec. 5.251.  DEFINITIONS. In this section:                (1)  "Corporate owner" means a corporation, limited or   general partnership, limited liability company, business trust,   investment asset manager, real estate investment trust, joint   venture, joint stock company, or bank that holds an interest in   multiple single-family homes in this state that are offered or used   as a rental property to produce income directly or indirectly from a   residential tenant. The term includes an entity engaged in the   business of investing the pooled capital of investors in financial   securities.                (2)  "Rental property" means real property used or   intended to be used:                      (A)  as a primary residence for 30 or more   consecutive days by a residential tenant under an oral or written   lease or rental agreement; or                      (B)  for occupancy for tourist or transient   accommodations for fewer than 30 consecutive days, where the   property does not serve as a residential tenant's primary   residence.                (3)  "Residential tenant" means any person who does not   own but is authorized to use a single-family home in exchange for   consideration paid to a corporate owner or to a third-party lessor,   sublessor, management company, managing agent, or operator of a   hosting platform that derives revenues, including booking fees or   advertising revenues, from providing or maintaining a marketplace   that is used to facilitate the rental of a single-family home.                (4)  "Single-family home" means a residential   structure with a yard or public way on not less than two sides that   is separated from any adjacent housing unit by a ground-to-roof   wall, does not share a heating, air-conditioning, or utility system   or a backyard, and does not have a housing unit located above or   below. The term does not include a mobile home or manufactured   home.          Sec. 5.252.  LIMITATION ON PURCHASE OF SINGLE-FAMILY HOMES.     (a)  A corporate owner may not enter into an executory contract to   purchase a single-family home that is listed for sale before the   30th day after the date the home is listed.          (b)  A corporate owner may not enter into an executory   contract to purchase a single-family home if the corporate owner   has purchased 50 or more homes within the boundaries of the tax   appraisal district in which the home is located during the calendar   year.          (c)  A contract entered into in violation of this section is   voidable by the seller at any time before the contract is fully   executed.          (d)  This section does not apply to ownership of   single-family homes by:                (1)  an agency of this state, a political subdivision   of this state, or the United States;                (2)  a nonprofit organization exempt from federal   income taxation under Section 501(a), Internal Revenue Code of   1986, as a charitable organization under Section 501(c)(3) of that   code; or                (3)  a person licensed to own and operate group homes   for people with disabilities and special health care needs.          Sec. 5.253.  CORPORATE OWNER REPORT. (a)  In this section,   "department" means the Texas Department of Housing and Community   Affairs.          (b)  A corporate owner who purchases more than 15   single-family homes during a calendar year shall not later than   January 15 of the following year file a report with the department.   A report filed under this section must include:                (1)  the number of single-family homes purchased by the   corporate owner during the calendar year;                (2)  the number of single-family homes purchased during   the calendar year by the corporate owner that the corporate owner   sold during the same year;                (3)  the number of single-family homes purchased by the   corporate owner during the calendar year that the corporate owner   uses as rental properties;                (4)  the city and county where each single-family home   purchased by the corporate owner during the calendar year is   located;                (5)  the number of single-family homes purchased by the   corporate owner during the calendar year in each city and county;                (6)  the appraised value of each single-family home   purchased by the corporate owner during the calendar year; and                (7)  the corporate owner's name, registered office   address, and telephone number and the name of the corporate owner's   registered agent, as applicable.          (c)  The department shall make a report filed under   Subsection (b) available on its Internet website not later than   seven days after the report is filed.          (d)  The department shall compile all reports submitted   under Subsection (b) into a single final report showing the   cumulative data from each category described in Subsection (b). The   department shall make the final report available on its Internet   website not later than February 15 of the year in which the reports   under Subsection (b) are due.          (e)  The department shall adopt rules as necessary to   implement this section.          Sec. 5.254.  ENFORCEMENT. (a) The attorney general, a   county or district attorney, independently or on behalf of an   affected municipality or county, or an appropriate agency of an   affected municipality or county may investigate an alleged   violation if there is reason to believe that a corporate owner has   violated Section 5.252 or has taken substantial steps to purchase a   single-family home in violation of Section 5.252.          (b)  A corporate owner who violates Section 5.252 is liable   for a civil penalty of $50,000 for each single-family home   purchased in excess of the amount allowed under Section 5.252.          (c)  A county attorney, a district attorney, or the attorney   general may bring an action to collect a civil penalty under this   section in the district court in which any single-family home   related to the violation is located and may recover reasonable   expenses, including court costs, attorney's fees, investigative   costs, witness fees, and deposition expenses, incurred in relation   to the action. A county or district attorney may bring the action   in the name of the state or on behalf of an affected municipality or   county.          (d)  Except as provided by this subsection, a civil penalty   recovered in an action brought under this section shall be   deposited in the state treasury to the credit of the general revenue   fund. A civil penalty recovered by a county or district attorney in   an action brought on behalf of a municipality or county under this   section shall be divided equally between the state and the   municipality or county, with 50 percent of the recovery to be paid   to the general revenue fund and the other 50 percent to be paid to   the municipality or county on whose behalf the suit was brought.          (e)  The parties in an action under this section may agree to   a settlement that allows the corporate owner to achieve compliance   with Section 5.252(a) by selling any rental property owned by the   corporate owner, regardless of whether the corporate owner was in   violation of Section 5.252 when the property was purchased.          SECTION 2.03.  (a) As soon as practicable after the   effective date of this Act, the Texas Real Estate Research Center at   Texas A&M University shall take any actions necessary to implement   Sections 86.531 and 86.532, Education Code, as added by this Act,   and submit the initial report required under Section 86.531(d),   Education Code, as added by this Act, not later than June 1, 2026.          (b)  The Texas Real Estate Research Center at Texas A&M   University shall establish and make available the database required   by Section 86.532, Education Code, as added by this Act, not later   than the seventh day after the date the initial report under Section   86.531 is completed.          SECTION 2.04.  Section 5.252, Property Code, as added by   this Act, applies only to an executory contract entered into on or   after the effective date of this Act.   ARTICLE 3. TENANT PROTECTIONS          SECTION 3.01.  Subchapter A, Chapter 27, Government Code, is   amended by adding Section 27.007 to read as follows:          Sec. 27.007.  ACCESS TO JUSTICE COURTS FOR PROVISION OF PRO   BONO LEGAL SERVICES. On request of a legal aid office or other   provider of pro bono legal services, each justice of the peace shall   permit one or more representatives of the office or provider to be   present in the justice court, including during in-person or remote   proceedings, to conduct intakes or provide information, referrals,   or other legal services to eligible litigants in residential   eviction suits.          SECTION 3.02.  Section 38.12, Penal Code, is amended by   adding Subsection (h-1) to read as follows:          (h-1)  It is a defense to prosecution under Subsection (d)   that the attorney is engaged in conduct authorized under Section   27.007, Government Code.          SECTION 3.03.  The heading to Section 24.005, Property Code,   is amended to read as follows:          Sec. 24.005.  NOTICE TO CURE DEFAULT FOR NONPAYMENT OF RENT;   NOTICE TO VACATE PRIOR TO FILING EVICTION SUIT.          SECTION 3.04.  Section 24.005, Property Code, is amended by   amending Subsection (a) and adding Subsections (a-1), (a-2), and   (a-3) to read as follows:          (a)  Except as provided by Subsections (a-1) and (a-2), if   [If] the occupant is a tenant under a written lease or oral rental   agreement, the landlord must give a tenant who defaults or holds   over beyond the end of the rental term or renewal period at least   three days' written notice to vacate the premises before the   landlord files a forcible detainer suit, unless the parties have   contracted for a shorter or longer notice period in a written lease   or agreement. A landlord who files a forcible detainer suit on   grounds that the tenant is holding over beyond the end of the rental   term or renewal period must also comply with the tenancy   termination requirements of Section 91.001.          (a-1)  The landlord must give a residential tenant who   defaults for nonpayment of rent 10 days' written notice and an   opportunity to cure the default by paying any delinquent rent   before issuing the notice to vacate under Subsection (a-2). The   written notice must include, in all capital letters in an easily   readable font and type size, the words "YOU ARE IN DEFAULT OF THE   LEASE FOR NONPAYMENT OF RENT. YOU HAVE 10 DAYS AFTER THE DATE THIS   NOTICE WAS DELIVERED TO PAY THE RENT BEFORE A NOTICE TO VACATE MAY   BE ISSUED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT 1-877-9TEXBAR   IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT AFFORD TO HIRE   AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST LEGAL   ASSISTANCE."          (a-2)  After a landlord gives a tenant an opportunity to cure   under Subsection (a-1), the landlord must give the tenant at least   14 days' written notice to vacate the premises before the landlord   files a forcible detainer suit. The notice to vacate must state the   reason for the notice and must include, in all capital letters in an   easily readable font and type size, the words "THIS IS NOT AN   EVICTION ORDER. THIS IS A DEMAND FOR POSSESSION OF THE PROPERTY.   AN EVICTION CASE MAY BE FILED AGAINST YOU 14 DAYS AFTER THE DATE   THIS NOTICE WAS DELIVERED. CALL THE STATE BAR OF TEXAS TOLL-FREE AT   1-877-9TEXBAR IF YOU NEED HELP LOCATING AN ATTORNEY. IF YOU CANNOT   AFFORD TO HIRE AN ATTORNEY, YOU MAY BE ELIGIBLE FOR FREE OR LOW-COST   LEGAL ASSISTANCE."          (a-3)  If applicable, the written notice to vacate must   inform a residential tenant of the tenant's right to cure the   default for nonpayment of rent under Section 24.00605.          SECTION 3.05.  Chapter 24, Property Code, is amended by   adding Sections 24.00605, 24.012, and 24.013 to read as follows:          Sec. 24.00605.  RESIDENTIAL TENANT'S RIGHT TO CURE BEFORE   WRIT OF POSSESSION EXECUTED. (a) Except as provided by Subsection   (b), a residential tenant who is in default for nonpayment of rent   under a written or oral lease may cure the default and reinstate the   lease by paying all rent, court costs, and attorney's fees not later   than the date a writ of possession is executed.          (b)  Unless the lease provides otherwise, a tenant may not   cure a default if the tenant cured a default under this section in   the 12-month period preceding the date the writ of possession is   executed.          Sec. 24.012.  ACCESS TO EVICTION CASE INFORMATION. (a) In   this section:                (1)  "Eviction case" means a lawsuit brought under this   chapter to recover possession of leased or rented residential real   property from a tenant.                (2)  "Eviction case information" means all records and   files related to a filing of an eviction case, including petitions   and dispositions.          (b)  This section applies to an eviction case in which an   order granting limited dissemination of eviction case information   has not been entered under Section 24.013.          (c)  The court clerk shall allow access to eviction case   information only to:                (1)  a party to the action, including a party's   attorney;                (2)  a person who provides the clerk with:                      (A)  the names of at least one plaintiff and one   defendant; and                      (B)  the address of the premises, including any   apartment or unit number;                (3)  a resident of the premises who:                      (A)  provides the clerk with the name of one of the   parties or the case number; and                      (B)  shows proof of residency;                (4)  a person in accordance with a court order, which   may be granted ex parte, issued on a showing of good cause;                (5)  a person in accordance with a court order issued at   the time the judgment in the case is entered, if the judgment is   entered:                      (A)  for the plaintiff after a trial; and                      (B)  after the 60th day after the date the   complaint was filed; or                (6)  any other person after the 60th day after the date   the complaint was filed:                      (A)  if the plaintiff prevailed in the action   before the 60th day after the date the complaint was filed; or                      (B)  if the case involved residential real   property purchased at a foreclosure sale and judgment against all   defendants was entered for the plaintiff after a trial.          (d)  If a default or default judgment is set aside after the   60th day after the date the complaint was filed, this section   applies as if the complaint had been filed on the date the default   or default judgment is set aside.          (e)  This section may not be construed to prohibit the court   from issuing an order that bars access to eviction case information   if stipulated by the parties to the case.          (f)  For purposes of this section, good cause for access to   eviction case information includes the gathering of:                (1)  newsworthy facts by a journalist as defined by   Article 38.11, Code of Criminal Procedure; and                (2)  evidence by a party to the eviction case solely for   the purpose of filing a request for judicial notice.          (g)  After the filing of an eviction case, the court clerk   shall mail notice to each defendant named in the case.  The notice   must be mailed to the address provided in the complaint.  The notice   must contain a statement that an eviction case has been filed   against the defendant and that access to the eviction case   information will be delayed for 60 days except to a party, an   attorney for one of the parties, a person who has good cause for   access as determined by a court, or any other person who provides to   the clerk:                (1)  the names of at least one plaintiff and one   defendant in the case and provides to the clerk the address,   including any applicable apartment or unit number, of the subject   premises; or                (2)  the name of one of the parties in the case or the   case number and can establish through proper identification that   the person resides at the address identified in the case.          (h)  The notice must also contain:                (1)  the name and telephone number of the county bar   association for the county in which the case is filed;                (2)  the name and telephone number of any entity that   requests inclusion on the notice and demonstrates to the   satisfaction of the court that the entity has been certified by the   State Bar of Texas as a lawyer referral service and maintains a   panel of attorneys qualified in the practice of landlord-tenant law   under the minimum standards for a lawyer referral service   established by the State Bar of Texas and Chapter 952, Occupations   Code;                (3)  the following statement: "The State Bar of Texas   certifies lawyer referral services in Texas and publishes a list of   certified lawyer referral services. To locate a lawyer referral   service in your area, access the State Bar's Internet website at   www.texasbar.com or call 1-877-9TEXBAR.";                (4)  the names and telephone numbers of offices that   provide legal services at low or no cost to low-income persons in   the county in which the action is filed; and                (5)  a statement that a person receiving the notice may   call the telephone numbers described in the notice for legal advice   regarding the case.          (i)  The court clerk shall mail a notice required under this   section not earlier than the 24th hour and not later than the 48th   hour after the time the eviction case is filed, excluding weekends   and holidays.          (j)  The court clerk shall mail separately to the subject   premises one copy of the notice addressed to "all occupants."  The   notice does not constitute service of the summons and complaint.          Sec. 24.013.  LIMITED DISSEMINATION OF EVICTION CASE   INFORMATION. (a) In this section, "eviction case" and "eviction   case information" have the meanings assigned by Section 24.012.          (b)  Concurrently with a final judgment or dismissal in an   eviction case or on petition of a defendant in an eviction case   after a final judgment or dismissal in the case, a court shall enter   an order of limited dissemination of the eviction case information   pertaining to the defendant if:                (1)  the judgment is or was entered in favor of the   defendant;                (2)  the eviction case is or was dismissed without any   relief granted to the plaintiff;                (3)  the defendant is or was a tenant not otherwise in   default and the eviction case was brought by the landlord's   successor in interest following foreclosure; or                (4)  at least three years have elapsed from the date of   the final judgment in the eviction case.          (c)  Concurrently with a final judgment or dismissal in an   eviction case or on petition of a defendant in an eviction case   after a final judgment or dismissal in the case, a court may order   the limited dissemination of eviction case information pertaining   to the defendant if the court finds that:                (1)  the limited dissemination of the eviction case   information is in the interest of justice; and                (2)  the interest of justice is not outweighed by the   public's interest in knowing the eviction case information.          (d)  If an order is entered granting limited dissemination of   eviction case information pertaining to a defendant under this   section:                (1)  all courts or court clerks shall delete or redact   all index references to the name of the defendant that relate to the   eviction case information from the public records; and                (2)  except to the extent permitted by federal law, a   credit reporting agency, a person who regularly collects and   disseminates eviction case information, or a person who sells   eviction case information may not:                      (A)  disclose the existence of the eviction case;   or                      (B)  use the eviction case information as a factor   in determining a score or recommendation in a tenant screening   report regarding the defendant.          (e)  A person who knowingly violates Subsection (d) is liable   to an injured party for:                (1)  actual damages;                (2)  exemplary damages of $1,000; and                (3)  reasonable attorney's fees and court costs.          (f)  Notwithstanding Section 41.004(a), Civil Practice and   Remedies Code, a court shall award exemplary damages under   Subsection (e)(2) to the injured party irrespective of whether the   party is awarded actual damages.          SECTION 3.06.  The heading to Section 92.011, Property Code,   is amended to read as follows:          Sec. 92.011.  [CASH] RENTAL PAYMENTS.          SECTION 3.07.  Section 92.011, Property Code, is amended by   adding Subsection (b-1) to read as follows:          (b-1)  A landlord shall apply any payment received from a   tenant to unpaid rent before applying the payment to a fee, charge,   or other sum of money the tenant owes that is not rent. This   subsection applies without regard to the method of payment.          SECTION 3.08.  Section 92.019(a-1), Property Code, is   amended to read as follows:          (a-1)  For purposes of this section, a late fee is considered   reasonable if[:                [(1)]  the late fee is not more than the lesser of [:                      [(A)  12 percent of the amount of rent for the   rental period under the lease for a dwelling located in a structure   that contains not more than four dwelling units; or                      [(B)]  10 percent of the amount of rent for the   rental period under the lease or $75 [for a dwelling located in a   structure that contains more than four dwelling units; or                [(2)  the late fee is more than the applicable amount   under Subdivision (1), but not more than uncertain damages to the   landlord related to the late payment of rent, including direct or   indirect expenses, direct or indirect costs, or overhead associated   with the collection of late payment].          SECTION 3.09.  The changes in law made by this article to   Chapters 24 and 92, Property Code, apply only to a lease or rental   agreement entered into or renewed on or after the effective date of   this article. A lease or rental agreement entered into or renewed   before the effective date of this article is governed by the law in   effect immediately before the effective date of this article, and   the former law is continued in effect for that purpose.          SECTION 3.10.  Not later than January 1, 2026, the Texas   Supreme Court shall adopt the rules necessary to implement Sections   24.012 and 24.013, Property Code, as added by this article.   ARTICLE 4. PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS          SECTION 4.01.  Chapter 5, Tax Code, is amended by adding   Section 5.17 to read as follows:          Sec. 5.17.  PROPERTY TAX RELIEF TO RENTAL HOUSEHOLDS. (a)     In this section:                (1)  "Fund" means the property tax relief to rental   households fund established under Section 30, Article VIII, Texas   Constitution.                (2)  "Rental household" means a household that rents   the household's primary residence.          (b)  The comptroller by rule shall establish a program to   provide annual payments to eligible rental households in an amount   determined under this section from money appropriated to the   comptroller for that purpose from the fund.          (c)  A rental household is eligible to receive a payment   under this section if the rental household:                (1)  has paid rent for the rental household's primary   residence to the same person for all 12 calendar months of the year   for which the rental household applies for the payment; and                (2)  submits an application for the payment before a   date prescribed by comptroller rule.          (d)  Not later than February 1 of each year, each person who   owns real property and leases that property to a rental household   for use as that household's primary residence shall file with the   comptroller an affidavit stating the amount of rent received by the   person from the rental household during the preceding calendar   year.          (e)  Subject to Subsection (f), an eligible rental household   is entitled to receive a payment under this section each year on a   date prescribed by comptroller rule in an amount equal to 10 percent   of the total amount of rent the rental household paid for its   primary residence during the preceding calendar year.          (f)  If the comptroller determines that the total amount of   payments from the fund to eligible rental households in a year as   determined under Subsection (e) would exceed an amount equal to 50   percent of the balance of the fund, the comptroller shall   proportionally reduce the amount of the payment to each eligible   rental household for that year by the amount necessary to prevent   the total amount of payments from the fund in that year from   exceeding 50 percent of the balance of the fund.          (g)  The comptroller:                (1)  by rule shall establish the procedure and   prescribe a form to be used by a rental household to apply for a   payment authorized by this section; and                (2)  may adopt additional rules necessary for the   implementation and administration of this section.   ARTICLE 5.  LEASED RESIDENTIAL REAL PROPERTY EXEMPTION          SECTION 5.01.  Subchapter B, Chapter 11, Tax Code, is   amended by adding Section 11.136 to read as follows:          Sec. 11.136.  LEASED RESIDENTIAL REAL PROPERTY.  (a)  In   this section:                (1)  "Department" means the Texas Department of Housing   and Community Affairs.                (2)  "Qualified residential real property" means real   property that:                      (A)  is a multifamily residential property that is   at least 15 years old and consists of or includes residential units   leased by the owner to lessees and used by those lessees as a   primary residence; and                      (B)  satisfies the eligibility requirements   prescribed by this section and department rule.          (b)  Subject to Subsection (c), a person is entitled to an   exemption from taxation by a school district of:                (1)  50 percent of the appraised value of qualified   residential real property the person owns, excluding the portion of   the appraised value of the property described by Subdivision (2),   if applicable; and                (2)  any increase in the appraised value of the   property that is attributable to the rehabilitation of the   property.          (c)  An exemption authorized under this section for   qualified residential real property:                (1)  is for a period of 15 consecutive tax years and may   be renewed as provided by department rule;                (2)  once allowed, need not be claimed in subsequent   years and continues to apply to the property until the property   changes ownership or no longer qualifies as qualified residential   real property; and                (3)  applies only to the value of that portion of the   property used for residential purposes of the lessee or lessees,   including common areas.          (d)  The department shall adopt rules necessary to implement   and administer this section. The rules adopted by the department   must:                (1)  designate the authority responsible for   determining eligibility for the exemption authorized by this   section in each appraisal district;                (2)  require a property owner to submit an eligibility   application on a form prescribed by the department to the   designated authority not later than January 15 of the tax year for   which the person first applies for the exemption;                (3)  require the designated authority to determine a   person's eligibility for the exemption, subject to the requirements   of Subsection (e); and                (4)  require the designated authority to provide to the   property owner not later than April 30 of the tax year for which the   person first applies for the exemption a certificate demonstrating   that the owner is eligible for the exemption, which must be   submitted by the owner with the application for the exemption filed   with the applicable chief appraiser.          (e)  The designated authority may not issue a certificate   described by Subsection (d)(4) to a property owner unless the owner   agrees in writing that, for the property that is the subject of the   eligibility application:                (1)  the monthly rent for at least 20 percent of the   residential rental units in the property may not:                      (A)  exceed 30 percent of 60 percent of the area   monthly median income, adjusted for family size; or                      (B)  annually increase for an existing tenant by   more than the product of the rent in the preceding year and the   greater of three percent or the percentage increase in the consumer   price index in this state as determined by the comptroller;                (2)  if applicable, the rental units described by   Subdivision (1) are distributed proportionally across different   unit types based on the number of bedrooms;                (3)  a tenant may not be evicted without cause;                (4)  the property owner will accept as tenants persons   who hold a voucher under Section 8, United States Housing Act of   1937 (42 U.S.C. Section 1437f), and market the property as   available for rent to persons who hold those vouchers;                (5)  the department will conduct a comprehensive annual   inspection to determine if the property complies with local and   state building standards and, if the property fails the exemption,   the owner is not entitled to the exemption authorized under this   section in that tax year unless the identified violations are cured   within 90 days of the failed inspection;                (6)  the owner will pay to the department an annual   compliance fee of $30 per residential rental unit subject to the   agreement to cover the costs associated with annual inspections and   monitoring;                (7)  the owner will secure an independent annual audit   to establish compliance with the provisions of Subdivision (1),   following the procedures for audits under Section 11.1826;                (8)  the owner will file in the real property records of   the county in which the property is located the agreement   prescribed by this subsection, which will constitute a restrictive   covenant for the property for each tax year the property receives an   exemption under this section; and                (9)  the owner will satisfy any additional requirements   prescribed by department rule.          (f)  The department may enter into an agreement or contract   with a county, municipality, or housing authority for the purpose   of administering the exemption authorized under this section.          (g)  Except as provided by Subsection (h), a property owner   who receives an exemption authorized under this section for   qualified residential real property for a tax year must deliver a   copy of the notice of appraised value for the property required by   Section 25.19 for that tax year and a copy of the tax bill for the   property required by Section 31.01 for that tax year to each   residential lessee of the property.  The owner must deliver the   copies of the appraisal notice and tax bill not later than the 30th   day after the date the owner receives each of those documents.          (h)  The department may prescribe a form to be used by a   property owner who receives an exemption authorized by this section   for qualified residential real property to provide notice to a   lessee of the property of the appraised value of and taxes due on   the property for a tax year. If the department prescribes the form   described by this subsection, the property owner shall, not later   than November 1 of each tax year, deliver a copy of that form   applicable to the current tax year to each lessee instead of   delivering the notices required to be delivered under Subsection   (g).          SECTION 5.02.  Section 11.43(b), Tax Code, is amended to   read as follows:          (b)  Except as provided by Subsection (c) and by Sections   11.136, 11.184, and 11.437, a person required to apply for an   exemption must apply each year the person claims entitlement to the   exemption.          SECTION 5.03.  Not later than January 1, 2026, the Texas   Department of Housing and Community Affairs shall adopt the rules   and forms necessary to implement Section 11.136, Tax Code, as added   by this article.          SECTION 5.04.  The change in law made by this article applies   only to an ad valorem tax year that begins on or after January 1,   2026.   ARTICLE 6. EFFECTIVE DATES          SECTION 6.01.  (a) Except as otherwise provided by this   section, this Act takes effect September 1, 2025.          (b)  Except as provided by Subsection (c) of this section,   Article 3 of this Act takes effect January 1, 2026.          (c)  Sections 3.01, 3.02, and 3.10 of this Act take effect   September 1, 2025.          (d)  Articles 4 and 5 of this Act take effect January 1, 2026,   but only if the constitutional amendment proposed by the 89th   Legislature, Regular Session, 2025, to authorize the legislature to   provide for an exemption from ad valorem taxation by a school   district of a portion of the market value of certain leased   residential real properties, to establish and prescribe the   permissible uses of the property tax relief to rental households   fund, and to include payments from the property tax relief to rental   households fund in the exception of certain appropriations to pay   for ad valorem tax relief from the constitutional limitation on the   rate of growth of appropriations is approved by the voters. If that   amendment is not approved by the voters, Articles 4 and 5 of this   Act have no effect.