HBA-CCH H.B. 557 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 557 By: Dukes Business & Industry 3/29/2001 Introduced BACKGROUND AND PURPOSE Currently, Texas has fewer laws and regulations governing the relationship between a landlord and a tenant of a manufactured home community (community) than there are for the rental of other types of properties. As a result, many Texas tenants of a community endure unfair rental practices, including surprise rent increases, unfair or retaliatory evictions, harassment of tenant organizations, and month-to-month rentals without a lease agreement. House Bill 557 requires landlords to provide tenants with a lease agreement, requires landlords to maintain a healthy, safe, and functional community, prohibits landlords from entering tenants' homes without specified justifiable reasons, prohibits landlords from interfering with tenants' meetings, and sets forth acceptable grounds for eviction. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 557 amends the Property Code relating to the relationship between a landlord and a tenant who leases property in a manufactured home community (community). The bill does not apply to the relationship between a tenant who leases a manufactured home from the landlord, or a landlord who leases property in the community and a tenant who leases the property for the placement of personal property to be used for human habitation, including a recreational vehicle and excluding a manufactured home (Sec. 94.002). At the time a landlord receives a prospective tenant's application, the landlord is required to provide a copy of the proposed lease agreement and the community rules (Sec. 94.051). A landlord is required to offer the tenant a lease agreement of at least one year, unless the tenant requests a shorter term (Sec. 94.052). The bill specifies the information a lease agreement is required to contain, and makes provisions for renewing the lease (Secs. 94.053 and 94.055). The bill prohibits a landlord from entering a tenant's home except in a case of emergency, a tenant's abandonment of the home, or when the tenant is present and consents or provides prior written consent for a specified date and time. The tenant is authorized to revoke the consent through written notification without a penalty (Sec. 94.004). The tenant is required to notify the landlord in writing of any change in the tenant's primary residence. If the tenant makes the request at the signing of the lease agreement or renewal, the landlord is required to mail all notices required by the lease agreement to the tenant's primary residence. Provisions regarding notice by mail do not apply if the notice is hand delivered to and received by a person occupying the leased premises (Sec. 94.009). A landlord is authorized to terminate the lease agreement and evict a tenant if the tenant fails to timely pay rent, the landlord notifies the tenant in writing that the rent is delinquent, and the tenant has not paid the delinquent payment before the 10th day after the date the tenant receives the notice. A landlord is also authorized to terminate the lease agreement and evict the tenant if the tenant violates a reasonable lease provision, and the violation is likely to recur and would have a significant adverse impact on the community. A landlord is prohibited from terminating the agreement and evicting the tenant for failing to timely pay a fee or charge. A tenant may cure a default and reinstate the lease agreement only once during the lease term (Secs. 94.206 and 94.207). A landlord is required to refund all or a portion of the security deposit unless the tenant fails to fulfill the lease agreement or there are damages or charges for which the tenant is legally liable (Secs. 94.103- 94.105). The landlord is required to maintain a healthy, safe, and functional manufactured home community. If the landlord fails to fulfill maintenance requirements, the tenant is authorized to remedy the condition and deduct the cost from a subsequent rent payment unless the cost exceeds $500 or the cost of a month's rent. The bill provides that repairs based on a tenant's notice must be made by a company, contractor, or repairman that advertises in a telephone directory or newspaper in the manufactured home community's municipality or county or adjacent county (Secs. 94.152- 94.154). A landlord is prohibited, within six months after the date a tenant exercises a remedy, from retaliating against a tenant who exercises a remedy granted by the lease agreement or by law, requests a repair, or complains to a relevant authority of the condition of the community (Sec. 94.251). The bill provides that each common area facility must be available to tenants (Sec. 94.005). A landlord is prohibited from interfering with tenants' meetings related to manufactured home living. Any limitation on meetings must be included in the community rules (Sec. 94.006). The bill specifies penalties for a landlord who recklessly violates these provisions or who acts in bad faith, and for a tenant who files a suit in bad faith or for purposes of harassment (Secs. 94.301 and 94.302). The bill also sets forth provisions regarding a landlord's disclosure of information about ownership and management, eviction procedures, a landlord's authorization to terminate a lease for a change in land use, cash payment procedures, and the filing of a law suit against a landlord, as it relates to the authorized agent for service of process (Secs. 94.010, 94.204, 94.205, 94.007, and 94.011). A provision in the lease agreement or a rule in the community that waives or limits the rights of tenants or the obligations of landlords in this bill is void (Sec. 94.003). EFFECTIVE DATE September 1, 2002.