HBA-NRS S.B. 1621 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1621
By: Barrientos
Urban Affairs
5/9/2001
Engrossed



BACKGROUND AND PURPOSE 

Tenants living in federally-subsidized housing become eligible for a
federal housing voucher under the Section 8 Housing Choice Voucher Program
when an owner converts the property to market rate housing. An owner who
converts a property is required by federal law to accept these vouchers
from residents who wish to remain in the building. Under current Texas law,
there are no provisions regarding a property owner's violation of the
owner's duty to accept Section 8 housing vouchers. Senate Bill 1621
establishes this requirement and sets forth civil penalties that may be
applied if an owner is found to have violated this requirement.  

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

Senate Bill 1621 amends the Property Code to prohibit an owner of a
subsidized or assisted housing development in which a housing conversion
has occurred or the owner's agent (owner), without good cause, from
refusing or failing to enter into a lease agreement with a tenant of the
development under the Section 8 Housing Choice Voucher Program (program)
for any reason related to the tenant's participation in the program. The
bill authorizes a tenant to bring a civil action against an owner of the
development if the owner without good cause refuses or fails to enter into
a lease agreement with the tenant.  

If in a civil action a court finds that the owner without good cause has
refused or failed to enter into a lease agreement with a tenant, the court
is required to award to the tenant actual damages, attorney's fees, court
costs, any other reasonable costs, and any appropriate injunctive relief.
The bill also authorizes the court to award a civil penalty of $100 plus
three times the tenant's fair market monthly rent if the court finds that
the owner without good cause has refused or failed to enter into a lease
agreement with a tenant, that the tenant, before bringing the action, gave
the owner a written demand that the owner enter into a lease agreement with
the tenant under the program, and that the owner refused or failed to enter
into the lease agreement before the expiration of the 10th day after the
date of receipt of the tenant's demand.  

The bill provides that it is a defense to a forcible detainer action that
the underlying basis of the claim for possession of the property, in whole
or in part, is the refusal or failure of the owner to enter in a lease
agreement with the defendant, absent good cause for the refusal or failure.
The bill provides that the owner has the burden of pleading and proving
good cause to refuse or fail to enter into a lease agreement with the
tenant.  

EFFECTIVE DATE

September 1, 2001.