HBA-ATS C.S.H.B. 2015 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2015 By: Dukes Business & Industry 4/27/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently no state regulation exists for tenants living in manufactured housing communities. Accordingly, they may be subjected to surprise increases in rent, harassment over tenant organizations, and evictions without good cause or due to retaliation. In addition, operators of these communities are not required to offer tenants a lease agreement with a minimum term. This allows operators to rent the sites on a month-to-month basis, often without a lease. C.S.H.B. 2015 establishes a new chapter in the Property Code that governs the relationship between landlords and tenants in a manufactured home community. It requires a landlord to offer a lease term of one year, six months, or one month, and authorizes the tenant to choose any lease term offered. Under this bill, a landlord who only offers lease agreements with a term of one year or more is exempted from this requirement. At the expiration of a lease agreement, the lease is automatically renewed for the lease period and under the same terms as the previous lease agreement unless the tenant notifies the landlord by the 60th day before the date the lease agreement terminates that the tenant intends to surrender the lot or the landlord changes the lease terms as provided by the new chapter. This bill also authorizes a landlord 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 tendered the delinquent payment to the landlord before the 10th day after the tenant receives the notice. A landlord is prohibited from terminating the lease agreement and evicting the tenant if the tenant fails to timely pay a fee or charge required under the lease agreement. However, a landlord is authorized to terminate the lease agreement and evict a tenant for a violation of a lease provision if the provision is reasonable and the tenant's violation of the provision is likely to continue or reoccur, would have a significant adverse impact on the community, or poses a substantial health or safety risk to other tenants in the community 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. SECTION BY SECTION ANALYSIS SECTION 1. Sets forth the findings of the legislature. SECTION 2. Amends Title 8, Property Code, by adding Chapter 94, as follows: CHAPTER 94. MANUFACTURED HOME TENANCIES SUBCHAPTER A. GENERAL PROVISIONS Sec. 94.001. DEFINITIONS. Defines "landlord," "lease agreement," "manufactured home," "manufactured home community," "manufactured home lot," "manufactured home community rules," "normal wear and tear," "premises," and "tenant." Sec. 94.002. APPLICABILITY. Provides that this chapter applies only to the relationship between a landlord who leases property in a manufactured home community (community) and a tenant leasing property in the community. Provides that this chapter does not apply to the relationship between a landlord who owns a manufactured home and a tenant who leases the manufactured home from the landlord or a landlord who leases property in a community and a tenant leasing property in the community for the placement of personal property to be used for human habitation, including a recreational vehicle and excluding a manufactured home. Sec. 94.003. WAIVER OF RIGHTS AND OBLIGATIONS. Provides that a provision in a lease agreement or a community rule that waives or limits a right granted to a tenant or an obligation imposed on a landlord under this chapter is void and unenforceable. Sec. 94.004. LANDLORD'S RIGHT OF ENTRY. Prohibits a landlord from entering a tenant's premises unless the tenant is present and gives consent or the tenant has previously given written consent, which must specify the date and time entry is permitted and is valid only for the date and time specified. Authorizes the tenant to revoke the consent at any time by notifying the landlord in writing that the consent has been revoked. Authorizes the landlord to enter the tenant's manufactured home (home) in a reasonable manner and at a reasonable time if an emergency exists or the tenant abandons the home. Sec. 94.005. COMMON AREA FACILITIES. Provides that each common area facility (facility) must be open or available to tenants. Requires the landlord to post the hours of operation or availability of the common area facility in a conspicuous place at the facility. Sec. 94.006. TENANT MEETINGS. Prohibits a landlord from interfering with meetings held by tenants. Provides that limitations on meetings in the facilities must be included in the community rules. Sec. 94.007. CASH RENTAL PAYMENTS. Requires a landlord to accept a tenant's cash rental payment unless the lease requires the tenant to make rental payments by check, money order, or other traceable or negotiable instrument. Requires a landlord who receives cash to provide the tenant with a written receipt and enter the payment date and amount in a record book maintained by the landlord. Authorizes a tenant or a governmental entity or civic association acting on the tenant's behalf to file suit against a landlord to enjoin a violation of this section. Sec. 94.008. MANUFACTURED HOME COMMUNITY RULES. Authorizes a landlord to adopt reasonable community rules. Provides that community rules are considered part of the lease agreement regardless of whether the rules are expressly included in the lease. Authorizes a landlord to add to or amend community rules and sets forth the effective date for the added or amended rule. Sec. 94.009. NOTICE TO TENANT AT PRIMARY RESIDENCE. Requires a landlord to mail all notices required by the lease agreement, by this chapter, or by Chapter 24 (Forcible Entry and Detainer) to the tenant's primary residence if the manufactured home lot (lot) is not the tenant's primary residence. Requires the tenant to notify the landlord in writing of any change in the tenant's primary residence address and provides that oral notices of change are insufficient. Authorizes sending the notice by regular U.S. mail. Provides that it is considered sent on the date of postmark. Provides that if there is more than one tenant on a lease agreement, the landlord is not required to send notices to the primary residence of more than one tenant. Provides that this section does not apply if notice is actually hand delivered to and received by a person occupying the leased premises. Sec. 94.010. DISCLOSURE OF OWNERSHIP AND MANAGEMENT. Describes the information concerning the owner of the premises and the managing entity that is required to be disclosed by a landlord to a tenant or to any governmental official or employee acting in an official capacity. Describes how a landlord is to provide disclosure to a tenant. Authorizes the disclosure of information to a tenant to be made before the tenant requests the information. Describes how a landlord is to provide disclosure to a governmental official or employee. Authorizes a correction to the information to be made by any of the methods authorized. Provides that the correction must be made within the period prescribed by this section for providing the information. Authorizes an owner or property manager to disclose either an actual name or an assumed name if an assumed name certificate has been recorded with the county clerk. Provides that a landlord who provides information under this section violates this section if the information becomes incorrect because a name or address changes and the landlord fails to correct the information given to a tenant on or before the 15th day after the information becomes incorrect. Sec. 94.011. LANDLORD'S AGENT FOR SERVICE OF PROCESS. Provides that the owner's management company, on-site manager, or rent collector for the community is the owner's authorized agent for service of process in a lawsuit by a tenant to enforce a legal obligation of the owner as landlord of the community, unless the owner's name and business street address have been furnished in writing to the tenant. Sec. 94.012. VENUE. Provides that venue for an action under this chapter is governed by Section 15.0115 (Landlord-Tenant), Civil Practice and Remedies Code. SUBCHAPTER B. LEASE AGREEMENT Sec. 94.051. INFORMATION TO BE PROVIDED TO PROSPECTIVE TENANT. Requires the landlord, at the time the landlord receives an application from a prospective tenant, to give the prospective tenant the proposed lease agreement for the community and any community rules. Sec. 94.052. TERM OF LEASE. Requires a landlord to offer a lease term of one year, six months, or one month. Authorizes the tenant to choose any lease term offered. Exempts a landlord who only offers lease agreements with a term of one year or more. Sec. 94.053. LEASE REQUIREMENTS AND DISCLOSURES. Provides that a lease agreement must be typed or printed in legible handwriting and signed by the landlord and the tenant. Requires the landlord to provide the tenant with a copy of the lease agreement after the lease has been signed. Enumerates the provisions that must be contained in the lease agreement. Provides that a lease provision requiring an increase in rent or in fees or charges during the lease term must be initialed by the tenant or the provision is void. Provides that a lease agreement that contains a provision that is illegal or unconscionable is void. Sec. 94.054. STATUTORY LEASE TERMS IMPLIED AS MATTER OF LAW. Provides that each lease term required by this chapter is considered included in a lease agreement as a matter of law. Sec. 94.055. RENEWAL OF LEASE. Provides that at the expiration of a lease agreement, the agreement is automatically renewed for the lease period and under the same terms as the previous lease agreement unless the tenant notifies the landlord by the 60th day before the date the lease agreement terminates that the tenant intends to surrender the lot or the landlord changes the lease terms as provided by this section. Requires the landlord, 90 days before the date the lease agreement terminates, to offer the tenant a renewal lease agreement. Provides that the renewal offer must disclose the proposed rental amount and any other changes in the lease terms. Sec. 94.056. PENALTY FOR LATE PAYMENT. Authorizes a landlord to assess a penalty for late payment of rent or another fee or charge if the rent is not paid before the fifth day after the payment is due. SUBCHAPTER C. SECURITY DEPOSIT Sec. 94.101. SECURITY DEPOSIT. Defines "security deposit." Sec. 94.102. SECURITY DEPOSIT PERMITTED. Authorizes the landlord to require a security deposit (deposit) at the time the tenant executes the initial lease agreement. Requires the landlord to keep accurate records relating to deposits. Sec. 94.103. OBLIGATION TO REFUND. Requires the landlord to refund the deposit by the 30th day after the tenant surrenders the lot, except as provided by this subchapter. Provides that the tenant's claim to the deposit takes priority over the claim of any creditor of the landlord. Sec. 94.104. CONDITIONS FOR RETENTION OF SECURITY DEPOSIT OR RENT PREPAYMENT. Prohibits a landlord who receives a deposit or rent prepayment (prepayment) for a lot from a tenant who fails to occupy the lot according to the lease agreement from retaining the deposit or prepayment if the tenant or landlord secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot before the lease begins. Authorizes a landlord who does secure a replacement tenant to retain and deduct from the deposit of prepayment either an amount agreed to in the lease agreement as a lease cancellation fee or actual expenses incurred by the landlord in securing the replacement tenant. Sec. 94.105. RETENTION OF SECURITY DEPOSIT; ACCOUNTING. Authorizes a landlord to deduct from the deposit damages and charges for which the tenant is legally liable under the lease agreement or as a result of breaching the lease before returning the deposit. Prohibits the landlord from retaining any portion of the deposit to cover normal wear and tear. Requires the landlord to give to the tenant the balance of the deposit together with a written description and itemized list of all deductions unless the tenant owes rent and there is no dispute as to the amount of rent owed. Sec. 94.106. LIABILITY OF LANDLORD. Provides that a landlord who fails to comply with this subchapter is not entitled to recover amounts that may be due under this chapter and must immediately remit to the tenant the full amount of the deposit. SUBCHAPTER D. PREMISES CONDITION, MAINTENANCE, AND REPAIRS Sec. 94.151. WARRANTY OF HABITABILITY. Provides that the landlord covenants and warrants that the lot is suitable for the installation of a manufactured home when the landlord executes the lease agreement. Sec. 94.152. LANDLORD'S MAINTENANCE OBLIGATIONS. Enumerates what is required of the landlord to maintain the upkeep of the community. Sec. 94.153. LANDLORD'S REPAIR OBLIGATIONS. Requires a landlord to make a diligent effort to repair or remedy a condition if the tenant specifies the condition in a notice to the person to whom or to the place at which rent is normally paid, if the tenant is not delinquent in the payment of rent at the time notice is given, and if the condition materially affects the physical health or safety of an ordinary tenant. Provides that a landlord does not have a duty during the lease term or a renewal or extension to repair or remedy a condition caused by the tenant, a lawful occupant of the tenant's lot, a member of the tenant's family, or a guest or invitee of the tenant, unless the condition was caused by normal wear and tear. Sec. 94.154. TENANT'S REPAIR AND DEDUCTION REMEDY. (a) Authorizes the tenant, if the landlord fails to comply with Section 94.153, to have the condition repaired or remedied and to deduct the cost from a subsequent rent payment. (b) Prohibits the tenant's deduction for the cost of the repair or remedy from exceeding the amount of one month's rent under the lease agreement or $500, whichever is greater. Provides that if the tenant's rent is subsidized in whole or in part by a governmental agency, the deduction limitation of one month's rent means the fair market rent for the manufactured home lot and not the rent that the tenant pays. Requires the governmental agency subsidizing the rent to determine the fair market rent. Provides that if the governmental agency does not make a determination, the fair market rent means a reasonable amount of rent under the circumstances. (c) Authorizes the repairs and deductions under this section to be made as often as necessary provided that the total repairs and deductions in any one month do not exceed one month's rent or $500, whichever is greater. (d) Authorizes repairs under this section to be made only if all of the enumerated requirements relating to repair or remedy of a condition which might effect the tenant's health are met. (e) Provides that at least one of the notices given under Subsection (d) must state that the tenant intends to repair or remedy the condition. Provides that the notice must also contain a reasonable description of the intended repair or remedy. (f) Authorizes a tenant to have the condition repaired or remedied under specified circumstances if the requirements prescribed by Subsections (d) and (e) are met. (g) Provides that repairs made based on a tenant's notice must be made by a company, contractor, or repairman listed at the time of the tenant's notice of intent to repair in the yellow or business pages of the telephone directory or in the classified advertising section of a newspaper of the municipality or county in which the community is located or in an adjacent county. Prohibits repairs from being made by the tenant, the tenant's immediate family, the tenant's employer or employees, or a company in which the tenant has an ownership interest unless agreed to by the landlord. Prohibits repairs from being made to the foundation or load-bearing structural elements of the lot. (h) Provides that repairs made that are based on a tenant's notice must comply with applicable building codes. (i) Authorizes a landlord and a tenant to mutually agree for the tenant to repair or remedy, at the landlord's expense, any condition on the lot. (j) Prohibits the tenant from contracting for labor or materials in excess of the amount the tenant is authorized to deduct under this section. Provides that a landlord is not liable to the persons who furnish labor or materials to repair or remedy the condition. Provides that a repairmen or supplier does not have a lien for materials or services as a result of the repairs contracted for by the tenant. (k) Requires the tenant to furnish, along with payment of the rent's balance, a copy of the repair bill and the receipt for its payment when deducting the costs of repairs from the rent payment. (l) Provides that a landlord is liable, if the landlord repairs or remedies the condition after the tenant has contracted a repairman who has not yet commenced work, for the cost incurred by the tenant to pay the repairman's traveling charge. Authorizes the tenant to deduct this charge from the tenant's rent as if it were a repair cost. SUBCHAPTER E. TERMINATION, EVICTION, AND FORECLOSURE Sec. 94.201. LANDLORD'S REMEDY FOR EARLY TERMINATION. Provides that the maximum amount a landlord may recover as damages for a tenant's early termination of a lease agreement is an amount equal to three months' rent, except that if the tenant's lot is reoccupied before the 21st day after the tenant surrenders the lot, the maximum amount the landlord may obtain as damages is an amount equal to one month's rent. Sec. 94.202. LANDLORD'S DUTY TO MITIGATE DAMAGES. Provides that a landlord has a duty to mitigate damages if a tenant abandons the lot before the end of the lease term. Provides that a provision of a lease agreement that purports to waive a right or to exempt a landlord from a liability or duty under this section is void. Sec. 94.203. LANDLORD'S TERMINATION OF LEASE PERMITTED IN LIMITED CIRCUMSTANCES. Authorizes a landlord to terminate or refuse to renew a lease agreement only as provided by this subchapter. Sec. 94.204. EVICTION PROCEDURES GENERALLY. Authorizes a landlord to prevent a tenant from entering the lot, evict a tenant, or require the removal of a manufactured home from the lot only after obtaining a writ of possession under Chapter 24. Requires the court to determine if the grounds for eviction as provided by this subchapter are established. Prohibits the court from approving the eviction of the tenant if it finds that the landlord initiated the eviction proceeding to retaliate against the tenant in violation of Section 94.251. Prohibits a court from issuing a writ of possession in favor of a landlord before the 30th day after the judgment for possession is rendered. Requires the landlord to send written notice that the judgment has been rendered to the tenant or to the owner of the home if the tenant is not the owner and if the landlord is given written notice of the owner's name and address. Requires the landlord to send a written notice regarding the location of the home to the tenant or the owner if the landlord removes the manufactured home from the lot after executing a writ of possession for the lot. Sec. 94.205. TERMINATION FOR CHANGE IN LAND USE. Describes the conditions under which a landlord is authorized to terminate a lease agreement to change the community's land use. Specifies when the landlord is required to give the owner of the manufactured home notice. Sec. 94.206. TERMINATION AND EVICTION FOR VIOLATION OF LEASE. Authorizes a landlord to terminate the lease agreement and evict a tenant for a violation of a lease provision if the provision is reasonable and the tenant's violation of the provision is likely to continue or reoccur, would have a significant adverse impact on the community, or poses a substantial health or safety risk to other tenants in the community. Sec. 94.207. TERMINATION AND EVICTION FOR NONPAYMENT OF RENT. Authorizes a landlord 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 tendered the delinquent payment to the landlord before the 10th day after the tenant receives the notice. Prohibits a landlord from terminating the lease agreement and evicting the tenant if the tenant fails to timely pay a fee or charge required under the lease agreement. Authorizes a tenant, if a court renders a judgment for possession in favor of the landlord based solely on nonpayment of rent, to cure the default and reinstate the lease by paying into the court registry an amount equal to the delinquent rent payment and any fees and costs owed as determined by the court. Provides that the judgment for possession is released and prohibits the issuance of a writ of possession in favor of the landlord if the tenant cures the default as provided by this subsection. Authorizes a tenant to cure a default only once during the lease term after curing default after judgment for nonpayment of rent. SUBCHAPTER F. PROHIBITED ACTS Sec. 94.251. RETALIATION BY LANDLORD. Prohibits a landlord from retaliating in specified ways against a tenant because the tenant engages in certain lawful actions. Sec. 94.252. RESTRICTION ON SALE OF MANUFACTURED HOME. Prohibits a landlord from restricting the sale of a manufactured home. Provides that any restrictions on the sale of a home in a community must be expressly stated in the community rules. SUBCHAPTER G. REMEDIES Sec. 94.301. TENANT'S REMEDIES. Enumerates the remedies a person is authorized to recover from a landlord who violates this chapter. Requires a court to award treble damages and authorizes it to award additional punitive damages if the court finds that a landlord recklessly violated this chapter or acted in bad faith. Provides that a landlord who attempts to unlawfully evict a tenant, terminate a tenant's utility service, or prevent a tenant from entering the tenant's lot is presumed to have acted in bad faith, knowingly, or recklessly. Describes the relief a court is authorized to order. Specifies the conditions under which a person has a lien against the property on which the community is located. Sec. 94.302. LANDLORD'S REMEDIES. Specifies the remedies required to be awarded to the landlord by a court that finds that a tenant filed or prosecuted a suit under this chapter in bad faith or for purposes of harassment. Sec. 94.304. CUMULATIVE REMEDIES. Provides that the provisions of this chapter are not exclusive and are in addition to any other procedure or remedy provided by other law. Sec. 94.305. ADDITIONAL ENFORCEMENT BY LOCAL ORDINANCE. Provides that this chapter does not prohibit the adoption of a local ordinance that provides for additional enforcement of this chapter if the local ordinance is consistent with this chapter. SECTION 3. Effective date: September 1, 2000. SECTION 4. Makes application of this Act prospective. SECTION 5. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2015 differs from the original bill in the caption by providing that this Act relates to regulating leasing in certain manufactured home communities, rather than regulating leasing in certain manufactured home communities and to procedures for taking possession of manufactured home used as collateral. C.S.H.B. 2015 differs from the original bill by redesignating SECTION 1 of the original to SECTION 2. In new SECTION 1, the substitute sets forth the findings of the legislature. In redesignated SECTION 2, the substitute differs from the original by changing the definition of "lease agreement" in proposed Section 94.001, Property Code. The substitute specifies that a lease agreement is a written agreement, deletes rules from the provisions established by a lease agreement, and deletes the provision that a lease agreement includes an agreement renewing the terms of the lease. In proposed Section 94.001, the substitute differs from the original by changing the definition of "manufactured home community." The substitute deletes the provision that a manufactured home community is a parcel of land for which the primary use is for residential purposes. In proposed Section 94.001, the substitute differs from the original by changing the definition of "tenant" to make a nonsubstantive change. In proposed Section 94.001, the substitute differs from the original by including the definitions of "manufactured home lot," and "manufactured home community rules." In addition, the substitute includes the definition of "normal wear and tear," which is redesignated from proposed Section 94.104(c) without change. Accordingly, the substitute redesignates proposed Subdivisions (4), (5), and (6) to subdivisions (5), (8), and (9), respectively. The substitute differs from the original bill in proposed Section 94.002(a) by specifying that proposed Chapter 94 applies only to the relationship between a landlord who leases property in a manufactured home community (community) and a tenant leasing property in the community. The substitute differs from the original bill in proposed Section 94.002(b) by providing that proposed Chapter 94 does not apply to the relationship between a landlord who owns a manufactured home and a tenant who leases the manufactured home from the landlord or a landlord who leases property in a manufactured home community and a tenant leasing property in the manufactured home community for the placement of personal property to be used for human habitation, including a recreational vehicle and excluding a manufactured home, rather than providing that existing Chapter 91 does not apply to proposed Chapter 94. The substitute differs from the original bill by removing proposed Section 94.004(d), which would have authorized the landlord to enter the lot leased to a tenant in a reasonable manner and at a reasonable time if an emergency existed, the tenant abandoned the home, or maintenance of utilities, maintenance of the premises, or protection of the community was required. In proposed Section 94.005, the substitute differs from the original by deleting the provision that required each common area to be open to tenants at all reasonable hours. The substitute also makes nonsubstantive changes. The substitute differs from the original bill by redesignating proposed Section 94.007 to Section 94.006 and by prohibiting a landlord from interfering with meetings held by tenants that are related to manufactured home living, rather than related to manufactured home living or social or educational issues, except that any limitation on meeting by the tenants in the facilities must be included in the community rules. The substitute makes a nonsubstantive change. The substitute differs from the original bill by redesignating proposed Section 94.008 to Section 94.007 and by making a conforming change. The substitute differs from the original bill by redesignating proposed Section 94.006 to Section 94.008 and by removing the provision in proposed Section 94.006(a) that the adopted community rules are to govern the use of the community premises. The substitute makes a conforming change. In proposed Section 94.008(b), the substitute adds the provision that the community rules are part of the lease agreement regardless of whether the rules are expressly in the lease. The substitute makes nonsubstantive changes. The substitute also adds Section 94.008(c) to authorize the landlord to add to or amend community rules and to set forth the effective date for the added or amended rule. In proposed Section 94.009(a), the substitute differs from the original by changing from the leased premise to the manufactured home lot the place of abode that is not the primary residence of a tenant. The substitute also makes a conforming change. In proposed Section 94.009(d), the substitute makes a conforming change. In proposed Section 94.010(b), the substitute differs from the original by specifying that the tenant's request for information about the ownership and management of the community must be in writing. The substitute also makes a conforming change. In proposed Section 94.010(d), the substitute differs from the original by specifying that a governmental official's or employee's request for information about the ownership and management of the community must be in writing. In proposed Section 94.010(f), the substitute makes a nonsubstantive change. In proposed Section 94.010(g), the substitute differs from the original by providing that a landlord who provides information under this section violates this section if the information becomes incorrect because a name or address changes and the landlord fails to correct the information given to a tenant, rather than fails to correct the information given, on or before the 15th day after the information becomes incorrect. In proposed Section 94.051(2), the substitute differs from the original by requiring the landlord, at the time the landlord receives an application from a prospective tenant, rather than at the time a prospective tenant enters the premises of a community to discuss a prospective vacancy, to give the prospective tenant the proposed lease agreement for the community and any community rules. The substitute makes a nonsubstantive change. The substitute differs from the original bill by removing the text of proposed Section 94.052 of the original, which would have authorized a tenant who executed a lease agreement to cancel the agreement by notifying the landlord in writing by the fifth day after the tenant executed the agreement. In new Section 94.052, the substitute requires a landlord to offer a lease term of one year, six months, or one month, authorizes the tenant to choose any lease term offered, and exempts a landlord who only offers lease agreements with a term of one year or more. The substitute differs from the original bill by removing the text of proposed Section 94.053 of the original, which would have provided that a lease agreement must have been for a term of at least four years. New Section 94.053 is redesignated from proposed Section 94.055 of the original. In new Section 94.053(a), the substitute differs from the original by providing that a lease agreement must be typed or printed in legible handwriting and signed by the landlord and the tenant, rather than written in plain language and printed in at least 10-point type or legible handwriting and signed by the landlord and the tenant. In new Section 93.053(c), the substitute differs from the original by removing from the information required in a lease agreement: the description of the tenant's manufactured home lot; clear and realistic examples of how calculating the amount of any change in the monthly rental amount of during the lease term would apply in each year of the lease term or the specific amount of any change in the rental amount during the lease term; clear and realistic examples of how calculating the amount of any change in any late charge or fee or charge for any service and facility during the lease term would apply in each year of the lease term or the specific amount of any change in the fee or charge during the lease term; a list of services and facilities the landlord will provide; disclosure of the statutory warranty of habitability provided by proposed Section 94.151; the name of the person who may be contacted for emergency repairs; and the name and address of the owner of the community. The substitute also differs from the original by adding the following provisions that must be contained in the lease agreement: the interval at which rent must be paid and the date on which periodic rental payments are due; the name and address of the person designated to accept official notices for the landlord; and a description of the procedures for amending the community rules. The substitute makes conforming changes. The substitute differs from the original bill by removing the text of proposed Section 94.054 of the original, which would have authorized the landlord to set any rental amount during the first four-year lease term, including an increase in the rental amount, provided that the amount or method of determining the increased amount had been fully and clearly determinable and disclosed in the lease agreement and binding on the landlord for the term of the lease agreement. New Section 94.054 is redesignated from proposed Section 94.056 of the original. The substitute differs from the original bill by redesignating proposed Section 94.057 to Section 94.055. In redesignated Section 94.055(a), the substitute differs from the original by providing that at the expiration of a lease agreement, the agreement is automatically renewed for the lease period, rather than a term of four years, and under the same terms as the previous lease agreement unless the tenant notifies the landlord by the 60th, rather than the 30th, day before the date the lease agreement terminates that the tenant intends to surrender the lot, rather than the premises, or the landlord changes the lease terms as provided by this section. In redesignated Section 94.055(b), the substitute differs from the original by requiring the landlord, 90, rather than 180, days before the date the lease agreement terminates, to offer the tenant a renewal lease agreement, and providing that the renewal offer must disclose the proposed rental amount and any other changes in the lease terms, rather than the proposed rental amount, any change in fees or charges, and any other changes in the lease or the community rules for the renewal term. The substitute also makes conforming and nonsubstantive changes. The substitute differs from the original bill by redesignating proposed Section 94.058 to Section 94.056 and by authorizing a landlord to assess a penalty for late payment of rent or another fee or charge if the rent is not paid before the fifth, rather than the 16th, day after the payment is due. The substitute also removes the provision that would have prohibited that penalty from exceeding four percent of the amount owed and the authorization that the penalty would have been imposed only once for each late payment. The substitute differs from the original bill by removing proposed Sections 94.059 and 94.060. Proposed Section 94.059 defined a "use-based fee" or "use-based charge;" prohibited a landlord from assessing a fee or charge to a tenant, other than the rental payment, unless the fee or charge was a use-based fee or charge disclosed in the lease agreement; provided that a use-based fee or charge would have only been increased as disclosed in the lease agreement; provided that any increase would have had to have been reasonably related to an increase in the landlord's costs for providing the service or facility; and described the types of fees and charges that were prohibited. Proposed Section 94.060 authorized a tenant to assign the lease agreement to the purchaser of the tenant's home or sublease the manufactured home lot; provided that the tenant would have had to have provided the landlord with notice of an assignment or sublease by the 30th day before the assignment or sublease took effect; authorized the landlord to refuse to permit the assignment or sublease, by the seventh day before the assignment or sublease took effect, if the landlord had provided the tenant with a written notice of the refusal that had stated the reasons for the refusal, and the reason for the refusal was that the assignee or sublessee was financially unable to pay the lease amount or would have posed a hazard to the safety or interfered with the quiet enjoyment of the tenants of the community; prohibited the landlord from refusing to permit an assignment or sublease because of the age or condition of the manufactured home or because the assignment was from the tenant to the tenant's bona fide creditor, or from imposing an application or other fee on the prospective assignee or sublessee. The substitute differs from the original bill in proposed Section 94.102(a) by removing the condition limiting the security deposit to no more than one month's rent. The substitute differs from the original bill in proposed Section 94.103(a) by requiring the landlord to refund the security deposit by the 30th day after the tenant surrenders the manufactured home lot, rather than the premises, and by making a conforming change. The substitute differs from the original bill by incorporating proposed Sections 94.104 and 94.105 of the original into new Section 94.104 and 94.105 and by introducing the provision in new Section 91.104 that prohibits a landlord who receives a deposit or rent prepayment (prepayment) for a lot from a tenant who fails to occupy the lot according to the lease agreement from retaining the deposit or prepayment if the tenant or landlord secures a replacement tenant satisfactory to the landlord and the replacement tenant occupies the lot before the lease begins. Under the substitute, a landlord who does secure a replacement tenant is authorized to retain and deduct from the deposit of prepayment either an amount agreed to in the lease agreement as a lease cancellation fee or actual expenses incurred by the landlord in securing the replacement tenant. In addition, the substitute differs from the original by removing the provision that authorized the landlord to retain a portion of the security deposit if the tenant failed to surrender the premises in a condition that was reasonably clean and free of debris. The substitute also introduces the extra condition that a landlord cannot deduct rent unless there is no dispute as to the amount of rent owed. Additionally, the substitute removes the provision mandating that the balance of the deposit be mailed by the 30th day after the tenant surrenders the premises. The substitute differs from the original in proposed Section 94.151 by providing that the landlord covenants and warrants that the lot, rather than the leased premises, is suitable for the installation of a manufactured home, rather than is fit for human habitation, when the landlord executes the lease agreement. The substitute differs from the original in proposed Section 94.152 by changing some of the obligations of a landlord to maintain the upkeep of the community. The landlord is required to maintain all common areas of the community in a clean and useable, rather than safe, condition. The landlord is required to maintain all utility lines installed in the community by the landlord, rather than maintain all utility lines over which the landlord has control to the point at which those lines connect to the home. The landlord is required to maintain individual mailboxes for the tenants in accordance with U.S. Postal Service regulations unless mailboxes are permitted to be located on the tenant' lot, rather than maintain in a secure location individual mailboxes for the tenants. The landlord is required to maintain roads in the community in a manner that provides access to each tenant's lot, rather than in good and safe condition, including providing snow removal, adequate drainage, and water supply, and assume responsibility for any damage to a vehicle that is the direct result of an unrepaired or poorly maintained road in the community. The landlord is required to maintain the integrity of the lot unless the integrity is compromised as the result of incorrect installation of the home by a person other than the landlord or negligent maintenance of the foundation by the tenant, including the failure to periodically level the home or prevent leaks originating within the home. In proposed Section 94.152, the substitute also removes some of the obligations previously imposed on a landlord: to maintain in good working order appliances and recreational facilities and all electrical, plumbing, and sanitary systems provided by the landlord; to exterminate rodents and other pests dangerous to the health and safety of tenants in the interior of a home if the infestation in the home occurs as a result of infestation in the common areas; to maintain the premises as necessary to prevent the accumulation of stagnant water and the detrimental effects of moving water; and to maintain the common areas so that those areas are free from plant growth that is detrimental to the health of the tenants. In proposed Section 94.152, the substitute also introduces a new obligation: to repair or remedy conditions on the premises that pose a substantial health or safety risk to tenants of the community. The substitute differs from the original bill in proposed Section 91.153(a) by requiring a landlord to make a diligent effort to repair or remedy a condition if the tenant specifies the condition in a notice to the person to whom or to the place at which rent is normally paid, if the tenant is not delinquent in the payment of rent at the time notice is given, and if the condition materially affects the physical health or safety of an ordinary tenant. Under the original bill, proposed Section 91.153(a) required the landlord to make repairs the landlord was obligated to make or enter into a contract with a third party to make the repairs. The substitute also differs from the original bill in proposed Section 91.153(b) by providing that a landlord does not have a duty during the lease term or a renewal or extension to repair or remedy a condition caused by the tenant, a lawful occupant of the tenant's lot, a member of the tenant's family, or a guest or invitee of the tenant, unless the condition was caused by normal wear and tear. Under the original bill, proposed Section 91.153(b) required the landlord to provide each tenant with the name and telephone number of the person authorized to be contacted for emergency repairs. The substitute differs from the original bill in proposed Section 94.154(a) by authorizing the tenant, if the landlord fails to comply with Section 94.153, rather than with proposed Subchapter D, to have the condition repaired or remedied and to deduct the cost from a subsequent rent payment, rather than to notify the landlord of the tenant's intent to correct the condition at the landlord's expense. The substitute differs from he original bill in proposed Section 94.154(b) by prohibiting the tenant's deduction for the cost of the repair or remedy, except as provided by this subsection, from exceeding the amount of one month's rent under the lease agreement or $500, whichever is greater. The substitute also provides that if the tenant's rent is subsidized in whole or in part by a governmental agency, the deduction limitation of one month's rent means the fair market rent for the manufactured home lot and not the rent that the tenant pays. The substitute requires the governmental agency subsidizing the rent to determine the fair market rent. The substitute also provides that if the governmental agency does not make a determination, the fair market rent means a reasonable amount of rent under the circumstances. Under the original, proposed Section 94.154(b) authorizes the tenant to have the condition repaired or remedied by a contractor and, after submitting to the landlord an itemized statement, deduct the actual and reasonable cost of the work from a subsequent rent payment if the landlord does not correct the condition before the 16th day after the date the tenant provides notice under Subsection (a) or more promptly as emergency conditions reasonably require. The substitute differs from the original bill in proposed Section 94.154(c) by authorizing repairs and reductions under this section to be made as often as necessary provided that the total repairs in any one month do not exceed one month's rent or $500, whichever is greater. Under the original, proposed Section 94.154(c) authorized the tenant to recover damages as provided by Subchapter I in addition to the remedy provided by this section. The substitute differs from the original bill in proposed Section 94.154 by adding Subsections (d)-(l), as follows: (d) Authorizes repairs under this section to be made only if all of the enumerated requirements relating to repair or remedy of a condition which might effect the tenant's health are met. (e) Provides that at least one of the notices given under Subsection (d) must state that the tenant intends to repair or remedy the condition. Provides that the notice must also contain a reasonable description of the intended repair or remedy. (f) Authorizes a tenant to have the condition repaired or remedied under specified circumstances if the requirements prescribed by Subsections (d) and (e) are met. (g) Provides that repairs made based on a tenant's notice must be made by a company, contractor, or repairman listed at the time of the tenant's notice of intent to repair in the yellow or business pages of the telephone directory or in the classified advertising section of a newspaper of the municipality or county in which the community is located or in an adjacent county. Prohibits repairs from being made by the tenant, the tenant's immediate family, the tenant's employer or employees, or a company in which the tenant has an ownership interest, unless agreed to by the landlord. Prohibits repairs from being made to the foundation or load-bearing structural elements of the lot. (h) Provides that repairs made that are based on a tenant's notice must comply with applicable building codes. (i) Authorizes a landlord and a tenant to mutually agree for the tenant to repair or remedy, at the landlord's expense, any condition on the lot. (j) Prohibits the tenant from contracting for labor or materials in excess of the amount the tenant is authorized to deduct under this section. Provides that a landlord is not liable to the persons who furnish labor or materials to repair or remedy the condition. Provides that a repairmen or supplier does not have a lien for materials or services as a result of the repairs contracted for by the tenant. (k) Requires the tenant to furnish, along with payment of the rent's balance, a copy of the repair bill and the receipt for its payment when deducting the costs of repairs from the rent payment. (l) Provides that a landlord is liable, if the landlord repairs or remedies the condition after the tenant has contracted a repairman who has not yet commenced work, for the cost incurred by the tenant to pay the repairman's traveling charge. Authorizes the tenant to deduct this charge from the tenant's rent as if it were a repair cost. The substitute differs from the original bill by making conforming changes in proposed Section 94.201(b). In proposed Section 94.202(a), the substitute differs from the original by providing that a landlord has a duty to mitigate damages if a tenant vacates the lot before the end of the lease term, rather than if a tenant abandons the leased premises in violation of the lease. The substitute also makes a conforming change in this proposed Section, as well as making one in proposed Section 94.202(b). In proposed Section 94.204(a), the substitute differs from the original by making conforming changes. In proposed Section 94.204(b), the substitute differs from the original by making a nonsubstantive change. In proposed Section 94.204(c), the substitute differs from the original by making a conforming change. In proposed Section 94.204(d), the substitute differs from the original by prohibiting a court from issuing a writ of possession in favor of a landlord before the 30th, rather than the 45th, day after the judgment for possession is rendered. In proposed Section 94.204(e), the substitute differs from the original by including the tenant as a person to whom the landlord is required to send a notice that a judgment for possession is rendered in favor of the landlord. In proposed Section 94.204(f), the substitute differs from the original by making conforming changes. In proposed Section 94.205(a), the substitute differs from the original by providing that one piece of information in the notice sent by the landlord to the tenant or, if applicable, the owner of the home is that the owner must relocate the home, rather than may relocate the home as provided by this section. In addition, the substitute removes proposed Subdivisions (3) and (4). Proposed Subdivision (3) contained the following condition that was required before a landlord was authorized to terminate a lease agreement to change the community's land use: the landlord compensates or relocates the tenant and, if different, the owner. Proposed Subdivision (4) contained the following condition that was required before a landlord was authorized to terminate a lease agreement to change the community's land use: the landlord had taken action to change the land use to a use other than use as a community for at least a two-year period. The substitute differs from the original bill by removing proposed Sections 94.205(c) and (d). Proposed Section 94.205(c) authorized the owner, within sixth months after receiving notice of the changed land use, to relocate the home and select any date for the relocation if that date occurs before the date the land use changes. Proposed Section 94.205(d) required the landlord, if the owner of the home chose to relocate the home, to relocate the home at the landlord's expense. The substitute differs from the original bill by changing the title of proposed Sections 94.206 from "Termination and Eviction for Disorderly or Criminal Conduct" to "Termination and Eviction for Violation of Lease." Accordingly, provisions in proposed Section 94.206 that referred to a "rule" are changed to a "provision" through the substituted section. The substitute does, however incorporate a violation of a community rule as a violation of a lease if the community rule is incorporated in the lease. In addition, the substitute includes "poses a substantial health or safety risk to other tenants in the manufactured home community" among the requirements that must be satisfied if the landlord is to terminate the lease agreement and evict the tenant. The substitute differs from the original bill by removing the text of proposed Section 94.207, which authorizes a landlord to terminate the lease agreement and evict a tenant for engaging in disorderly or criminal conduct if the conduct disrupts the quiet enjoyment of other tenants in the community, endangers other tenants or the community personnel, or causes substantial damage to the community premises, and if there is a likelihood that future conduct would also be grounds for eviction under this section. The substitute differs from the original bill by redesignating proposed Section 94.208 of the original to Section 94.207. In redesignated Section 94.207(a), the substitute differs from the original by changing the date after which a landlord could evict a tenant for delinquent rent payment (after the tenant received notice) from the 21st day to the 10th day. In addition, the substitute differs from the original by deleting the text of proposed Section 94.208(c) of the original, which provides that a payment made by a tenant to a landlord is attributed first to any delinquent rent payment, then to the current rent payment, and last to any fee or charge, including a late charge. In redesignated Section 94.207(c) (proposed Section 94.208(d) of the original), the substitute provides an exception and makes a conforming change. That exception is encapsulated in proposed Section 94.207(d) of the substitute, which authorizes a tenant to cure a default and reinstate the lease agreement only once during the lease term. The substitute differs from the original bill by removing proposed Section 94.209, which provides that it is an affirmative defense in an eviction action that the landlord has breached the statutory warranty of habitability, breached a provision of the lease agreement, or violated proposed Subchapter E, and authorizes the tenant to recover damages if these events occur. The substitute differs from the original by redesignating Subchapter G of the original to Subchapter F. The substitute differs from the original by adding Section 94.251 to prohibit a landlord from retaliating against a tenant by taking certain enumerated actions, the gist of which are that the tenant engages in certain lawful actions. The substitute differs from the original by removing proposed Section 94.301 (Unfair Practices), which prohibits a landlord from engaging in unfair or deceptive acts or practices or unfair methods of competition; and provides that a violation of this section is considered a deceptive trade practice for purposes of Subchapter E, Chapter 17, Business & Commerce Code. The substitute differs from the original by removing proposed Section 94.302 (Retaliatory Conduct), which specifies the actions undertaken by a tenant that a landlord is prohibited from retaliating against; and describes the actions from which a rebuttable presumption that the landlord is retaliating against a tenant is formed. The substitute differs from the original by removing proposed Section 94.303 (Restriction on Choice of Provider), which prohibits a landlord from restricting the choice of providers from whom a tenant may purchase goods or services or engaging in any conduct that discourages a tenant from selecting the provider of the tenant's choice. The substitute differs from the original by redesignating Section 94.252 (Restriction on Sale of Manufactured Home) of the substitute from Section 94.304 of the original, and by prohibiting the landlord from requiring the owner of the home to remove the home from the manufactured home lot, rather than lot, solely because of the sale of the home; or requiring the owner of a manufactured home located on the premises to contract with the landlord to act as agent or broker in the sale of a manufactured home located on the premises. Section 94.252 of the substitute removes proposed prohibitions that prohibit a landlord from limiting the sale of a home because of the home's age or physical condition; requiring the owner of a home located on the leased premises to contract with the landlord to act as agent or broker in the sale of a home located on the leased premises; placing unreasonable, unfair, or discriminatory restrictions on a "For Sale" sign displayed in the community or on access to the community by a prospective purchaser or a realtor. The substitute differs further in Section 94.252 by providing that any restrictions on or requirements for the sale of a manufactured home located on the premises of a community must be expressly stated in the community rules. Makes conforming changes. The substitute differs from the original by redesignating Subchapter G (Remedies) of the substitute from Subchapter H (Remedies) of the original. Accordingly, the substitute redesignates proposed Sections 94.351, 94.352, 94.354, and 94.355 of the original to Sections 94.301, 94.302, 94.303, and 94.304, respectively. The substitute differs from the original in Section 94.301 by making conforming and nonsubstantive changes. Section 94.301 of the substitute is redesignated from Section 94.351 of the original. The substitute differs from the original by removing proposed Section 94.353 (State Remedies) of the original, which specifies the penalties imposed by authorities on a landlord who has violated or is threatening to violate this chapter; requires the court to award reasonable attorney's fees and costs to the state if the state prevails; and authorizes the attorney general or the district or county attorney for a county in which all or part of the community is located to request the court to appoint a receiver to operate the community if the landlord is financially unable to operate the community, or the appointment is the most effective means of ensuring compliance with a court order. C.S.H.B. 2015 differs from the original bill by removing SECTION 2 of the original that amended Section 9.503, Business & Commerce Code, to add the provision that a secured party must proceed by judicial process in taking possession of the collateral if the collateral is a manufactured home, and to make conforming changes.