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.