The bill, H.B. No. 438, aims to prohibit owners of developments supported by low-income housing tax credits from increasing the rent of tenants during the duration of their lease agreements. It amends Section 2306.6738(a) of the Government Code to include new provisions that specifically prevent rent increases for tenants, except in cases where the increase is allowed under the terms of a voucher program, such as those established by the Section 8 program of the United States Housing Act of 1937.

Additionally, the bill clarifies existing regulations regarding the eviction process, stating that development owners cannot lock out tenants or seize their personal property without judicial process, except in specific circumstances such as emergencies or necessary repairs. The changes will apply only to lease agreements entered into or renewed after the bill's effective date of September 1, 2025.

Statutes affected:
Introduced: Government Code 2306.6738 (Government Code 2306)