The bill, H.B. No. 438, aims to protect tenants residing in developments supported by low-income housing tax credits by prohibiting any increase in their rent during the duration of their lease agreements. Specifically, it amends Section 2306.6738(a) of the Government Code to include new provisions that prevent development owners from increasing rent, except as allowed under certain voucher programs, 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 rights of tenants by prohibiting development owners from locking out tenants or seizing their personal property without judicial process, with specific exceptions for emergencies or necessary repairs. The changes will apply only to lease agreements that are entered into or renewed after the bill's effective date of September 1, 2025.

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