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 residents, except under certain conditions related to voucher programs or similar rental subsidy programs. Additionally, the bill clarifies that development owners cannot lock out tenants or seize their personal property without judicial process, with specific exceptions for emergencies or necessary repairs.

The new legal language inserted into the bill emphasizes the protection of tenants' rights by ensuring that their rent remains stable throughout their lease term. The bill will apply only to lease agreements entered into or renewed after its effective date of September 1, 2025, thereby providing a clear timeline for its implementation. Overall, this legislation seeks to enhance housing security for low-income tenants by limiting potential rent increases in supported developments.

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