The bill, S.B. No. 1155, 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. Specifically, it amends Section 2306.6738(a) of the Government Code to include a new provision that explicitly states that rent increases are not allowed unless they are in accordance with the terms of a voucher program under the Section 8 of the United States Housing Act of 1937 or a similar rental subsidy program. Additionally, the bill clarifies 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 bill will apply only to lease agreements that are entered into or renewed on or after its effective date of September 1, 2025. This legislation seeks to provide greater stability and protection for tenants living in low-income housing developments by ensuring that their rent remains consistent throughout the lease term, thereby preventing sudden financial burdens.

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