H.B. No. 2904 introduces new regulations regarding rent increases for residential and manufactured home tenancies in Texas. The bill adds Section 92.027 to the Property Code, which stipulates that landlords cannot increase rent for affordable housing (defined as housing affordable to households earning 70% or less of the area median family income) by more than five percent between lease terms. For other housing, the maximum increase is set at ten percent, unless the property has undergone major renovations in the preceding 12 months. Violations of these provisions will result in landlords being liable for three times the amount of the unauthorized increase, plus actual damages to the tenant.

Additionally, the bill adds Section 94.013, which mirrors the provisions for manufactured home lots, establishing the same limits on rent increases and penalties for violations. Landlords are also required to provide tenants with a written explanation of the economic conditions or renovations that justify any rent increase. The changes will apply only to leases entered into or renewed on or after January 1, 2026, ensuring that existing leases are governed by the previous laws.

Statutes affected:
Introduced: ()