BILL ANALYSIS

H.B. 649

By: Hinojosa

Business & Industry

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Current and former college students have shared concerns over difficulties qualifying for rental housing. Many college students struggle to establish proof of income for rental housing because few work enough hours, if any, to meet income requirements. Because many landlords will not consider education-related income as part of the calculation for proof of income, students face additional barriers in trying to find housing and can incur additional fees when required to seek out cosigners or guarantors. H.B. 649 seeks to help students more easily qualify for rental housing by providing for education-related income to be considered in a calculation of current income for purposes of a landlord's approval of an application for occupancy.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 649 amends the Property Code to require a landlord who uses an applicant's current income as a criterion in determining whether to approve an application for occupancy to include a space on the rental application for an applicant to provide information about their education-related income, including grants, scholarships, and federal student loans. The bill requires the space to be labeled "education-related income" and requires the landlord to consider any such income provided by the applicant in the calculation of current income. The bill makes a landlord who violates these requirements liable for an amount equal to the sum of $100, three times the amount of any application fee or deposit, and the applicant's reasonable attorney's fees.

H.B. 649 specifies that education-related income as described by the bill is included in an applicant's current income for purposes of the information that must be included in the printed notice of the landlord's tenant selection criteria and the grounds for denial of a rental application that the landlord must make available to an applicant at the time the applicant is provided with such an application.

H.B. 649 applies only to a rental application provided by a landlord to an applicant on or after the bill's effective date.

EFFECTIVE DATE

September 1, 2023.