Sponsors (25)
Official title: To prohibit owners of covered dwelling units from assessing or collecting certain fees from tenants, and for other purposes.
Introduced June 24, 2025 by Maxwell Frost · Last progress June 24, 2025
The bill improves affordability, transparency, and credit protections for renters by banning many upfront fees, capping late charges, and restricting credit reporting for disputed/excessive fees — but it imposes new compliance costs and enforcement complexity that could raise rents, reduce rental supply or maintenance, and spur litigation, particularly affecting small landlords and affordable housing availability.
Renters in covered units will face lower upfront and recurring costs because application and tenant‑screening fees are banned and late fees are capped (3% of monthly rent, only after 15 days past due).
Renters are protected from having disputed or excessive rental 'junk fees' reported to credit bureaus, reducing the risk of credit damage from unclear charges.
Renters get much better price transparency — mandatory full monthly cost disclosure and access to historical rent increases — making it easier to budget and evaluate rental stability.
Small landlords and property owners will incur new compliance and administrative costs for disclosures and enforcement, which are likely to be passed to tenants via higher rents or reduce landlord participation in rental markets.
Some property owners may avoid participation in federally backed programs or the secondary mortgage market (Fannie/Freddie) to escape coverage, which could shrink the supply of rental housing—especially affordable units.
Limiting fees and requiring disclosures could prompt landlords to shift costs to other charges or reduce maintenance/investment, risking long‑term housing quality deterioration for renters.
Based on analysis of 3 sections of legislative text.
Prohibits many upfront and hidden rental fees and requires tenant disclosures for federally related units; directs CFPB/FTC to define "junk fee" and restrict credit-reporting for unpaid junk fees.
Bans many common "junk" fees and requires upfront disclosures for rental units tied to federal programs or federally backed mortgages, and directs federal regulators to define "junk fee" and limit credit-reporting for unpaid junk fees. It prevents charging application and screening fees for covered units, caps and delays late fees, requires lease disclosures about total monthly cost, past litigation, maintenance problems and historical rent increases, and tasks HUD/VA/USDA/FHFA with rulemaking and enforcement. The CFPB and FTC must jointly define "junk fee" for rental housing and find that reporting unpaid junk fees to consumer reporting agencies can violate the FDCPA, with a rule due within 180 days.