Sponsors (2)
Introduced June 24, 2025 by Jeff Merkley · Last progress June 24, 2025
The bill reduces common, costly rental surprises and protects renters' credit and transparency while shifting compliance and collection burdens onto landlords, public owners, and regulators — which could lead to higher rents, stricter tenant selection, and more legal/regulatory complexity.
Renters (especially low-income renters) will face lower up-front move-in costs and fewer surprise charges because application and tenant‑screening fees are banned and leases must disclose the total monthly amount due before signing.
Renters will be protected from credit harm because unpaid 'junk fees' cannot be reported to consumer credit bureaus, preserving renters' credit scores and future access to housing and credit.
Renters will pay lower penalty costs when late because late fees are capped (under 3% and only after 15 days), reducing the financial burden of occasional late payment.
Small landlords, public housing agencies, and owners will face increased administrative and compliance costs from expanded disclosure requirements, a broad definition of 'owner,' and new publication obligations.
Some renters may see higher rents or stricter tenant selection as landlords shift screening costs previously covered by application/screening fees into higher rent or tighter admission policies.
Landlords and small property owners lose a credit-reporting tool to collect unpaid fees, which may make fee recovery harder and push owners toward more costly legal collection methods.
Based on analysis of 4 sections of legislative text.
Bans application and screening fees for HUD-assisted or federally backed rentals, limits late fees, requires owner disclosures, and bars reporting unpaid rental "junk fees" to credit bureaus once defined.
Stops common rental “junk fees” for units that are HUD-assisted or backed by federally supported mortgage programs: bans application and tenant-screening fees, caps and delays late fees, and requires landlords to disclose total monthly cost, recent litigation, ongoing maintenance/pest issues, and 10 years of rent increases before signing a lease. Directs the CFPB and FTC to jointly define “junk fee” for rental housing within 180 days and to treat reporting unpaid junk fees to consumer reporting agencies as an unfair debt-collection practice under the FDCPA once defined. Applies only to covered dwelling units connected to HUD programs or federally backed mortgages; implementation and exact scope depend on rulemaking by multiple federal regulators (HUD, VA, USDA, FHFA) and the CFPB/FTC joint rule. The bill creates new disclosure and fee limits for owners and new protections for tenants and consumer credit reporting processes.