Sponsors (2)
The bill substantially strengthens renter protections, transparency, and enforcement while increasing regulatory clarity — but it raises compliance costs and legal uncertainty for owners and lenders, which could be passed back to renters or create disputes over coverage and fee definitions.
Renters (especially low-income renters and prospective tenants) pay less up front and face lower recurring penalty costs because application/screening/background-check fees are banned, late fees are capped (under 3% and only after 15 days), and leases must disclose total monthly costs and unit/landlord condition/history before signing.
Renters are protected from credit reporting for disputed or small 'junk' fees and gain stronger federal enforcement tools and clearer standards to curb abusive landlord collection tactics and improve charge transparency.
Homeowners, renters, and public housing entities get clearer definitions of which units are covered and which federal agency is the appropriate regulator, improving certainty about eligibility, oversight, and responsibilities under the law.
Owners, small landlords, and property managers face higher administrative and compliance costs (assembling disclosures, changing practices, defending reclassified fees), which many could pass on by raising base rents or reducing services, offsetting renter savings over time.
Some homeowners with complex or varied federally-related mortgage arrangements (FHA, VA, USDA, Fannie/Freddie) may unexpectedly become subject to new federal requirements because the bill’s coverage definitions are broad.
Vague or broad definitions (e.g., what counts as a 'junk fee' and what litigation history is 'practicable' to disclose) create legal uncertainty and risk of litigation for landlords, renters, and agencies, increasing compliance/legal costs and possible disputes over applicability.
Based on analysis of 4 sections of legislative text.
Bans application and screening fees for federally backed rentals, caps late fees, requires pre‑lease disclosures, and orders CFPB/FTC to define and limit reporting of “junk fees.”
Introduced June 24, 2025 by Jeff Merkley · Last progress June 24, 2025
Prohibits owners of federally backed rental housing from charging application fees or tenant‑screening/background‑check fees, caps late fees at under 3% of monthly rent and allows late fees only after 15 days past due, and requires several pre‑lease disclosures about total monthly costs, litigation history, pest/maintenance issues, and the property’s rent increases over the prior 10 years. It also directs the CFPB and FTC to define “junk fee” for rental housing and to rule within 180 days that reporting an unpaid junk fee to a consumer reporting agency is an unfair or unconscionable debt‑collection practice under the Fair Debt Collection Practices Act.