End Junk Fees for Renters Act
The End Junk Fees for Renters Act would prohibit certain fees charged to tenants in federally connected rental housing. It applies to “covered dwelling units”—homes that receive HUD-assisted support or are financed with federally backed single-family or multifamily mortgages. The bill directs regulators (primarily HUD, with input from VA, USDA, and FHFA, depending on the loan type) to ban or restrict application fees and tenant screening fees, and to place limits on late fees and other charges. It also requires landlords to provide specific disclosures to tenants before signing a lease, including total monthly charges, past litigation, pest/maintenance issues, and historic rent increases. Additionally, the bill tasks the CFPB and FTC with defining “junk fees” and prohibits reporting unpaid junk fees to consumer reporting agencies under FDCPA rules. In short, the bill aims to reduce upfront and ongoing rent-related charges for renters in federally backed housing markets and to boost transparency in rental pricing, with a formal rulemaking process to clearly define what counts as a junk fee.
Key Points
- 1Prohibitions on certain fees for covered dwelling units:
- 2- Application fees and tenant screening fees are banned for renters in covered units.
- 3Late fee rules:
- 4- Late fees must be less than 3% of monthly rent.
- 5- Late fees may be charged only after 15 days past due.
- 6- Lease documents must disclose these late-fee requirements.
- 7Required disclosures before signing a lease:
- 8- Total monthly amount due (including all fees).
- 9- Summary of any ongoing or recent litigation with tenants.
- 10- Description of ongoing pest and maintenance issues.
- 11- Rent increase history for the past 10 years.
- 12Definitions and scope:
- 13- “Covered dwelling unit” includes HUD-assisted units or those on/subject to federally backed single-family or multifamily mortgages.
- 14- “Owner” encompasses private landlords, cooperatives, government agencies, or public housing agencies with leasing rights.
- 15- “Appropriate regulator” includes HUD, VA, USDA, or FHFA, depending on the unit’s financing and ownership.
- 16Rulemaking timeline and purpose:
- 17- Within 180 days after enactment, the CFPB and FTC must issue rules defining “junk fee” and determining that sharing information about unpaid junk fees with consumer reporting agencies is an unfair or unconscionable debt collection practice under the Fair Debt Collection Practices Act.