Backup — original pdf

Backup

Rental Housing Fee Transparency Austin Housing | December 12, 2025 Content  Overview  Stakeholder Engagement  Other Research  Next Steps  Questions and Discussion 2 College Student Housing  According to 2024 research from Austin Housing, roughly 88% of college students in Austin live in off-campus housing. Excluding Austin Community College, the figure is ~80%. 4 Rental Housing Fees & Issues  Fees appear to have become more common in some rental housing.  Three main categories of fees include:  One-time  Mandatory recurring  Optional recurring  Research indicates that tenants too often learn about mandatory monthly fees after they have paid for and submitted applications.  Inconsistent disclosure practices, transparency, and awareness lead to unexpected housing costs for tenants and difficulty comparing housing options.  Federal, State, and Municipal efforts have sought to improve fee transparency. 5 Council Resolution No. 20241024-045  Require landlords who own 5+ dwellings to disclose all application, move-in, mandatory, and optional fees upfront, so prospective renters can accurately compare housing costs.  Ensure prospective renters know total costs early in the process, before they apply for housing.  Align local requirements with federal efforts and industry commitments to disclose fees and present total rental costs consistently.  Engage stakeholders, explore feasibility of including fees in advertising, and prepare a public awareness campaign for landlords and prospective tenants. 6 Project Timeline Initiation Legal Framework Engage Stakeholders Draft Ordinance Public Review Council Consideration Implementation We are here July Aug Sept Oct Nov Dec Jun 25 Feb Mar Apr May Jan 26 7 Legal Framework  Disclosure requirements should be before the prospective tenants pay for and submit applications.  Noncompliance would not invalidate leases or prevent evictions.  Violations would proceed to Municipal Court and could result in fines. 8 Public Engagement  We have engaged the public through two main methods:  Focus groups  2 meetings with housing providers (October 1st and 2nd)  2 meetings with tenant advocacy organizations (October 8th and 9th)  Public survey (October 31st to December 15th)  Open to all tenants, tenant advocates, property owners, property managers, real estate agents, and other interested community members  Main goals  Understand what is happening now  Understand opportunities and challenges for a fee disclosure ordinance 10 Recent Research  Child Poverty Action Lab (2024), The Role of Junk Fees in the Summer 2024 Dallas Rental Housing Market  Found pervasive issues with fee transparency in Dallas  National Consumer Law Center (2024), “What the Heck, Dude!” – How States Can Fight Rental Housing Junk Fees  Highlights issues and legislative solutions  National Low Income Housing Coalition (2024), Junk Fees Toolkit  Highlights issues and legislative solutions  UT Law Housing Policy Clinic (2024), Combatting Junk Fees in Texas Rental Housing  Spotlights fees in the Austin housing market, including affordable housing cases  UT Law Housing Policy Clinic (2025), Tax-Exempt Private Partnership (TEPP) Properties  Spotlights fees in the Austin affordable housing communities 12 Examples of State Efforts  Colorado – HB 25-1090 (2025)  Effective January 1st, 2026  Requires clear and conspicuous price disclosure, including the total price  Texas – HB 4305 (2025)  Author: Gary Gates  Bill was filed and referred to a committee but did not progress  Called for disclosure of fees and charges in advertisements, application, and lease with clear and specific language  Specified that not doing would constitute false, misleading, or deceptive business practice, actionable under Subchapter E, Chapter 17, Business & Commerce Code 13 Examples of Municipal Efforts  Bellingham, Washington  New ordinance took effect on August 1st, 2025  Fayetteville, Arkansas  New ordinance took effect September 17th, 2025  Provides a form for simple, clear disclosure 14 Recent Federal & Legal Developments  The Federal Trade Commission (FTC) and the State of Colorado sued Greystar in 2025. The parties reached a settlement, and the company must now “clearly and conspicuously display total monthly leasing prices and mandatory fees.”  An FTC synopsis describes expectations for property managers going forward.  “Know that advertising a rental price that excludes mandatory charges is a violation of the law.” 15 Next Steps Survey closes December 15th! We are here Initiation Legal Framework Engage Stakeholders Draft Ordinance Public Review Council Consideration Implementation July Aug Sept Oct Nov Dec Jun 25 Feb Mar Apr May Jan 26 17 Questions & Discussion? Chase Bryan | chase.bryan@austintexas.gov