[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2148 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2148
To prohibit owners of covered dwelling units from assessing or
collecting certain fees from tenants, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 24, 2025
Mr. Merkley (for himself and Mr. Sanders) introduced the following
bill; which was read twice and referred to the Committee on Banking,
Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To prohibit owners of covered dwelling units from assessing or
collecting certain fees from tenants, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``End Junk Fees for Renters Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate regulator.--The term ``appropriate
regulator'' means--
(A) the Secretary of Housing and Urban Development,
with respect to covered dwelling units described in--
(i) paragraph (2)(A);
(ii) paragraph (2)(B), to the extent the
Federally backed mortgage loan referred to in
such paragraph is described in subparagraph
(A), (B), or (C) of paragraph (3); or
(iii) paragraph (2)(B), to the extent the
Federally backed mortgage loan referred to in
such paragraph is described in paragraph (4)
and is made in whole or in part, or insured,
guaranteed, supplemented, or assisted in any
way under or in connection with a housing or
urban development program administered by the
Secretary of Housing and Urban Development;
(B) the Secretary of Veterans Affairs, with respect
to covered dwelling units described in paragraph
(2)(B), to the extent the Federally backed mortgage
loan referred to in such paragraph is described in--
(i) paragraph (3)(D); or
(ii) paragraph (4) and is made in whole or
in part, or insured, guaranteed, supplemented,
or assisted in any way, by the Secretary of
Veterans Affairs or under or in connection with
a housing or related program administered by
Secretary of Veterans Affairs;
(C) the Secretary of Agriculture, with respect to
covered dwelling units described in paragraph (2)(B),
to the extent the Federally backed mortgage loan
referred to in such paragraph is described in--
(i) subparagraph (E) or (F) of paragraph
(3); or
(ii) paragraph (4) and is made in whole or
in part, or insured, guaranteed, supplemented,
or assisted in any way, by the Secretary of
Agriculture or under or in connection with a
housing or related program administered by
Secretary of Agriculture; and
(D) the Director of the Federal Housing Finance
Agency, with respect to covered dwelling units
described in paragraph (2)(B), to the extent the
Federally backed mortgage loan referred to in such
paragraph is described in--
(i) paragraph (3)(G); or
(ii) paragraph (4) and is purchased or
securitized by the Federal Home Loan Mortgage
Corporation or the Federal National Mortgage
Association.
(2) Covered dwelling unit.--The term ``covered dwelling
unit'' means a dwelling unit that--
(A) is provided assistance within the jurisdiction
of the Department, as defined in section 102(m) of the
Department of Housing and Urban Development Reform Act
of 1989 (42 U.S.C. 3545(m)); or
(B) is subject to, or is on or in a property that
is subject to, a Federally backed single-family
mortgage loan or a Federally backed multifamily
mortgage loan.
(3) Federally backed single-family mortgage loan.--The term
``Federally backed single-family mortgage loan'' includes any
loan that is secured by a first or subordinate lien on
residential real property (including individual units of
condominiums and cooperatives) designed principally for the
occupancy of from 1- to 4-families that is--
(A) insured by the Federal Housing Administration
under title II of the National Housing Act (12 U.S.C.
1707 et seq.);
(B) insured under section 255 of the National
Housing Act (12 U.S.C. 1715z-20);
(C) guaranteed under section 184 or 184A of the
Housing and Community Development Act of 1992 (12
U.S.C. 1715z-13a, 1715z-13b);
(D) guaranteed or insured by the Department of
Veterans Affairs;
(E) guaranteed or insured by the Department of
Agriculture;
(F) made by the Department of Agriculture; or
(G) purchased or securitized by the Federal Home
Loan Mortgage Corporation or the Federal National
Mortgage Association.
(4) Federally backed multifamily mortgage loan.--The term
``Federally backed multifamily mortgage loan'' includes any
loan (other than temporary financing such as a construction
loan) that--
(A) is secured by a first or subordinate lien on
residential multifamily real property designed
principally for the occupancy of 5 or more families,
including any such secured loan, the proceeds of which
are used to prepay or pay off an existing loan secured
by the same property; and
(B) is made in whole or in part, or insured,
guaranteed, supplemented, or assisted in any way, by
any officer or agency of the Federal Government or
under or in connection with a housing or urban
development program administered by the Secretary of
Housing and Urban Development or a housing or related
program administered by any other such officer or
agency, or is purchased or securitized by the Federal
Home Loan Mortgage Corporation or the Federal National
Mortgage Association.
(5) Owner.--The term ``owner'' means, with respect to a
dwelling unit, any private person or entity, including a
cooperative, an agency of the Federal Government, or a public
housing agency, having the legal right to lease or sublease the
dwelling unit.
SEC. 3. RENTAL JUNK FEES.
(a) Application Fees.--The appropriate regulator shall prohibit the
owner of a covered dwelling unit from assessing or collecting a fee or
charge, from any household in connection with the submission of an
application for rental of the dwelling unit.
(b) Tenant Screening Fees.--The appropriate regulator shall
prohibit the owner of a covered dwelling unit from assessing to or
collecting from any household applying to rent the dwelling unit any
fee or charge for costs of conducting any criminal history, tenant
screening, consumer report, or other background check of the household.
(c) Late Fees.--The appropriate regulator shall require that owners
of covered dwelling units--
(1) only impose fees or charges on tenants in connection
with the late payment of rent for a covered dwelling unit if
the amount of the fee or charge is less than 3 percent of the
monthly rent the tenant pays for the covered dwelling unit;
(2) only impose fees or charges on tenants in connection
with the late payment of rent for a covered dwelling unit if 15
days have elapsed since the date on which the rent was due; and
(3) disclose the requirements imposed under paragraphs (1)
and (2) in any lease entered for a covered dwelling unit on or
after the date on which rules are issued under section 4.
(d) Required Disclosures.--The appropriate regulator shall require
each owner of a covered dwelling unit to disclose to the tenant before
a lease is signed--
(1) the total amount due each month, including any fees;
(2) to the degree practicable, a summary of any past
litigation between the the owner and any former or current
tenants;
(3) a description of any ongoing pest and maintenance
issues; and
(4) the amount rent increase for the property in each of
the 10 previous years.
SEC. 4. RULEMAKING.
Not later than 180 days after the date of enactment of this Act,
the Bureau of Consumer Financial Protection and the Federal Trade
Commission shall issue a rule that--
(1) defines the term ``junk fee'' with respect to rental
housing; and
(2) finds the furnishing of any information about a unpaid
junk fee (as such term is defined pursuant to paragraph (1)) to
a consumer reporting agency to be a unfair or unconscionable
means to collect or attempt to collect debt in violation of
section 808 of the Fair Debt Collection Practices Act (15
U.S.C. 1692f).
<all>