End Junk Fees for Renters Act
- Bill Number
- H.R. 4100
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-12-19: Referred to the Subcommittee on Economic Opportunity.
- Last Updated
- 2026-04-15T08:05:53Z
AI-Generated Summary
Purpose of the Legislation
The "End Junk Fees for Renters Act" (H.R. 4100) aims to protect renters from unnecessary or excessive fees in housing by prohibiting certain charges and requiring greater transparency from property owners. It targets "junk fees" in rental housing to make renting more affordable and predictable, particularly for units receiving federal assistance or backed by federal mortgages.
Key Provisions
- Ban on Application and Screening Fees: Property owners of covered dwelling units cannot charge fees for submitting rental applications or for background checks, such as criminal history, tenant screening, or credit reports.
- Limits on Late Fees: Owners can only impose late fees if:
- The fee is less than 3% of the monthly rent.
- At least 15 days have passed since the rent was due.
- These rules are clearly disclosed in any new lease after regulations are issued.
- Required Disclosures: Before signing a lease, owners must inform tenants about:
- The total monthly payment, including all fees.
- Any past lawsuits involving the owner and former or current tenants (to the extent possible).
- Ongoing issues with pests or maintenance.
- Rent increases for the property over the previous 10 years.
- Definitions:
- Covered Dwelling Unit: Applies to units that receive federal housing assistance (under HUD programs) or are part of properties with federally backed mortgages (single-family or multifamily loans insured, guaranteed, or supported by federal agencies).
- Appropriate Regulator: Enforcement is assigned to specific federal entities based on the type of assistance or loan:
- Secretary of Housing and Urban Development (HUD) for most HUD-assisted units and certain mortgages.
- Secretary of Veterans Affairs (VA) for VA-guaranteed loans.
- Secretary of Agriculture (USDA) for USDA-guaranteed or made loans.
- Director of the Federal Housing Finance Agency (FHFA) for loans handled by Fannie Mae or Freddie Mac.
- Owner: Includes private individuals, companies, cooperatives, federal agencies, or public housing agencies with leasing rights.
- Rulemaking Requirement: Within 180 days of enactment, the Bureau of Consumer Financial Protection (CFPB) and Federal Trade Commission (FTC) must:
- Define "junk fee" specifically for rental housing.
- Declare that reporting unpaid junk fees to credit agencies is an unfair or unconscionable debt collection practice under the Fair Debt Collection Practices Act (FDCPA), which regulates how debts can be collected without harassment or deception.
Significant Changes to Existing Law
- This bill introduces new federal prohibitions on common rental fees (like application and screening charges) that are not currently banned nationwide, though some states have similar rules.
- It caps and delays late fees, which previously had no uniform federal limits, and mandates disclosures about property history and costs, expanding beyond current lease requirements under laws like the Fair Housing Act.
- By linking enforcement to federal housing programs and involving CFPB/FTC in rulemaking, it integrates junk fee protections into existing federal mortgage and assistance frameworks, potentially overriding less protective state or local rules for covered units.
- It amends debt collection practices by treating junk fee reporting as a violation of the FDCPA, adding a layer of consumer protection not explicitly covered before.
Potential Impacts
- On Citizens (Renters): Could lower upfront and ongoing costs for millions of renters in federally assisted or backed housing, improving affordability and reducing surprise expenses. Enhanced disclosures may help tenants make informed decisions and avoid problematic properties.
- On Government Agencies: HUD, VA, USDA, and FHFA will gain new enforcement responsibilities, potentially increasing administrative workloads for oversight and compliance checks. CFPB and FTC will need to develop and implement rules, which could strain resources but strengthen consumer protection efforts.
- On Property Owners/Landlords: May reduce revenue from fees, prompting adjustments in how they cover screening or maintenance costs (e.g., through higher base rent). Non-compliance could lead to penalties or legal challenges.
- On International Relations: No direct impacts, as the bill focuses solely on domestic U.S. housing policies.
Main Stakeholders Affected
- Renters and Households: Primary beneficiaries, especially low- and moderate-income families relying on federal housing aid.
- Property Owners and Landlords: Directly regulated, including private entities, public housing agencies, and cooperatives managing covered units.
- Federal Agencies: HUD, VA, USDA, FHFA (for enforcement); CFPB and FTC (for rulemaking and debt collection oversight).
- Consumer Reporting Agencies: Affected indirectly, as they may face restrictions on handling junk fee information in credit reports.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Strengthens federal consumer protections in housing by building on the FDCPA and housing assistance laws, potentially leading to more lawsuits if owners violate disclosure or fee rules. It clarifies "unfair" practices in rentals, which could set precedents for broader fee regulations in other sectors.
- Constitutional Implications: Appears to raise no major issues, as it regulates private commercial activities (rentals) under Congress's commerce power and does not infringe on free speech or property rights in a way that would likely trigger constitutional challenges. However, broad definitions of "covered" units might invite disputes over federal overreach into state landlord-tenant laws.
- Political Implications: Addresses growing concerns about housing affordability and "hidden" costs, aligning with efforts to curb corporate practices (e.g., similar to junk fee bans in airlines or tickets). Bipartisan potential exists in consumer protection, but enforcement across agencies could spark debates on federal vs. state authority in housing.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (24)
Rep. Gomez, Jimmy [D-CA-34], Rep. Chu, Judy [D-CA-28], Rep. Casar, Greg [D-TX-35], Rep. Khanna, Ro [D-CA-17], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Lee, Summer L. [D-PA-12], Rep. Tlaib, Rashida [D-MI-12], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Goldman, Daniel S. [D-NY-10], Rep. Pocan, Mark [D-WI-2], Rep. Garcia, Robert [D-CA-42], Rep. Omar, Ilhan [D-MN-5], Rep. McIver, LaMonica [D-NJ-10], Rep. Mullin, Kevin [D-CA-15], Rep. Jayapal, Pramila [D-WA-7], Rep. Lieu, Ted [D-CA-36], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Clarke, Yvette D. [D-NY-9], Rep. Balint, Becca [D-VT-At Large], Rep. Ramirez, Delia C. [D-IL-3], Rep. Ansari, Yassamin [D-AZ-3], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Larson, John B. [D-CT-1], Rep. Jackson, Jonathan L. [D-IL-1]
Recent Actions
- 2025-12-19: Referred to the Subcommittee on Economic Opportunity.
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-06-24: Introduced in House
- 2025-06-24: Introduced in House
Bill Versions
- End Junk Fees for Renters Act — issued 2025-06-24 — PDF (9 pages)