End Junk Fees for Renters Act
- Bill Number
- S. 2148
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Housing and Community Development
- Status
- Introduced
- Latest Action
- 2025-06-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-05T22:52:01Z
AI-Generated Summary
Purpose
The "End Junk Fees for Renters Act" aims to protect renters in certain federally assisted or backed housing by prohibiting or limiting specific fees that landlords might charge, often called "junk fees." It seeks to make rental costs more transparent and affordable, reducing surprise charges for tenants.
Key Provisions
- Prohibited Fees:
- Owners cannot charge application fees for submitting a rental application.
- Owners cannot charge fees for background checks, such as criminal history, tenant screening, or credit reports.
- Limits on Late Fees:
- Late fees can only be charged if they are less than 3% of the monthly rent.
- They can only be applied after 15 days from the due date of rent.
- Owners must disclose these late fee rules in any new lease after the law's rules are issued.
- Required Disclosures:
- Before signing a lease, owners must inform tenants of:
- The total monthly payment, including all fees.
- A summary of any past lawsuits between the owner and previous or current tenants (if possible).
- Any ongoing issues with pests or maintenance.
- The amount of rent increases for the property over the past 10 years.
- Rulemaking Requirement:
- Within 180 days of enactment, the Bureau of Consumer Financial Protection (CFPB) and Federal Trade Commission (FTC) must define "junk fee" for rental housing.
- Reporting unpaid junk fees to credit agencies would be considered an unfair debt collection practice under the Fair Debt Collection Practices Act (FDCPA), a federal law that regulates how debts are collected.
The law applies to "covered dwelling units," which include rentals receiving federal housing assistance or secured by federally backed mortgages (e.g., FHA-insured loans, VA or USDA guarantees, or those bought by Fannie Mae or Freddie Mac). Enforcement is handled by specific federal regulators like the Department of Housing and Urban Development (HUD), Veterans Affairs (VA), Agriculture (USDA), and the Federal Housing Finance Agency (FHFA).
Significant Changes to Existing Law
- This introduces new federal bans on common rental fees (like application and screening fees) that were previously unregulated or allowed under state laws in federally backed housing.
- It caps late fees and adds mandatory disclosures, which go beyond current requirements in many federal housing programs.
- It expands the FDCPA by classifying junk fee reporting as unfair, potentially overriding some existing debt collection practices.
Potential Impacts
- On Citizens (Renters): Reduces out-of-pocket costs for applying, screening, and late payments, making housing more affordable, especially for low- and moderate-income families in federal programs. Increases transparency to help tenants make informed decisions.
- On Government Agencies: Regulators (HUD, VA, USDA, FHFA) gain enforcement duties, which may require new resources for oversight and compliance checks. CFPB and FTC must create rules, potentially leading to more consumer complaints and investigations.
- On Landlords/Owners: Limits revenue from fees, possibly increasing reliance on base rent. Could affect property management costs due to disclosure requirements.
- International Relations: No direct impact, as this is a domestic housing policy.
Main Stakeholders Affected
- Renters/Tenants: Primary beneficiaries, particularly those in subsidized or federally financed housing, who face fewer hidden costs.
- Owners/Landlords: Including private companies, co-ops, public housing agencies, and federal entities; they must adjust fee structures and provide disclosures, facing penalties for non-compliance.
- Federal Agencies: HUD, VA, USDA, FHFA (as enforcers); CFPB and FTC (for rulemaking and debt collection oversight).
- Consumer Reporting Agencies: Impacted by restrictions on reporting junk fees, affecting credit reports.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens consumer protections in housing by integrating with existing laws like the FDCPA and National Housing Act, but may face challenges if seen as overregulating private contracts. Enforcement relies on federal regulators, potentially leading to lawsuits over definitions of "junk fees."
- Constitutional: No clear issues, as it regulates federally backed housing (a federal interest) without infringing on free speech or property rights excessively; disclosures are factual requirements.
- Political: Advances renter rights amid rising housing costs, aligning with efforts to curb "junk fees" in other sectors (e.g., airlines). Could spark debate on federal overreach into local landlord-tenant laws, influencing future housing policy.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2025-06-24: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-06-24: Introduced in Senate
Bill Versions
- End Junk Fees for Renters Act — issued 2025-06-24 — PDF (9 pages)