Landlord Accountability Act of 2023

Subjects: Housing and Community Development, Civil actions and liability, Congressional oversight, Department of Housing and Urban Development, Employee hiring, Government employee pay, benefits, personnel management, Government information and archives, Housing discrimination, Income tax credits, Intergovernmental relations, Landlord and tenant, Low- and moderate-income housing, Residential rehabilitation and home repair

Summary:  <p><b>Landlord Accountability Act of 2023</b> </p> <p>This bill prohibits housing discrimination based on income, provides protections to tenants of certain federally assisted housing, and establishes a low-income housing maintenance tax credit for eligible landlords.</p> <p>Specifically, the bill prohibits discrimination in rental housing and residential real estate transactions based on an individual's source of income and provides for penalties. Protected income sources include</p> <ul> <li> housing vouchers and rental assistance, </li> <li>rental and homeownership subsidies, </li> <li>Social Security and disability income assistance, and</li> <li>spousal and child support.</li> </ul> <p>Additionally, landlords are prohibited from taking or failing to take certain actions with the intent to make a unit ineligible to receive Department of Housing and Urban Development (HUD) assistance. Landlords that violate this prohibition are subject to penalties and may be sued by harmed tenants. The bill further prohibits property owners of certain multifamily housing projects from intentionally leaving a unit vacant for more than 60 days. Property owners that violate this prohibition are subject to penalties.</p> <p>The bill also provides protections to tenants of multifamily housing projects, including by requiring HUD to increase the staffing level for the Multifamily Housing Complaint Line and to create a Multifamily Housing Complaint Resolution Program.</p> <p>In addition, HUD may provide grants to develop, expand, and assist tenant harassment prevention programs.</p> <p>Finally, the bill establishes a tax credit for qualifying landlords that is equal to the landlord's annual low-income housing maintenance expenses. To qualify, a landlord must have addressed within 30 days any relevant complaints filed under the complaint resolution program.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1431 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 1431

To amend the Fair Housing Act, to prohibit discrimination based on use 
             of section 8 vouchers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2023

Ms. Velazquez introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committees on 
  Ways and Means, and the Judiciary, 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

_______________________________________________________________________

                                 A BILL


 
To amend the Fair Housing Act, to prohibit discrimination based on use 
             of section 8 vouchers, 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 ``Landlord Accountability Act of 
2023''.

SEC. 2. PROHIBITING HOUSING DISCRIMINATION BASED ON SOURCE OF INCOME.

    (a) In General.--The Fair Housing Act (42 U.S.C. 3601 et seq.) is 
amended--
            (1) in section 802 (42 U.S.C. 3602), by adding at the end 
        the following:
    ``(p) `Source of income' includes--
            ``(1) current and future use of a tenant- or project-based 
        housing voucher under section 8 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f) and any form of Federal, State, 
        or local housing assistance provided to a person or family or 
        provided to a housing owner on behalf of a person or family, 
        including rental vouchers, rental assistance, down payment 
        assistance, other homeownership assistance, assistance to cover 
        housing costs, and other rental and homeownership subsidies, or 
        guarantees or financial assistance provided through government 
        and nongovernment organizations, including both receipt of such 
        assistance and compliance with its terms thereof;
            ``(2) income received as a monthly benefit under title II 
        of the Social Security Act (42 U.S.C. 401 et seq.), as a 
        supplemental security income benefit under title XVI of the 
        Social Security Act (42 U.S.C. 1381 et seq.), or as a benefit 
        under the Railroad Retirement Act of 1974 (45 U.S.C. 231 et 
        seq.) or income provided through Federal, State, or local 
        governments or nongovernment organizations, or through any 
        public or State-supported general or disability income 
        assistance program or the terms of such income;
            ``(3) income received by court order, including spousal 
        support and child support;
            ``(4) any payment from a trust, guardian, conservator, co-
        signer, or relative; and
            ``(5) any other source of income or funds, including 
        savings accounts and investments.'';
            (2) in section 804 (42 U.S.C. 3604)--
                    (A) by inserting ``source of income,'' after 
                ``familial status,'' each place that term appears; and
            (3) in section 805 (42 U.S.C. 3605)--
                    (A) in subsection (a), by inserting ``source of 
                income,'' after ``familial status,''; and
                    (B) in subsection (c), by inserting ``source of 
                income,'' after ``handicap,'';
            (4) in section 806 (42 U.S.C. 3606), by inserting ``source 
        of income,'' after ``familial status,'';
            (5) in section 807 (42 U.S.C. 3607), by adding at the end 
        the following new subsection:
    ``(c) Nothing under this title shall be construed to prohibit any 
entity from providing a preference for veterans or based on veteran 
status in the sale or rental of a dwelling or in the provision of 
services or facilities in connection therewith.'';
            (6) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), by 
        inserting ``source of income,'' after ``handicap,''; and
            (7) in section 810(f) (42 U.S.C. 3610(f)), by striking 
        paragraph (4) and inserting the following:
    ``(4) During the period beginning on the date of enactment of the 
Landlord Accountability Act of 2023 and ending on the date that is 40 
months after such date of enactment, each agency certified for purposes 
of this title on the day before such date of enactment shall, for 
purposes of this subsection, be considered certified under this 
subsection with respect to those matters for which the agency was 
certified on that date. If the Secretary determines in an individual 
case that an agency has not been able to meet the certification 
requirements within this 40-month period due to exceptional 
circumstances, such as the infrequency of legislative sessions in that 
jurisdiction, the Secretary may extend such period by not more than 6 
months.''.
    (b) Prevention of Intimidation in Fair Housing Cases.--Section 901 
of the Civil Rights Act of 1968 (42 U.S.C. 3631) is amended by 
inserting ``source of income (as defined in section 802),'' before ``or 
national origin'' each place that term appears.
    (c) Authorization of Appropriations for Enforcement.--There is 
authorized to be appropriated for contracts, grants, and other 
assistance--
            (1) $90,000,000 for each of fiscal years 2024 through 2033 
        for the Fair Housing Initiatives Program under section 561 of 
        the Housing and Community Development Act of 1987 (42 U.S.C. 
        3616a);
            (2) $47,000,000 for each of fiscal years 2024 through 2033 
        for the Fair Housing Assistance Program under the Fair Housing 
        Act (42 U.S.C. 3601 et seq.); and
            (3) $3,000,000 for each of fiscal years 2024 through 2026 
        to the Secretary of Housing and Urban Development for a 
        carrying out national media campaign to raise public awareness 
        to help individuals understand their expanded rights under the 
        Fair Housing Act and learn how to report incidents of housing 
        discrimination.

SEC. 3. PENALTIES FOR INTENTIONAL ACTS TO DISQUALIFY DWELLING UNITS 
              FROM ELIGIBILITY FOR FEDERAL HOUSING PROGRAMS.

    (a) Violation.--An owner of a dwelling unit that is available for 
rental may not take any action, or fail to take any action, with the 
intent to make the dwelling unit insufficiently decent, safe, sanitary, 
or inhabitable, or cause such other physical condition, so that the 
dwelling does not qualify for assistance within the jurisdiction of the 
Department (as such term is defined in section 102(m) of the Department 
of Housing and Urban Development Reform Act of 1989 (42 U.S.C. 
3545(m))).
    (b) Civil Money Penalties.--Any person who is found by the 
Secretary of Housing and Urban Development, after notice and 
opportunity for a hearing in accordance with section 554 of title 5, 
United States Code, to have violated subsection (a) shall be assessed a 
civil money penalty by the Secretary in the amount of $100,000 for each 
such action or failure to act.
    (c) Liability to Tenants.--A tenant who, at the time of a violation 
under subsection (a), occupies the dwelling unit to which the violation 
relates may bring a civil action for damages in the following amounts:
            (1) $50,000 for each action or failure to act in violation 
        of subsection (a).
            (2) Any actual damages and costs to the tenant resulting 
        from the violation, including any costs of finding a 
        replacement dwelling unit.

SEC. 4. PENALITIES FOR VACANT UNITS.

    (a) Violation; Penalty.--In the case of a dwelling unit that is 
located in a multifamily housing project, qualifies for assistance 
within the jurisdiction of the Department (as such term is defined in 
section 102(m) of the Department of Housing and Urban Development 
Reform Act of 1989 (42 U.S.C. 3545 (m))), is available for rental, and 
is found, after notice and opportunity for a hearing in accordance with 
section 554 of title 5, United States Code, to be intentionally left 
vacant by the owner for a period of more than 60 days that begins as 
provided under subsection (b), the owner shall be assessed a civil 
money penalty in the amount of $100,000 for every 30 days that the unit 
is found to be intentionally left vacant.
    (b) Timing.--
            (1) New units.--In the case of a dwelling unit that has not 
        previously been occupied, such 60-day period shall commence on 
        the day that the unit is first habitable for occupancy, as 
        determined by the Secretary.
            (2) Existing units.--In the case of a dwelling unit that 
        has previously been occupied, such 60-day period shall commence 
        on the day that the unit was vacated by the most recent tenant.
    (c) Treatment of Repairs.--In making a determination with respect 
to a violation under subsection (a)--
            (1) the Secretary shall presume, subject to paragraph (2), 
        that a dwelling unit that is vacant during any period between 
        tenancies that the unit is being repaired, updated, renovated, 
        or refurbished is not available for rental during such period; 
        and
            (2) the Secretary shall treat such presumption as having 
        been rebutted upon a showing by a prospective tenant, or agent 
        thereof, that a reasonable period of time for such updating, 
        renovation, or refurbishment elapsed.

SEC. 5. RESOURCES FOR RECEIVING AND RESOLVING COMPLAINTS REGARDING 
              MULTIFAMILY HOUSING PROJECTS.

    (a) Increased HUD Staffing for Complaint Call Staffing.--
            (1) Increased staffing.--The Secretary shall, not later 
        than the expiration of the 180-day period beginning on the date 
        of the enactment of this Act, increase the staffing level for 
        the Multifamily Housing Complaint Line established and operated 
        by the Multifamily Housing Clearinghouse of the Department so 
        that it is sufficient and appropriate to handle the volume of 
        calls received without unreasonable waiting periods.
            (2) Authorization of appropriations.--For carrying out 
        paragraph (1), there are authorized to be appropriated to the 
        Secretary such sums as may be necessary for each fiscal year 
        for carrying out paragraph (1).
    (b) Multifamily Housing Complaint Resolution Program.--
            (1) In general.--The Secretary shall carry out a 
        Multifamily Housing Complaint Resolution Program for receiving 
        complaints about multifamily housing projects from voucher 
        users who reside in such projects and local governmental 
        officials, under which the Secretary shall provide for--
                    (A) gathering of information regarding each such 
                complaint;
                    (B) determining whether there is a likelihood that 
                there is any violation of the requirements under the 
                rental assistance voucher program relating to such 
                complaint;
                    (C) informing the owner or landlord of the 
                complaint and any violations; and
                    (D) attempting to resolve the complaint and 
                violations, including through mediation.
            (2) Resolution.--The Secretary may provide for carrying out 
        the activities required under paragraph (1)(D) through regional 
        or field offices of the Department or through such local or 
        private organizations or agencies as the Secretary determines 
        have appropriate capabilities and expertise to carry out such 
        activities.
            (3) Funding.--Amounts made available for administrative 
        fees under section 8(q) of the United States Housing Act of 
        1937 (42 U.S.C. 1437f(q)) shall be available for carrying out 
        the program under this subsection.
            (4) Regulations.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Secretary shall issue any regulations necessary to 
        establish the Program required under this subsection.

SEC. 6. HUD DISCLOSURE OF LANDLORD COMPLAINTS.

    (a) Public Disclosure.--The Secretary shall publicly disclose, on a 
website of the Department and on a timely basis, information regarding 
each complaint received under the Program establish pursuant to section 
5(b), which shall include for each such complaint--
            (1) the nature of the complaint;
            (2) the date on which such complaint was submitted to the 
        Department;
            (3) the disposition, as of the time of such disclosure, of 
        such complaint; and
            (4) information identifying the multifamily housing project 
        to which such complaint relates.
    (b) Reports to Congress.--The Secretary of Housing and Urban 
Development shall submit a report annually to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate summarizing the 
complaints described in subsection (a) that were received by the 
Department during the preceding year and describing the disposition to 
such date of such complaints.

SEC. 7. TAX CREDIT INCENTIVE FOR MAINTENANCE OF MULTIFAMILY HOUSING 
              WITH VOUCHER USER TENANTS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45AA. LOW-INCOME HOUSING MAINTENANCE CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible landlord, the low-income housing maintenance credit determined 
under this section for the taxable year is an amount equal to the 
amount of the taxpayer's low-income housing maintenance expenses for 
such taxable year.
    ``(b) Limitations.--
            ``(1) Per unit limitation.--The credit allowed under 
        subsection (a) with respect to any taxpayer for any taxable 
        year shall not exceed the product of $2,500 multiplied by the 
        number of low-income housing units owned by the taxpayer.
            ``(2) Per building limitation.--The credit allowed under 
        subsection (a) with respect to any taxpayer for any taxable 
        year shall not exceed the product of $100,000 multiplied by the 
        number of eligible low-income housing projects owned by the 
        taxpayer.
            ``(3) Per taxpayer limitation.--The credit allowed under 
        subsection (a) with respect to any taxpayer for any taxable 
        year shall not exceed $500,000.
    ``(c) Eligible Landlord.--For purposes of this section, the term 
`eligible landlord' means any taxpayer for any taxable year if--
            ``(1) such taxpayer owns one or more eligible low-income 
        housing projects during such taxable year, and
            ``(2) either--
                    ``(A) each complaint that is filed, under the 
                program under section 5(b) of the Landlord 
                Accountability Act of 2023, during such taxable year 
                with respect to a dwelling unit in an eligible low-
                income housing project owned by such taxpayer has been 
                determined by the Secretary of Housing and Urban 
                Development to have been remedied not later than the 
                date which is 30 days after the date on which such 
                complaint is so filed, or
                    ``(B) no such complaint has been filed with respect 
                to such a dwelling unit in such a housing project owned 
                by such taxpayer during such taxable year.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Low-income housing maintenance expenses.--The term 
        `low-income housing maintenance expenses' means the aggregate 
        amount paid or incurred by the taxpayer during the taxable year 
        for maintenance or improvement of low-income housing units.
            ``(2) Eligible low-income housing project.--The term 
        `eligible low-income housing project' means, with respect to a 
        taxable year, a housing project--
                    ``(A) that consists of five or more dwelling units 
                at least one of which was occupied during such year by 
                a family who rented the dwelling unit using a voucher 
                for rental assistance under section 8(o) of the United 
                States Housing Act of 1937 (42 U.S.C. 1437f(o)); and
                    ``(B) with respect to which the eligible landlord 
                has entered into such binding agreements as the 
                Secretary of Housing and Urban Development shall 
                require to ensure that rents for dwelling units in the 
                project do not, at any time after the taxable year in 
                which a low-income housing maintenance credit under 
                this section is allowable, exceed the applicable fair 
                market rental under section 8(c) of the United States 
                Housing Act of 1937 (42 U.S.C. 1437f(c)) for the market 
                area in which the project is located.
            ``(3) Low-income housing unit.--The term `low-income 
        housing unit' means a dwelling unit within an eligible low-
        income housing project.
    ``(e) Aggregation Rule.--All persons treated as a single employer 
under subsection (a) or (b) of section 52 or subsection (m) or (o) of 
section 414 shall be treated as one person for purposes of applying 
this section. The credit determined under subsection (a) (after 
application of subsection (b)) shall be allocated among such persons in 
such manner as the Secretary may prescribe.
    ``(f) Termination.--No credit shall be determined under this 
section with respect to any taxable year beginning after December 31, 
2033.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (37), 
by striking the period at the end of paragraph (38) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(39) in the case of an eligible landlord (as defined in 
        section 45AA(c)), the low-income housing maintenance credit 
        determined under section 45AA.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

``Sec. 45AA. Low-income housing maintenance credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.

SEC. 8. PUBLIC DISPLAY OF TENANT'S RIGHTS AND COMPLAINT LINE.

    (a) Required Display.--An owner of a multifamily housing project 
which qualifies for assistance within the jurisdiction of the 
Department (as such term is defined in section 102(m) of the Department 
of Housing and Urban Reform Act of 1989 (42 U.S.C. 3545 (m)) shall 
display, at all times and in clear and conspicuous location on each 
floor of such project that contains any dwelling unit, a written notice 
that includes--
            (1) a statement describing the rights under Federal law 
        afforded to tenants of the project;
            (2) the phone number for the Multifamily Housing Complaint 
        Line established and operated by the Multifamily Housing 
        Clearinghouse; and
            (3) the phone number for a regional or local office of the 
        Department which can provide tenants additional information 
        regarding State and local resources for tenants.
    (b) Civil Money Penalty.--Any person who is found by the Secretary 
of Housing and Urban Development, after notice and opportunity for a 
hearing in accordance with section 554 of title 5, United States Code, 
to have failed to make a good faith effort to display notice complying 
with subsection (a) may be assessed a civil money penalty by the 
Secretary in the amount of $500 for each day of each such failure, 
except that the Secretary shall waive such penalty in any case in which 
an owner cures such violation within the 5-day period beginning upon 
notice by the Secretary of such violation.
    (c) Model Notice.--
            (1) Development.--Not later than the expiration of the 12-
        month period beginning on the date of the enactment of this 
        Act, the Secretary shall develop and publish in the Federal 
        Register a model notice that fulfills the requirements under 
        subsection (a)(1).
            (2) Availability.--The Secretary shall make copies of the 
        notice developed pursuant to paragraph (1) available, upon 
        request, to owners of multifamily housing projects.
    (d) Applicability.--Subsections (a) and (b) shall apply beginning 
upon the expiration of the 60-day period that begins on the date that 
the Secretary publishes notice in the Federal Register pursuant to 
subsection (c)(1).
    (e) Regulations.--Not later than the expiration of the 180-day 
period beginning on the date of the enactment of this Act, the 
Secretary shall issue regulations to carry out this section.

SEC. 9. GRANTS FOR TENANT HARASSMENT PREVENTION PROGRAMS.

    (a) Authority.--The Secretary may, to the extent amounts are made 
available for grants under this section, make grants to States, Indian 
tribes, units of local government, and nonprofit, nongovernmental 
affordable housing organizations to develop, expand, or assist tenant 
harassment prevention programs.
    (b) Tenant Harassment Prevention Program.--For purposes of this 
section, the term ``tenant harassment prevention program'' means any 
program or activities designed to protect, assist, or educate tenants 
of residential rental dwelling units regarding harassing or illegal 
behavior by their landlords intended to force the tenant to vacate the 
dwelling unit or surrender any of their rights as tenants. Such term 
includes programs and activities providing legal assistance, 
counseling, education, intervention, complaint processes.
    (c) Federal Share.--The amount of a grant under this section for 
any tenant harassment prevention program may not exceed 75 percent of 
the total costs of the program or activities to be carried out, 
including administrative costs.
    (d) Applications.--The Secretary shall provide for eligible 
entities specified in subsection (a) to apply for grants under this 
section, which applications shall describe the tenant harassment 
prevention program to be assisted with grant amounts, the activities to 
be carried out under the program, and the projected costs of such 
activities.
    (e) Selection.--The Secretary shall select applicants to receive 
grants based on criteria that the Secretary shall establish.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated $25,000,000 for each of fiscal years 2024 through 2028 for 
grants under this section.

SEC. 10. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Multifamily housing project.--The term ``multifamily 
        housing project'' means a housing project consisting of five or 
        more dwelling units.
            (2) Rental assistance voucher.--The term ``rental 
        assistance voucher'' means a voucher for rental assistance made 
        available under section 8(o) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437f(o)).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (4) Voucher user.--The term ``voucher user'' means a family 
        who is renting a dwelling unit using a rental assistance 
        voucher.

SEC. 11. REGULATIONS.

    The Secretary may issue any regulations necessary to carry out this 
Act.
                                 &lt;all&gt;
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