Landlord Accountability Act of 2023

To amend the Fair Housing Act, to prohibit discrimination based on use of section 8 vouchers, and for other purposes. 1. Short title This Act may be cited as the Landlord Accountability Act of 2023 2. Prohibiting housing discrimination based on source of income (a) In general The Fair Housing Act ( 42 U.S.C. 3601 et seq. (1) in section 802 ( 42 U.S.C. 3602 (p) Source of income (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 (2) income received as a monthly benefit under title II of the Social Security Act ( 42 U.S.C. 401 et seq. 42 U.S.C. 1381 et seq. 45 U.S.C. 231 et seq. (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, familial status, (3) in section 805 ( 42 U.S.C. 3605 (A) in subsection (a), by inserting source of income, familial status, (B) in subsection (c), by inserting source of income, handicap, (4) in section 806 ( 42 U.S.C. 3606 source of income, familial status, (5) in section 807 ( 42 U.S.C. 3607 (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) source of income, handicap, (7) in section 810(f) ( 42 U.S.C. 3610(f) (4) During the period beginning on the date of enactment of the Landlord Accountability Act of 2023 . (b) Prevention of intimidation in fair housing cases Section 901 of the Civil Rights Act of 1968 ( 42 U.S.C. 3631 source of income (as defined in section 802), or national origin (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. (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. 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. 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. 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) (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. 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. 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 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 (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 (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 (2) Eligible low-income housing project The term eligible low-income 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) (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) (3) Low-income housing unit The term low-income housing unit (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 , plus (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. 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. 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 (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. 10. Definitions For purposes of this Act, the following definitions shall apply: (1) Multifamily housing project The term multifamily housing project (2) Rental assistance voucher The term rental assistance voucher 42 U.S.C. 1437f(o) (3) Secretary The term Secretary (4) Voucher user The term voucher user 11. Regulations The Secretary may issue any regulations necessary to carry out this Act.

Summary: Landlord Accountability Act of 2023 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. 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 housing vouchers and rental assistance, rental and homeownership subsidies, Social Security and disability income assistance, and spousal and child support. 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. 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. In addition, HUD may provide grants to develop, expand, and assist tenant harassment prevention programs. 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.