S. 2148

119 S2148 IS: End Junk Fees for Renters Act
 U.S. Senate
 2025-06-24
 text/xml
 EN
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  II
  119th CONGRESS
  1st Session
  S. 2148
  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.
1.
Short title
This Act may be cited as the   End Junk Fees for Renters Act  .
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.
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.
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 ).