Substitute Bill No. 926 Summary

• Allows landlords to accept and hold rent assistance payments (advance rental payments from government or nonprofit programs on behalf of tenants) for up to the remaining rental amount due under a lease.

• Requires landlords to immediately deposit all rent assistance payments into escrow accounts at financial institutions, maintained separately from security deposits, and prohibits withdrawal except for lawful purposes including disbursement to rent assistance programs.

• Mandates landlords return rent assistance payments to the rent assistance program within 30 days of tenancy termination (or 15 days after written notice of forwarding address), less any monthly rental payments already disbursed to the landlord.

• Establishes that rent assistance programs must be notified in writing of the financial institution and account details holding payments, and entitles them to accrued interest on held amounts at rates set by law.

• Creates liability for landlords who violate these provisions, with penalties of twice the amount of any rent assistance payment withheld (or $10 minimum for interest violations), and establishes the Banking Commissioner's authority to investigate violations.

• Takes effect October 1, 2019.