Key Legislative Updates on Multifamily Housing: Insights from the TAA Luncheon

At a recent luncheon hosted by the Lubbock Apartment Association, Government Affairs representatives from the Texas Apartment Association (TAA) presented critical updates on legislative issues affecting the multifamily housing industry. Here’s a concise summary of the key points, bolstered by important data to keep property owners informed.

Legislative Landscape: A Tough Session

Passing legislation in Texas has always been a challenge, with only 20% of bills typically making it through the state legislature each session. The 2021 session, however, saw a dramatic drop to 8% due to the COVID-19 pandemic and shifting priorities, which stalled many legislative efforts. As a result, TAA chose not to push for major legislative changes but instead closely monitored how pandemic-related policies, such as the CARES Act and eviction moratoriums, were affecting the industry.

This strategic decision aligned with broader legislative trends. Data from the Texas Legislative Council reflects a historically low success rate for passing bills during the pandemic period, making TAA’s approach to focus on smaller amendments more pragmatic.

Eviction Regulations: Local Challenges, State Solutions

The pandemic also led to the introduction of local eviction moratoriums, with cities like Austin, Dallas, and San Marcos extending eviction delays by up to 90 days beyond state guidelines. This created significant confusion for property owners, many of whom were unsure how to navigate the local regulatory patchwork. According to the National Multifamily Housing Council, by late 2021, over 30% of renters nationwide were behind on rent, placing immense financial strain on landlords.

To address these concerns, TAA successfully advocated for a bill that preempted local eviction regulations, ensuring that eviction procedures remain consistent statewide. This legislative victory not only helped standardize eviction processes but also alleviated the burden on property owners who were struggling to manage tenant defaults.

Preparing for 2024: Eviction Reform in Focus

Looking ahead to the 2024 legislative session, TAA is focusing on streamlining the eviction process. A 2022 study by the Eviction Lab found that eviction proceedings in Texas typically take 45 to 60 days, but this period extended to over 90 days in certain regions during the pandemic. These delays, combined with legal fees and prolonged vacancies, have resulted in significant financial losses for property owners.

TAA is advocating for reforms that would:

• Simplify eviction proceedings to reduce legal costs.
• Standardize the eviction process across Texas to avoid confusion.
• Minimize delays, helping property owners quickly regain control of their units.

Squatting: A Growing Concern

One of the more surprising topics discussed was the rise of squatting. Viral social media videos have raised awareness about the issue, and property owners have increasingly faced squatters occupying units illegally. According to the Real Estate Center at Texas A&M, squatting incidents in Texas have risen by 15% since 2020, with average financial losses ranging between $6,000 to $10,000 per incident. These costs include legal fees, property damage, and lost rent.

TAA is working to address this issue through legislative action, pushing for reforms that would make it easier for property owners to remove squatters while also simplifying eviction procedures.

TAA’s Political Engagement: A Vital Force

TAA’s success in the legislative arena is a direct result of its active political engagement. During the most recent election cycle, TAA contributed $650,000 to state-level races, focusing on candidates who support a strong business environment for multifamily housing. These efforts paid off, with TAA achieving a 95% success rate in backing winning candidates during the 2022 primaries. This support is essential in ensuring that TAA continues to have a strong voice in legislative discussions that affect the industry.

Looking Ahead: Advocacy at the Capitol

TAA’s commitment to legislative advocacy will continue with their “Day at the Capitol” event on February 4-5, 2024. This event will offer members the opportunity to meet directly with lawmakers, sharing their experiences and concerns. TAA’s legislative priorities for the upcoming session will focus on eviction reform, squatting legislation, and protecting property owners’ rights.