Bill caps landlord junk fees, but only for federally-backed rentals.

What it does

This bill prohibits landlords of federally-backed rental properties from charging application fees, tenant screening fees, and late fees exceeding 3% of monthly rent (with a 15-day grace period). It requires landlords to disclose total monthly costs, past litigation history, maintenance issues, and 10 years of rent increases before lease signing. The bill applies to properties with federal mortgage backing or federal housing assistance and directs federal agencies and the CFPB/FTC to enforce these rules and define 'junk fees' in rental housing.

Why we flagged it

The bill's core mechanism is a direct prohibition on landlord fees and a transparency mandate. It is consumer-protection legislation targeting rental-market practices, not a commemorative, appropriations, or deregulatory measure.

What the text implies

• Scope limited to federally-backed properties: private landlords with no federal mortgage backing or assistance are exempt, potentially creating a two-tier rental market where protections apply only to federally-backed units.
• CFPB/FTC rulemaking on 'junk fees' and debt-collection reporting (Section 3) may extend beyond rental housing to other consumer debt, depending on how agencies define the term.
• Late-fee cap (3% of monthly rent) applies only to rent payment delays, not other lease violations; landlords may shift costs to other fees or lease terms not explicitly prohibited.
• Disclosure of 'past litigation' is vague—no definition of scope (all litigation, only tenant disputes, only judgments) or how far back; implementation burden and privacy implications unclear.
• Bill directs multiple agencies (HUD, VA, USDA, FHFA, CFPB, FTC) to enforce overlapping rules; coordination gaps or inconsistent interpretation may reduce effectiveness.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Renters gain direct financial relief (eliminated application and screening fees, capped late fees) and transparency (mandatory disclosure of costs, litigation history, maintenance issues, rent history). These protections reduce hidden costs and information asymmetry in rental markets, benefiting ordinary tenants.

Who stands to gain

• renters (eliminated fees, capped late charges)
• tenant advocacy organizations (enforcement partners)

Named in the bill

Department of Housing and Urban Development (HUD), Department of Veterans Affairs (VA), Department of Agriculture (USDA), Federal Housing Finance Agency (FHFA), Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), Federal Housing Administration (FHA), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae)

Where it stands

27 cosponsors: 27 Democrats.

• Jun 24, 2025 — Introduced · Congress.gov: “Introduced in House”
• Jun 24, 2025 — Referred to House Committee on Veterans' Affairs and House Committee on Financial Services · Congress.gov: “Referred to the Committee on Financial Services, and in addition to the Committee on Veterans' Affairs, for a…”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.