Renters win: feds ban junk fees on federally-backed housing

What it does

This bill prohibits landlords of federally-backed rental properties from charging application fees, tenant screening fees, and excessive late fees (capped at 3% of monthly rent, only after 15 days). It requires landlords to disclose total monthly costs, past litigation history, maintenance issues, and 10 years of rent increases before a lease is signed. The bill applies to properties with federal mortgage backing or federal housing assistance and directs federal regulators 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 specific landlord fees and a mandatory disclosure regime for federally-backed rental properties. It is consumer-protection legislation targeting rental-market friction costs.

What the text implies

• The bill applies only to federally-backed properties (those with FHA, VA, USDA, Fannie Mae, or Freddie Mac mortgages, or HUD assistance). Private landlords with conventional financing are unaffected, creating a two-tier rental market where protections depend on mortgage source.
• Disclosure of 10-year rent-increase history may chill rent growth in covered properties if tenants can easily compare historical patterns, potentially affecting property valuations and refinancing terms.
• The CFPB/FTC rulemaking on 'junk fees' and debt-collection practices (Section 4) may extend beyond rental housing if the agencies interpret the mandate broadly, affecting other consumer-debt sectors.
• Late-fee cap (3% after 15 days) may incentivize landlords to pursue eviction more aggressively rather than collect late fees, shifting enforcement from financial penalty to legal process.
• Litigation-history disclosure requirement may expose landlords to tenant screening based on prior disputes, potentially chilling legitimate eviction actions or creating reputational pressure.

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

Who it affects

Ordinary renters face lower upfront costs (no application or screening fees), capped late fees, and mandatory disclosure of material information about the property and landlord's litigation history, enabling more informed decisions. Landlords lose revenue streams and face compliance costs, but these are private business costs, not public harms.

Who stands to gain

• Tenants (reduced application, screening, and late fees)
• 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), Federal Housing Administration (FHA), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Bureau of Consumer Financial Protection (CFPB), Federal Trade Commission (FTC), Landlords / Property Owners, Tenants / Renters

Where it stands

1 cosponsor: 1 Independents.

• Jun 24, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Jun 24, 2025 — Referred to Senate Committee on Banking, Housing, and Urban Affairs · Congress.gov: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs”

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