HB710: HB710 Landlord and tenant; certain limits on increases in rental amounts charged for residential properties; provide

25 LC 60 0086 House Bill 710 By: Representatives Jackson of the 68th, Mitchell of the 88th, Sanchez of the 42nd, Scott of the 76th, and Schofield of the 63rd A BILL TO BE ENTITLED AN ACT To amend Titles 10 and 44 of the Official Code of Georgia Annotated, relating to commerce1 and trade and property, respectively, so as to provide certain limits on increases in rental2 amounts charged for residential properties; to prohibit landlor ds from charging rental3 amounts in excess of such limits as an unlawful, unfair, and de ceptive trade practice; to4 provide for definitions; to provide for statutory construction; to provide for an affirmative5 defense; to provide for an effective date and applicability; to provide for related matters; to6 repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Title 10 of the Official Code of Georgia Annotated, relating commerce and trade, is amended10 in Part 2 of Article 15 of Chapter 1, relating to the "Fair Business Practices Act of 1975," by11 revising subsection (b) of Code Section 10-1-393, relating to u nfair or deceptive practices12 in consumer transactions unlawful and examples, by striking "and" at the end of paragraph13 (34), replacing the period at the end of paragraph (35) with "; and", and adding a new14 paragraph to read as follows:15 H. B. 710 - 1 - 25 LC 60 0086 "(36) Failure to comply with the provisions of Code Section 44- 7-25 regarding16 limitations on increases in rental amounts for residential properties."17 SECTION 2.18 Title 44 of the Official Code of Georgia Annotated, relating to property, is amended in19 Article 1 of Chapter 7, relating to landlords and tenants in ge neral, by adding a new Code20 section to read as follows:21 "44-7-25.22 (a) As used in this Code section, the term:23 (1) 'Disability' shall have the same meaning as set forth in 42 U.S.C. Section 12102, as24 of July 1, 2025.25 (2) 'Nondiscounted' means any rental amount charged to any tenant, excluding any rental26 amount charged to a student or senior citizen.27 (3) 'Lease year' means the consecutive 12 month period following the commencement28 date of the rental agreement and each subsequent 12 month period thereafter.29 (4) 'Rental agreement' means any lease, rental, or other written agreement entered into30 by a landlord and a tenant in connection with such tenant leasing, subleasing, letting, or31 otherwise accepting a grant for consideration of the right to u se or occupy residential32 premises for a fixed term or at the will of the landlord.33 (5) 'Rental amount' means periodic payments due to a landlord for the use and occupancy34 of any residential property pursuant to a rental agreement and includes any additional fees35 due to such landlord pursuant to the rental agreement. Such term shall not include any36 payments for damages, fees for late payments, legal costs, deposits, payments of funds37 to be held in trust, or other one-time fees.38 (6) 'Rental freeze option' means a tenant right, in renewing a ny rental agreement, to39 require, for a period of up to five lease years, that any rental amount for a new lease year40 remain fixed at the rental amount last paid by such tenant.41 H. B. 710 - 2 - 25 LC 60 0086 (7) 'Residential property' means any building, structure, or portion thereof which is used42 or occupied as, or designed or intended for use or occupancy as, a residence. Such term43 shall not include any building, structure, or portion thereof that is:44 (A) Constructed after 2024, such exclusion to continue for 15 years after the date of45 construction;46 (B) Subject to restrictions where the rental amount charged is controlled, regulated, or47 subsidized by any governmental unit, agency, authority, or other entity; or48 (C) Constructed and maintained in connection with any institut ion of the University49 System of Georgia or unit of the Technical College System of Ge orgia for use and50 occupancy by an individual enrolled at such institution or unit.51 (8) 'Senior citizen' means an individual who is a current resident of this state, is 65 years52 of age or older, and whose primary source of income is from payments received pursuant53 to the federal Social Security Act, including, but not limited to, old age and survivors54 benefits, supplemental security income benefits, and disability insurance benefits.55 (9) 'Student' means an individual who is a current resident of this state, between 1856 and 26 years of age, and currently enrolled in any institution of the University System of57 Georgia or unit of the Technical College System of Georgia.58 (b) For any residential property, no landlord shall:59 (1) Increase the rental amount during any fixed term of a rent al agreement, except as60 explicitly provided in such rental agreement;61 (2) Increase the rental amount by more than 3 percent of the lowest, nondiscounted rental62 amount charged for that residential property at any time during the 12 month period63 immediately preceding the date on which the increase takes effe ct, excluding64 consideration of rental amounts;65 (3) Increase the rental amount without providing at least 120 days of notice prior to such66 increase; or67 H. B. 710 - 3 - 25 LC 60 0086 (4) Increase the rental amount paid by a tenant who is a stude nt or a senior citizen by68 more than 2 percent annually, including an increase in any rental amount paid by a tenant69 who is a senior citizen for reasonable accommodations in relati on to a disability in70 accordance with the federal Americans with Disabilities Act.71 (c)(1) A tenant who is a senior citizen, who has rented the same residential property for72 more than five consecutive years, and whose annual income is at or below the federal73 poverty level provided by the United States Department of Health and Human Services74 shall have the right to exercise a one-time rental freeze option; provided, however, that75 such tenant is not in default under the rental agreement at the time of exercising such76 option.77 (2) To exercise a rental freeze option pursuant to paragraph ( 1) of this subsection, a78 tenant must provide the landlord with a notice of intent to exe rcise such rental freeze79 option at least 90 days prior to the end of the tenant's current lease year. Any such option80 shall be subject to a verification of the tenant's income by the landlord.81 (d) Without otherwise limiting the definition of unfair or deceptive acts or practices under82 Part 2 of Article 15 of Chapter 1 of Title 10, any violation of this Code section by a83 landlord shall be considered an unfair or deceptive act or prac tice as provided in Code84 Section 10-1-393.85 (e) It shall be an affirmative defense to and counterclaim in any dispossessory proceeding86 or eviction action that the landlord has charged a rental amount in excess of the limits set87 forth in this Code section.88 (f) No landlord shall terminate a tenancy, fail to renew a tenancy, or refuse to enter into89 a rental agreement with an individual based on such individual' s status as a student or90 senior citizen."91 H. B. 710 - 4 - 25 LC 60 0086 SECTION 3.92 This Act shall become effective upon its approval by the Governor or upon its becoming law93 without such approval and shall apply to all rental agreements entered into on or after such94 date and to all renewals, modifications, or extensions of such agreements entered into on or95 after such date.96 SECTION 4.97 All laws and parts of laws in conflict with this Act are repealed.98 H. B. 710 - 5 -