H.R. 4100 — End Junk Fees for Renters Act

This section directs the appropriate regulators—HUD, VA, USDA, or FHFA, depending on the federal involvement—to prohibit owners of covered dwelling units from charging (1) application fees for rental applications; (2) tenant screening fees for criminal history, background, or consumer report checks; and (3) late fees exceeding 3% of monthly rent unless at least 15 days have elapsed since rent was due, with such requirements disclosed in leases executed after rules are issued. The section further requires owners to disclose to prospective tenants before lease signing the total monthly amount due (including fees), a summary of past litigation with tenants (to the degree practicable), ongoing pest and maintenance issues, and rent increases over the prior 10 years. Covered dwelling units include those receiving HUD assistance or subject to federally backed single-family or multifamily mortgage loans (e.g., FHA-insured under the National Housing Act, VA- or USDA-guaranteed, or Fannie Mae/Freddie Mac securitized).

This section directs the Bureau of Consumer Financial Protection and the Federal Trade Commission to issue, not later than 180 days after enactment, a rule that (1) defines the term "junk fee" with respect to rental housing and (2) determines that furnishing information about an unpaid junk fee to a consumer reporting agency is an unfair or unconscionable means to collect or attempt to collect a debt in violation of section 808 of the Fair Debt Collection Practices Act. (Thus, landlords and others are prohibited from reporting unpaid junk fees—such as nonessential charges beyond base rent—to credit bureaus.)