Multiple definitions of "apartment house." Subchapter A (Sections 184.011-184.014) defines "apartment house" as more than five dwelling units. Subchapter C (Sections 184.051-184.052) defines it as two or more dwelling units. A building with 3-5 dwelling units is not subject to the new construction metering mandate of Section 184.012 (which only applies to Subchapter A buildings), but if it is master metered, the owner is still subject to Subchapter C's allocation rules. Owners of small buildings may incorrectly assume no regulation applies. They must still follow PUC rules on allocation if they bill tenants for utilities on a nonsubmetered basis.
Low-income elderly exemption trap. Section 184.012(b) requires a nonprofit organization to submit engineering and cost data and a sworn statement that all cost savings will be passed on to low-income elderly tenants. The exemption is not self-executing; the nonprofit must submit the required materials to the political subdivision. Failure to do so means the permit should not be issued without metering. Additionally, "all cost savings" is undefined; a strict interpretation could require the nonprofit to document utility cost savings and reduce rents accordingly, potentially creating liability if not done.
Housing for older persons exemption conditions. Section 184.0125 requires at least 80% of units to be occupied by at least one person 55 or older per unit, plus policies and procedures demonstrating intent to provide housing for those persons, plus "significant facilities and services specifically designed to meet the physical or social needs of older persons." If the facilities are not practicable, the housing must be "necessary to provide important housing opportunities for older persons." These are fact-intensive conditions. An owner who claims the exemption but fails to meet any element,for example, occupancy drops below 80% for a period,could face retroactive liability for failing to install meters, and political subdivisions could be sued for issuing a permit without proper metering.
Rental rate increase before submetering. Section 184.013(c) creates a trap for owners who increase rent within 90 days before installing submeters. If the rent increase is attributable to higher utility costs, the owner must immediately reduce rent by that amount and refund the increase collected during the 90-day period. This applies even if the owner had legitimate non-utility reasons for the rent increase; the statute only requires the reduction if the increase is "attributable to the increased cost of utilities." The attribution may be difficult to prove. Owners planning to install submeters should avoid utility-related rent increases for at least 90 days prior, or be prepared to refund.
RV park rate setting is inflexible. The owner must set a fixed per-kWh rate for each fiscal year based on the prior year's cost and consumption. If the utility's rates decrease, the owner must recompute downward (Section 184.034(c)). If the owner fails to recompute and continues to bill at the higher rate, the owner is overcharging and must refund the surplus the next fiscal year (Section 184.035). The owner cannot include common area or office electricity in the rate. The safe harbor requires strict compliance; any deviation risks classification as a utility.
No good-faith defense for treble damages. Section 184.071(a)(1) imposes liability for three times the amount of any overcharge without a good-faith exception. Even a bookkeeping error that results in a small overcharge triggers trebling. The only escape from treble damages is to prove no overcharge occurred. The good-faith defense only applies to the civil penalty (one month's rent). This means a landlord can be liable for significant sums even for unintentional mistakes.
Records must be available during normal business hours. Both submetering and allocation rule compliance require owners to maintain records and make them available for tenant inspection during reasonable business hours (Sections 184.014(b)(2), 184.052(b)(2)(B)). Failure to provide access could itself be a rule violation, triggering liability under Section 184.071. Owners should have a system for responding to inspection requests promptly.
Utility cutoff for RV occupants is limited. Section 184.036 only authorizes cutoff for delinquent utility services. The operator cannot cut off utility services for nonpayment of rent or other fees. The cutoff is limited to electric, water, and wastewater services. The operator must carefully track which occupant is delinquent and for which service. Cutting off service for the wrong reason could give rise to liability for wrongful eviction or conversion.
Outdated effective dates. The source uses "Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997" which may cause confusion with later amendments. Practitioners must ensure they are citing the current version. The Texas Legislative Council likely has reenacted or revised the chapter since 2013; check for codification notes.
Master metered small buildings (3-5 units). Buildings with 3-5 dwelling units are apartment houses under Subchapter C but not under Subchapter A. Such buildings are not subject to the new construction metering mandate of Section 184.012, but if they are master metered and the owner allocates costs, PUC rules apply. Many small landlords may be unaware of the requirement to have a lease disclosure and maintain records.
No explicit grandfathering for existing buildings. The statute does not explicitly require existing apartment houses to install submeters. The only mandate is for new construction. However, if an existing building is substantially renovated or converted to condominiums, Section 184.012(a) applies to "conversion of property to a condominium." An owner converting existing rental units to condos must install metering. Also, if an owner voluntarily submeters after construction, the 90-day rent reduction rule applies.