What are the key changes in the HUD memorandum?

According to the provided sources, the HUD memorandum issued on May 22 introduces several shifts in how assistance animal accommodation requests are handled, even though the core legal framework remains the same.

The key changes highlighted in the memorandum include:

What Has Not Changed

It is important to note that the memorandum does not change the underlying law. The following elements remain stable:

In summary, while the legal protections for persons with disabilities remain intact, the operational interpretation and enforcement strategies used by HUD are the primary areas of change.

What is the impact of training and tasks guidance?

The guidance regarding training and tasks represents a significant shift in HUD’s enforcement interpretation and is a primary driver of the current period of “Policy Uncertainty” (2025–2026) for housing providers.

Based on the sources, the impact of this new guidance includes:

While these discussions around training and tasks are changing HUD’s interpretation, the sources emphasize that the Fair Housing Act (FHA) itself remains stable, and the requirement for case-by-case evaluations has not changed.

What documentation can be required from applicants under new guidance?

Under the new guidance and the current period of “Policy Uncertainty” (2025–2026), the specific documentation requirements for assistance animals are shifting, though the goal remains to verify the legitimate need for an accommodation.

Based on the sources, housing providers can require documentation that addresses the following:

Guidance on Unreliable Documentation

The sources highlight that housing providers should be cautious of certain types of documentation that may not meet the necessary criteria:

Because HUD is reporting the withdrawal of some previous guidance, the sources suggest that housing teams must focus on maintaining consistent and defensible processes for evaluating this documentation to manage increased operational risk.

What is the impact of the Interactive Process?

The Interactive Process serves as a critical framework for evaluating assistance animal requests, particularly during the current period of policy uncertainty. According to the sources, its impact is primarily seen in how it facilitates verification and manages risk for housing providers.

The key impacts of the Interactive Process include:

In essence, the Interactive Process moves the evaluation from a simple document check to an active engagement that ensures only those with legitimate, verified needs receive the accommodation.

Can pet rent be charged for assistance animals?

Based on the sources, the answer depends on whether the animal is a verified assistance animal or is determined to be a pet through the evaluation process.

Under the Fair Housing Act (FHA), which the sources emphasize has remained stable despite new HUD guidance, the following rules apply:

In summary, as long as the animal meets the criteria for an assistance animal under the stable FHA framework, it is exempt from pet rent. This remains a top concern for housing teams, which is why the sources recommend maintaining a consistent and defensible process for evaluating every request.

How should housing teams evaluate requests for multiple assistance animals?

Housing teams should evaluate requests for multiple assistance animals by applying a Reasonableness Test based on HUD guidance to determine the validity of the requests. According to the sources, there are four primary criteria and common concerns for housing teams to consider:

By focusing on these criteria, housing teams can manage the increased legal variability of the current “Policy Uncertainty” period while ensuring they remain in defensible compliance.

What is the Reasonableness Test for multiple animal requests?

Explain the difference between the 2020 and 2025 standards.

How can teams identify fraud during the Interactive Pro

The U.S. Department of Housing and Urban Development no longer requires landlords to waive pet policies for untrained emotional support animals.

HUD has determined that requests to waive pet policies for animals trained to perform specific disability-related services are reasonable, but requests to waive pet policies for untrained ESAs are not. HUD no longer expects housing providers to extend accommodations intended for trained assistance animals to untrained ESAs.

HUD will only investigate cases involving animals trained to provide disability-related assistance. Untrained emotional support animals will no longer be considered exempt from pet fees in rental property.

The Americans with Disabilities Act defines a service animal as “individually trained to do work or perform tasks for the benefit of an individual with a disability, including a physical, sensory, psychiatric, intellectual, or other mental disability.” To be a service animal, the tasks performed by the animal “must be directly related” to the disability. Providing emotional support, well-being, comfort, or companionship do not constitute work or tasks for the purposes of this definition.

Going forward, HUD will use the training component of the ADA’s definition for service animals to assess animal-related reasonable accommodation complaints under the Fair Housing Act. Defining an assistance animal as an animal trained to assist with a disability is the best guarantee of evenhanded enforcement of the Fair Housing Act.

Absent guidance from federal or state authorities, Texas REALTORS® recommends a measured approach to working with tenants with ESAs. A lease is a legally binding document, so landlords may not immediately charge a tenant a pet fee or pet deposit if the lease already states none is required. Texas REALTORS® will continue to monitor HUD’s guidance but in the meantime property managers and landlords with questions about making changes to leases based on this guidance should speak with legal counsel who can advise them on the best way to proceed.

 June 7, 2026 at 12:48 AM

Reasons that real estate owners can get help from a real estate broker to help sell their real estate property

Selling a property is often one of the largest financial transactions a person will make, and the process has a lot of moving parts. While some owners consider selling on their own (FSBO, or “For Sale By Owner”), partnering with a licensed real estate broker provides distinct advantages that directly impact the final sales price, legal safety, and overall stress levels.

Here are the primary reasons real estate owners rely on a broker to sell their property:

Setting the right asking price is a delicate balance. Price it too high, and the listing sits on the market, becoming “stale”; price it too low, and the owner leaves money on the table.

Putting a “For Sale” sign in the yard and listing on basic public sites only reaches a fraction of potential buyers. Brokers provide an aggressive, multi-channel marketing strategy.

Managing inquiries and property showings can quickly become a full-time job for an owner.

Negotiating a real estate deal involves much more than just the final sales price.

The legal framework surrounding real estate transfers is strict, and mistakes can lead to costly lawsuits after closing.

There are approximately 150 form for transactions, disclosures, amendments, and extensions.

The Net Return Reality: While utilizing a broker involves paying a commission, data consistently shows that properties represented by brokers sell for significantly higher average prices than FSBO properties, frequentl

Produced at the Poodle Ranch

concerning emotional support animals, are landlords given exceptions under FHA rules, if the building only has 4 apartments

Yes, under the federal Fair Housing Act (FHA), there is a specific exception that can apply to buildings with four or fewer units. This is commonly known as the “Mrs. Murphy Exemption.”

However, the exception only applies if certain criteria are met. Here is the breakdown:

1. The “Mrs. Murphy” Exemption

A landlord is generally exempt from the FHA’s requirements regarding Emotional Support Animals (ESAs) if:

2. When the Exemption Does NOT Apply

Even if the building only has four units, the landlord must still follow FHA rules (meaning they must allow a documented ESA) if:

3. Texas-Specific Considerations

In Texas, state law generally mirrors the federal FHA. While the federal “Mrs. Murphy” rule provides a shield for small, owner-occupied dwellings, it is important to note:

Must a prospective apartment tenant be treated differently if that prospective tenant has an emotional support animal

Yes, under both federal and Texas fair housing laws, a prospective tenant with an Emotional Support Animal (ESA) must be treated differently than a standard pet owner.

In the eyes of the law, an ESA is not a pet; it is considered an “assistance animal” (a medical tool), similar to a wheelchair or a prescription.

1. Key Legal Protections

Under the Fair Housing Act (FHA) and the Texas Fair Housing Act, landlords must provide “reasonable accommodations” for people with disabilities. This means:

2. What You CAN Ask For

You are not required to take the tenant’s word for it. You have the right to request:

3. When Can You Deny an ESA?

While the protections are strong, they are not absolute. You may deny the request if:

Summary Table: Pet vs. ESA

Sixth degree Black Belt in Real Estate?
Last week I attended the funeral of the “Father of American Karate” Allen Steen. It was attended by a group of karate notables including a dozen 10th degree black belts and several grand masters. He got his black belt while attending the University of Texas in Austin in 1963.

He became a 10th degree black belt and he defeated Chuck Norris and Joe Lewis, well know fighters. He owned a chain of 10 karate schools… If you go to ChatGPT ioe Gemini.google and type in “ Texas Blood and Gut”, it will discuss Allen Steen and others in the Texas fight circuit who were concerned with power, not points.

For 4 years, I was program director and an instructor at his school in central Dallas and was fortunate to travel and train with numerous champions in the Texas area. Then I 1977 I moved closer to family in Houston, where I was born…. But I think I grew in Dallas.
After ten years with a world wide investment banking firm, I got smoked out by a bad market.
I went to work with my father’s very successful property Tax Consulting firm, but it was a part time seasonal business.

I continued to help him while I began selling home for a national real estate brokerage for 12 years and then transferred to their commercial real estate brokerage office for 5 years.
I yearned to have my own brokerage firm, so I pasted that exam.
Over time time brokerage 139 multifamily apartment properties.
The funeral of Allen Steen and reminiscing old memories with the karate dignitaries that attended. I ask the question.

Am I a black belt in Real Estate?
As Senior property tax consultant representing thousand of properties at 5 Appraisal Districts and also hundreds of brokerage buy and sell transactions, I still can not scratch through and change a contract, because I am not an attorney.
There are numerous tests to pass to be a Real Estate GrandMaster.
Agent, Broker, Appraiser, Mortgage Loan officer, Building Inspector, Property Tax Consultant, Property Insurance broker, and Attorney.
I suppose I have the experience to be a 6th or 8th degree black belt in Real Estate.
Actually, what matters is performance.

In October 2025, this month, my client closed the purchase of a commercial property worth approximately $1,650,000 in southwest Houston.  Negotiations took approximately 3 weeks, because buyer and seller were sometimes traveling.  Neither buyer nor seller appeared motivated, but they were.  The broker representing the seller was professional and helpful.

There had been other purchase offers from other prospective buyers.

My client made a cash offer which therefore was not contingent upon getting a loan with a reasonable amounts of earnest money and the option fee to buy the right to terminate during feasibility and inspections.

My client buyer immediately had a tenant for the property at a fair lease rate for 5 years.

The lease contract is promulgated and approved by the Texas Real Estate Commission and Association of Realtors. It provides that the tenant pay a monthly base rate plus a rate for property ad valorem taxes and hazard insurance and common area maintenance, referred to a CAM.

CAM, common area maintenance are paid by tenant each month plus the base rent amount. This monthly CAM payment is to pay for the  normal operating expenses paid by the owner.

The problem is that rent payments do not pay for Major Future capital expenditures such as Roof replacement Nor building foundation repairs.  Both may seldom happen but they are expensive large amount of money. A roof may cost $4 per square foot, thus can be between $20,000 to $100,000 depending on the size of the building.  Foundation repairs can cost $250 a foot to dig under a foundation. It may cost $400 per pier footing placed each 4 feet under the concrete slab.  A foundation repair on a small building might cost $10,000 to $20,000 or more.

Houston was built on mud. Thick dark grey gumbo soil. Every building will eventually need foundation work.  The gumbo clay soil imbibes water then dries, thus the foundation moves each dry or wet season.

I devised a method for the tenant to pay for Future Major Capital Expenditures.

The lease requires that the tenant to pay 5 cents per square foot of building each month, into a Sinking Fund (no pun intended).  Thus a 15,600 square foot building would monthly pay  $833 to landlord which is required to go into a separate saving account.  Each year the amount paid into the Sinking Fund is $10,000, thus after 5 years the fund has deposited $50,000.  Roofs and foundations are expensive to maintain.

Normally, owners do not easily find the funds and may try to sell the building.  They would get a higher price if he building is in good condition to sell or lease.  It is like trying to sell a car with faulty transmission.

Phone me to discuss at  2812368189 your building if you are about to negotiate a new lease.

Lester Langdon here.  In the past, several of my clients have had problems with squatters.  Here is a recent article from the Fort Worth Star Telegram, written by Tiffani Jackson

Here’s what Texas’ new squatter laws mean for landlords, tenants and homeowners

It’s a nightmare scenario for homeowners — discovering that someone has taken up residence in your property without permission, and finding out the process to remove them is anything but simple.

Lawmakers say squatting has become a growing problem in Texas, frustrating property owners and leaving law enforcement with limited options.

To address it, Gov. Greg Abbott signed two new laws this summer that make it easier to clear squatters from private property and add tougher penalties for fraud and trespassing. “Texas is facing a squatting crisis, with property owners struggling to evict delinquent tenants or remove people who were never supposed to be on their property in the first place,” Abbott said in a news release. Critics, however, warn the measures could blur the line between squatters and struggling tenants behind on rent. Whether you’re a landlord, homeowner or tenant, here’s what to know about how the new laws work.

Who is considered a squatter under Texas law? A squatter is someone who occupies property without permission, such as an abandoned home or a residence where they were never granted a lease. Unlike guests who overstay their welcome and may be considered tenants, squatters generally have no lease or rental agreement to protect them. Texas law has long recognized “adverse possession,” which allows someone to claim ownership after occupying land for years under strict conditions, but that process is rare. The more pressing issue for most homeowners is how to quickly remove someone who moves in without consent and refuses to leave. How does the new law change the process?

Senate Bill 1333 creates a new legal tool for homeowners: filing a sworn affidavit with the sheriff to request immediate removal of squatters. This bypasses the drawn-out eviction process that usually applies to tenants. The law also ramps up penalties for squatting-related fraud, making it a misdemeanor to present fake deeds and a felony to sell, lease or rent property using fraudulent documents. Property damage caused while trespassing now carries heavier criminal charges, with damage over $1,000 potentially prosecuted as a second-degree felony.

Importantly, the expedited removal process does not apply to family members or current/former tenants, it’s focused on unauthorized occupants only. What protections exist if someone is wrongfully removed? Lawmakers built in safeguards for people who are mistakenly evicted under the new process. I

If an individual can prove they were wrongfully removed, they can sue the property owner for damages. That includes actual losses, exemplary damages, attorney’s fees, court costs and up to three times the fair market rent of the property. These protections aim to balance property owners’ rights with due process for legitimate occupants.

How does the law affect evictions in Texas? Senate Bill 38 targets the court side of eviction proceedings, requiring justice courts to hear cases faster — within 10 to 21 days of filing. It also allows courts to issue summary judgments in clear squatting cases, speeding up removal when the facts are straightforward. The law clarifies how landlords must serve notices to avoid disputes over whether squatters were properly informed. Justice courts are limited to ruling only on possession of the property, not title disputes or broader claims, which keeps cases narrowly focused. The bill also prevents local courts or agencies from altering eviction rules, creating consistency statewide.

When do the new laws take effect? SB 1333 took effect on Sept. 1, 2025. SB 38 will go into effect on Jan. 1, 2026. Both were passed during the 89th Texas Legislative Session and signed by Gov. Abbott, who said they will give homeowners “an efficient means of evicting squatters from their property.” While squatting cases remain relatively rare, supporters say the laws provide much-needed clarity and faster remedies for property owners.

When do the new laws take effect? SB 1333 took effect on Sept. 1, 2025. SB 38 will go into effect on Jan. 1, 2026. Both were passed during the 89th Texas Legislative Session and signed by Gov. Abbott, who said they will give homeowners “an efficient means of evicting squatters from their property.” While squatting cases remain relatively rare, supporters say the laws provide much-needed clarity and faster remedies for property owners.

The Approaching Commercial Real Estate Financial Crisis: A Looming Threat for Lenders and Borrowers

As the commercial real estate (“CRE”) market braces for a potential financial crisis in 2025, the landscape is riddled with uncertainty, creating a precarious situation for investors and stakeholders alike. A high volume of commercial mortgages are set to mature (estimated at $950 billion over the next twelve months), and the financial and operational stresses on borrowers are expected to escalate, resulting in heightened anxiety within the industry.

This confluence of factors, including rising interest rates and potential shifts in market demand, could lead to a wave of defaults, significantly impacting both lenders and borrowers. The implications of such a scenario extend far beyond immediate financial losses, as the stability of entire markets could be threatened, prompting a reevaluation of investment strategies.

In this blog, we will delve into the causes of this impending crisis, examining the interconnected dimensions of economic fluctuations and borrower vulnerabilities, its potential effects on lenders, and the options available to them in dealing with defaulting borrowers, ultimately providing insights into navigating this turbulent landscape.

Understanding the Crisis

The CRE market has been under pressure due to several macroeconomic factors. The COVID-19 pandemic accelerated shifts in how businesses use commercial spaces, with many companies adopting remote or hybrid work models that allow for greater flexibility and efficiency. As organizations reassess their spatial needs, this change has significantly reduced the demand for office space, leading to higher vacancy rates and declining property values across many urban areas.

Furthermore, the rise of e-commerce has transformed retail spaces, rendering some traditional commercial properties less relevant and further compounding the existing challenges. Additionally, rising interest rates and inflation have increased borrowing costs, squeezing the profit margins of many commercial property owners and making it more difficult for them to sustain their investments. These intertwined issues have created an uncertain outlook for the CRE sector, prompting stakeholders to reevaluate strategies and adapt to the evolving landscape of commercial real estate.

As we approach 2025, a significant number of commercial mortgages are set to mature, marking a pivotal moment in the financial landscape. Many of these loans were originated during periods of low interest rates and high property valuations, which created an illusion of stability and growth. Now, borrowers find themselves grappling with the complex challenge of refinancing these loans in a less favorable economic environment. With property values depressed and borrowing costs elevated, obtaining new financing may not be feasible for many.

This situation raises serious concerns about the potential for widespread defaults in the commercial real estate sector. The ripple effects of these defaults could extend beyond individual borrowers, impacting lenders, investors, and the overall economy. In light of these challenges, it is essential for borrowers to explore all available options, including renegotiating terms with lenders, seeking alternative financing solutions, and proactive financial planning to navigate this difficult transition.

Impact on Lenders

Lenders, including banks, insurance companies, and private equity firms, are at the forefront of this looming crisis. The impact on lenders can be multifaceted:

Lender Options for Managing Defaults

In dealing with borrowers who may default on their loans, lenders have several options:

Strategic Considerations for Lenders

In preparing for the potential crisis, lenders should consider several strategic actions:

Conclusion

The approaching commercial real estate financial crisis poses significant challenges for both borrowers and lenders. As a substantial volume of mortgages reaches maturity, the potential for defaults looms large. Lenders must be prepared to navigate this crisis through a combination of proactive risk management, borrower assistance, and strategic planning. By adopting a comprehensive approach, lenders can mitigate the impact of the crisis, protect their financial health, and support the stability of the broader real estate market.   

Spotting Signs of Fraud

Overview:

This briefing document summarizes the key themes and important information presented in the PetScreening article “Spotting the Signs of ESA Fraud.” The article addresses the increasing trend of individuals attempting to fraudulently pass off their pets as assistance animals (Emotional Support Animals – ESAs) to avoid pet fees and restrictions in rental housing. It highlights the importance of a thorough review process for accommodation requests, outlines potential red flags indicative of fraud, and clarifies the legal distinctions between pets, service animals, and support animals under HUD guidelines.

Main Themes and Important Ideas:

Conclusion:

The PetScreening article underscores the growing challenge of ESA fraud in rental housing. It emphasizes the necessity of a rigorous and consistent review process for all assistance animal accommodation requests. By understanding the differences between pets, service animals, and support animals, being aware of potential red flags, and recognizing their rights in the review process, housing providers can better identify and address fraudulent claims while ensuring they comply with Fair Housing regulations for legitimate assistance animals. Utilizing third-party verification services can further enhance efficiency and reduce the burden on onsite staff.

https://www.petscreening.com/blog/spotting-the-signs-of-esa-fraud