The Tenants' Right to Organize Act aims to significantly strengthen the ability of tenants in federally assisted housing to establish and participate in tenant organizations. It amends the United States Housing Act of 1937, specifically concerning Housing Choice Vouchers, and the Internal Revenue Code, impacting Low-Income Housing Tax Credit (LIHTC) projects. The core purpose is to ensure tenants have a collective voice regarding their living conditions and tenancy terms, promoting decent, safe, and sanitary housing.

Under this bill, tenants gain explicit rights to establish, operate, and participate in legitimate tenant organizations to address issues related to their living environment. These rights include speaking publicly to media, elected officials, and government agencies, with strong protections against retaliation for asserting such rights. A "legitimate tenant organization" is defined as one that meets regularly, operates democratically, is representative of tenants, and is independent from owners or public housing agencies.

Public Housing Agencies (PHAs) and owners are mandated to recognize these organizations, give reasonable consideration to their concerns, and solicit feedback, including on annual plans. They must respond meaningfully in writing to feedback within 60 days, or 30 days for exigent poor housing conditions. The bill also outlines specific protected activities that PHAs and owners must permit, such as distributing leaflets, conducting surveys, posting information, and convening meetings in on-site common spaces without requiring prior permission.

For LIHTC projects, the bill extends similar tenant rights and owner responsibilities, requiring project owners to meet comparable engagement and non-interference standards. State housing credit agencies are also tasked with notifying tenants annually of their right to organize and amending standard leases or guidance to affirm these rights. This ensures that tenants in a broader range of affordable housing programs benefit from these protections.

To ensure compliance, the bill directs the Assistant Secretary for Public and Indian Housing to establish an enforcement protocol, including a mechanism for administrative complaints and investigations. Crucially, it establishes a private right of action, allowing tenants to file lawsuits in federal or state court to enforce the Act's provisions. Furthermore, the bill authorizes funding for tenant participation and capacity building, including grants for nonprofit organizations to conduct outreach and provide technical assistance, and directs the Secretary of HUD to provide annual funds to resident councils.