Governor's Bill No. 5042 aims to protect renters from excessive rent increases following a change of ownership of their housing accommodations. The bill introduces new definitions and criteria for assessing rental charges, including the concept of "major renovations," which refers to significant upgrades to essential building systems. It also expands the considerations that a fair rent commission must evaluate when determining if a rent increase is excessive, adding a new factor that considers whether ownership has changed within the past twelve months. If a new owner has made major renovations, the commission will assess the proposed rent increase based on the established criteria. Conversely, if no major renovations have been completed, any rent increase above five percent or the increase in the consumer price index will be deemed excessive.

Additionally, the bill outlines the procedures for fair rent commissions to follow when determining the fairness of rental charges. It allows commissions to limit rent increases to a maximum of five percent or the increase in the consumer price index if deemed excessive. The bill also includes provisions for tenants to withhold rent if their accommodations do not meet health and safety standards, with the rent held in escrow until compliance is achieved. Overall, the bill seeks to ensure that renters are not subjected to unfair rent hikes, particularly in the context of ownership changes, while also providing mechanisms for addressing retaliatory actions by landlords against tenants who assert their rights.

Statutes affected:
Governor's Bill: 7-148c, 7-148d