This bill amends the residential landlord and tenant act by establishing new requirements for landlords regarding late fees and disclosures to prospective tenants. It allows landlords to charge a late fee for overdue rent, which cannot exceed 5% of the periodic rent, cannot be increased based on previously imposed late fees, and can only be charged after a grace period of five days post-due date. Additionally, the bill mandates that landlords provide written disclosures to prospective tenants before accepting any application fees or payments. These disclosures must include a good faith estimate of rent and non-rent expenses, the availability date of the dwelling unit, and the criteria for tenant eligibility, including factors like criminal history and income.

The bill also outlines penalties for landlords who fail to comply with these provisions. If a landlord violates the late fee regulations, the tenant or prospective tenant can terminate the rental agreement without penalty. In cases where the disclosure requirements are not met, the tenant or prospective tenant can also terminate the agreement without penalty, and the landlord must refund any payments made, including application fees and security deposits, along with a penalty equal to the total amount paid. This legislation aims to enhance transparency and fairness in rental agreements, protecting the rights of tenants.