The proposed bill, "An Act to establish tenant escrow savings accounts," aims to create a voluntary savings initiative under the Executive Office of Housing and Livable Communities (EOHLC) to assist eligible tenants in saving for their first home. Eligible tenants, defined as individuals who occupy rental properties owned by individual landlords with no more than five rental units, can contribute ten percent of their monthly rent into a secure tenant escrow account managed by EOHLC. The funds in this account can be used for down payments or closing costs for purchasing a primary residence, and may also serve as an emergency rent fund in case of financial difficulties.

Additionally, the bill includes provisions for tax deductions for landlords whose tenants participate in the escrow program. Landlords can deduct an amount equal to one and one-half times the tenant's contributions from their annual taxable income. Municipalities may also offer additional deductions, and the bill establishes a separate Tenants Escrow Fund to manage tenant contributions and state matching funds. EOHLC is tasked with creating regulations to ensure program compliance and protect tenants from potential rent increases related to their contributions.