The proposed bill aims to provide housing stability in Massachusetts by limiting annual rent increases for residential units. Specifically, the bill establishes that rent increases for covered dwelling units cannot exceed the annual increase in the Consumer Price Index or 5%, whichever is lower, within any 12-month period. The bill defines "Covered Dwelling Units" and outlines several exemptions, including units in owner-occupied buildings with four or fewer units, units regulated by a public authority, and units rented primarily to transient guests. The base rent for calculating future increases will be determined based on the rent amount in place as of January 31, 2026, or the last rent charged if the unit is vacant at the time of adoption.

Additionally, the bill stipulates that any violation of these rent increase limits will be considered an unfair and deceptive act under Massachusetts consumer protection law, allowing affected individuals to seek remedies. The Attorney General is authorized to enforce these provisions and pursue restitution and penalties. The bill emphasizes that it does not interfere with existing tenant rights under state or federal law, ensuring that tenants retain their protections while addressing the housing affordability crisis in the state.