This bill establishes a framework for courts to determine whether a rent increase is unconscionable by outlining specific factors to be considered. These factors include the proposed rent increase amount, the landlord's expenses and profitability, comparisons to rents in similar properties, the bargaining positions of both parties, the potential shock to a reasonable person's conscience, the duration since the last rent increase, and the condition of the property, particularly regarding habitability and code violations. The bill emphasizes that no single factor should solely dictate the court's decision, allowing for additional relevant considerations on a case-by-case basis. Furthermore, it places the burden of proof on landlords to demonstrate that their rent increase is not unconscionable.

Additionally, the bill addresses the confidentiality of certain landlord-tenant court records, stipulating that records related to eviction actions that were adjudicated without a judgment for possession or those with judgments entered seven years or longer ago will be excluded from public access. It clarifies that these provisions do not apply to rent increases governed by local rent control ordinances or affordable housing regulations. The bill is set to take effect immediately, with the confidentiality provisions commencing six months after enactment.