This bill allows residential tenants to address serious hazards affecting habitability in their dwelling units by either paying their rent into an escrow account or making necessary repairs themselves and deducting the costs from future rent payments. A serious hazard is defined as deficiencies in vital facilities, such as mold, unsafe staircases, broken heating systems, and other issues that compromise the habitability of the unit. Tenants must notify their landlords of the hazard and provide a reasonable time for repairs to be made before taking these actions.

Furthermore, the bill stipulates that using an escrow account to withhold rent payments or deducting repair costs from rent will not be considered grounds for eviction. This provision aims to protect tenants from being evicted for taking necessary actions to ensure their living conditions are safe and habitable. The bill codifies and expands the existing repair and deduct principles, allowing tenants to deduct up to four months of rent for repairs made when landlords fail to address serious hazards after being notified.