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 similar issues. Tenants must notify their landlords of the hazard and provide a reasonable time for repairs to be made before taking these actions. Importantly, the bill stipulates that utilizing an escrow account or deducting repair costs from rent will not be grounds for eviction.

Additionally, the bill codifies and expands the principles of repair and deduct, allowing tenants to deduct up to four months' worth of rent for repairs made if the landlord fails to address the serious hazard after being notified. This provision aims to empower tenants to ensure their living conditions are safe and habitable while providing them with legal protections against eviction for taking these necessary actions. The bill is set to take effect on the first day of the first month following its enactment.