The bill proposes an amendment to the "Residential Landlord and Tenant Act" by adding a new section titled "Rent stabilization act." This new section restricts landlords from increasing rent during the first year of tenancy, requires written notice for any rent increases after the first year, and caps rent increases at no more than four percent (4%) during any twelve-month period. Additionally, it mandates that the written notice must include the amount of the rent increase, the new rent amount, any facts supporting an exemption if the increase exceeds the four percent cap, and the effective date of the increase.

The bill also outlines conditions under which a landlord is not subject to these provisions, such as when a tenant leaves voluntarily or when the landlord is providing reduced rent as part of a government program. It establishes penalties for landlords who violate these provisions, making them liable for an amount equal to three months' rent plus actual damages sustained by the tenant. Tenants have the right to take legal action within one year of becoming aware of a violation. The bill emphasizes that this section does not create a right to increase rent beyond what is otherwise permitted, nor does it require landlords to justify or reduce rent increases they are entitled to impose. The enforcement of these provisions falls under the responsibility of the secretary of housing. The act would take effect immediately upon passage.