The bill amends Chapter 34-18 of the General Laws, known as the "Residential Landlord and Tenant Act," by introducing a new section titled "34-18-62. Rent stabilization act." This section establishes that during any private rental tenancy, landlords are prohibited from increasing rent during the first year of tenancy. After the first year, landlords can only increase rent by a maximum of four percent annually, provided they give tenants written notice in accordance with section 34-18-16.1. The written notice must specify the amount of the rent increase, the new rent amount, facts supporting any increase beyond the allowed limit, and the effective date of the increase.

Additionally, landlords terminating a tenancy without cause with a thirty-day notice or refusing to extend a tenancy at the tenant's request cannot reset the rent for the next tenant to an amount greater than four percent above the previous rent.

The bill outlines specific exemptions from these provisions, including situations where the tenant voluntarily leaves, the landlord is providing reduced rent as part of a federal, state, or local program, or the landlord is granted an exemption by the secretary of housing. Exemptions may be granted if the landlord demonstrates necessary repairs and improvements related to health and safety or if there has been an increase in municipal taxes and/or insurance greater than four percent of the annual rent. If granted an exemption for tax or insurance increases, any rent increase shall not exceed the amount of the increase divided by the number of dwelling units.

Violations of this section can result in landlords being liable to the tenant for an amount equal to three months' rent, in addition to actual damages sustained. If the tenant prevails in a legal action, they may also be awarded attorney's fees. Furthermore, if the landlord's conduct is shown to be motivated by malice or ill will, or if their actions are reckless or show callous indifference, the court may award punitive damages. Tenants are entitled to recovery if they commence an action within one year after knowing or should have known of the landlord's violation. The section does not create a right to increase rent that does not otherwise exist, nor does it require landlords to justify or reduce a rent increase they are entitled to impose. The secretary of housing is tasked with enforcing the provisions of this section. The act will take effect upon passage.