The proposed 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 and can only increase rent by a maximum of four percent (4%) during any twelve-month period thereafter, unless they provide written notice to the tenant. The written notice must include the amount of the increase, the new rent amount, supporting facts for any increase beyond the allowed limit, and the effective date of the increase. Additionally, landlords terminating a tenancy without cause or refusing to extend a tenancy cannot reset the rent for the next tenancy to an amount greater than four percent (4%) above the previous rent.

The bill also outlines specific exemptions from these provisions, such as when a tenant voluntarily leaves, when reduced rent is provided as part of a government program, or when a landlord demonstrates necessary repairs or increases in municipal taxes or insurance. Violations of this section can result in landlords being liable for three months' rent in damages, along with potential attorney's fees and punitive damages if the landlord's actions are found to be malicious or reckless. The enforcement of these provisions will be overseen by the secretary of housing, and the act will take effect upon passage.