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%) in any twelve-month period thereafter, provided they give written notice to the tenant. The written notice must include the amount of the increase, the new rent, supporting facts for any increase beyond the allowed amount, and the effective date of the increase. Additionally, landlords terminating a tenancy without cause or refusing to extend a tenancy are also restricted from resetting the rent for the next tenancy to more than four percent (4%) above the previous rent.

The bill outlines specific exemptions to these provisions, including situations where the tenant voluntarily leaves, the landlord provides reduced rent as part of a government program, or if the landlord receives an exemption from the secretary of housing due to necessary repairs or increased municipal taxes. Violations of this section could 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 bill is set to take effect upon passage.