The bill amends Chapter 34-18 of the General Laws, known as the "Residential Landlord and Tenant Act," by introducing a new section titled "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 annually thereafter, provided they give tenants written notice in accordance with § 34-18-16.1. 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 tenant to an amount greater than four percent above the previous rent. The bill outlines specific exemptions from these provisions, such as when a tenant voluntarily leaves, when the landlord is providing reduced rent as part of a federal, state, or local program, or when the landlord is granted an exemption by the secretary of housing. Exemptions may be granted if the landlord demonstrates necessary repairs or improvements to the dwelling unit or if there has been an increase in municipal taxes and/or insurance greater than four percent of the annual rent.

Violations of this section can result in landlords being liable for damages equal to three months' rent, in addition to actual damages sustained by the tenant. 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 under this section if they commence an action within one year after they knew or should have known of the landlord's violation. The secretary of housing shall enforce the provisions of this section, and the act will take effect upon passage.