The bill amends the "Residential Landlord and Tenant Act" by introducing a new section, 34-18-63, which establishes a rent stabilization framework. Under this framework, landlords are prohibited from increasing rent during the first year of a tenancy and can only raise rent by a maximum of four percent annually thereafter, unless they provide written notice to the tenant. This 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 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 or when the landlord is providing reduced rent as part of a federal, state, or local program. Furthermore, landlords may be granted exemptions for necessary repairs or increases in municipal taxes and insurance.

Violations of this section can result in landlords being liable for damages equal to three months' rent, along with potential attorney's fees and punitive damages if the landlord's actions are found to be motivated by malice or reckless indifference. The enforcement of these provisions will be overseen by the secretary of housing, and the act will take effect upon passage.