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, provided they give written notice to tenants in accordance with specified requirements. This notice must include the amount of the rent increase, the new rent amount, facts supporting any exemption if the increase exceeds four percent, and the effective date of the increase.

Additionally, the bill restricts landlords from resetting rent for new tenancies to more than four percent above the previous rent unless certain conditions are met, such as when a tenant leaves voluntarily or if the landlord is providing reduced rent as part of a federal, state, or local program. Landlords may also seek exemptions from the rent increase limitations if they can demonstrate necessary repairs related to health and safety or if there has been an increase in municipal taxes or insurance costs.

If granted an exemption, landlords can increase rent beyond the four percent cap, but must adhere to specific guidelines regarding the justification for such increases. The bill establishes civil remedies for tenants, allowing them to seek damages if landlords violate these provisions, including potential punitive damages in cases of malicious conduct. The act is set to take effect upon passage.