Residential Landlord-Tenant Act.  The Residential Landlord-Tenant Act (RLTA) governs the relationship and agreements between residential landlords and tenants.

Notice of a Rent Increase.  Landlords subject to RLTA must provide each affected tenant with written notice of a rent increase at least 60 days before the increase, and any increase in rent may not become effective prior to completion of the term of the rental agreement.  For subsidized rental agreements governing income-based tenancies or circumstances specific to the household, a landlord must give 30 days' notice of an increase in rent to each affected tenant.  An increase in the amount of rent of subsidized agreements may become effective upon completion of the term of the rental agreement, or sooner upon mutual consent.

Tenant Lease Termination.  A tenant subject to RLTA may end a rental agreement by providing a landlord with written notice at least 20 days before the end of any month for a month-to-month tenancy, or written notice at least 20 days before the end date specified in the rental agreement for a longer-term tenancy.  Upon receiving certain military orders, a tenant who is a member of the armed forces may end a month-to-month tenancy with less than 20 days of written notice and may end a longer-term tenancy with at least 20 days of written notice at any time during the tenancy.

Manufactured/Mobile Home Landlord-Tenant Act.  The Manufactured/Mobile Home Landlord-Tenant Act (MHLTA) governs the relationship and agreements between the owner of a manufactured or mobile home community (landlord) and the owner of the manufactured or mobile home (tenant).  MHLTA includes a dispute resolution program run through the Attorney General's Office (AGO).

Notice of a Rent Increase.  Three months' written notice is required from a landlord seeking to raise a tenant's rent at the end of a rental agreement term.  Rental agreements may not contain provisions allowing the landlord to alter the due date for rent payments or increase the rent during the term of the rental agreement if the term is less than two years, or more frequently than annually if the initial term is for two years or more.  An exception is provided for certain escalation clause provisions.

Tenant Lease Termination.  A tenant subject to MHLTA may end a rental agreement by providing a landlord with written notice one month before the expiration of the rental agreement.  A tenant may end a rental agreement with 30 days of written notice at any time during the rental agreement whenever a change in the location of the tenant's employment requires a change in residence.  A tenant who is a member of the armed forces may end a rental agreement with less than 30 days of written notice at any time during the rental agreement if the tenant receives certain military orders that do not allow for greater notice.

Rent and Fee Increase Limit.  Unless an exemption applies, a landlord is prohibited from increasing the rent for a tenant subject to RLTA or MHLTA, regardless of the length of their lease, in an amount greater than 7 percent during any 12-month period, or by any amount during the first 12 months after the tenancy begins.

Exemptions.  The rent increase limit does not apply in the following circumstances:

• in dwelling units subject to the RLTA where the first certificate of occupancy was issued 12 or fewer years before the date of the notice of the rent increase;
• during the first 12 months after the qualified sale of a manufactured or mobile home community (MHC) to an eligible organization under MHLTA whose mission aligns with the long-term preservation and affordability of the MHC, if needed to cover the cost of purchasing the MHC and approved by the majority of homeowners in the MHC;
• in dwelling units owned by, or manufactured or mobile home lots operated by, a public housing authority, public development authority, or nonprofit organization where maximum rents are regulated by other laws or local, state, or federal affordable housing program requirements;
• for tenancies in certain low-income housing developments;
• certain owner-occupied rentals under the RLTA; and
• when a rental agreement subject to the MHLTA is transferred due to the sale of manufactured or mobile home the landlord has the option, after giving notice to the purchaser prior to the transfer, to make a one-time increase of not more than 10 percent.

Notice Requirements.  A landlord must provide tenants with written notice of rent increases in a specific form.  If a landlord claims an exemption from the rent and fee increase limit, the landlord must include facts supporting the exemption in the notice. 

The landlord must provide each affected tenant a minimum of 90 days' prior written notice of an increase in rent in the RLTA or the three-month notice requirement for rent increases in MHLTA.  If a tenant whose rental agreement under RLTA was entered or renewed before the effective date of the act and agreement has more than 60 days but less than 90 days left before the end of the specified date, the landlord must provide the tenant a minimum of 60 days' before the effective date of an increase in rent.

Tenant Lease Termination.  If a landlord increases the rent above the 7 percent limit without providing a qualifying exemption, the tenant:

• must offer the landlord an opportunity to cure the unauthorized rent increase by providing a written demand to reduce the increase to an amount that complies with the limit; and
• may terminate a rental agreement at any time by providing the landlord with at least 20 days of written notice under RLTA or 30 days of written notice under MHLTA, in combination with other remedies.  When terminating a rental agreement under these circumstances, the tenant only owes rent for the full month in which the tenant vacates the dwelling unit or manufactured or mobile home lot, and the landlord is prohibited from charging the tenant any fines or fees for terminating the rental agreement.

Other Tenant Protections.  For lease or rental agreements entered on or after the effective date of the bill for tenancies subject to the MHLTA:

• move-in fees and security deposit combined may not exceed one month's rent, unless the tenant has pets and then the combined amount may not exceed two month's rent.  Tenant deposits paid as security for performance shall be deposited in trust for the tenant, and any interest earned shall be paid to the landlord unless otherwise agreed upon; and
• late fees for rent more than five days past due may not exceed: 2 percent of the tenants total rent per month during the first month that rent is past due; 3 percent during the second consecutive month rent is past due; and 5 percent during the third consecutive month the rent is past due.  

Landlords subject to the RLTA:

• are prohibited from including terms or conditions in a rental agreement that are more burdensome to a tenant for a month-to-month rental agreement than for a longer-term rental agreement, or vice versa; and
• must provide parity between lease types with respect to the amount of rent charged with parity being no more than 5 percent difference in rent depending on type of rental agreement offered.

For tenancies subject to RLTA or MHLTA: landlords are prohibited from reporting a tenant to a tenant screening service provider for failure to pay rent or fees that were unlawfully increased.

Enforcement.  A tenant or the AGO may bring a court action to enforce compliance.  If a court finds that a landlord violated the bill, the court must award the tenant damages in the amount of any excess rent, fees, or other costs paid by the tenant; mandatory damages equal to three months of any unlawful rent, fees, or other costs charged by the landlord; and reasonable attorneys' fees and costs.  Local governments may also adopt policies, ordinances, or other regulations to enforce the bill.

Definition of Rent Under the Manufactured/Mobile Home Landlord-Tenant Act.  For MHLTA, rent or rental amount is defined as recurring and periodic charges identified in the rental agreement for the use and occupancy of the manufactured or mobile home lot, which may include certain charges for utilities.  These terms do not include nonrecurring charges for costs incurred due to late payment, damages, deposits, legal costs, or other fees, including attorney fees.

Social Vulnerability Assessment.   Subject to the availability of amounts appropriated, the Department of Commerce must contract with an independent third party to carry out a social vulnerability assessment of the bill's impacts.  The assessment must be provided to the Legislature by June 30, 2028, and consider the following:

• the impact of rent stabilization on extending tenancies due to rent capping;
• whether there are social vulnerability impacts on cost burdened, immutable characteristic communities, or rural communities;
• whether rent stabilization creates a disproportionate burden on new or transitioning renters as a result of current tenants' rent being capped;
• the impacts on alternative rental markets such as short-term rentals; and
• the impacts on state-owned or state-run housing units.

The social vulnerability assessment provisions expire July 1, 2029.

Severability Clause.  A severability clause is included that states if any provision of the bill or its application to any person or circumstance is held invalid, the remainder of the bill or the application of the provision to other persons or circumstances is not affected.