HB596:

Rent stabilization, local; any locality may by ordinance adopt provisions.

Bill Summary:

Local rent stabilization authority. Provides that any
locality may by ordinance adopt rent stabilization provisions. The bill provides that no such ordinance shall be adopted
until the proposed ordinance has been posted on the locality's website and
advertised in a newspaper of general circulation in the locality at least two
weeks prior to a public hearing on such ordinance. All landlords who are under
rent stabilization may be required to give up to a two-month written notice of
a rent increase and cannot increase the rent by more than the locality's rent
stabilization allowance, the maximum amount a landlord can
increase a tenant's rent during any 12-month period, in effect at the time of the increase, and the bill requires the locality
to annually publish this allowance on its
website. The allowance is equal to the annual increase in the Consumer Price
Index for the region in which the locality sits and is effective for a 12-month period beginning July 1.

The bill provides that no such
ordinance shall apply to the following:

1. Any unit in a licensed facility, the primary purpose of
which is the diagnosis, cure, mitigation, and
treatment of illnesses;

2. Any unit in a facility owned or leased by an organization
exempt from federal income taxes pursuant to § 501(c)(3) of the Internal Revenue Code, the primary
purpose of which is to provide temporary sanctuary or shelter for qualified
clients, provided that the organization has notified
the clients residing in the facility of the temporary nature of their housing
at the inception of their residence;

3. Any owner-occupied group house;

4. Religious facilities, such as
churches, synagogues, parsonages, rectories, convents,
and parish homes;

5. Transient facilities, such as
motels, tourist homes, and bed and breakfast facilities;

6. School dormitories;

7. Licensed assisted living facilities and nursing homes; or

8. Single-family residences.

The bill states that such ordinance
shall provide a procedure by which a landlord may apply for an exemption from the
rent stabilization provisions in situations where the net operating income
generated by the rental facility has not been maintained due to escalating
operating expenses or for other appropriate reasons as established by the
locality.

The locality may establish a civil penalty for failure to
comply with the requirements set out in the ordinance that
shall not exceed $2,500 per separate violation.