2024 -- H 7989

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LC004270

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2024

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A N   A C T

RELATING TO TOWNS AND CITIES -- GENERAL POWERS--TENANT PROTECTION

ACT

     Introduced By: Representative Enrique George Sanchez

     Date Introduced: March 05, 2024

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

     SECTION 1. Findings and purpose.

     The general assembly finds and declares that homelessness, displacement, foreclosure, lack

of affordable rental and ownership opportunities, and excessive rent burden are commonplace

throughout the state. The purpose of this chapter is to provide municipalities with local options for

rent stabilization, just cause eviction protections, condominium conversion ordinances, and other

tenant protections along with provisions for fair return standards for property owners and

exemptions for owner-occupant landlords and new and recently-constructed housing.

     SECTION 2. Chapter 45-2 of the General Laws entitled "General Powers" is hereby

amended by adding thereto the following section:

     45-2-68. Residential rent control.

     (a) Every city or town may establish a housing authority, or allow an existing housing

authority, to establish rules and regulations related to residential housing rent control.

     (b) Any residential rental property subject to this section shall be eligible for a property tax

reduction as established by municipal ordinance.

     SECTION 3. Title 34 of the General Laws entitled "PROPERTY" is hereby amended by

adding thereto the following chapter:

CHAPTER 18.3

LIMITATION OF ANNUAL RENT INCREASES AND NO-FAULT EVICTIONS

     34-18.3-1. Adoption by city or town.

     A city or town may adopt and implement the provisions of this chapter in its entirety in the

manner provided in § 34-18.3-2. The acceptance of this local option by a municipality shall take

effect no later than one hundred eighty (180) days after adoption. A municipality that accepts this

chapter shall adopt an ordinance which effectuates the provisions of this chapter no later than one

hundred eighty (180) days after acceptance.

     34-18.3-2. City or town authority -- Limitation of annual rents and no-fault evictions.

     A city or town adopting and implementing the provisions of this chapter may, by local

charter provision, ordinance, or majority vote of its governing body or through a local binding

ballot measure, impose a limit on the size of annual rent increases and require that evictions be

based on defined just cause reasons, for certain dwelling units within the municipality.

     34-18.3-3. Exemptions.

     (a) For the purposes of this chapter, covered dwelling units shall not include:

     (1) Dwelling units in owner-occupied buildings (unit is occupied as principal residence of

owner) with three (3) or fewer units.

     (2) Dwelling units whose rent is subject to regulation by a public authority. Occupancy by

a tenant with a mobile housing voucher does not exempt an otherwise covered dwelling unit.

     (3) College or university dormitories where group sleeping accommodations are provided

in one room, or in a series of closely associated rooms.

     (4) Facilities for the residential care of the elderly.

     (5) Dwelling units for which the first residential certificate of occupancy was issued on or

after January 1, 2024, shall be exempt for a period of five (5) years from the date at which such

certificate of occupancy was issued.

     (b) Where dwelling units are exempt, a notice of exemption shall be provided with the lease

for all tenancies. If there is no written lease for such dwelling units, the tenants-at-will shall be

provided with a written notice of exemption.

     34-18.3-4. Limitation of annual rents.

     (a) The limit on any annual rent increase for a covered dwelling unit not exempt pursuant

to §34-18.3-3 shall not exceed the annual change in the consumer price index for the applicable

area or five percent (5%), whichever is lower. For the purposes of this chapter, "consumer price

index" refers to the annual twelve (12) month average change in the Consumer Price Index for all

Urban Consumers, New England division (All Items), as published by the Bureau of Labor

Statistics of the United State Department of Labor in September of the prior calendar year.

     (b) For the purposes of this chapter, the rent amount in place twelve (12) months prior to

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the date of adoption shall serve as the base rent upon which any annual rent increase shall be

applied. If the dwelling unit is currently vacant, the last rent amount charged shall serve as the base

rent. If there was no previous rent amount, or if no rent has been charged for at least the previous

five (5) years for a dwelling unit not exempted under §34-18.3-3(a), the rent amount the owner first

charges shall serve as the base rent.

     (c) For purposes of this chapter, when a new tenancy, in which no tenant from the prior

tenancy remains in lawful possession of the dwelling unit, and the rental rate is not otherwise

established pursuant to the provisions of this chapter, the municipality may establish a procedure

setting the maximum allowable initial rent for the unit. This section is only applicable to subsequent

increases after that initial rental rate has been established.

     34-18.3-5. Just cause eviction protection.

     The provisions of this section shall be applicable to all housing accommodations in any

city or town; provided, however, that the city or town may provide for exemptions from the

provisions of this section and any such exemption shall be included in an ordinance adopted by the

municipality. The city or town that adopts the provisions of this section may, by ordinance, provide

that an owner shall not recover possession of a leased unit within a residential dwelling unit unless

the housing court finds that:

     (1) The tenant has failed to pay the rent to which the owner is entitled;

     (2) The tenant has violated an obligation or covenant of the tenant's tenancy not

inconsistent with chapter 18 of title 34, or this section, or the rules and regulations issued pursuant

thereto, other than the obligation to surrender possession upon proper notice; and the tenant has

failed to cure such violation after having received written notice thereof from the owner;

     (3) The tenant is committing or permitting to exist a nuisance in or is causing substantial

damage to the leased unit, or is creating a substantial interference with the comfort, safety or

enjoyment of the owner or other occupants of the same or any adjacent accommodations;

     (4) The tenant has used or permitted a leased unit to be used for any illegal purposes;

     (5) The tenant, who had a written lease agreement which terminated or is a tenant at will,

has refused, after written request or demand by the owner, to execute a written extension or renewal

thereof or lease for a further term of like duration, at a rental rate that does not exceed the percentage

set by the municipality, or the consumer price index, in accordance with this chapter and the

ordinance enacted as a result of this chapter. The term "consumer price index" refers to the annual

twelve (12) month average change in the Consumer Price Index for All Urban Consumers, New

England Division (All Items), as published by the Bureau of Labor Statistics of the United States

Department of Labor in September of the prior calendar year;

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     (6) The tenant has refused the owner reasonable access to the unit for the purpose of making

necessary repairs or improvements required by the laws of the state or any political subdivision

thereof, or for the purpose of inspection as permitted or required by such lessee's lease agreement,

or for the purpose of showing the leased unit to any prospective purchaser or mortgagee;

     (7) The person holding at the end of a lease term is a subtenant not approved by the owner;

     (8) The owner seeks in good faith to recover possession of a leased unit for the owner's

own use and occupancy or for the use and occupancy by the owner's spouse, children,

grandchildren, great-grandchildren, parents, grandparents, brother, sister, father-in-law, mother-in-

law, son-in-law, or daughter-in-law, and has provided the tenant with one hundred eighty (180)

days written notice and an offer of a relocation assistance payment equal to at least three (3) month's

rent, unless, for example, a municipality has further provided for a partial or complete exemption

to the relocation assistance payment provision as it applies to low-income or moderate-income

landlords; or

     (9) The lessor seeks to recover possession for any other just cause; provided that, the

lessor's purpose is not in conflict with the provisions and purposes of chapter 18 of title 34 or this

chapter.

     (b) A lessor shall notify the clerk's office of the city or town in which the leased unit is

located prior to initiating judicial proceedings in compliance with this section.

     (c) A lessor who recovers possession of a leased unit in violation of this section shall be

punished by a fine not less than five thousand dollars ($5,000). Each such recovery in violation of

this section shall constitute a separate offense. The housing court shall have jurisdiction over an

action arising from a violation of this section and shall have jurisdiction in equity to restrain any

such violation. It shall be a defense to a lessee in an action pursuant to this section that a lessor

attempted to recover a leased unit in violation of this section.

     34-18.3-6. Condominium and cooperative conversions.

     (a) A city or town may, by majority vote of the city or town council, enact an ordinance to

regulate the conversion of housing accommodations in the municipality to the condominium or

cooperative form of ownership and the regulation of rent and the eviction of tenants incident to the

conversion or sale of condominiums. Said ordinance may include, but is not limited to:

     (1) Provisions for investigations into and hearings on condominium conversions or

proposed conversions;

     (2) A permit process;

     (3) Tenant notification requirements;

     (4) Relocation costs for tenants and other measures to protect tenants;

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     (5) Control of evictions;

     (6) Penalties for violation of the ordinance; and

     (7) Exemptions from the provisions of this subsection.

     The ordinance may establish a condominium review board or vest administrative duties in

an existing municipal board, commission or office. The review board may exercise such powers as

provided by ordinance.

     (b) A municipality that adopted an ordinance for the regulation of the conversion of

housing accommodations to the condominium or cooperative forms of ownership and evictions

related thereto pursuant to the authority conferred upon the municipality by general or special law

prior to the effective date of this section may continue to exercise such authority. This section shall

not be construed to restrict the authority of said municipality to amend or repeal any ordinance in

accordance with the provisions of said general or special law.

     (c) A municipality may, by majority vote of the city or town council, adopt this section in

the manner provided herein and a municipality that has adopted this section may, in like manner,

revoke its acceptance.

     34-18.3-7. Protection from immediate rent increases.

     Unless otherwise provided for in this chapter, the maximum rent of a regulated rental unit

shall be the rent charged the occupant for the month, twelve (12) months prior to the adoption of

this section by a municipality. If the rental unit was unoccupied at that time, but was occupied at

any time prior to adoption of this section, the maximum rent shall be the rent charged therefor for

the month closest to twelve (12) months prior to the effective date of this section. If the maximum

rent is not otherwise established, it shall be established by the city or town as provided for in this

chapter. Any maximum rent may be subsequently adjusted under the provisions of this chapter.

     34-18.3-8. Regulation of tenant deposits and fees, including brokers fees.

     (a) A city or town that adopts this section may regulate by ordinance the payment of

deposits and non-refundable move-in fees paid by a residential tenant or prospective tenant,

notwithstanding any general or special law to the contrary; provided, however, that no ordinance

shall provide that a lessor may require a tenant or prospective tenant to pay any amount in excess

of the amount provided for in this chapter.

     (b) Such regulation may include installment payment options for a tenant’s last month’s

rent and security deposit pursuant to this section.

     (c) A city or town ordinance may provide that a tenant may elect to pay a security deposit

and last month's rent in installments as follows:

     (1) For any rental agreement term that establishes a tenancy for six (6) months or longer,

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the tenant may elect to pay the security deposit and last month's rent in six (6) consecutive, equal

monthly installments that begin at the inception of the tenancy or the tenant may propose an

alternative installment schedule. If the landlord agrees to the tenant's alternative installment

schedule, the schedule shall be described in the rental agreement; and

     (2) For any other rental agreement term that establishes a tenancy, the tenant may elect to

pay the security deposit and last month's rent in no more than four (4) equal amounts that begin at

the inception of the tenancy and are paid in installments of equal duration or the tenant may propose

an alternative installment schedule. If the landlord agrees to the tenant's alternative installment

schedule, the schedule shall be described in the rental agreement.

     (d) Landlords may not impose any fee, charge any interest, or otherwise impose a cost on

a tenant because a tenant elects to pay the last month's rent in installments.

     (e) A landlord who fails to comply with the requirements of any ordinance promulgated

pursuant to this section shall be liable to the tenant for one thousand ($1,000) dollars plus

reasonable attorney fees and costs in addition to any other remedy available at law.

     (f) This section shall not apply to a tenant who rents a unit in an owner-occupied dwelling

with three (3) or fewer dwelling units.

     (g) In addition to the powers granted to a city or town in this section and notwithstanding

any other section to the contrary, a city or town may by local charter provision, ordinance regulate,

limit or prohibit the business of finding dwelling accommodations for a fee.

     34-18.3-9. Municipal anti-displacement zones.

     (a) A city or town adopting any section in this chapter may, in addition to municipal-wide

implementation of such section, provide for the implementation or exemption of such section’s

provisions, in distinct anti-displacement zones, in which it has been determined that residential

households of low-, moderate-, or middle-income have been displaced or are at risk of

displacement, as defined by the municipality.

     (b) A community organization, as defined by the municipality, may petition the

municipality for the establishment of an anti-displacement zone.

     34-18.3-10. Reporting requirements.

     Cities and towns adopting this chapter shall provide annual reports to the department of

housing, which shall include, but not be limited to:

     (1) The text of the ordinance adopting this chapter;

     (2) Any studies undertaken in informing adoption of the ordinance;

     (3) The number of units affected by the ordinance; and

     (4) Any other relevant data as determined by the department of housing.

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     34-18.3-11. Deceptive trade practices -- Remedies.

     Any violation of this section shall be deemed an unfair and deceptive trade practice under

chapter 13.1 of title 6. Any person claiming a violation of this section may pursue remedies under

§ 6-13.1-7. The attorney general is hereby authorized to bring an action under § 6-13.1-5 to enforce

this provision and to obtain restitution, civil penalties, injunctive relief, and any other relief awarded

pursuant to chapter 13.1 of title 6.

     34-18.3-12. Application to existing law.

     Nothing in this chapter shall be construed to interfere with any existing rights or protections

afforded to tenants under current state or federal law.

     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO TOWNS AND CITIES -- GENERAL POWERS--TENANT PROTECTION

ACT

***

     This act would authorize cities and towns to establish a housing authority to adopt tenant

protection measures, including rent control, annual rent increase ordinances and no-fault evictions,

subject to certain exemptions.

     This act would take effect upon passage.

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