HB 632 Summary

• Establishes a rent stabilization law limiting monthly rent increases for most rental dwelling units to an unspecified percentage at the end of each rental agreement term or every 12 months, whichever is longer.

• Prohibits rent increases attributable to landlord negative cash flow from refinancing or purchasing the property if such losses were foreseeable at the time of the transaction.

• Exempts single-family residences (renting to one non-related family), new structures under a certain age, hotels/motels with stays under 30 days, government-operated low-income housing, and institutional facilities.

• Creates a rent stabilization advisory working group within the Department of Commerce and Consumer Affairs to recommend annual rent adjustment percentages, eviction restrictions, and fair return amounts for landlords.

• Allows tenants to refuse illegal rent increases as a defense against eviction, permits civil actions by tenants or the department for violations, and establishes damages of a minimum specified amount or three times the excess rent charged, plus attorney's fees.