AN ACT PROTECTING RENTERS FROM RENT INCREASES UPON CHANGE OF OWNERSHIP.

HB 5042 prevents landlords from significantly raising rents when a rental property changes ownership within 12 months, unless major renovations were completed. If no major renovations occurred (defined as work on at least two primary building systems like plumbing or electrical), rent increases are capped at 5% or the annual consumer price index increase, whichever is higher. This directly affects renters in properties changing hands and landlords seeking to adjust rents after purchase. The bill amends existing rent control provisions to ensure rent hikes after ownership transfers are limited unless substantial improvements were made.