Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent

S 864 caps annual rent increases for major building improvements at 6% of the legal regulated rent for all tenants in regulated housing. Landlords can still raise rents for essential upgrades like roof repairs, energy efficiency work, or structural fixes, but yearly increases cannot exceed 6% of the current rent. This replaces a previous 2% annual limit for certain older improvement approvals (approved between 2012-2019). The bill directly affects landlords seeking rent hikes for building improvements and their tenants in regulated housing units.