House Bill 26-004

This bill establishes a comprehensive statewide framework intended to improve housing stability, promote affordability, and create uniform tenant protections while supporting pathways to homeownership. The General Assembly finds that rising housing costs and unpredictable rent increases contribute to displacement, homelessness, and financial insecurity, particularly for low-income households and individuals dependent on public benefits. The legislation seeks to balance tenant protections with predictable standards for property owners by linking rental costs, eviction procedures, and housing assistance programs to clear statutory guidelines.

A central provision of the bill creates a reasonable rent standard, limiting rent charged to eligible tenants to no more than thirty percent of household income, with additional protections for households experiencing unemployment or relying on disability or public assistance benefits. Rent adjustments may occur only following documented increases in tenant income or lease renewals lasting at least twelve months, and landlords must provide ninety days’ written notice before any rent increase. The act also restricts repeated income verification requests and prohibits retaliatory rent increases, aiming to prevent sudden or arbitrary housing cost increases that undermine long-term tenancy.

In addition to rental protections, the bill establishes a First-Time Homebuyer Assistance Program administered by the Department of Local Affairs. The program provides financial support through down payment assistance, closing cost grants, and mortgage affordability tools such as interest rate reductions or tax credit certificates. Assistance prioritizes applicants earning at or below 120 percent of area median income and may be structured as forgivable loans contingent upon owner occupancy, encouraging long-term housing stability and expanding access to homeownership for renters facing structural market barriers.

The act further reforms eviction law by limiting permissible grounds for eviction, standardizing notice requirements, and establishing minimum procedural timelines designed to ensure due process. Tenants may be evicted only for specified causes such as nonpayment of lawful rent, material lease violations, criminal activity posing imminent threat, or legitimate owner occupancy or redevelopment. Courts must observe defined waiting periods before hearings, and tenants retain the right to present defenses or payment arrangements. Violations constitute unlawful housing practices subject to damages, injunctive relief, and attorney fees. The bill authorizes rulemaking by relevant state agencies and takes effect following the post-adjournment period unless referred to voters through a veto petition process.