AN ACT PERMITTING MUNICIPALITIES TO PROHIBIT RENT INCREASES IN THE EVENT OF MULTIPLE STATE BUILDING CODE VIOLATIONS.

HB 5261 allows municipalities to ban rent increases for residential rental units that have two or more outstanding violations of local health/safety ordinances or the State Building Code. The bill requires municipalities to pass a local ordinance through their legislative body to implement this restriction, which remains in effect until the building violations are fixed. It directly affects landlords of affected properties and provides tenants with protection from rent hikes during unsafe living conditions. The law takes effect October 1, 2026, and applies to all residential units defined under state law.