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Bill

Bill

S 864

HELP Copays Act

119th Congress Introduced by Michael Bennet and 24 co-sponsors

Bill S 864 caps rent increases from major property improvements at 6% of the legal rent, protecting tenants from sudden hikes while impacting landlords' returns.

Committee on Health, Education, Labor, and Pensions. Hearings held.
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Bill Summary · S 864

Summary of Bill S 864

Bill Overview

Bill Number: S 864
Title: Caps the amount of collectible rent increases due to major capital improvements at six percent of the legal regulated rent
Status: Referred to Housing, Construction and Community Development
Introduced: January 08, 2025
Classification: Bill

Purpose and Intent

The primary purpose of Bill S 864 is to establish a cap on the amount of rent increases that landlords can impose on tenants as a result of major capital improvements (MCIs) to residential properties. By limiting these increases to a maximum of six percent of the legal regulated rent, the bill aims to protect tenants from excessive rent hikes that could arise from significant property upgrades.

Key Provisions

  • Rent Increase Cap: The bill specifically caps collectible rent increases due to MCIs at six percent of the legal regulated rent. This means that regardless of the cost of improvements made by landlords, they cannot charge tenants more than this percentage as a result of those improvements.

  • Legal Regulated Rent Definition: The bill references the concept of "legal regulated rent," which is the maximum rent that can be charged under existing rent stabilization laws. This ensures that the cap is applied consistently across different properties and situations.

Impact

Who Would Be Affected?

  • Tenants: The bill is designed to benefit tenants by providing greater predictability and stability in their housing costs. It aims to prevent sudden and significant rent increases that could lead to housing instability.

  • Landlords: While the bill seeks to protect tenants, it may limit the financial returns for landlords who invest in major capital improvements. Landlords will need to adjust their financial planning and expectations regarding the recovery of costs associated with property upgrades.

Broader Implications

  • The bill could influence the housing market by encouraging landlords to undertake necessary improvements without the fear of imposing unmanageable costs on tenants. This could lead to better-maintained properties while balancing the financial interests of both parties.

Procedural Aspects

  • Legislative Action: As of January 8, 2025, the bill has been referred to the Housing, Construction and Community Development committee for further consideration. This is an important step in the legislative process, as the committee will review the bill, potentially hold hearings, and make recommendations for amendments or approval.

Related Bills

Bill S 864 is part of a broader legislative context, with several related bills from prior sessions, including:
- S 3588
- S 7674
- S 4568
- S 2203
- S 3365
- S 1235

These related bills may address similar issues or provide additional context regarding rent regulation and tenant protections.

This summary provides a clear overview of Bill S 864, highlighting its purpose, key provisions, potential impacts, and procedural status. It serves as a resource for understanding the implications of this legislation on tenants and landlords alike.

Compiled from official sources — confirm details with the bill’s official record.

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