Bill
H 4063
Sets a 3.5% yearly rent cap for affordable units, mandates reinvestment of profits, and guarantees tenants access to counsel to stabilize income-restricted housing.
Status & procedural highlights
- Filed as House Docket No. 2734 (filed 1/16/2025), sponsored by Rep. Joan Meschino (with Reps. Gentile and Arena-DeRosa).
- Introduced/adopted in the House 2/20/2025. Referred to the House Committee on Housing (notation: 5/01/2025). Senate concurred 5/05/2025. A committee hearing is/was scheduled for 11/19/2025 (Gardner Auditorium).
- Note: the packet supplied includes an unrelated South Carolina retirement resolution for “Inspector Dale Nevins”; that text appears to be included in error and is not part of H.4063.
Purpose / intent
- Establish protections and oversight for tenants in income-restricted “affordable housing units” to limit sudden rent escalation, strengthen municipal and state oversight, require reinvestment in projects, provide tenant legal representation, and create data/reporting to track affordable housing equity.
Key definitions
- “Affordable housing unit”: a dwelling whose rent is affordable to households at ≤ 80% of area median income (AMI), adjusted for family size (as defined by the Executive Office of Housing and Livable Communities).
- “Access to counsel program”: a statewide program providing full legal representation to tenants in housing matters related to affordable units, funded by a dedicated appropriation.
Major provisions and changes
- Rent increase cap: landlords may not increase annual rent for an affordable housing unit by more than 3.5% in a year. If a landlord’s market-rate rents in the same rental project decrease, rents for the affordable units must be reduced by the same percentage.
- Administrative review of increases: landlords seeking an increase must notify the Executive Office and local municipal leadership (select board or mayor) at least 120 days before the effective date and provide supporting financial information. Municipalities have 60 days to comment; the Executive Office must approve, partially approve (with reasons), or deny.
- Fee/profit cap and reinvestment: landlords may not take fees and profit distributions from an affordable housing project in excess of 6% of the landlord’s equity in the project. At least 4% of those fees/profits must be reinvested into the rental project (maintenance/unit upgrades), with a proportionate share allocated to affordable units.
- Tenant legal assistance: tenants of affordable units are entitled to free legal assistance and full representation under a statewide access-to-counsel program. Landlords may not bill tenants legal fees without court approval.
- Payment-dispute mediation and cure period: landlords must work in good faith with tenants for a 6‑month period to resolve nonpayment disputes through housing court mediation; during that cure period, landlords may not charge fines or administrative costs.
- Affordable housing unit equity dashboard: the Executive Office must establish an ongoing dashboard to measure, track, and report the impact and landscape of affordable housing in the Commonwealth to foster equity.
- Task force on regulatory agreements and municipal oversight: chaired by the Executive Office secretary (or designee) plus 10 appointees (including at least 3 municipal housing officials). The task force will review regulatory agreement processes, enforcement, and technical/legal support to municipalities; it must report findings and any proposed legislation to the Legislature by December 1, 2026.
Who is affected
- Tenants occupying units restricted to households at ≤80% AMI (stronger tenant protections, access to counsel, mediation).
- Landlords/owners of affordable housing projects (limits on rent raises, profit extractions, new notice/review requirements, reinvestment obligations).
- Municipal governments (consultation rights, potential need for increased local oversight capacity).
- Executive Office of Housing and Livable Communities (new administrative review responsibilities, dashboard creation, task force leadership).
Potential impacts / considerations
- Aims to stabilize rents for income-restricted tenants and ensure affordable units remain maintained and financially accountable.
- Introduces additional administrative review and reporting burdens on landlords and the Executive Office.
- The dedicated funding mechanism for tenant counsel is required (a specifically dedicated General Court appropriation).
- The bill imposes numerical caps and reinvestment rules that may affect project finances, investor returns, and operating models for affordable housing developments.
If you want, I can prepare a one-page fact sheet comparing current law vs. the bill’s changes, or extract specific compliance steps landlords and municipalities would need to follow.
Compiled from official sources — confirm details with the bill’s official record.
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