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H 5408

REPORT of the SPECIAL JOINT COMMITTEE on INITIATIVE PETITIONS on the INITIATIVE PETITION of ADAM GOMEZ AND OTHERS FOR THE PASSAGE OF AN ACT TO PROTECT TENANTS BY LIMITING RENT INCREASES (see House, No. 5008).

194th Legislature (2025-2026) Introduced by Alice Peisch

The committee recommends the General Court take no action on statewide rent stabilization that caps increases at the lesser of 5% or CPI.

See H5008
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Bill Summary · H 5408

Executive summary

  • This is the Massachusetts Joint Special Committee on Initiative Petitions’ majority report regarding Initiative Petition 25-21 (House 5008) titled “An Act to Protect Tenants by Limiting Rent Increases” by Adam Gomez and others.
  • The petition seeks statewide rent stabilization: limit annual residential rent increases to the lesser of 5% or the annual CPI increase, with several broad exemptions.
  • After a public hearing and review, a majority of the committee recommends that the General Court take no action on the petition.

Purpose and intent

  • To cap year-over-year rent increases for residential tenants statewide, aiming to address housing affordability and tenant protections amid rising rents.
  • The petition seeks uniform applicability across all communities in Massachusetts, with no local opt-in or opt-out mechanism.

Key provisions and changes proposed

  • Rent increase cap:
    • Limit: annual rent increases for residential tenants to the lesser of:
    • 5% per year, or
    • The annual change in the Consumer Price Index (CPI), whichever is lower.
  • Exemptions (situations where the cap would not apply):
    • Owner-occupied buildings with four or fewer units.
    • Units regulated by a public authority.
    • Units rented to transient guests for periods under 14 days.
    • Units operated for educational, religious, or nonprofit purposes.
    • Units that received their residential certificate of occupancy within the last 10 years.
  • New construction/occupancy exemption:
    • Units that have received a residential occupancy certificate within the prior 10 years are exempt.
  • Scope and applicability:
    • Applies statewide to all communities; no local opt-in or opt-out provisions.
    • No mechanism for municipalities to set different maximums or opt into regulation.

Who/what would be affected

  • Affects most residential rental units statewide, reducing potential rent increases year over year.
  • Exclusions primarily benefit:
    • Small landlord owners of four or fewer units in owner-occupied buildings.
    • Properties under public regulation.
    • Short-term rental situations (less than 14 days).
    • Properties operated for certain non-profit or religious/educational purposes.
    • Newer rental units (within 10 years of occupancy).
  • Potential impacts on:
    • Landlords (economic feasibility, cash flow, incentives for investment in rental stock).
    • Tenants (greater long-term rent predictability; potential reduction in displacement pressures).
    • Housing construction/availability (opponents argue it could dampen new development and lead to conversions to condos).

Procedural and timeline aspects

  • Path under Article 48 of the Massachusetts Constitution:
    • Initiative petitions must be certified by the Attorney General to meet specific criteria; certification confirms qualification to be placed before the Legislature.
    • The Legislature may only approve or reject the petition as submitted, without amendments.
  • Hearings and review:
    • The Committee held a hearing on March 17, 2026, with additional testimony throughout March 2026.
    • Public record and materials are publicly accessible (reference provided to the Legislature’s website).
  • Committee action:
    • On May 4, 2026, a majority of the Special Joint Committee voted to recommend that the General Court take no action on the petition.
  • Sponsor details:
    • Co-sponsor: Alice Peisch.
    • The report lists a bipartisan group of senators and representatives as members of the committee.

Context and considerations

  • The committee notes a statewide housing affordability crisis and acknowledges multiple potential solutions beyond rent control.
  • Supporters argue the petition would be the strongest form of renter protection against rapid rent escalation.
  • Opponents warn that strict rent caps could suppress housing construction, reduce available rental units, and incentivize conversion of rental properties to condominiums.

Bottom-line

  • The committee concludes that, despite the intent to protect tenants, the proposed statewide rent-stabilization measure would have complex economic and housing-market implications, and, after review, recommends that the General Court take no action on Initiative Petition 25-21 (House No. 5008).

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

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