Massachusetts House Bill H5408

Massachusetts 2025-2026 Regular Session

• Introduced: 5/7/26

Caption

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).

Summary

H5408 is a committee report on an initiative petition titled “An Act to Protect Tenants by Limiting Rent Increases.” The petition would cap annual residential rent increases at the lower of 5% or the annual increase in the Consumer Price Index (CPI). It would apply statewide and would not allow municipalities to opt in or opt out. The measure also includes several exemptions, including owner-occupied buildings with four or fewer units, units already regulated by a public authority, short-term rentals of less than 14 days, units used for educational, religious, or nonprofit purposes, and newly constructed residential units for their first 10 years after receiving a certificate of occupancy.

Impact

If enacted, the petition would create a new statewide rent-stabilization framework in Massachusetts and would limit how much landlords can raise rent on covered residential units each year. It would affect tenants, landlords, and property owners across the Commonwealth, while excluding certain housing types and newer construction to reduce potential effects on small landlords and new development. Because it is an initiative petition, the Legislature may only approve or reject it as submitted and cannot amend its terms.

Sentiment

The overall sentiment in the committee materials is mixed but leans negative toward the petition as written. Supporters argued that it would provide strong tenant protections and address rapidly rising housing costs, while acknowledging the broader housing crisis. Opponents and some expert witnesses warned that the proposal could discourage new housing construction, burden small property owners, and lead some landlords to convert rental units to condominiums. The majority of the committee ultimately recommended no action on the petition.

Contention

The main points of contention were the breadth and strictness of the rent cap, its statewide application, and its possible effects on housing supply. Supporters viewed the measure as a necessary response to rent inflation and a housing affordability crisis. Opponents argued that the low cap, lack of vacancy decontrol, and limited exemptions could reduce incentives to build or maintain rental housing, especially for small-scale landlords. The 10-year exemption for new construction was included specifically to address concerns about discouraging development, but critics still viewed the proposal as too restrictive.