SECTION 1. Chapter 40P of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out section 4, and inserting in place thereof the following section:-

Section 4. Exception. Any city or town may, by majority vote of its governing body or through a local binding ballot question, impose a limit on the size of annual rent increases for rental units within its jurisdiction, provided that:

(1)Said annual limit shall not exceed the annual change in the Consumer Price Index for the applicable area in which the city or town is situated, or five percent, whichever is less;

(2)Any dwelling unit offered for rent shall be subject to this act; however, any such unit in an owner-occupied building with three dwelling units or less or any unit whose rent is otherwise subject to regulation by a public authority shall be expressly excluded from this provision. This provision shall apply to dwelling units in the private housing market in which housing vouchers are used; 

(3)Acceptance of this act shall include a set term for its duration; however, subject to formal review by the town or city, said term may be renewed.

(4)Any city or town that adopts a limit on the size of annual rent increases measures in accordance with this measure shall ensure that dwelling units governed by such measures are only eligible for those individuals whose income is 80 percent or less of Area Median Income.