Allows for a tenant to withhold payment of rent and deposit the rent accruing into an escrow bearing account, upon the issuance of a second notice of violation by an enforcing officer for any state or local minimum housing code enforcement agency.

Rhode Island Rent Escrow Bill Summary

This bill would give tenants a new legal tool to use when their landlord repeatedly fails to fix housing code violations. Under this proposal, if a housing inspector issues a second notice of violation against a rental property — meaning the landlord has already been notified of a problem and still hasn't fixed it — the tenant would have the right to stop paying rent directly to the landlord. Instead, the tenant would deposit that rent money into a special interest-bearing escrow account, where it is held safely until the violations are addressed.

The key idea is that the money doesn't simply disappear — it sits in escrow, meaning the landlord could potentially receive it once they bring the property up to code. This approach is meant to give tenants financial leverage to push landlords into making necessary repairs, while also protecting tenants from accusations of simply not paying rent, since the money is being set aside rather than kept.

This bill primarily affects renters and landlords in Rhode Island. Tenants living in properties with unresolved housing code violations — such as problems with heat, plumbing, structural safety, or other minimum housing standards — would gain a formal legal process to protect themselves. Landlords would face a direct financial incentive to address violations promptly, since unresolved issues could result in rent being withheld. The bill is currently in its early stages, having been referred to the Senate Housing and Municipal Government Committee for review.