Bill > S2953

This bill establishes a limit on rent increases for certain dwelling sites, specifically those leased to owners of modular or industrialized buildings or manufactured homes within a manufactured home park, referred to as "covered dwelling sites." Landlords, defined as those who own or manage a manufactured home park and rent out these sites, are generally prohibited from increasing rent by more than three percent over a 12-month period. This limit applies to "rent," which includes lot fees, license fees, tax surcharges, and other special expenses. While landlords can set an initial rent for a new tenancy, subsequent increases are capped. Violations can result in the applicable rent reverting to the prior amount and landlords facing penalties of $1,000 per violation, in addition to potential tenant lawsuits for damages and attorney fees. Tenants can also use a violation of this rent cap as a defense against eviction for an unconscionable rent increase. Landlords can petition the Commissioner of Community Affairs for rent increases exceeding three percent if they can demonstrate that rental income is insufficient to cover unanticipated cost increases in areas like taxes, maintenance, utilities, or insurance, or if they have made capital improvements to the property. The bill also outlines how local rent control ordinances interact with this new state law, specifying which local rules are preempted and which are not, with a focus on ensuring that local ordinances that provide fixed, numerical rent increase limits below three percent are not overridden. The Commissioner of Community Affairs is tasked with adopting rules and regulations to implement these provisions, which will take effect on the first day of the third month after enactment and apply to tenancies beginning on or after that date.

Housing and Urban Affairs

https://www.njleg.state.nj.us/bill-search/2024/S2953