New Jersey-2024-A3361-Amended

An Act concerning rent increases for certain dwelling sites for modular or manufactured homes and supplementing chapter 27D of Title 52 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):

"Commissioner" means Commissioner of Community Affairs.

"Covered dwelling site" means a parcel of land within a manufactured home park that is leased to the owner of a modular or manufactured home for living and dwelling purposes for tenancy on the site.

"Landlord" means a person or entity who owns or manages a manufactured home park, and who rents, leases, or charges a lot fee, or offers to rent, lease, or charge a lot fee, for a term of at least one month, a covered dwelling site.

"Manufactured home park" means a parcel of land, or two or more contiguous parcels of land, designed and improved such that the land contains two or more sites, each of which is equipped for the placement of modular or manufactured homes, and which sites are under common ownership and control, other than as a cooperative, for the purpose of leasing each site to the owner of a modular or manufactured home for installation thereon, and where the owner provides services, which may include, but shall not be limited to:

(1) Construction and maintenance of streets;

(2) Lighting of streets and other common areas;

(3) Garbage removal;

(4) Snow removal; and

(5) Provision for the drainage of surface water from home sites and common areas.

"Modular or manufactured home" means a building constructed and intended for use as a dwelling unit that is primarily made or assembled in manufacturing facilities off the building site, for the installation or final assembly on the building site. "Modular or manufactured home" includes, but is not limited to: modular housing that is factory-built single-family and multifamily housing, including closed wall panelized housing, and other modular residential buildings. "Modular or manufactured home" also includes, but is not limited to, a pre-manufactured home and a mobile home.

"Rent" means the amount currently payable by the tenant to the landlord pursuant to a lease or other agreement, without regard to any modification thereof by any authorized board or agency, or any court. "Rent" shall include lot fees, including license fees, charged by a landlord to a tenant, in addition to tax surcharge costs passed on to the tenant, and any other special expenses.

"Tenancy" means the lawful occupation of a covered dwelling site, and which includes a lease or sublease, oral or written.

"Tenant" means a person who leases, rents, or pays a lot fee for a covered dwelling site.

2. a. Except as provided in subsections c. and g. of this section, a landlord shall not, over the course of a 12-month period, increase the rent on a covered dwelling site by more than ¹[two] three¹ percent over the rent charged during the prior 12-month period.

b. A tenant of a covered dwelling site shall not enter into a sublease that results in a rental rate for the covered dwelling site that exceeds the allowable rate authorized by subsection a. of this section. Nothing in this subsection shall be construed to authorize a tenant to sublet or assign the tenant's interest where otherwise prohibited.

c. A landlord may, notwithstanding subsection a. of this section, establish the initial rate for a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the covered dwelling site. Subsection a. of this section shall only apply to subsequent increases after that initial rate has been established with respect to the new tenancy.

d. Except as allowed following a petition to the commissioner pursuant to subsection g. of this section, if the landlord of a covered dwelling site requests or accepts an increase in rent exceeding the amount permitted pursuant to subsection a. of this section ¹[,] :

(1)¹ the applicable rent for the duration of the present lease or agreement term, or subsequent lease or agreement term if the present term is month-to-month, shall be the rent for the rental term preceding the rent increase in violation of this section ¹; and

(2) the landlord shall be liable for a penalty of $1,000 per violation per unit. The penalty shall be collected and enforced by summary proceedings pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). The Superior Court, Law Division, Special Civil Part in the county in which the residential rental property is located shall have jurisdiction over the proceedings described pursuant to this paragraph. Process shall be in the nature of a summons or warrant, and shall issue upon the complaint of the Commissioner of Community Affairs or the Attorney General¹.

e. This section shall function in addition to, and not in place of, the existing prohibition on unconscionable rent increases pursuant to subsection f. of section 2 of P.L.1974, c.49 (C.2A:18-61.1). A tenant may assert a violation of this section as a defense to an eviction action as an unconscionable rent increase.

f. (1) A tenant shall have the right to petition a court of competent jurisdiction to terminate a lease or agreement containing a provision in violation of P.L. , c. (C. ) (pending before the Legislature as this bill), and shall be permitted to recover reasonable attorney's fees or expenses.

(2) A landlord who violates P.L. , c. (C. ) (pending before the Legislature as this bill) shall also, at the discretion of the tenant, be subject to a separate cause of action by the tenant in the Superior Court, Law Division, Special Civil Part in the county in which the covered dwelling site is located. A tenant may recover $500 from the landlord for a first offense, and $1,000 from the landlord for a second and any subsequent offense, in addition to reasonable attorney's fees or expenses.

(3) A landlord shall be subject to the penalties set forth in this subsection for each violation against each tenant, which may be brought pursuant to paragraph (2) of this subsection at the tenant's discretion.

g. (1) ¹(a)¹ A landlord may petition the Commissioner of Community Affairs to request approval to increase the rent on a covered dwelling site ¹:

(i)¹ by demonstrating that the present rental income and additional charges from the manufactured home park on which the landlord seeks relief, are insufficient to cover the costs of tax increases, assessments, or maintenance to the manufactured home park ¹; or

(ii) by submitting proof or documentation of capital improvements to the property, which require the increase in rent¹ .

¹(b)¹ The commissioner may, after a hearing, grant the landlord a rent increase sufficient to meet the landlord's requirements or needs after consideration of ¹, for approval sought pursuant to sub-subparagraph (ii) of subparagraph (a) of this paragraph,¹ the ¹proofs or documentation¹ presented, ¹or, for approval sought pursuant to sub-subparagraph (i) of subparagraph (a) of this paragraph, the proofs presented,¹ the physical condition of the manufactured home park, the landlord's profitability with and without the proposed rent increase, the arguments presented by affected tenants, and the relative bargaining position of the parties ¹. The commissioner shall schedule a hearing and make a final determination on a petition pursuant to this paragraph within 90 days of the petition's submission to the commissioner¹.

(2) A landlord that seeks to file, or files, a petition pursuant to paragraph (1) of this section, shall:

(a) prior to filing the petition, post notice of the petition setting forth the basis for the petition in a conspicuous place in and about the manufactured home park;

(b) prior to filing the petition, serve each affected tenant personally, or by certified mail, with the petition to be filed with the commissioner;

(d) post notice of the hearing in a conspicuous place in the manufactured home park for at least 10 days prior to the date set for the hearing.

¹3. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not preempt an ordinance, rule, or regulation, or other law regarding rent control, rent leveling, or rent stabilization adopted by the governing body of a municipality that would result in a lower permitted rent increase on a covered dwelling unit over the course of a 12-month period. The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall preempt an ordinance, rule, regulation, or other law regarding rent control, rent leveling, or rent stabilization adopted by the governing body of a municipality that would otherwise allow for a higher permitted rent increase on a covered dwelling unit over the course of a 12-month period.¹

¹[3.] 4.¹ The commissioner shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

¹[4.] 5.¹ This act shall take effect on the first day of the third month next following the date of enactment, except that the commissioner may take anticipatory action necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). This act shall apply to tenancies commencing on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).