Assembly Commerce, Economic Development and Agriculture Committee Statement — Assembly, No. 3361 (September 12, 2024)

Summary

Assembly Commerce, Economic Development and Agriculture Committee statement to Assembly Committee Substitute for Assembly, No. 3361, State of New Jersey, dated September 12, 2024. The committee reports favorably Assembly Bill No. 3361 ACS, which would establish a Statewide two percent cap on the amount an owner or operator of a manufactured home park may increase the rent charged to a tenant of a covered dwelling site from one year to the next. The statement says a landlord may petition the Commissioner of Community Affairs to approve a rent increase above the limitation. It says a tenant could recover $500 from the landlord for a first offense and $1,000 for a second and any subsequent offense.

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ASSEMBLY COMMERCE, ECONOMIC DEVELOPMENT AND
           AGRICULTURE COMMITTEE

                          STATEMENT TO

     ASSEMBLY COMMITTEE SUBSTITUTE FOR
                     ASSEMBLY, No. 3361

       STATE OF NEW JERSEY
                        DATED: SEPTEMBER 12, 2024

          The Assembly Commerce, Economic Development and
      Agriculture Committee reports favorably Assembly Bill
      No. 3361 ACS.
          This bill would establish a Statewide two percent cap on the
      amount an owner or operator of a manufactured home park may
      increase the rent charged to a tenant of a covered dwelling site within
      the manufactured home park from one year to the next. This limitation
      would not apply to the initial rental amount an owner or operator of a
      park may charge to a new tenant of the covered dwelling site. The bill
      would also prohibit a tenant of a covered dwelling site from subleasing
      the site by more than two percent over the rent charged during the
      prior 12-month period.
          Under the bill, if a landlord (the owner or operator of a
      manufactured home park) attempts to increase a tenant’s rent in excess
      of the bill’s limitation, the increase would not take effect and the
      applicable rent for the lease term would be the rent charged prior to the
      attempted rent increase.
          The bill authorizes a tenant to seek termination of a lease or
      agreement in court, if the lease or agreement contains a provision that
      violates the bill, and permits a tenant to recover reasonable attorney’s
      fees or expenses. Additionally, the bill authorizes a tenant to bring a
      private cause of action against a landlord for violating a provision of
      the bill, and would enable a tenant to recover $500 from the landlord
      for a first offense by the landlord, $1,000 from the landlord for a
      second and any subsequent offense, in addition to reasonable
      attorney’s fees or expenses. A landlord would be subject to these
      penalties for each violation against each tenant.
          The bill establishes a procedure through which a landlord may seek
      approval to increase rent above the bill’s annual two percent rental
      increase limitation. Under the bill, a landlord may petition the
      Commissioner of Community Affairs to approve a rent increase by
      demonstrating that the present rental income and additional charges
      from the manufactured home park are insufficient to cover the costs of
      tax increases, assessments, or maintenance to the manufactured home
      park. The bill provides that the commissioner is to hold a hearing on
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the landlord’s request, and after considering specific relevant factors,
may grant the landlord a rent increase sufficient to meet the landlord’s
requirements or needs. A landlord who petitions the commissioner for
approval to increase rent above the bill’s annual two percent limitation
is required to provide notice of the petition by: posting notice of the
petition in a conspicuous place in and about the manufactured home
park; serving each affected tenant personally or by certified mail;
notifying each affected tenant personally, or by certified mail, of the
hearing date set by the commissioner; and posting 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.
    The bill would take effect on the first day of the third month
following the date of enactment, and be applicable to tenancies
commencing on or after that date.


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