Assembly Commerce, Economic Development and Agriculture Committee Statement to Assembly, No. 3361 (2024)

Summary

Statement of the Assembly Commerce, Economic Development and Agriculture Committee, State of New Jersey, dated September 12, 2024, reporting favorably Assembly Bill No. 3361 ACS. The bill would establish a Statewide two percent cap on annual rent increases charged by an owner or operator of a manufactured home park to a tenant of a covered dwelling site, not applying to the initial rent for a new tenant. A tenant could recover $500 from the landlord for a first offense and $1,000 for a second and any subsequent offense, plus reasonable attorney's fees. A landlord may petition the Commissioner of Community Affairs, who is to hold a hearing, to approve a larger increase when rental income does not cover tax increases, assessments or maintenance.

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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 t o 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 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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