Bill Text: NJ S2541 | 2024-2025 | Regular Session | Introduced
Bill Title: Establishes limit on rent increase for tenants residing in modular or manufactured homes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2024-02-08 - Withdrawn from Consideration [S2541 Detail]
Download: New_Jersey-2024-S2541-Introduced.html
Sponsored by:
Senator PAUL D. MORIARTY
District 4 (Atlantic, Camden and Gloucester)
SYNOPSIS
Establishes limit on rent increase for tenants residing in modular or manufactured homes.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning rent increases for residential tenants residing in certain dwelling units that are 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. The Legislature finds and declares that:
a. The cost of housing in New Jersey, including rental housing, constitutes one of the most substantial financial challenges faced by residents of this State;
b. A substantial number of New Jersey renters pay more than 35 percent of their household income on rent, a percentage of income that is commonly viewed as the limit of what constitutes affordable rent;
c. State law has not previously established a precise limit on rent increases, but instead has historically required that a rent increase not be "unconscionable," which may be asserted as a defense to an eviction by a residential tenant pursuant to subsection f. of section 2 of P.L.1974, c.49 (C.2A:18-61.1). The term "unconscionable" has been defined on a case-by-case basis by the courts using the multi-factor test set forth in case law;
d. Due to the summary nature of landlord-tenant proceedings, limited discovery, case-by-case determinations of unconscionability, disparity in bargaining power, and limited precedent setting forth a bright line standard for unconscionable rent increases, residential tenants, including tenants that reside in modular or manufactured homes, are limited in their ability to dispute a rent increase that recently, for many tenants of this State, exceeds nine percent;
e. Therefore, the Legislature finds and declares that, to protect the health and well-being of residential tenants, it is in the public interest, and the public policy of this State, to establish a reasonable limitation on annual rent increases for tenants that live in rental housing that is a modular or manufactured home.
2. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Covered dwelling unit" means a structure, or a room or a group of rooms within a structure:
(1) offered for rent by a landlord for residential purposes, other than a dwelling unit in an owner-occupied premises of not more than three dwelling units;
(2) that is rented to a residential tenant for their principal place of residence; and
(3) that is a modular or manufactured home.
"Landlord" means any person or entity who rents or leases or offers to rent or lease a covered dwelling unit, for a term of at least one month, dwelling units, except dwelling units in owner-occupied premises of not more than three dwelling units, or in hotels, motels or other guest houses serving transient or seasonal guests. "Landlord" includes a person or entity who rents or leases or offers to rent or lease, for a term of at least one month, mobile or manufactured home pad space for living or dwelling purposes in a manufactured home park.
"Manufactured home park" means a parcel of land, or two or more contiguous parcels of land, containing at least 10 sites equipped for the installation of mobile or manufactured homes, where these sites are under common ownership and control, other than as a cooperative, for the purpose of leasing each site to the owner of a mobile or manufactured home for the installation thereof, and where the owner provides services, which are provided by the municipality in which the park is located for property owners outside the park, which services 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 pre-manufactured homes and mobile homes.
"Tenancy" means the lawful occupation of a dwelling unit and includes a lease or sublease, oral or written.
3. a. Except as provided in subsections c. and d. of this section, and section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill), a residential landlord shall not, over the course of a 12-month period, increase the rent on a covered dwelling unit by more than 2.5 percent.
b. A tenant of a covered dwelling unit shall not enter into a sublease that results in a rental rate for the covered dwelling unit that exceeds the allowable rental 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 rental rate for a new tenancy in which no tenant from the prior tenancy remains in lawful possession of the covered dwelling unit. Subsection a. of this section shall only apply to subsequent increases after that initial rental rate has been established with respect to the new tenancy.
d. This section shall not apply to the following:
(1) non-residential real property;
(2) a covered dwelling unit restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low, or moderate income; or
(3) a covered dwelling unit subject to a "Notice of Rent Protection Emergency," established pursuant to P.L.2002, c.133 (C.2A:18-61.62 et seq.), the application of which results in a lower permitted rent increase for the specified year than that permitted pursuant to subsection a. of this section.
e. If the landlord of a covered dwelling unit requests or accepts an increase in rent exceeding the amount permitted pursuant to subsection a. of this section, the applicable rent for the duration of the present lease term, or subsequent lease 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.
f. 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).
g. (1) A violation of P.L. , c. (C. ) (pending before the Legislature as this bill) shall constitute an unlawful practice pursuant to P.L.1960, c.39 (C.56:8-1 et seq.), and a landlord who violates P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to all remedies and penalties available pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
(2) Notwithstanding the provisions of paragraph (1) of this subsection, a tenant shall have the right to petition a court of competent jurisdiction to terminate a lease 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.
(3) 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 rental premises are located. The tenant may recover $500 for a first offense by the landlord, and $1,000 for a second and any subsequent offense by the landlord, in addition to reasonable attorney's fees or expenses.
h. 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.
4. 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.
5. The Commissioner of Community Affairs 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).
6. This act shall take effect on the first day of the third month next following the date of enactment, and shall apply to tenancies commencing on or after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), except that the Commissioner of Community Affairs may take anticipatory action necessary to effectuate the provisions of this act.
STATEMENT
This bill would establish a limitation on rent increases imposed on tenants of certain modular or manufactured homes, as defined in the bill.
The cost of housing in New Jersey, including rental housing, constitutes one of the most substantial financial challenges faced by residents of this State, and a substantial number of New Jersey renters pay more than 35 percent of their household income on rent. State law has not set forth a precise limit on rent increases, but has instead required that a rent increase not be "unconscionable," which may be asserted as a defense to an eviction by a residential tenant pursuant to subsection f. of section 2 of P.L.1974, c.49 (C.2A:18-61.1). The term "unconscionable" is defined on a case-by-case basis by the courts using the multi-factor test set forth by Fromet Properties, Inc. v. Buel, 294 N.J. Super. 601 (App. Div. 1996). Due to the summary nature of landlord-tenant proceedings, limited discovery, case-by-case determinations of unconscionability, disparity in bargaining power, and limited precedent setting forth a bright line standard for unconscionable rent increases, residential tenants, including tenants that reside in modular or manufactured homes, are limited in their ability to dispute a rent increase, which for many tenants, has exceeded nine percent. Therefore, to protect the health and well-being of residential tenants, it is in the public interest to establish a reasonable limitation on annual rent increases for tenants that live in rental housing that is a modular or manufactured home.
The bill prohibits a landlord--as defined in the bill, including a sublessor--of a covered dwelling unit, from increasing the rent over the course of a 12-month period by more than 2.5 percent. The bill defines a "covered dwelling unit" as a structure, or a room or a group of rooms within a structure that: (1) is offered for rent by a landlord for residential purposes; (2) is rented to a residential tenant for their principal place of residence; and (3) that is a modular or manufactured home.
The bill provides that if the landlord increases the rent in excess of the bill's limitation, the applicable rent for the duration of the present lease term, or subsequent lease term if the present term is month-to-month, is to be the rent for the year or term preceding the violation. The bill's limitations would also function in addition to the existing prohibition on unconscionable rent increases pursuant the Anti-Eviction Act, P.L.1974, c.49 (C.2A:18-61.1 et seq.).
A violation of the bill would:
(1) constitute an unlawful practice pursuant to the New Jersey Consumer Fraud Act, P.L.1960, c.39 (C.56:8-1 et seq.) (CFA);
(2) subject a landlord to all applicable penalties prescribed pursuant to the CFA;
(3) permit a tenant to petition the court to terminate a lease in violation of the bill, and to recover reasonable attorney's fees or expenses;
(4) subject a landlord to certain penalties, as described in the bill; and
(5) permit a tenant to assert the violation as a defense to an eviction as an unconscionable rent increase.
The bill would only preempt other laws regarding rent control that result in a higher permitted rent increase over the course of a 12-month period.
Further, the bill would take effect on the first day of the third month following the date of enactment, and apply to tenancies commencing on or after the effective date of the bill.
