Bill
A 3361
Implements a nationwide cap on rent increases for manufactured home parks and related sites at 3.5% annually, with limited exceptions and strong tenant remedies.
Status: Enacted (P.L.2025, c.85; approved July 1, 2025). Effective: on the first day of the third month after enactment (DCA may take anticipatory action).
Purpose
- Establish a statewide limit on annual rent increases for leased sites (lots) in manufactured home parks and for industrialized/modular buildings sited there, to protect tenants (many low‑ and moderate‑income or elderly) from large, unexpected year‑to‑year increases.
Key provisions
- Annual cap: Landlords may not increase rent for a "covered dwelling site" by more than 3.5% over the prior 12‑month period (except as provided below). The cap does not apply to the initial rental rate charged to a new tenant.
- Definitions: Defines “covered dwelling site,” “manufactured home park,” “industrialized or modular building,” “manufactured home,” “rent” (includes lot fees, tax surcharges, other special charges), “tenant,” and “landlord.”
- Exceptions / Commission review: A landlord may petition the Commissioner of Community Affairs (DCA) to approve a rent increase above 3.5% where:
- present income is insufficient to cover unanticipated increases in costs (abatement of hazardous conditions, taxes, assessments, maintenance, utilities, insurance, management), or
- capital improvements require the increase.
The landlord must provide proof/documentation and notify tenants; DCA holds a hearing, there is a rebuttable presumption the requested increase is reasonable, and the commissioner is to decide within 90 days (failure to act can result in deemed approval).
- Local preemption: The bill preempts municipal rent control laws that permit higher increases, that base increases on variable indices (e.g., CPI) rather than a fixed numeric limit, or that were adopted by municipalities without a rent‑leveling board — while preserving municipal regimes that meet specified fixed‑limit and administrative‑board criteria.
- Regulatory authority: DCA to adopt implementing rules.
Who is affected
- Directly: tenants who lease lot space in manufactured home parks (owners of manufactured, industrialized, or modular homes), and owners/operators (landlords) of manufactured home parks in New Jersey.
- Indirectly: municipal rent boards, DCA (administration and enforcement), and courts handling related disputes.
Enforcement, remedies, and penalties
- If a landlord requests or accepts an unlawful increase, the rent for the affected term remains the pre‑increase rent.
- Tenant remedies: right to petition a court to terminate a lease containing a violating provision and recover reasonable attorney’s fees; private cause of action allowing statutory damages of $500 (first offense) and $1,000 (second and subsequent), plus fees.
- Penalties: $1,000 per violation per unit (enforceable under the Penalty Enforcement Law). A violation also can be asserted as an “unconscionable” rent increase under existing law.
Fiscal/administrative provision
- Appropriation: $2,000,000 to DCA to effectuate the act (per Governor’s recommended amendments).
Legislative timeline / sponsors
- Introduced Jan 29, 2024; passed both houses in 2025 with amendments and enacted as P.L.2025, c.85. Primary sponsor: Assemblyman Dan Hutchison (co‑sponsors listed). Companion legislation: S2953 / S6301.
Compiled from official sources — confirm details with the bill’s official record.
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