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Bill

S 2953

Establishes limit on rent increase for certain dwelling sites for modular or industrialized buildings or manufactured homes.

2024-2025 Regular Session Introduced by Joe Cryan and 3 co-sponsors

Imposes a 3% annual cap on site rents in manufactured-home parks, with exceptions for costs/improvements, plus penalties and tenant remedies for violations.

Substituted by A3361 (ACS/2R)
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WeVote Research Nonpartisan
Bill Summary · S 2953

Summary — S.2953 (Substituted by A.3361, ACS/2R)

Purpose

S.2953 would limit annual rent increases for rented sites (lots) within manufactured-home parks where tenants place manufactured homes, modular, or industrialized buildings. The bill is aimed at protecting residents of these parks from large year‑to‑year lot‑fee increases while providing a limited administrative process for landlords to seek relief in defined circumstances.

Key provisions

  • 3% cap on annual increases: A landlord may not increase the rent (defined to include lot fees, license fees, tax surcharge passthroughs, and other special charges) for a “covered dwelling site” by more than 3% over the prior 12‑month period, except as described below.
  • Initial tenancy: Landlords may set the initial lot rate for a new tenancy when no prior tenant remains; the 3% limit applies only to subsequent increases.
  • Remedies and penalties for violations:
    • If a landlord accepts or requests an increase in excess of the cap (absent commissioner approval), the applicable rent for the current or next term reverts to the prior year’s rent.
    • Administrative penalty of $1,000 per violation per unit, enforceable via summary proceedings (Penalty Enforcement Law) on complaint of the Commissioner of Community Affairs (DCA) or the Attorney General.
    • Private tenant remedies: tenants may (a) petition a court to terminate a lease containing a violating provision and recover reasonable attorney’s fees; and (b) bring a separate civil action to recover statutory damages ($500 for a first offense; $1,000 for a second or subsequent offense), plus reasonable attorney’s fees. Penalties apply per tenant/unit.
  • Defense to eviction: A tenant may assert an excessive rent increase under this bill as a defense in eviction proceedings as an “unconscionable rent increase” (in addition to existing Anti‑Eviction Act protections).
  • Administrative exception process: A landlord may petition the Commissioner of Community Affairs to approve a rent increase above 3% by either:
    • Showing present rents are insufficient to cover unanticipated increases in costs (taxes, assessments, maintenance, utilities, insurance, hazardous‑abatement, management), or
    • Submitting documentation of capital improvements that require higher rent. The bill creates a rebuttable presumption the landlord’s requested increase is reasonable; the commissioner may grant an increase after a hearing, considering tenant arguments, park condition, profitability, and proofs submitted. The bill (as amended) requires the commissioner to schedule a hearing and issue a final determination within 90 days.
  • Procedural notice requirements: Before filing a petition, the landlord must post conspicuous notice in the park and serve affected tenants (personal or certified mail); tenants must be notified of hearing dates and notice posted at least 10 days before the hearing.
  • Definitions: Clarifies “manufactured home” (HUD‑certified under the National Manufactured Home Construction and Safety Standards Act), and defines/excludes “industrialized or modular buildings” from structures covered by the federal manufactured‑home act.

Preemption of municipal laws

  • The bill contains a targeted preemption rule: it generally preempts municipal rent control/leveling/stabilization laws only when those laws permit a rent increase greater than 3%, or when municipal rules are variable‑index based (e.g., tied to CPI) or the municipality lacks a rent‑leveling board. It does not preempt municipal laws that (a) provide a fixed numerical limit not based on CPI/variable criteria, (b) were adopted in municipalities that use a rent‑leveling board, and (c) set limits ≤ 3% (subject to specific exceptions in the text).

Administrative and timing provisions

  • DCA rulemaking: Commissioner shall adopt implementing rules under the Administrative Procedure Act.
  • Effective date: would take effect on the first day of the third month after enactment and apply to tenancies commencing on or after the effective date; the commissioner may take anticipatory action prior to the effective date.

Who is affected

  • Affected tenants: residents who lease individual sites/lot space in manufactured‑home parks (owners of manufactured homes, modular, or industrialized buildings).
  • Affected landlords: owners/managers of manufactured‑home parks who charge lot fees or rent sites.
  • Municipalities: local rent‑control ordinances may be affected depending on whether they conflict with the bill’s limits and the bill’s preemption criteria.

Status / Legislative actions (selected)

  • Reported out of Senate committee with amendments: 10/24/2024.
  • Substitute and floor amendments clarified definitions and raised the cap from 2% to 3%, added the capital‑improvement exception, and set a 90‑day decision deadline.
  • Substituted by A.3361 (ACS/2R) on 2025‑03‑24.
  • Read twice and referred to the U.S. Homeland Security & Governmental Affairs Committee on 2025‑09‑30 (per docket entries).

Note: This summary reflects the text as amended in committee and on the floor and the substitution by A.3361; it describes the bill’s provisions as proposed, not enacted law.

Compiled from official sources — confirm details with the bill’s official record.

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