This bill aims to establish a cap on rent increases for tenants living in modular or manufactured homes in New Jersey, addressing the significant financial burden of housing costs faced by many residents. It defines a "covered dwelling unit" as a modular or manufactured home rented for residential purposes and prohibits landlords from increasing rent by more than 2.5 percent within a 12-month period. The bill also clarifies that if a landlord violates this limit, the rent for the current or subsequent lease term will revert to the amount charged in the previous term. Additionally, the bill maintains the existing prohibition on "unconscionable" rent increases, allowing tenants to assert this as a defense in eviction cases.

Violations of the bill would be classified as unlawful practices under the New Jersey Consumer Fraud Act, subjecting landlords to penalties and allowing tenants to seek legal recourse, including the recovery of attorney fees. The bill also preempts any local laws that would permit higher rent increases, ensuring a consistent standard across the state. It is set to take effect three months after enactment and will apply to new tenancies starting from that date.