This bill establishes a limit on rent increases for tenants of covered dwelling sites within manufactured home parks, capping annual rent increases at two percent over the previous year's rent. It defines key terms such as "covered dwelling site," "landlord," and "tenant," and outlines the conditions under which landlords may increase rent, including a provision that allows for an initial rent rate to be set for new tenancies. If a landlord exceeds the rent increase limit, the rent for the duration of the lease will revert to the amount charged prior to the violation. The bill also reinforces existing protections against unconscionable rent increases and allows tenants to use violations of this bill as a defense in eviction actions.
Additionally, the bill provides tenants with the right to petition the court to terminate leases that violate its provisions and to recover attorney fees. Landlords who violate the bill may face separate legal actions from tenants, with penalties of $500 for first offenses and $1,000 for subsequent offenses. Furthermore, landlords can petition the Commissioner of Community Affairs for approval to increase rent beyond the limit by demonstrating financial need, with specific notice requirements to tenants regarding the petition and hearing process. The bill is set to take effect three months after enactment and will apply to tenancies starting on or after that date.