This bill establishes a cap on rent increases for tenants residing in covered dwelling sites within manufactured home parks, limiting such increases to no more than two percent over a 12-month period. It defines key terms such as "covered dwelling site," "landlord," and "tenant," and clarifies that "rent" includes various fees and expenses associated with the tenancy. If a landlord exceeds this rent increase limit, the applicable rent for the duration of the lease will revert to the amount charged in the previous term. The bill also reinforces existing protections against unconscionable rent increases and allows tenants to use violations of this bill as a defense in eviction proceedings.

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 rent increase limit may face financial penalties, with the potential for tenants to recover $500 for a first offense and $1,000 for subsequent offenses. Furthermore, landlords can petition the Commissioner of Community Affairs for approval to increase rents beyond the established limit by demonstrating financial need, with specific notification 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 commencing thereafter.