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 rent can be increased. If a landlord exceeds this limit without proper authorization, 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 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 bill may face financial penalties, with tenants able to recover $500 for a first offense and $1,000 for subsequent offenses. Furthermore, landlords can petition the Commissioner of Community Affairs for rent increases beyond the two percent 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 new tenancies starting from that date.