Legislature proposes new rental increase regulations and penalties for landlords

On February 25, 2025, the New Jersey Senate introduced Senate Bill 2953, a legislative measure aimed at regulating rent increases for tenants in manufactured home parks. The bill seeks to address concerns over unconscionable rent hikes, providing a framework for both tenants and landlords regarding permissible rent adjustments.

The primary provisions of Senate Bill 2953 include a cap on rent increases, limiting them to no more than three percent annually unless landlords can demonstrate a need for a higher increase due to unforeseen costs or capital improvements. In such cases, landlords must petition the Commissioner of Community Affairs for approval, presenting evidence to justify the increase. If the petition is not acted upon within 90 days, the increase is automatically approved, provided it meets the bill's criteria.

Key penalties are outlined for landlords who violate the provisions of the bill. They face a $1,000 fine per violation per unit, enforceable through summary proceedings in the Superior Court. Tenants are granted the right to contest unlawful rent increases as a defense in eviction actions and can seek damages, including attorney's fees, for violations.

The bill has sparked notable debate among stakeholders. Proponents argue it is essential for protecting vulnerable tenants from exploitative practices, particularly in a housing market where affordability is increasingly at risk. Critics, however, express concerns that the regulations may deter investment in manufactured home parks and lead to a decline in property maintenance.

Economically, the bill could have significant implications for both tenants and landlords. For tenants, it aims to provide stability and predictability in housing costs, while landlords may face challenges in managing operational costs without the ability to adjust rents freely. The political landscape surrounding the bill is also noteworthy, as it reflects broader trends in housing policy and tenant rights advocacy in New Jersey.

As the legislative process unfolds, the future of Senate Bill 2953 will depend on ongoing discussions and potential amendments, with its impact on New Jersey's rental market poised to be closely monitored by both supporters and opponents.