NJ Mobile Home Tenants Could See Limitations on Lot Rent Increases with New Legislation

The cost of living has been going up for most. However, with the recent advancement of legislation from the Assembly Housing Committee, tenants of mobile homes and other manufactured home parks could see a limitation on the annual rent increase. The Bill A3361 is sponsored by Assemblyman Dan Hutchison and Bill Moen and Assemblywoman Barbara McCann Stamato.

“Mobile and manufactured homes are among the most affordable for-sale options on the market and they are often owned by people who live on fixed incomes,” said Assemblyman Hutchison (D-Camden, Gloucester, Atlantic), who testified on the bill during a committee hearing on June 13. “Yet since they do not own the property on which the homes sit, these individuals are at the mercy of the landlords. This bill would protect them from living in a constant state of uncertainty.”

The legislation would prohibit landlords of mobile home parks and manufactured home parks from increasing tenants’ rents by more than two percent over the course of a 12-month period. The bill specifies that the rent increase is related to the lot on which the mobile home sits, which is leased by the mobile homeowner. For the purpose of the legislation, rent includes lot fees, such as license fees charged by the landlord to the tenant, as well as tax surcharge costs passed on to the tenant, and any other special expenses.

“This legislation is crucial for preserving affordable housing in New Jersey,” said Assemblyman Moen (D-Camden, Gloucester). “By capping rent increases at two percent annually, we are ensuring that mobile homeowners are not priced out of their homes as a result of sudden and unreasonable rent hikes.”

During the hearing Williamstown resident and mobile homeowner John Romano was among those testifying. “My wife and I are not wealthy, but we are lucky enough to not have to worry about where our next meal is coming from," he said. “I cannot emphasize enough what a positive impact a statewide rent leveling ordinance would make on the lives of countless mobile/manufactured homeowners in the state of New Jersey, especially for our seniors.”

Providing a greater sense of stability in housing is a critical mission within the state that impacts many families and the communities we live in by reducing the houseless populations. “Establishing these rent leveling protections is a step towards greater housing security for residents in our state,” said Assemblywoman McCann Stamato (D-Hudson). “A3361 would help prevent displacement and offer peace of mind to thousands of families across our state.”

The bill also takes into consideration that landlords may need to increase rent beyond the two percent cap in situations where the present rental income is insufficient to cover the tax increases. In those instances, landlords are able to petition the Commissioner of the Department of Community. The landlords would also be required to notify tenants of any such petition. Failure to do so, or failure to comply with the two percent cap, could result in penalties of up to $500 for the first offense and up to $1,000 for subsequent offenses. 

(This story was produced as part of the Center for Cooperative Media at Montclair State University's South Jersey Information Equity Project fellowship and supported with funding from the Independence Public Media Foundation, the Geraldine R. Dodge Foundation, and the NJ Civic Information Consortium.)

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