Moriarty, Hutchison, and Miller Legislation Limiting Rent Increases on Mobile Home Park Tenants Takes Effect

TRENTON – A law sponsored by Senator Paul Moriarty that would limit the amount a landlord may increase the rent on a tenant of a dwelling site within a manufactured home park took effect on March 1, supporting tenants who plan to install or have installed a modular or manufactured home on land they do not own.

Starting this month, a landlord of a covered dwelling site is not allowed to raise the rent by more than 3.5 percent over a 12-month period without seeking approval from the Department of Community Affairs.

“Even though the median price of a manufactured home is much lower than the statewide average, these homeowners do not typically own the land that their home is built on,” said Senator Moriarty (D-Atlantic/Camden/Gloucester). “Therefore, they also have to pay rent for the site on which they reside. This often leads to unfair price hikes by landlords, as they know that there is no other option besides moving the home to another site. Moving is further incredibly difficult, largely due to potential difficulties in financing a move, exclusionary zoning practices, and restrictions on the age and condition of incoming homes.”

In recent years, there have also been growing concerns over private equity firms purchasing mobile home parks. In 2022, the Lincoln Institute of Land Policy reported that one-fifth of mobile home parks nationwide had been purchased by institutional investors. As a result, residents have seen double-digit rent increases.

Landlords petitioning the commissioner to request approval to increase the rent must demonstrate that the present rental income and additional charges from the manufactured home park are insufficient to cover the costs of tax increases, assessments, maintenance, or capital improvements to the property. Tenants will further be notified if their landlord files a petition, and their arguments will be taken as a key consideration by the commissioner when approving or denying a rent increase.