AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO RENT JUSTIFICATION.

Section 7052 of Title 25 provides that the completion and cost of any capital improvements or rehabilitation work, as distinguished from ordinary repair, replacement, and maintenance, may justify an increase in rent in a manufactured home community but only until the cost of the improvement has been fully recovered. This Act clarifies this provision by doing all of the following: 1. Creating a clear definition of capital improvement and rehabilitation work. 2. Making the recovery of costs for capital improvement or rehabilitation work a fee so the recovery of this cost is a separate charge from rent. 3. Limits the amount of a fee to recover costs for capital improvement or rehabilitation work to 10% of the cost of the capital improvement or rehabilitation work or 10% of the rent, whichever is lower. 4. Providing notice requirements for a fee to recover costs for capital improvement or rehabilitation work. The Chapter 70 definition of rent includes fees, preserving a community owner’s ability to enforce payment of the fee. By identifying this assessment as a fee, it is clearly identified as separate from a base rent increase. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.