Housing

This Act establishes the Rights and Responsibilities Guide for Landlords and Tenants Committee (“Committee”) within the Delaware Real Estate Commission (“Commission”). The Commission is tasked with drafting, maintaining, and distributing a comprehensive, statewide rights & responsibilities guide (“guide”) for landlords and tenants with support from the Committee. This guide will reference responsibilities that a tenant or landlord must follow, including federal, state, county, and municipal requirements. This Act also requires a landlord or real estate service provider to provide the guide to prospective tenants entering a landlord-tenant relationship governed under Part III of Title 25. The guide must also be provided at each time a rental agreement is renewed if the renewal is for a term of 1 or more years. The guide may be provided in electronic or paper format. The guide is deemed a statutorily required form under 24 Del. C. § 2912. Real estate service providers may be subject to discipline for misrepresenting the availability or content of the required form. Additionally, failure to provide the guide when required is deemed an unlawful practice under § 2513 of Title 6 and a violation of Subchapter II of Chapter 25 of Title 6. Section 4 of this Act requires the Commission to provide a report to the General Assembly with findings about what disclosures or documents are required to be made to tenants independent of the guide and whether the Commission recommends other law be changed to incorporate those disclosures and documents into the guide. This Act is effective upon enactment into law and, except for the penalty provisions, is to be implemented the earlier of the following: (1) One year from the date of the Act’s enactment. (2) Notice by the Director of the Division of Professional Regulation published in the Register of Regulations that both of the following have occurred: a. The report required under Section 4 of this Act has been provided to the General Assembly. b. The guide this Act creates has been published by the Delaware Real Estate Commission. Penalty provisions are to be implemented 180 days after the remainder of the Act is implemented. If this Act is implemented before the report under Section 4 of this Act is provided to the General Assembly, the report must be provided to the General Assembly within 180 days after the Act is implemented.

Section 1 of this Act makes a pattern or practice of violations by a landlord of a Manufactured Home Community of subchapters I through V of Chapter 70 of Title 25 of the Delaware Code, or a provision of a rental agreement, an unlawful practice under the Consumer Fraud Act, subchapter II, Chapter 70, of Title 25, under specified circumstances. Section 2 of this Act authorizes the Attorney General to file a petition to establish a receivership of a Manufactured Home Community in a Justice of the Peace Court on specified grounds after notice to the landlord. Section 3 of this Act requires the Justice of the Peace Court to send written notice to the Director of Consumer Protection at the Department of Justice within 10 days of its receipt of a petition for tenants’ receivership under Title 25 of the Delaware Code, Sections 5901 or 7061, except in those cases where the Attorney General files the petition.

This Act updates the Right to Representation statute by moving certain duties to the office of the State Courts Administrator and clarifies terminology used within the statute.

This Act repeals the cap on the amount of money in the Delaware Manufactured Home Relocation Trust Fund (Trust Fund), resolving contradictory provisions in current law regarding the Delaware Manufactured Home Relocation Authority (DEMHRA) Board’s authority to adjust the amount in the Trust Fund. Under § 7042(e) of Title 25, the DEMHRA Board can adjust, eliminate, or reinstate the cap on the Trust Fund with the approval of at least 3 of the 5 members of the DEMHRA Board. However, § 7042(e) also provides a dollar amount cap on the amount in the Trust Fund, which under the Delaware Constitution, DEMHRA cannot change. DEMHRA needs to be able to adjust the cap on the Trust Fund because under § 7041(b)(1) and § 7042(b) of Title 25, the money in the Trust Fund is the only money available to DEMHRA to pay administrative costs and to carry out DEMHRA’s responsibilities under Chapters 70 and 71 of Title 25. Recent legislation has given DEMHRA additional responsibilities under subchapter VI of Chapter 70 when a community owner seeks to increase the rent, but DEMHRA does not receive any appropriations to support this work. Instead, except for money appropriated for board meeting stipends, DEMHRA is “responsible for all direct and indirect costs for its operations under § 7042 of this title, including receipts and disbursements, personnel, rental of facilities, and reimbursement to other state agencies for services provided and, therefore, must be fiscally revenue-neutral.” This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual by revising § 7041(c)(3) of Title 25 so that the number of Board members who must vote in favor of adjusting the Trust Fund is clearly stated with the Board’s other responsibilities.

In Chapter 70, Subchapter V of Title 25, the Manufactured Home Relocation Trust Fund was established. It is administered by a Board of Directors. The Board was directed to set a monthly assessment for deposit in the Trust Fund for each rented lot in a manufactured home community. This Act removes the cap of the Trust Fund, currently set at $15 million. This Act also raises the amount of the tenant portion of the monthly assessment to be redirected to the Delaware Manufactured Home Owner Attorney Fund from 50 cents of the tenant portion to $1.50. This Act takes effect on the date of enactment.

This Act updates the procedures governing the transfer of a manufactured home located in a manufactured home community in order to provide a clearer process and reduce ambiguities that allowed some community owners to prevent the transfer of a lease or a home as well as prevent family members from inheriting the investment made by a deceased family member in a home. This Substitute differs from the original bill to make changes to reflect discussions among the stakeholders, including: - Moves the procedure for inspecting a home prior to transfer from the transfer section to the section that governs the rules for standards for retaining a transferred home in a community. - Creates a 2-step process for the sale or transfer of a home where the homeowner notifies the community owner prior to listing the home, at which time the community owner may conduct an inspection, and a second notification for the sale of the home which triggers the right of first refusal in which the community owner can then purchase the home. - Significantly reducing the time a buyer has to complete repairs. - Clarifies that the notice of non-renewal of a lease by a tenant 60 days prior to the end of a lease term is only for moving the home off of the lot, and selling of the home is governed by § 7013. - Clarifies requirements on lease transfers to heirs and adds limitations for how long the transfers take place depending on whether a previous occupant continues to live in the home after the death of the prior owner. - Clarifies the portions of the tenancy application that must be completed in different situations when a home is inherited. - Clarifies how long an estate has until appropriate action has to be taken. - Removed the requirement that a community owner purchase the home if the buyer’s tenancy application is denied. - Changes the minimum amount that a community owner must offer to a homeowner to prevent the ability of a lease to be transferred in the future to the greater of $1,500 or 36 months of the difference between the current monthly rent and market monthly rent. - Adds a requirement that a seller must disclose to a buyer information about the lease transfer and that a community owner must disclose the rental amount to a prospective buyer. - Makes it clear that a homeowner has to comply with § 7013(c) for the lease to transfer. - Removes a provision in § 7016 that would no longer apply under the changes to § 7013. - Extends the time that a community owner may purchase the ability to transfer the lease up to the time the homeowner provides notice of intent to sell.

This Act creates the Affordable Rental Housing Program (ARHP) within the Housing Development Fund. The ARHP is modeled on the federal Section 515 program and provides loans to increase the supply of affordable housing for families with very low-, low-, and moderate-incomes, individuals who are elderly, and individuals with disabilities.

This Joint Resolution directs the Delaware State Housing Authority to create a pilot program for the purpose of providing technical assistance related to zoning ordinance reform to local governments in Delaware. The goal of this pilot program is to help participating local governments identify and implement zoning practices that increase the supply of affordable housing and support goals such as equitable development and economic growth throughout this State. By giving local governments the technical assistance needed to modernize zoning ordinances, this pilot program will help Delaware close its affordable housing gap while allowing local governments the flexibility to adapt best practices to meet their jurisdictional needs. If successful, this pilot program will establish model policies for local government zoning ordinance reforms that can be expanded across this State.

This Act aligns Delaware’s non-discrimination laws. Delaware has several broad laws that prohibit discrimination in public accommodations, housing, employment, and insurance but also has many narrow non-discrimination laws that apply to a specific entity, or type of entity, even though a broad law also prohibits discrimination by that entity. This Act aligns the narrower non-discrimination laws with the applicable broad non-discrimination law by also prohibiting discrimination on any other basis protected under the applicable broad law. Adding the reference to the chapter for the applicable broad law includes all protected classes, definitions, and actions that are currently protected under the broad law or that are added to the broad law in the future. This Act does not make any substantive changes to current non-discrimination laws but is necessary because most of the narrow laws do not contain all of the same protected classes as the broad law that also applies or do not include the definitions of classes that are also in the broad law. These inconsistencies could lead to a misunderstanding by someone reading only an incomplete narrow law, and eventually litigation, about what constitutes illegal discrimination by an entity covered by both the narrow and broad laws. For example: • The non-discrimination provision for the Board of Podiatry under § 506(c) of Title 24 does not prohibit discrimination on the basis of the following classes, for which discrimination is prohibited under Chapter 45 of Title 6: age, marital status, religion, sexual orientation, gender identity, or disability. • Only 4 of the 42 chapters in Title 24 establishing professional licensing boards contain a non-discrimination provision, but this does not mean that the other 38 licensing boards are free to discriminate. Aligning these 4 non-discrimination provisions with Chapter 45 of Title 6 clarifies that Chapter 45 of Title 6 also applies to the 38 professional boards that do not have specific non-discrimination provisions. • For merit system state employees, § 5953 of Title 29 only prohibits discrimination based on race, religion, sex, sexual orientation, gender identity, and housing status but in addition to these classes, § 711 of Title 19 prohibits any employer in this State, including the State, from discriminating in employment based on age, marital status, color, national origin, or disability. • Most of the narrower non-discrimination laws do not include all of the definitions in the applicable broad law. Adding the reference to the applicable broad law incorporates those definitions into the narrower law. For example: 1. All of Delaware’s non-discrimination laws prohibit discrimination based on race and all of the broad non-discrimination laws define “race” as including traits historically associated with race, including hair texture and protective hairstyle. However, very few of the narrower non-discrimination laws include this definition of “race”. 2. Several narrow non-discrimination laws prohibit discrimination on the basis of sexual orientation and gender identity but do not include or specifically reference the definitions of “sexual orientation” or “gender identity” in the applicable broad non-discrimination law. Specifically, this Act revises the following narrow non-discrimination laws to align with the applicable broad non-discrimination law, as follows: To align with the Delaware Equal Accommodations Law, Chapter 45 of Title 6, which prohibits discrimination on the basis of race, age, marital status, creed, religion, color, sex, disability, sexual orientation, gender identity, or national origin by establishments that offer goods, services, facilities, privileges, advantages, or accommodations to the general public, including government agencies: • Transportation networks, § 1917 of Title 2. • Parkland owned by civic associations, § 8110 of Title 9. • Jury service, § 4502 of Title 10. • Private business and trade schools, § 8516 of Title 14. • Delaware Veterans Memorial Cemetery, § 1204 of Title 20. • Board of Podiatry, § 506 of Title 24. • Board of Chiropractic, § 706 of Title 24. • The Board of Medical Licensure & Discipline, § 1713 of Title 24. • Board of Funeral Services, § 3102 of Title 24. To align with the Delaware Fair Housing Act, Chapter 46 of Title 6, which prohibits discrimination on the basis of race, color, national origin, religion, creed, sex, marital status, familial status, source of income, age, sexual orientation, gender identity, disability, or housing status in housing offered for sale, rent, or exchange: • Section 4601 of Title 6, because gender identity is missing from the list of classes protected in the purpose section of Chapter 46 even though gender identity is protected under all of the substantive provisions under that chapter. • Recording of deeds, § 9605 of Title 9. • Residential Landlord-Tenant Code, § 5116 of Title 25. To align with Chapter 46 of Title 6, Subsections (a), (b), and (d) are revised to use the term "familial status" because "familial status" is defined in the Delaware Fair Housing Act to mean a household with children. • The definition of “comparable housing” in § 7102 of Title 25 for the conversion of manufactured home communities. To align with the unlawful employment practices in employment under Chapter 7 of Title 19, which prohibits discrimination in employment on the basis of race, marital status, genetic information, color, age, religion, sex including pregnancy, sexual orientation, gender identity, national origin, housing status, disability, status as a victim of domestic violence, a sexual offense, or stalking, or a reproductive health decision: • New Castle County government, § 1183 of Title 9. • Training and apprenticeship programs, § 204 of Title 19. • Merit System of Personnel Administration, § 5953 of Title 29. • Large public works contracts, § 6962 of Title 29. This Act also clarifies that the definition of “place of public accommodation” in § 4502(19) of Title 6 includes entities and services licensed or regulated under Title 5, Banking. This Act does not make any changes to Title 18 for insurance. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act provides a pathway for former defendants in eviction actions to have the eviction filings against them shielded from public view. Being the subject of an eviction filing can prevent an individual from securing housing for years after any judgment in the case has been satisfied. Even tenants who prevailed in eviction actions may be denied housing by landlords who turn away any applicant with a prior eviction filing, regardless of the outcome of the case. The well-known health, social, and economic consequences of eviction can thus linger for years after an eviction filing, and trap individuals – including many children and families – in a cycle of poverty and housing instability. The effects are particularly acute among already marginalized groups, such as Black and female renters. By shielding eviction records when an individual has met certain requirements, this Act will help break down barriers to stable housing and economic security. Under this Act, the Court must grant shielding upon a motion by the defendant if the Court finds any of the following to be true: 1. The judgment against the defendant was a judgment on the merits, a default judgment, or a stipulated judgment, 5 or more years have passed since the judgment was entered, the defendant has satisfied any monetary award included in the judgment, and the defendant has had no other similar judgments within 5 years of the defendant’s motion to shield. 2. The parties resolved the action through a stipulated agreement, and the defendant has complied with the terms of the stipulated agreement. 3. The plaintiff withdrew the complaint. 4. The Court dismissed the plaintiff’s complaint. 5. The final judgment was in favor of the defendant. 6. The plaintiff and the defendant have agreed to the shielding. 7. The shielding of the records is clearly in the interests of justice. The Court may not charge a filing fee for a motion to shield. Once the Court has granted the shielding, the Court has 45 days to effectuate it. An individual whose eviction record has been shielded can answer questions about prior evictions as if the shielded action was never filed. This Act is a second Substitute for Senate Bill No. 115. Like Senate Substitute No. 1 for Senate Bill No. 115, Senate Substitute No. 2 for Senate Bill No. 115 does the following: 1. Adds judgement by stipulation to the list of judgments for which shielding is available after 5 years if the defendant has satisfied any monetary award included in the judgment. 2. Creates exceptions that make the shielded records available to the Department of Justice and the defendant in the action. 3. Allows for records of shielded actions to be available to the public for purposes of preserving case law, provided that all identifying information is redacted or otherwise obscured. 4. Makes minor technical changes. The primary differences between Senate Substitute No. 1 for Senate Bill No. 115 and Senate Substitute No. 2 for Senate Bill No. 115 are as follows: 1. Senate Substitute No. 2 replaces the term “expungement” with the term “shielding” to better reflect how the Court will be handling records. 2. Senate Substitute No. 2 eliminates the provision in Senate Substitute No. 1 that would have allowed certain eviction records to be automatically shielded. 3. Senate Substitute No. 2 adds a requirement that a defendant seeking shielding under paragraph (a)(1) of § 5720 (lines 6 through 9) have no other similar judgments against them within 5 years of the motion to shield. Senate Substitute No 2. also adds language specifying that redacted records are being made available for purposes of preserving important case law, and that the Court is responsible only for databases and systems that it controls.