Housing

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 is intended to supplement protections under federal law for members of the military, their families, and veterans by adding “military status” as a protected class for purposes of the State’s public accommodations, housing, insurance, education, and employment laws. Technical corrections are also made to existing statutory language to conform with the requirements of the Legislative Drafting Manual. This House Substitute No. 1 adds language to clarify that distinctions or differential treatment based on military status that are allowed by State law or regulation, federal law or regulation, or government contract, are not unfair or discriminatory practices. It also updates existing statutory language that was changed by 84 Del. Laws c 429.