Housing

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.

HB 72 changes Delaware's senior property tax credit eligibility by reducing the required residency period from 10 years to 3 years for seniors aged 65+ who own their homes as principal residences. Currently, seniors who established residency after 2017 need 10 years of Delaware residency to qualify (through 2025), but this bill would immediately revert to the pre-2017 standard of 3 consecutive years of residency. The change applies to all future claims, making the credit accessible to more seniors who have lived in Delaware for a shorter time. This directly affects Delaware seniors seeking to reduce property tax bills on their primary homes.

This Act increases the notice period during which notice of a hearing and complaint must be served in an action for summary possession from between 5 and 30 days to between 5 and 90 days prior to the time at which the complaint is to be heard.

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.

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.

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.

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.

Accessory dwelling units (ADUs), also known as in-law units or garage apartments, are valuable and convenient forms of housing that can help to increase Delaware’s housing supply. In order to expand affordable housing opportunities, this Act requires local governments to permit the construction of ADUs within their jurisdictions without prohibitive barriers or onerous application or zoning requirements. This Act carries a 2/3 vote requirement as it may indirectly affect municipal charters.

This Act is a Substitute for SB 34 and differs from SB 34 in the following ways: • Moves the provision for lease termination to purchase a home from § 5314(b) of Title 25 to a new subsection (c) under §5314 of Title 25. • Does not make technical changes to § 5314(b) of Title 25. • Requires the tenant to give the landlord a signed agreement of sale at the same time the tenant gives the landlord notice of early lease termination to purchase a home. • Changes the notice a tenant is required to give for terminating a lease to purchase a home from 30 days to 60 days. • Clearly states that the lease terminates after the 60-day period. • Allows the landlord and tenant to agree to extend the 60-day period by signing a written agreement. • References that § 5514(c)(3) allows a landlord to deduct reasonable expenses, incurred in rerenting after early lease termination, from the tenant’s security deposit. This Act allows a tenant to terminate a rental agreement early if purchasing a home by providing 60 days' written notice to the landlord, along with a copy of the agreement of sale. The 60-day period begins on the first day of the month after the day the notice is given, but the landlord and tenant may agree to extend the lease termination date past the 60-day period by written agreement signed by the landlord and tenant. This Act also references that a landlord may deducting reasonable expenses incurred in rerenting the premises, up to 1 month’s rent, from the tenant’s security deposit as provided under § 5514(c)(3) of Title 25.

This Act allows an applicant who seeks to create affordable housing to apply for Site Readiness Funds so long as the applicant demonstrates that the affordable housing will increase economic development in the State.