SB 40 — AN ACT TO AMEND TITLES 10 AND 25 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOUSING AND TENANTS’ RECEIVERSHIP PETITIONS.

Walsh DELAWARE& STATERep. SENATE 153rd GENERAL ASSEMBLY SENATE AMENDMENT NO.

1Carson TO& SENATERep. BILL NO.

40K. AMEND Senate Bill No.

40Williams onSens. line 19 by deleting “or constructive”.

SYNOPSISHoffner, SenateHuxtable, BillTownsend; No.

40Reps. adds a new subsection (c) to § 7005 of Title 25.

UnderBurns, theHilovsky, newMorrison, subsectionSnyder-Hall, (c),Wilson-Anton aDELAWARE patternSTATE orSENATE practice153rd ofGENERAL violationsASSEMBLY ofSENATE theBILL provisionsNO. of subchapters I through V of Chapter 70, or a pattern or practice by a landlord of a provision of a rental agreement shall be deemed an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6 if certain facts are true, for example:

(1)40 TheAN violationACT wasTO notAMEND theTITLES direct10 resultAND of25 aOF conditionTHE causedDELAWARE byCODE theRELATING wantTO ofMANUFACTURED dueHOUSING careAND byTENANTS’ theRECEIVERSHIP tenant,PETITIONS. a member of the family, or any other person on the premises with the tenant’s consent;

andBE (2)IT TheENACTED landlordBY hadTHE actualGENERAL orASSEMBLY constructiveOF noticeTHE ofSTATE theOF conditionDELAWARE: that caused the violation.

ThisSection amendment1. removes the language that allows the landlord to be held accountable if the landlord had “constructive notice” of the violation, and preserves the language holding the landlord accountable if the landlord had "actual notice" of the violation.

Amend § 7005 of Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7005.

Enforcement.

(a) It is the duty and obligation of the Consumer Protection Unit, or its successor, of the Department of Justice to enforce the provisions of subchapters I through V of this chapter.

A violation of any provision of subchapters I through V of this chapter by a landlord is within the scope of enforcement duties and powers of the Consumer Protection Unit, or its successor, of the Department of Justice.

(b) Whenever the Consumer Protection Unit, or its successor, of the Department of Justice has reasonable cause to believe that any landlord is engaged in a pattern or practice of violating or failing to comply with the terms of any provision of a rental agreement covered by this chapter, the Attorney General may commence a civil action in any court of competent jurisdiction and seek such relief as the Department of Justice deems necessary to enforce and to ensure the compliance with the terms of such agreement.

(c) A pattern or practice of violations by a landlord of any provision of subchapters I through V of this chapter or a pattern or practice of violations by a landlord of a provision of a rental agreement required by this chapter shall be deemed an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6 if all of the following are true:

(1) The violation was not the direct result of a condition caused by the want of due care by the tenant, a member of the family, or any other person on the premises with the tenant’s consent.

(2) The landlord had actual or constructive notice of the condition that caused the violation.

(3) The landlord failed to correct the conditions causing the violation in a timely manner.

(4) The condition that caused the violation created a risk to health or safety of the tenants or occupants or created a risk to the property of tenants or occupants.

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01/09/2025 09:27 PM Section 2.

Amend Subchapter VII of Chapter 70 of Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7061.

Petition for receivership.

(a) Any tenant, or group of tenants, or the Attorney General, may petition for the establishment of a receivership in a Justice of the Peace Court upon the grounds that there has existed for 5 days or more after notice to the landlord of any of the following:

(1) If the rental agreement, or any state or local statute, code, regulation, or ordinance, places a duty upon the landlord to so provide, a lack of heat, or of running water, or of light, or of electricity, or of adequate sewage facilities.

(2) Any other conditions imminently dangerous to the life, health, or safety of the tenant.

(b) The filing of a petition under the provisions of this Subchapter does not limit the filing party’s right to exercise rights or seek remedies otherwise available to that party under other statutes or the common law.

§ 7068.

Attorney General Intervention.

The Attorney General may intervene in any action brought under this Subchapter.

Section 3.

Amend Chapter 95 of Title 10 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 9507.

Notice to the Director of Consumer Protection of Filed Tenants’ Receivership Petitions.

(a) Within 10 days of its receipt of a petition for tenants’ receivership filed under § 5901 of Title 25 or § 7061 of Title 25, the Justice of the Peace Court in which the petition was filed shall send written notice to the Director of Consumer Protection at the Department of Justice.