Delaware 151st General Assembly (2021-2022) Status: Passed Senate 1 D cosponsors

SB 167 — AN ACT TO AMEND TITLE 31 OF THE DELAWARE CODE RELATING TO THE LANDLORD MITIGATION FUND.

Last action — Amendment HA 1 to SS 1 - Introduced and Placed With Bill

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 151st General Assembly (2021-2022). It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

This Act seeks to increase the supply of homes available to rent for low-income individuals and families by providing incentives to landlords who participate in a government-sponsored rental assistance program. To that end, this Act creates a Landlord Mitigation Fund, administered by the Delaware State Housing Authority ("DSHA"), to provide payment for certain types of claims for payment or reimbursement for certain expenses incurred by participating landlords. The Act provides that the DSHA shall set the maximum amount that a landlord may recover from the Landlord Mitigation Fund, per claim and per tenancy. In addition, the Act provides that the DSHA has sole discretion to determine payment from the Landlord Mitigation Fund. Payment is subject to the availability of funds in the Landlord Mitigation Fund. A landlord who has received payment from the Landlord Mitigation Fund is prohibited from taking legal action against, or pursuing collection from, a tenant for damages attributable to the same tenancy, except to the extent the landlord seeks damages in excess of the amounts received from the Landlord Mitigation Fund. The Act is a substitute for and differs from Senate Bill No. 167 by eliminating claims for payment of a security deposit from the types of claims for which reimbursement from the Landlord Mitigation Fund may be sought. In addition, this Act removes dollar limitations on reimbursement from the Landlord Mitigation Fund and instead authorizes the DSHA to determine such limitations. The Act further eliminates the requirement that the DSHA create and maintain a waitlist, in the event that funds do not exist in the Landlord Mitigation Fund to pay eligible claims. The Act also creates exceptions to the limits on remedies for landlords receiving a payment from the Landlord Mitigation Fund. Finally, the Act eliminates the requirement that a tenant repay to the DSHA amounts paid to a landlord for a claim pursuant to subsection (b)(3) or (b)(4).

Bill Text

What changed in the latest version

73 added · 26 removed

73 line(s) added, 26 removed.

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Lockman DELAWARE STATE SENATE 151st GENERAL ASSEMBLY SENATE AMENDMENT NO.
Lockman & Rep.
1 TO SENATE SUBSTITUTE NO.
Baumbach Sen.
Ennis DELAWARE STATE SENATE 151st GENERAL ASSEMBLY SENATE SUBSTITUTE NO.
167 AMEND Senate Substitute 1 for Senate Bill No.
167 AN ACT TO AMEND TITLE 31 OF THE DELAWARE CODE RELATING TO THE LANDLORD MITIGATION FUND.
167 on line 9 by inserting after “prescribing” and before “additional” the following:
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
“eligible time periods,” FURTHER AMEND Senate Substitute 1 for Senate Bill No.
Section 1.
167 by deleting line 13 in its entirety and substituting in lieu thereof the following:
Amend Chapter 40, Title 31 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
“federal funds, and (iii) unappropriated amounts that” FURTHER AMEND Senate Substitute 1 for Senate Bill No.
§ 4070.
167 on line 14 by deleting “sources.” and inserting in lieu thereof the following:
Landlord Mitigation Fund.
“and up to 15% of such amounts may be applied by the DSHA to the administrative costs associated with the Landlord Mitigation Fund.” FURTHER AMEND Senate Substitute 1 for Senate Bill No.
(a) Establishment of Landlord Mitigation Fund;
167 by inserting the following after line 28:
purpose;
“(5) The DSHA may prescribe additional claim types that are eligible for reimbursement from the Landlord Mitigation Fund.” FURTHER AMEND Senate Substitute 1 for Senate Bill No.
administration;
167 on line 29 by inserting after “the” and before “maximum” the following:
funding.
“minimum and” SYNOPSIS This amendment allows Delaware State Housing Authority to adopt rules prescribing eligible time periods for reimbursement, minimum claim amounts, and additional claim types that are eligible for reimbursement.
(1) There is hereby created a Landlord Mitigation Fund.
This amendment also removes a reference to federal funding from the American Rescue Plan Act of 2021.
(2) The purpose of the Landlord Mitigation Fund is to provide payment for certain expenses incurred by landlords participating in a government-sponsored rental assistance program, subject to the availability of funds.
Further, this amendment allows Delaware State Housing Authority to use up to 15 percent of the funds deposited into the Landlord Mitigation Fund to cover the cost of administering the fund.
(3) The DSHA shall administer the Landlord Mitigation Fund.
In addition, the DSHA shall adopt rules to implement the provisions of this section, including prescribing additional qualifications and requirements that must be met by landlords, and the form of application that must be submitted to the DSHA to receive assistance under the program.
(4) The Landlord Mitigation Fund shall be able to accept:
(i) appropriations from the General Assembly;
(ii) federal funds, including funds from the American Rescue Plan Act of 2021, and (iii) unappropriated amounts that may be deposited by the DSHA from other available sources.
(b) Claims.
The following types of claims related to landlord mitigation for renting private market rental units pursuant to a government-sponsored rental assistance program are eligible for payment from the Landlord Mitigation Fund:
(1) Lost rental income due to delays in the public housing authority inspection process, in an amount equal to the lost rental income from the date of offer of housing to the applicant whose housing subsidy program was conditioned on the real property passing inspection until move in by that applicant.
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12/20/2021 03:04 PM (2) Lost rental income due to the tenant vacating the tenancy without notice.
(3) Reimbursement for damages to the real property other than for normal wear and tear, in excess of the security deposit.
In order for a claim to be eligible for reimbursement under this subsection, the landlord must provide DSHA with proof of the expenditures for which the landlord is seeking reimbursement.
(4) Reimbursement for improvements required by the public housing authority inspection.
In order for a claim to be eligible for reimbursement under this subsection, (i) the landlord must provide DSHA with proof of the expenditures for which the landlord is seeking reimbursement;
and (ii) the landlord must rent to the tenant whose housing subsidy was conditioned on the real property passing inspection.
(c) Limitations.
The DSHA shall set the maximum amount or amounts that a landlord may receive from the Landlord Mitigation Fund per claim and per tenancy.
(d) Claim review and determinations regarding payment.
(1) The DSHA, in its sole discretion, may inspect the property and the landlord’s records related to a claim, including the use of a third-party inspector as needed to investigate fraud, to assist in making its claim review and determination of eligibility.
(2) Determinations regarding payment from the Landlord Mitigation Fund are made by the DSHA in its sole discretion.
(3) All payments for eligible claims are made on a first-come, first served basis, to the extent of available funds.
(e) Limitations on other remedies.
A landlord in receipt of payment from the Landlord Mitigation Fund is prohibited from:
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(1) Taking legal action against the tenant for damages attributable to the same tenancy, except to the extent the landlord seeks damages in excess of those amounts received from the Landlord Mitigation Fund.
(2) Pursuing collection, or authorizing another entity to pursue collection, on the landlord’s behalf, of a judgment against the tenant for damages attributable to the same tenancy except to the extent the landlord seeks damages in excess of those received from the Landlord Mitigation Fund.
SYNOPSIS This Act seeks to increase the supply of homes available to rent for low-income individuals and families by providing incentives to landlords who participate in a government-sponsored rental assistance program.
To that end, this Act creates a Landlord Mitigation Fund, administered by the Delaware State Housing Authority ("DSHA"), to provide payment for certain types of claims for payment or reimbursement for certain expenses incurred by participating landlords.
The Act provides that the DSHA shall set the maximum amount that a landlord may recover from the Landlord Mitigation Fund, per claim and per tenancy.
In addition, the Act provides that the DSHA has sole discretion to determine payment from the Landlord Mitigation Fund.
Payment is subject to the availability of funds in the Landlord Mitigation Fund.
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12/20/2021 03:04 PM A landlord who has received payment from the Landlord Mitigation Fund is prohibited from taking legal action against, or pursuing collection from, a tenant for damages attributable to the same tenancy, except to the extent the landlord seeks damages in excess of the amounts received from the Landlord Mitigation Fund.
The Act is a substitute for and differs from Senate Bill No.
167 by eliminating claims for payment of a security deposit from the types of claims for which reimbursement from the Landlord Mitigation Fund may be sought.
In addition, this Act removes dollar limitations on reimbursement from the Landlord Mitigation Fund and instead authorizes the DSHA to determine such limitations.
The Act further eliminates the requirement that the DSHA create and maintain a waitlist, in the event that funds do not exist in the Landlord Mitigation Fund to pay eligible claims.
The Act also creates exceptions to the limits on remedies for landlords receiving a payment from the Landlord Mitigation Fund.
Finally, the Act eliminates the requirement that a tenant repay to the DSHA amounts paid to a landlord for a claim pursuant to subsection (b)(3) or (b)(4).
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12/20/2021 03:04 PM 4761510175
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Action History

  1. Amendment HA 1 to SS 1 - Introduced and Placed With Bill

  2. Reported Out of Committee (Housing & Community Affairs) in House with 2 Favorable, 4 On Its Merits

  3. Assigned to Housing & Community Affairs Committee in House

  4. Passed By Senate. Votes: 21 YES

  5. Amendment SA 1 to SS 1 - Passed By Senate. Votes: 21 YES

  6. Lifted From Table in Senate

  7. Amendment SA 1 to SS 1 - Introduced and Placed With Bill

  8. was introduced and adopted in lieu of SB 167 and Laid on Table

Sponsors

Sponsorship breakdown

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2 sponsors · 1 co-sponsors · 59 not signed on

Sponsors (2)

Co-sponsors (1)

Not signed on (59)

59 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SM

Passed 21 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5000
Democratic 11000
Republican 5000
Total 21000
% of votes cast 100%0%0%0%
How each member voted (21)
Member Party Vote
Bruce C. Ennis — Yea
Colin Bonini — Yea
Ernesto B Lopez — Yea
Kyle Evans Gay — Yea
Sarah McBride — Yea
Bryan Townsend Democratic Yea
Darius J. Brown Democratic Yea
David P. Sokola Democratic Yea
John "Jack" Walsh Democratic Yea
Laura V. Sturgeon Democratic Yea
Marie Pinkney Democratic Yea
Nicole Poore Democratic Yea
S. Elizabeth Lockman Democratic Yea
Spiros Mantzavinos Democratic Yea
Stephanie L. Hansen Democratic Yea
Trey Paradee Democratic Yea
Brian Pettyjohn Republican Yea
Bryant L. Richardson Republican Yea
Dave G. Lawson Republican Yea
David L. Wilson Republican Yea
Gerald W. Hocker Republican Yea

Official roll call →

Subjects

housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 167 do?
This Act seeks to increase the supply of homes available to rent for low-income individuals and families by providing incentives to landlords who participate in a government-sponsored rental assistance program. To that end, this Act creates a Landlord Mitigation Fund, administered by the Delaware State Housing Authority ("DSHA"), to provide payment for certain types of claims for payment or reimbursement for certain expenses incurred by participating landlords. The Act provides that the DSHA shall set the maximum amount that a landlord may recover from the Landlord Mitigation Fund, per claim and per tenancy. In addition, the Act provides that the DSHA has sole discretion to determine payment from the Landlord Mitigation Fund. Payment is subject to the availability of funds in the Landlord Mitigation Fund. A landlord who has received payment from the Landlord Mitigation Fund is prohibited from taking legal action against, or pursuing collection from, a tenant for damages attributable to the same tenancy, except to the extent the landlord seeks damages in excess of the amounts received from the Landlord Mitigation Fund. The Act is a substitute for and differs from Senate Bill No. 167 by eliminating claims for payment of a security deposit from the types of claims for which reimbursement from the Landlord Mitigation Fund may be sought. In addition, this Act removes dollar limitations on reimbursement from the Landlord Mitigation Fund and instead authorizes the DSHA to determine such limitations. The Act further eliminates the requirement that the DSHA create and maintain a waitlist, in the event that funds do not exist in the Landlord Mitigation Fund to pay eligible claims. The Act also creates exceptions to the limits on remedies for landlords receiving a payment from the Landlord Mitigation Fund. Finally, the Act eliminates the requirement that a tenant repay to the DSHA amounts paid to a landlord for a claim pursuant to subsection (b)(3) or (b)(4).
Who sponsors SB 167?
SB 167 is sponsored by S. Elizabeth Lockman (Democratic), Bruce C. Ennis, and Paul S. Baumbach.
What is the current status of SB 167?
This bill died with 151st General Assembly (2021-2022). It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 167?
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