SB 110 — AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO CAPITAL IMPROVEMENTS IN MANUFACTURED HOME COMMUNITIES.

Summary

This Act clarifies when a manufactured home community owner can recover the cost of a capital improvement from the homeowners in the community and makes the amount the community owner collects a capital improvement assessment fee that ends when the cost of the capital improvement is recovered, instead of a permanent rent increase. A homeowner or homeowner association may dispute a capital improvement assessment fee under the existing rent increase dispute resolution process. This Act also repeals the definition of “market rent” because that term is not a factor considered for justifying a rent increase under current law. This Act also clarifies when a capital improvement assessment fee or rent increase takes effect. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

Bill Text

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The bill amends various sections of Title 25 of the Delaware Code to clarify and establish regulations regarding capital improvement assessment fees in manufactured home communities.

• § 7003

  “Consumer Price Index” or “CPI-U” means the Consumer Price Index for All Urban Consumers in the Philadelphia-Wilmington-Atlantic City area for the most recently available preceding 36-month period.

  Defines the term 'Consumer Price Index' for context in the statute.

• § 7008

  j. [Repealed.] → If the rented lot is subject to a capital improvement assessment fee under § 7020 of this title, a line item that includes all of the following regarding the capital improvement assessment fee: 1. The initial total cost. 2. The current balance. 3. The monthly assessment amount. 4. The date that the capital improvement assessment fee is scheduled to be satisfied.

  Restores required disclosure items in rental agreements related to capital improvement assessment fees.

• § 7020

  A community owner may only request a capital improvement assessment fee to recover the cost of the following: → A community owner may only request a capital improvement assessment fee to recover the cost of the following: a. A new asset in the community, to the extent the asset is beneficial to the homeowners, where no similar asset has previously existed.

  Clarifies what qualifies for recovery through a capital improvement assessment fee.

• § 7020(n)(2)(a)

  During the preceding 12-month period, the community owner has not been found in violation of any law or regulation relating to the health or safety of the residents, visitors, or guests that persisted for more than 15 days, beginning from the day the community owner received notice of such violation. → During the preceding 12-month period, the community owner has not been found in violation of any law or regulation relating to the health or safety of the residents, visitors, or guests that persisted for more than 15 days, beginning from the day the community owner received notice of such violation.

  Remains unchanged, reiterating compliance requirements for capital improvement fees.

• § 7051A

  For purposes of § 7051 and §§ 7053 through 7056 of this title, “rent increase” and “increase” also include a capital improvement assessment fee under § 7020 of this title.

  Expands the definition of 'rent increase' to include capital improvement assessment fees, impacting how these fees are treated in relation to rent.

• § 7052

  A community owner may raise a homeowner’s rent for any and all 12-month periods governed by the rental agreement.

  Clarifies the conditions under which rent may be raised.

Action History

1. April 14, 2021

   Introduced and Assigned to Housing Committee in Senate

Sponsors

• John "Jack" Walsh · Primary
• William J. Carson · Primary
• Kimberly Williams · Primary
• David L. Wilson · Cosponsor
• Sean M. Lynn · Cosponsor
• Madinah Wilson-Anton · Cosponsor
• John A. Kowalko · Primary
• Bruce C. Ennis · Primary

Subjects