SB 293 — AN ACT TO AMEND TITLE 6 AND TITLE 25 OF THE DELAWARE CODE RELATING TO FAIR HOUSING.

Rep.Sen.

Lockman & Rep.

Moore HOUSE& OFRep. REPRESENTATIVES 152nd GENERAL ASSEMBLY HOUSE AMENDMENT NO.

1Dorsey TOWalker SENATE& SUBSTITUTERep. NO.

Wilson-Anton Sens.

Gay, S.

McBride, Pinkney, Townsend;

Reps.

Baumbach, Lambert, Morrison, Phillips DELAWARE STATE SENATE 152nd GENERAL ASSEMBLY SENATE SUBSTITUTE NO.

293 AN ACT TO AMEND SenateTITLE Substitute6 No.AND TITLE 25 OF THE DELAWARE CODE RELATING TO FAIR HOUSING.

1WHEREAS, forboth Senatethe BillDelaware No.Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, prohibit discrimination based on source of income;

293and byWHEREAS, deletingunder linesboth 31laws, and“source 32of inincome” theirmeans entiretyany andlawful insertingsource inof lieumoney thereofpaid thedirectly, following:indirectly, or on behalf of a renter or buyer of housing, including income or rental payments derived from any government or private assistance, grant, or loan program;

“WHEREAS,and inWHEREAS, Mayboth 2024, the consultantDelaware retainedFair byHousing theAct PHAsand toResidential assistLandlord-Tenant withCode have an exception to this streamliningprohibition processagainst issueddiscrimination abased recommendationson reportsource of income so that includesa specificlandlord's short,nonparticipation medium,in anda long-termgovernment- recommendationssponsored forrental theassistance, PHAs,voucher, includingor acertificate recommendedsystem timeframe(voucher) formay thenot processingserve ofas Requeststhe basis for Tenancyan Approval;administrative or judicial proceeding;

and”.and WHEREAS, this exception means that this State’s laws prohibiting discrimination based on source of income explicitly allow discrimination against people who have a source of income that can only be used to pay for housing;

FURTHERand AMENDWHEREAS, SenateDelaware Substitutehas No.a severe affordable housing shortage, with only 38 available and affordable rental units for every 100 extremely low-income renters;

1and forWHEREAS, Senatevoucher Billrecipients No.face significant hurdles finding units to rent;

293and onWHEREAS, linewhen 50voucher byrecipients deletingare “[Repealed.]”unable to secure housing before their voucher expires, they lose their voucher and insertingthus, inthis lieucrucial thereofhousing theassistance following:for which they are eligible;

“Theand denialWHEREAS, ofNew aCastle rentalCounty applicationgives undervoucher §holders 5116(e)(2)120 ofdays Titleto 25find mayhousing, notbut servecurrently asonly the42% basisof forvoucher anyholders administrativefind orunits judicialduring proceedingthat underwindow thisdue chapter.”.to the lack of affordable housing;

FURTHERand AMENDWHEREAS, Senatethis Substituteis No.a decrease from 2022, when 50% of New Castle County voucher holders were able to secure housing with their voucher;

1and forLC Senate: Bill No.

293DIG on: line 56 by deleting “[Repealed.]” and inserting in lieu thereof the following:

“(1)CM ThePage public1 housing authorities must implement the standardized sequence of processing4 aReleased: Request for Tenancy Approval recommended by the third-party consultant in the May 2024 report, “Alignment of Delaware Housing Choice Voucher Programs to Create Efficiencies and Increase Landlord Engagement”, prepared for the Delaware State Housing Authority.

(2)05/23/2024 If09:55 aAM publicWHEREAS, housingin authorityKent failsand toSussex complycounties, withonly the36% standardized sequence of processinghouseholds awith Requestfederal forHousing TenancyChoice ApprovalVouchers underadministered paragraphby (e)(1)the ofDelaware thisState section,Housing aAuthority landlord(DSHA) maywere denyable a rental application to ensuresecure thehousing reliablewith andtheir timelyvoucher supplyin of2023; housing units.

(3)and TheWHEREAS, denialeven ofvoucher aholders rentalthat applicationreceive case management services under paragraphthe (e)(2)DSHA-administered ofState thisRental sectionAssistance mayProgram not(SRAP) serveexperience asdifficulty therenting basisa forunit anyand administrativeonly or79% judicialof proceedingSRAP undervoucher thisrecipients chapter.”.were able to secure housing with their voucher in 2023;

FURTHERand AMENDWHEREAS, Senatethe Substitute5 No.Delaware public housing authorities (PHAs) have retained a consultant to assist with streamlining the procedures required when landlords accept vouchers;

1and forWHEREAS, Senatethe BillDelaware No.Apartment Association (DAA) is actively participating in the PHAs’ efforts to streamline these procedures, including by providing feedback on the current processes;

293and WHEREAS, the consultant retained by deletingthe linesPHAs 77to inassist itswith entiretythis andstreamlining insertingprocess inhas lieualready thereofprovided thea following:list of preliminary recommended improvements;

“Sectionand 4.WHEREAS, the PHAs and consultant continue to hold meetings with the DAA and other landlords to discuss these recommendations;

Thisand ActWHEREAS, isa effectiveNew immediatelyYork andUniversity isstudy toof bejurisdictions implementedthat theenacted laterlaws prohibiting source of theincome following:discrimination against housing voucher holders found that these laws lead to more upwardly mobile moves among existing voucher holders;

and WHEREAS, research by Opportunity Insights, based at Harvard University, found that children who grow up in communities with more cross-class interaction are much more likely to rise up out of poverty;

and WHEREAS, both DSHA’s 2020 Delaware Statewide Analysis of Impediments to Fair Housing Choice and the Infrastructure & Environment Subcommittee of the African American Task Force, established under Section 39(j)(1)d.

of SB 260 (150th), recommended prohibiting discrimination against tenants with housing vouchers.

NOW, THEREFORE:

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1.

Amend § 4607, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 4607.

Exemptions in certain situations.

(j) A landlord is not required to participate in any government-sponsored rental assistance program, voucher, or certificate system.

A landlord’s nonparticipation in any government-sponsored rental assistance program, voucher, or certificate system may not serve as the basis for any administrative or judicial proceeding under this chapter.