Delaware General Assembly

Lieu/Substituted 6/7/18

The General Assembly has ended, the current status is the final status.

SB 23

1/17/18

Ennis

Reps. Carson, Schwartzkopf

Sen. Bushweller
Reps. Kowalko, Lynn, Wilson

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO RENT JUSTIFICATION.

Section 7042 of Title 25 of the Delaware Code lists the completion and cost of any capital improvements or rehabilitation work in a manufactured home community, as distinguished from ordinary repair, replacement, and maintenance, as a factor that may justify an increase in rent but only until the cost of the improvement has been fully recovered. This Act clarifies this provision by making the recovery of such capital improvement or rehabilitation work a fee under § 7008, the fee section of this chapter, so that it is a separate charge from rent and provides notice requirements regarding the fee. This fee must be recovered over the number of years necessary so that the fee does not exceed 10% of the rent. This Act provides a definition of capital improvement and rehabilitation work. This definition is placed in the definitions section of Chapter 70 and is based upon IRS case law. Chapter 70 defines rent as including fees, preserving a community owner’s ability to enforce payment of the fee. By identifying this assessment as a fee, it is clearly identified as separate from a base rent increase. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

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