Delaware General Assembly

CHAPTER 38

FORMERLY

HOUSE BILL NO. 45

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOME COMMUNITIES

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

Section 1. Amend Chapter 70, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

Chapter 70. Manufactured Homes and Manufactured Home Communities Act.

Subchapter I. Manufactured Home Owners and Community Owners Act Purpose, definitions, enforceability.

Section 2. Amend § 7001, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7001. Purposes and policies; enforceability.

(a) This subchapter Subchapters I through V of this chapter must be liberally construed and applied to promote it’s the following underlying purposes and policies, which are: policies:

(b) This subchapter applies Subchapters I through V of this chapter apply to all rental agreements for manufactured home lots and regulates and determines determines the legal rights, remedies remedies, and obligations of all parties to a rental agreement, wherever executed, for a lot for a manufactured home in a manufactured home community within this State. A provision of a rental agreement which conflicts with a provision of this subchapter Subchapters I through V of this chapter and is not expressly authorized herein is unenforceable. The unenforceability of a provision does not affect the enforceability of other provisions of a rental agreement which can be given effect without the unenforceable provision.

Section 3. Amend § 7001A, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7001A. The Delaware Manufactured Housing Alternative Dispute Resolution Act. [Reserved].

Section 4. Amend § 7002, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7002. Jurisdiction.

(a) Any person, whether or not a citizen or resident of this State, who owns, holds an ownership or beneficial interest in, uses, manages manages, or possesses real estate situated in this State submits to the jurisdiction of the courts of this State as to any action or proceeding for the enforcement of an obligation or right arising under this subchapter. Subchapters I through V of this chapter.

(b) A summary proceeding to recover the possession of a rented lot, pursuant to Chapter 57 of this title, may be maintained in the Justice of the Peace Court in the county where the property is located.

(c) In the absence of a provision in this subchapter Subchapters I through V of this chapter governing the relationship between a manufactured home owner (tenant) and a manufactured home community owner (landlord), the Residential Landlord-Tenant Code set forth in Code, under Part III of this title title, governs the relationship. The Residential Landlord-Tenant Code also governs the rental of manufactured homes. In the event of conflict between the provisions of this subchapter Subchapters I through V of this chapter and those of the Residential Landlord-Tenant Code, this subchapter governs Subchapters I through V of this chapter govern issues pertaining to the rental of lots in manufactured home communities.

Section 5. Amend § 7003, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7003. Definitions.

Unless otherwise expressly stated, if a word or term is not defined under this section, it has its ordinarily accepted meaning or means what the context implies. In this subchapter, the following definitions apply. For purposes of this chapter:

Section 6. Amend § 7004, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7004. Exemptions.

(a) The rental of ground upon which a recreational vehicle is placed, including any facilities or utilities thereon, is exempt from the requirements of this subchapter, Subchapters I through V of this chapter and nothing in this subchapter Subchapters I through V of this chapter may be construed as determining, regulating regulating, or governing the legal rights of parties to any lease or rental agreement for the ground on which a recreational vehicle is situated.

(b) The rental of ground within the category of seasonal property is exempt from the requirements of this subchapter, Subchapters I through V of this chapter and nothing in this subchapter Subchapters I through V of this chapter may be construed as determining, regulating, or governing the legal rights of parties to any lease or rental agreement for the rental of ground within the category of seasonal property.

Section 7. Amend § 7025, Title 25 of the Delaware Code by transferring § 7025 to § 7005 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7025. § 7005. Enforcement.

(a) It is the duty and obligation of the Consumer Protection Unit, or its successor, of the Attorney General’s Office Department of Justice to enforce the provisions of this subchapter. Subchapters I through V of this chapter. A violation of any provision of subchapter 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 Attorney General’s Office. Department of Justice.

(b) Whenever the Consumer Protection Unit, or its successor, of the Attorney General’s Office 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 Attorney General’s Office Department of Justice deems necessary to enforce and to ensure the compliance with the terms of such agreement.

Section 8. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subchapter II after § 7005 of Title 25 and by creating a new Subpart I before § 7006 of Title 25 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter II. Landlord-tenant relationship.

Subpart I. General provisions.

Section 9. Amend § 7005, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7005. § 7006. Requisites for rental of a manufactured home lot.

A landlord shall not rent a lot in a manufactured home community without first delivering to the prospective tenant a copy of the proposed rental agreement, a copy of the rules, standards standards, and fee schedule of the manufactured home community, a copy of this subchapter, chapter, and a summary of this subchapter chapter written by the Office of the Attorney General Department of Justice and made available to all landlords prior to January 1, 2012, all of which shall be delivered to the prospective tenant at the time the prospective tenant obtains from the landlord an application for tenancy in the community. The prospective tenant shall acknowledge such delivery by signing a receipt.

Section 10. Amend § 7020, Title 25 of the Delaware Code by transferring § 7020 to § 7007 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7020 § 7007. Manufactured home standards.

(a) Standards for manufactured homes of new tenants. —

(b) Standards for manufactured homes not for sale. — A tenant who is residing in a manufactured home community at the time a standard is promulgated must bring the tenant's own manufactured home into compliance with the standard within 9 years of the promulgation of the standard or be subject to a summary possession proceeding under Chapter 57 of this title. However, if a change in a manufactured home is necessary to protect life or for other safety reason, the landlord may require that the change be made in less than 9 years. Once work begins on the manufactured home, the necessary change must be completed within a reasonable time.

(c) Standards for manufactured homes for resale or transfer of title and retention in the manufactured home community. —

(d) A standard promulgated pursuant to subsection under subsections (a), (b) (b), or (c) of this section may not be arbitrarily or capriciously enforced. A landlord may choose not to enforce a standard based upon the documented special needs or hardship of a tenant without waiving the right to the later enforcement of the standard as to that tenant or any other tenant.

(e) A landlord may at any time establish or amend a standard promulgated pursuant to subsection under subsections (a), (b) (b), or (c) of this section, but an established or amended standard promulgated pursuant to subsection under subsections (b) or (c) of this section is not effective until the date specified in the established or amended standard or 60 days after the landlord delivers to the tenant written notice of the established or amended standard, whichever is later.

Section 11. Amend § 7006, Title 25 of the Delaware Code by transferring § 7006 to § 7008 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7006. § 7008. Provisions of a rental agreement.

(a) All new and renewing rental agreements, including those rental agreements whose original term has expired, for a lot in a manufactured home community must contain: all of the following:

(b) A rental agreement for a lot in a manufactured home community may not contain: contain any of the following:

(c) If a court of competent jurisdiction finds that a tenant's rental agreement contains a provision in violation of subsection (b) of this section: section, all of the following apply:

(d) If a court of competent jurisdiction finds that a landlord has wilfully included in the rental agreement a provision in violation of subsection (b) of this section, the tenant is entitled to recover 3 months' rent in addition to an award under subsection (c) of this section.

(e) A rental agreement must be executed before a tenant occupies a lot.

(f) A landlord may not offer a lot for rent in a manufactured home community unless the lot conforms to the applicable state, county county, or municipal statutes, ordinances ordinance, or regulations under which the manufactured home community was created, or under which the manufactured home community currently and lawfully exists.

(g) A violation of subsection (f) of this section is punishable by a fine of not more than $1,000.

(h) If a court of competent jurisdiction finds that a tenant's rental agreement fails to contain a provision required by subsection (a) of this section: section, all of the following apply:

(i) If a court of competent jurisdiction finds that a landlord has wilfully failed to include in the rental agreement a provision required by subsection (a) of this section, the tenant is entitled to recover 3 months' rent in addition to an award under subsection (h) of this section.

(j) Both the landlord and tenant shall comply with the provisions of the rental agreement. The remedies available to a landlord or a tenant set forth in this chapter are in addition to those remedies available to a landlord or a tenant in a court of competent jurisdiction for the failure by the landlord or the tenant to comply with any provision of a rental agreement.

Section 12. Amend § 7007, Title 25 of the Delaware Code by transferring § 7007 to § 7009 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7007. § 7009. Term of rental agreement; renewal of rental agreement.

(a) The term of a rental agreement for a lot in a manufactured home community must be:

(b) Upon the expiration of the term of a rental agreement, the rental agreement must be automatically renewed by the landlord for the same term and with the same provisions as the original agreement, with the exception that modified provisions relating to the amount and payment of rent are permitted, and, with the mutual agreement of all parties to the rental agreement, other modifications not prohibited by law, unless:

(a) The duration of a rental agreement for a lot in a manufactured home community is 1 year unless a shorter or longer duration is mutually agreed upon by the parties and is designated in writing within the rental agreement.

(b) The rental agreement automatically renews unless either of the following occur:

(c) If the rental agreement is not terminated under subsection (b) of this section, the rental agreement renews for the same duration and with the same terms, conditions, and provisions as the original agreement, with the following exceptions:

Section 13. Amend § 7015A, Title 25 of the Delaware Code by transferring § 7015A to § 7010 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7015A. § 7010. Rent — Prohibited lump sum payments. payments: acceptance of rent.

(a) Rental payments shall must be paid by the tenant to the owner/landlord community owner or landlord in equal dollar amounts, or as close thereto as possible, and shall must be extended equally, pro rata, over a calendar year. Any provision in a rental agreement or otherwise which agreement, or otherwise, that requires rental payments or rental increases to be paid in 1 lump sum shall be null and is void. Nothing herein shall preclude However, a tenant from requesting, may request and the owner/landlord from agreeing community owner or landlord may agree that rental payment be made in a 1-time lump sum, semi-annual, or quarterly payment made by the tenant; nor does anything herein this subsection prevent a landowner a community owner or landlord from offering discounts as incentives to homeowners to pay annually, semi-annually or quarterly semi-annually, or quarterly, provided it is made clear that the homeowners are under no obligation to pay in any way except monthly.

(b) If a community owner or landlord accepts a cash payment for rent, the community owner or landlord shall, within 3 days, give the tenant a receipt for that payment. The community owner or landlord must maintain a record of all cash receipts for rent for 3 years.

Section 14. Amend § 7016, Title 25 of the Delaware Code by transferring § 7016 to § 7011 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7016. § 7011. Holdover remedies after rental agreement terminates, expires expires, or is not renewed.

Following a determination by When a court of competent jurisdiction finds that a landlord is entitled to possession of a rented lot in a manufactured home community, if the tenant continued in and/or continues in possession of the lot after the date of termination, expiration or nonrenewal of the rental agreement without the consent of the landlord, the tenant is liable for, and the landlord is entitled to receive, community because of a holdover by a tenant, the court may award damages as follows:

Section 15. Amend § 7017, Title 25 of the Delaware Code by transferring § 7017 to § 7012 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7017. § 7012. Effect of unsigned rental agreement.

(a) If the landlord does not sign a written rental agreement which has been signed and tendered to the landlord by the tenant, acceptance of rent from the tenant without reservation by the landlord gives to the rental agreement the same effect as if it had been signed by the landlord.

(b) If the tenant does not sign a rental agreement which has been signed and tendered to the tenant by the landlord, acceptance of possession of the rented lot and payment of rent without reservation give to the rental agreement the same effect as if it had been signed by the tenant.

(c) Even if a rental agreement which is given effect by the operation of this section provides for a term longer than 1 year, it operates to create only a 1-year term.

Section 16. Amend § 7022, Title 25 of the Delaware Code by transferring § 7022 to § 7013 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7022. § 7013. Manufactured home transfer; rented lot transfer.

(a) This section governs the sale, conveyance, or transfer of title of a manufactured home which the buyer or transferee intends to retain in the manufactured home community. This section further extends to the landlord the right to purchase any manufactured home in the community for 1% higher than the contract price at which the tenant has agreed to sell the home to a third party.

(b)(1) A rental agreement for a lot in a manufactured home community is only transferable from an individual tenant, or hier heir, who owns the manufactured home on the lot under the rental agreement to a transferee to whom the tenant intends to sell or transfer title to the home, if all of the following apply:

(c) A tenant who owns a manufactured home in a manufactured home community, and plans to sell, convey, or transfer title to the home to a buyer or transferee who intends to retain the home in the manufactured home community, must notify the landlord in writing 3 weeks prior to the scheduled sale, conveyance, or transfer of title of the manufactured home and the transfer of the lot rental agreement, giving the name and address of the prospective buyer or transferee, along with a written statement or a proposed bill of sale clearly indicating the agreed sale price and terms. Failure on the part of a tenant to so notify the landlord is grounds for termination by the landlord of the tenant and landlord's rental agreement.

(d) If a landlord accepts a proposed rental agreement transferee, the transfer of an existing rental agreement must be completed using 1 of the following 2 methods at the exclusive discretion of the individual tenant, or heir, under the lot rental agreement for the manufactured home, and the proposed rental agreement transferee and landlord are bound by that selection:

(e) Notwithstanding the provisions of this section and of § 7020 § 7007 of this title, written standards which were in effect on January 1, 2003, relating to the sale or transfer of title of a manufactured home for retention in a manufactured home community will apply for a sale or transfer of title during 2003. For a sale or transfer on January 1, 2004, and thereafter, standards promulgated pursuant to § 7020 under § 7007 of this title apply. In addition, a buyer or transferee who becomes a tenant in a manufactured home community has 3 years from the date of the resale or transfer to complete changes to the buyer or transferee's manufactured home required under the written standards of the manufactured home community. However, if the changes are necessary to protect life or for other safety reasons, the landlord may require that changes be made in less than 3 years. Further, if a seller-tenant does not make necessary changes to meet the standards prior to sale, the buyer or transferee shall deposit 120% of the estimated cost of the changes necessary to meet the standards into an account jointly controlled by the landlord and the buyer or transferee. Once work begins on the manufactured home, the necessary changes must be completed within a reasonable time.

(f) A buyer or transferee who does not complete required changes pursuant to under subsection (e) of this section is subject to a summary possession proceeding pursuant to Chapter 57 of this title.

Section 17. Amend Chapter 70, Title 25 of the Delaware Code by creating a new § 7014 by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7014. Modified Table of Consanguinity.

Degrees of relationship of family members designated by the number in the box with the relationship in the following table:

Section 18. Amend § 7024, Title 25 of the Delaware Code by transferring § 7024 to § 7015 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7024. § 7015. Delivery of written notice.

(a) Unless otherwise specified, notice required by this subchapter chapter may be served personally upon a tenant of a manufactured home community by leaving a copy of the notice at the tenant's dwelling place with an adult person who resides therein. Notice required by this subchapter under Subchapters I through V of this chapter may be served personally upon a landlord or upon any other person in the employ of the landlord whose responsibility is to accept such service. If a landlord is a corporation, firm, unincorporated association association, or other artificial entity, service of the notice may be made by leaving a copy of the notice at its office or place of business with an agent authorized to accept such notice or authorized by law to receive service of process. Service of notice or process may be obtained through personal service by a special process-server appointed by the court.

(b) In lieu of personal service, notice required by this subchapter under Subchapters I through V of this chapter may be sent by regular first class mail with proof of mailing or by certified mail, return receipt requested, to the tenant at the address of the tenant's rented lot, or at an alternative address which the tenant provided in writing to the landlord. Notice required by this subchapter under Subchapters I through V of this chapter may be sent by regular first class mail with proof of mailing or by certified mail, return receipt requested, to the landlord at the landlord's last known dwelling place or at the landlord's last known office or place of business. Proof of mailing regular first class mail on U.S. Postal Service Form 3817 or its successor, or a return receipt, signed or unsigned, for certified mail constitutes valid service of any notice required under this subchapter Subchapters I through V of this chapter.

Section 19. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subpart II to Subchapter II after § 7015 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subpart II. Tenant obligations and landlord remedies.

Section 20. Amend § 7010A, Title 25 of the Delaware Code by transferring § 7010A to § 7016 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7010A. § 7016. Termination or nonrenewal of rental agreement by landlord; due cause: noncompliance.

(a) A landlord may terminate a rental agreement with a tenant immediately upon written notice if the tenant does not comply with the terms of the rental agreement or the requirements of this subchapter and the noncompliance is the result of: of any of the following:

(b) A landlord may terminate a rental agreement with a tenant by providing prior written notice as follows:

(c) Whether or not repeated instances of noncompliance fall within 1 lease period or overlap 2 or more lease periods, if there are repeated instances of noncompliance by the tenant with a provision of the rental agreement, with any rule or regulation material to the rental agreement, or with a provision of this subchapter, Subchapters I through V of this chapter, even when corrected by the tenant, a landlord may immediately terminate the rental agreement and bring an action for summary possession and any moneys due, or may refuse to renew the agreement pursuant to § 7007 under § 7009 of this title. "Repeated instances of noncompliance" include: include any of the following:

(d) A landlord may not terminate a rental agreement or refuse to renew a rental agreement pursuant to under paragraph (c)(1) of this section unless the landlord notifies the tenant after the third separate occasion within 12 consecutive payment periods that a subsequent incident of noncompliance described in under paragraph (c)(1) of this section may result in either the immediate termination of the rental agreement or the nonrenewal of the rental agreement at its expiration.

(e) In an action for summary possession based on nonpayment of rent, the tenant is entitled to raise by defense or counterclaim any claim against the landlord that is related to the rental of the lot.

(f) A notice sent to a tenant advising the tenant that the rental agreement is terminated or will be terminated or will not be renewed must specify the reasons for such action in sufficient detail so that the dates, places places, and circumstances concerning the termination are clear. Mere reference to or recital of the language of this section is not sufficient.

(g) A landlord's right to terminate a rental agreement prior to the expiration of the agreement or right to refuse to renew at the expiration of the agreement does not arise until the landlord has complied with the applicable notice provision upon which the landlord is relying for the termination or non-renewal of the agreement.

Section 21. Amend § 7018, Title 25 of the Delaware Code by transferring § 7018 to § 7017 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7018. § 7017. Security deposits; pet security deposits.

(a)(1) A landlord may require a tenant to pay a security deposit if provided for in the rental agreement.

(b)(1) Every security deposit paid to a landlord must be placed by the landlord in an escrow bank account in a federally-insured financial institution with an office that accepts deposits within the State. The account must be designated as a security-deposits account and may not be used by the landlord for any purposes other than those described in under subsection (c) of this section. The landlord shall disclose in the rental agreement the location of the security deposit account. If the landlord changes the location of the security deposit account, the landlord shall notify each tenant of the new location within 30 days of the change. Security deposit principal must be held and administered for the benefit of the tenant, and the tenant's claim to such money has priority over that of any creditor of the landlord, including, but not limited to, including a trustee in bankruptcy, even if such money is commingled.

(c) The purposes of a security deposit are: A security deposit may be used for any of the following purposes:

(d) Within 20 days after the expiration or termination of a rental agreement, the landlord shall provide the tenant with an itemized list of damages, if any, to the landlord's property and the estimated cost of repair for each item. The landlord shall tender payment for the difference between the security deposit and the cost for repair of damage to the landlord's property. Failure to do so constitutes an acknowledgment by the landlord that no payment for repair of damage is due. A tenant's acceptance of a payment submitted with an itemized list of damages constitutes agreement on the damages as specified by the landlord, unless the tenant objects in writing within 10 days of receipt of the landlord's tender of payment to the amount withheld by the landlord.

(e) If a landlord is not entitled to all or any portion of a security deposit, the landlord shall remit to the tenant within 20 days of the expiration or termination of the rental agreement the portion of the security deposit to which the landlord is not entitled.

(f) Penalties. —

(g) All communications and notices required under this section must be directed to a landlord at the address specified in the rental agreement and to a tenant at an address specified in the rental agreement or at a forwarding address, if a forwarding address was provided to the landlord in writing by the tenant. Failure by a tenant to provide a forwarding address relieves the landlord of the responsibility to give notice pursuant to this section and removes the landlord's liability for double the amount of the security deposit. However, the landlord continues to be liable to the tenant for any unused portion of the security deposit if, within 1 year from the expiration or termination of the rental agreement, the tenant makes a claim in writing to the landlord.

(h) Pet deposits. —

(i) If a rental agreement so specifies, a landlord may increase a security deposit commensurate with an increase in rent. If an increase of the security deposit exceeds 10 percent of the monthly rent, the tenant may choose to pay the increase in the security deposit prorated over the term of the rental agreement but not to exceed 12 months, except in the case of a month-to-month tenancy, in which case payment of the increase may not be prorated over a period in excess of 4 months unless mutually agreed to by the landlord and tenant.

Section 22. Amend § 7019, Title 25 of the Delaware Code by transferring § 7019 to § 7018 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7019. § 7018. Rules.

(a) A landlord may promulgate reasonable written rules concerning the occupancy and use of the premises and the use of the landlord's property, and concerning the behavior of manufactured home community tenants, residents, guests guests, and visitors, provided that the rules further any of the following purposes:

(b) A landlord may not arbitrarily or capriciously enforce a rule. A landlord may choose not to enforce a rule based upon the documented special needs or hardship of a tenant or resident without waiving the right to the later enforcement of the rule as to that tenant or resident or any other tenant or resident.

(c) A landlord may amend an existing rule at any time, but the amended rule is not effective until the date specified in the amended rule or 60 days after the landlord delivers to the tenant written notice of the amended rule, whichever is later.

Section 23. Amend § 7023, Title 25 of the Delaware Code by transferring § 7023 to § 7019 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7023. § 7019. Retaliatory acts prohibited.

(a) Retaliatory acts are prohibited.

(b) A retaliatory act is an attempted or completed act on the part of a landlord to pursue an action against a tenant for summary possession, to terminate a tenant's rental agreement, to cause a tenant to move involuntarily from a rented lot in the manufactured home community, or to decrease services to which a tenant is entitled under a rental agreement, after: after any of the following occur:

(c) If a tenant proves that a landlord attempted to commit or committed an act pursuant to under subsection (b) of this section within 90 days of the tenant's action under paragraph (b)(1)-(4) paragraphs (b)(1) through (b)(4) of this section, the landlord's act is presumed to be a retaliatory act.

(d) Affirmative defenses to a claim that a landlord attempted to commit or committed a retaliatory act include proof by a preponderance of the evidence that: of any of the following:

(e) A tenant subjected to a retaliatory act set forth in subsection (b) of this section is entitled to recover the greater of 3 months' rent, or 3 times the damages sustained by the resident, in addition to the court costs of the legal action.

Section 24. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subpart III to Subchapter II after § 7019 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subpart III. Landlord obligations and tenant remedies.

Section 25. Amend § 7008, Title 25 of the Delaware Code by transferring § 7008 to § 7020 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7008. § 7020. Fees; services; utility rates.

(a) A "fee" or "charge" is a monetary obligation, other than lot rent, designated in a fee schedule pursuant to subsection (b) of this section and assessed by a landlord to a tenant for a service furnished to the tenant, or for an expense incurred as a direct result of the tenant's use of the premises or of the tenant's acts or omissions. A fee or charge may be considered as rent for purposes of termination of a rental agreement, summary possession proceedings proceedings, or for other purposes if specified in this title.

(b) A landlord must clearly disclose all fees in a fee schedule attached to each rental agreement.

(c) A landlord may assess a fee if the fee relates to a service furnished to a tenant or to an expense incurred as a direct result of the tenant's use of the premises. However, a fee that is assessed due to the tenant's failure to perform a duty arising under the rental agreement may be assessed only after the landlord notifies the tenant of the failure and allows the tenant 5 days after notification to remedy or correct the failure to perform. A tenant's failure to pay the fee within .5 5 days of notification is a basis for termination of the rental agreement pursuant to § 7010A under § 7016 of this title.

(d) A prospective tenant in a manufactured home community may be required to pay an application fee to be used by the landlord to determine the prospective tenant's credit worthiness. A landlord may not charge an application fee that exceeds the greater of 10% of the monthly lot rent or $50. A landlord shall, upon receipt of any money paid as an application fee, furnish a receipt to the prospective tenant for the full amount paid by the prospective tenant, and shall maintain maintain, for a period of at least 2 years years, complete records of all application fees charged and the amount received for each fee. If a landlord unlawfully demands or charges more than the allowable application fee, the prospective tenant is entitled to damages equal to double the amount demanded or charged as an application fee by the landlord.

(e) If a landlord pays a tenant's utility charge to a third party due to the tenant's failure to do so, pay the utility charge, the charge is considered a pass-through utility charge. In addition to any late charge paid by the landlord to the third party, the landlord may assess a third-party-payment fee not to exceed the greater of 5% of the total payment by the landlord to the third party or $25.

(f) A landlord may assess a late-payment fee for the late payment of rent if: if all of the following apply:

(g) A landlord may assess an optional-user fee for the use of designated facilities or services. Failure of a tenant to pay an optional-user fee for requested use of a facility or service may not be the basis for termination of the rental agreement. However, continued use of the requested facility or service without paying the optional-user fee may result in termination of the rental agreement pursuant to § 7010A under § 7016 of this title. Optional-user fees include, but are not limited to, include fees for the use of a swimming pool, marine facilities facilities, and tennis courts.

(h) The amount of an optional-user fee must be reasonably related to the cost of providing the facility or service upon which the fee is based.

(i) A fee may not be increased more than once during any 12-month period. A utility rate may be adjusted as provided in subsection (j) of this section. A landlord shall notify a tenant in writing of any fee increase or additional fee at least 60 days prior to the effective date of the increase or addition. A fee increase or an additional fee is unenforceable unless proper written notice has been given to the tenant.

(j) A landlord may charge a tenant for utilities provided by the landlord to the tenant if specified in under the terms of the rental agreement. The rate charged by a landlord for a utility may not exceed the utility's retail consumer rate, and the rate charged by the landlord may be adjusted without notice on a monthly basis.

(k) A landlord may not assess an entrance or exit fee. An entrance fee is any fee assessed by a landlord to a tenant prior to the tenant's occupancy of a rented lot, except for an application fee or a security deposit, or for those fees or charges for utilities, for direct services actually rendered, or for the use of facilities, all of which must be identified and described in the rental agreement or in a separate notice pursuant to § 7006 under § 7008 of this title. An exit fee is a fee assessed by a landlord to a tenant immediately prior to or after the tenant's final departure from the rented lot, except for those fees or charges for direct services actually rendered by the landlord which would not otherwise be provided without charge in the normal course of business.

(l ) If a utility, facility facility, or service previously provided pursuant to the rental agreement is discontinued, the landlord shall adjust the tenant's rent, charge charge, or fee payment by deducting the landlord's direct operating costs of providing the discontinued utility, facility facility, or service. An adjustment is determined as follows:

(m) Notwithstanding any other provision in this chapter, where there exists a community center available for use by community tenants, the owner/landlord community owner or landlord shall not refuse to make such community center available to a tenant's association or to a group of tenants, whose purpose of such use is to address matters affecting or relating to such tenants' rights, obligations and/or obligations, or privileges in, about, and/or or relating to the manufactured home community. The use of the community center for such meetings shall be at no additional charge to the tenants as imposed for ordinary use by tenants and the landlord shall honor the request for use of the community center by the tenants' association or group of tenants within 14 days after a request to the landlord has been made. The tenants shall abide by all existing rules and/or and regulations established for the community center.

Section 26. Amend § 7009, Title 25 of the Delaware Code by transferring § 7009 to § 7021 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7009. Rent increases. § 7021. Termination of rental agreement by tenant during first month of occupancy; during first 18 months of occupancy.

A landlord may not increase a tenant's lot rent more than once during any 12-month period, regardless of the term of the tenancy or the term of the rental agreement. A landlord shall give written notice of a lot rent increase to a tenant a minimum of 60 days prior to the effective date of the rent increase.

(a) If a landlord fails to substantially comply with the provisions of a rental agreement, or if there is a material noncompliance with this subchapter or any statute, ordinance ordinance, or regulation governing the landlord's maintenance or operation of the manufactured home community, a tenant may, upon written notice to the landlord, terminate the rental agreement and vacate the rented lot by removing that tenant's manufactured home and all personal possessions at any time during the first month of occupancy. The tenant has no further obligation to pay rent after the date of vacating the lot. A tenant retains the right to terminate a rental agreement beyond the first month of occupancy if the tenant remains in possession of the lot in reliance on the written promise by the landlord to correct the condition or conditions which would justify termination of the agreement by the tenant during the first month of occupancy.

(b) If a condition exists which deprives a tenant of a substantial part of the benefit and enjoyment of the bargain pursuant to the rental agreement, the tenant may notify the landlord in writing of the condition, and, if the landlord does not remedy the condition within 15 days from the date of mailing, the tenant may terminate the rental agreement and vacate the rented lot by removing the tenant's own manufactured home and all personal possessions. The tenant has no further obligation to pay rent after the date of vacating the lot. Notice pursuant to this subsection need not be given if the condition renders the premises uninhabitable or poses an imminent threat to the health, safety safety, or welfare of the tenant or a resident of the tenant's manufactured home.

(c) A tenant may not terminate a rental agreement pursuant to this section for a condition caused by lack of due care by the tenant, a resident of the tenant's manufactured home, or any other person on the premises with the tenant's or resident's consent.

(d) If a condition referred to in subsection (a) or (b) of this section was caused by the landlord, the tenant may recover any damages sustained as a result of the condition, including, but not limited to, including reasonable expenditures necessary to obtain adequate substitute housing while the manufactured home is uninhabitable or while an imminent threat to health, safety safety, or welfare exists, or while the tenant is deprived of a substantial part of the benefit and enjoyment of the bargain pursuant to the rental agreement prior to the termination of the rental agreement by the tenant, and for a reasonable length of time following the termination of the rental agreement.

(e) If a landlord or the landlord's authorized representative intentionally misrepresents a material fact regarding a manufactured home community, the scope or extent of services provided by the landlord, or a provision of a rental agreement in a brochure, newspaper, radio radio, or television advertisement, or other document or advertisement, for the purpose of inducing a tenant to enter into a rental agreement, and the tenant reasonably relies upon the misrepresentation to the tenant's detriment when entering into the rental agreement, the tenant has the right to terminate the rental agreement within 18 months of execution of the rental agreement.

Section 27. Amend § 7021A, Title 25 of the Delaware Code by transferring § 7021A to § 7022 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7021A. § 7022. Lot Rental Assistance Program.

(a) A homeowner or tenant in a manufactured home community who is eligible for Social Security Disability (SSD) or Supplemental Security Income (SSI) benefits or who is 62 years of age or older is eligible for lot rental assistance from the manufactured home community owner if the following criteria are met: the home owner or tenant meets all of the following criteria:

(b) The homeowner, home owner, tenant, and other residents may not be recipients of any other rental assistance funding.

(c) Lot rental assistance or rent credit received by a homeowner home owner or tenant pursuant to this section is not transferable upon the sale of the manufactured home and/or or the transfer of the rental agreement to a third-party purchaser.

(d) A homeowner home owner or tenant who qualifies for lot rental assistance based on the criteria in under subsection (a) of this section is entitled to lot rental assistance for a term of 1 year. Lot rental assistance for a qualified homeowner home owner or tenant is a credit which is computed as the difference between the then-current lot rent and 30% of the income definition for the county median income, as stated in the DSHA Fact Book for the number of residents in the home; provided, however, that the lot rent for an eligible homeowner home owner or tenant after application of a lot rental assistance credit may not exceed 30% of the income definition for the county median income, as stated in the DSHA Fact Book for the number of residents in the home.

(e) The homeowner home owner or tenant has the responsibility to reestablish annually eligibility for lot rental assistance if that homeowner home owner or tenant believes that the homeowner or tenant remains eligible for lot rental assistance. The homeowner home owner or tenant must reestablish eligibility within 45 days immediately before the anniversary date of the prior determination of eligibility.

(f)(1) A community owner who is required to participate in the lot rental assistance program shall provide notice of the program to all homeowners home owners and tenants in the community, and shall provide, pursuant to under paragraph (f)(2)a. or (f)(2)b. of this section, renewal notices to all program participants at least 45 days before a participant's term of assistance expires. If the community owner does not provide a renewal notice, the lot rental assistance credit remains in effect until 45 days after the community owner provides notice. Upon receiving notice, a homeowner home owner or tenant has 45 days in which to reestablish program eligibility by providing necessary documents and information to the community owner. If the homeowner home owner or tenant fails to reestablish eligibility within 45 days of notice, the community owner may terminate the lot rental assistance credit.

(g) During the period of any lot rental assistance, a homeowner home owner or tenant must remain current with payment of rent after the application of the lot rental assistance credit, as well as with payment of utility fees and other charges and assessments. If the homeowner home owner or tenant does not pay all lot rent after the application of the lot rental assistance credit, as well as pay utility fees and other charges and assessments on or before the due date or during the grace period provided under the law or otherwise, then the lot rental assistance credit may be immediately terminated upon notice, and the homeowner home owner or tenant will not be eligible for further lot rental assistance.

(h) A homeowner home owner or tenant receiving lot rental assistance credit must notify the community owner immediately of any substantial change in that homeowner’s home owner’s or tenant's financial situation or in the composition of the household.

(i) Any intentional misrepresentation by an applicant of that applicant's financial situation or living arrangements which, if the truth were known, would have resulted in the denial of lot rental assistance shall result in the immediate termination of all lot rental assistance, and an immediate obligation to reimburse all credits received under the lot rental assistance program to the point of the initial misrepresentation. A community owner may treat the amounts due and owing as a rent delinquency.

(j) A community owner shall treat all documents and information submitted for the lot rental assistance program as confidential and may not disclose the documents or information publicly or use them in any manner other than to determine eligibility under the lot rental assistance program. Any intentional public dissemination of confidential information provided pursuant to the lot rental assistance program is subject to civil relief which is reasonable and appropriate under Delaware law.

(k) Nothing in this section prohibits the owner of a manufactured home community from offering a lot rental assistance program that provides benefits over and above the benefits set forth in this section, or that extends eligibility for participation in the program.

(l ) The provisions of this section do not apply to a manufactured home community with 25 or fewer manufactured home lots; provided, however, that an owner of such a manufactured home community may voluntarily offer a lot rental assistance program to the homeowners home owners and tenants of the community.

(m) For the purpose of benefiting persons aged 62 and older, this section establishes a narrow exception to the prohibition against housing discrimination on the basis of "age" as set forth in under Chapter 46 of Title 6, otherwise known as Delaware's Fair Housing Act [§ 4600 et seq. of Title 6].

Section 28. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subchapter III after § 7022 of Title 25 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter III. Termination of rental agreement; change in land use.

Section 29. Amend § 7027, Title 25 of the Delaware Code by transferring § 7027 to § 7023 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7027. § 7023. Change of use; conversion.

This subchapter governs a change in use of a manufactured home community, as described in § 7010(b) under § 7024(b) of this title, to any use other than a conversion of the community to a manufactured home cooperative or condominium community, which is governed by Chapter 71 of this title.

Section 30. Amend § 7010, Title 25 of the Delaware Code by transferring § 7010 to § 7024 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7010. § 7024. Termination or nonrenewal of rental agreement by landlord; due cause; change in land use.

(a) A landlord may terminate a rental agreement for a lot in a manufactured home community before it expires or may refuse to renew an agreement only for due cause. "Due cause" means: means any of the following:

(b) If a change is intended in good faith in the use of land on which a manufactured home community or a portion of a manufactured home community is located and the landlord intends to terminate or not renew a rental agreement, the landlord shall: shall do all of the following:

(c) If a manufactured home community owner does not in good faith intend to change the land use of the community, yet provides a homeowner home owner or tenant with a termination or nonrenewal notice pursuant to subsection (b) of this section, the community owner has committed the act of misrepresentation with intent to deceive the homeowner home owner or tenant.

(d) If a landlord has given the required notice to a tenant and has fulfilled all other requirements of this subchapter, the failure of the Authority to perform its duties or authorize payments does not prevent the landlord from completing the change in use of land.

Section 31. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subchapter IV after § 7024 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter IV. Right of first offer.

Section 32. Amend § 7026, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7026. Right of first offer; notice required before sale of manufactured home community. duty to negotiate in good faith, penalties for noncompliance.

(a) If a community owner has decided to sell, transfer, or convey all or part of the community, the community owner and the home owner association shall negotiate in good faith for the sale, transfer, or conveyance of the community to the home owner association. If a party fails to negotiate in good faith, the court shall award reasonable attorneys' fees to the prevailing party.

(b) If a community owner or a home owner association fails to comply with any provision of this section, either party has standing to seek equitable relief, including declaratory relief, injunctive relief, and the appointment of a receiver. The offending party is liable for actual damages. If a court of competent jurisdiction finds that the offending party wilfully and intentionally failed to comply with the requirements of this section, it is a per se violation of the Consumer Fraud Statute, § 2511 et seq. of Title 6, and the aggrieved party may be entitled to recover treble damages. In any action under this section, the court may award reasonable attorneys' fees and costs.

(c) Chapter 71 of this title does not apply to the sale, transfer, or conveyance of manufactured home communities under this section.

§ 7027. Right of first offer; notice required before sale of manufactured home community.

(a) Upon reaching a decision to sell, transfer, or convey all or part of a manufactured home community, the manufactured home community's owner shall provide notice of the home owner association's right of first offer to purchase all or part of the community to the community's home owner association if one exists, to the Delaware Manufactured Home Owners Association (DMHOA) or its successor, and to the Delaware Manufactured Home Relocation Authority (Authority).

(b)(1) If a home owner association wishes to use its right of first offer pursuant to under subsection (a) of this section, either directly through a community owner or its designated agent, or indirectly through DMHOA or its successor or through the Authority, that home owner association must register with the Authority as prescribed by the Authority.

(c) The following model bylaws comply with the requisites of this section and may be used by a home owner association. The model bylaws below are intended as a model and home owner associations are not required to adopt the model bylaws. However, to comply with this section, the bylaws of the home owner association must address the substantive topics included as articles in the model bylaws (such as: name and location, corporate seal, members, etc.):

MODEL BYLAWS

OF

[INSERT COMMUNITY NAME] HOME OWNERS ASSOCIATION

ARTICLE I NAME AND LOCATION

The name of the corporation is "[INSERT COMMUNITY NAME] HOME OWNERS ASSOCIATION", hereinafter referred to as the "Association".

The principal office of the Association is located at the home of the acting President of the Association, but meetings of members and directors may be held at places designated by the Board of Directors within the State of Delaware, [NAME OF COUNTY] County, where the manufactured home community is located.

The name and address of the Association's registered agent in the State of Delaware is as set forth in the Certificate of Incorporation.

ARTICLE II CORPORATE SEAL

The corporate seal shall have inscribed thereon the name of the Association and the year of its incorporation.

ARTICLE III MEMBERS

Section 1. General Membership. The owner or owners of each home in the community are entitled to membership in the home owners association. In order to become a member in good standing the home owner must pay the annual dues set by the board of directors. Members in good standing are entitled to cast a vote or votes as provided by the Certificate of Incorporation for the Association and these bylaws. The owner or owners of each home are collectively entitled to one vote in all matters.

Section 2. Special Membership for Exercising Right of First Offer. Each home owner of each home site, as defined in the record plan of the community on tax parcel maps, for as long as the owner is and remains as such, is automatically a special member of the Association. At all meetings of the Association concerning the exercise of the right of first offer by the Association, the owner or owners of each home are entitled collectively to cast the vote or votes provided for by the Certificate of Incorporation for the Association and in these bylaws. The vote or votes may be cast in person or by proxy. The owner or owners of each home are collectively entitled to one vote on all matters. If more than one person holds an interest in a home, all persons holding an interest are members of the Association, and the vote for the home is to be exercised as they among themselves determine; but in no event may more than one (1) total vote be cast with respect to the home.

ARTICLE IV MEETING OF MEMBERS

Section 1. First Meeting of the Members. The first meeting of the Members shall be called by the initial Board of Directors for the purpose of nominating and electing a Board of Directors consisting of the owners of the community's homes. The initial Board of Directors shall send each home owner notice of the meeting at least [INSERT NUMBER] days before the meeting. The notice shall specify the place, day, and hour of the meeting and shall state that the purpose of the meeting is to nominate and elect a new Board of Directors. Nominations shall be accepted by the initial Board of Directors in any form up and until the time of the election. A list of nominations, including the offices in which the nominee is interested, shall be prepared by the initial Board of Directors. Elections shall be by ballot, by plurality vote. Notwithstanding any contrary provision in the governing documents, quorum requirements for nomination and election of the first Board of Directors consisting of home owners are satisfied if the meeting is properly noticed in conformance with this section.

Section 2. Annual Meeting of the Members. The members of the Association shall meet at least once each year, which means a period of 12 consecutive months, at a time and place established by the Directors, for the purpose of nominating and electing a Board of Directors, or replacements thereto, and conducting other business that may come before the meeting. Members of the Board of Directors must be members of the Association. Nominations may be by proxy received by the Board of Directors prior to the election of the Directors, and may also be made at the meeting. A list of nominations, including the offices in which the nominee is interested, shall be prepared by the Board of Directors. The Board of Directors shall oversee the election. A Director shall remain in office until his or her replacement is elected. Elections shall be by ballot, by plurality vote.

Section 3. Special meetings. Special meetings of the members may be called at any time by the President, and must be called upon a request in writing or by the vote of the majority of the Directors, or at the request in writing of six (6) or more members of the Association.

Section 4. Notice of meetings. Written notice of each meeting of the members of the Association must be given by, or at the direction of, the secretary or the person authorized to call the meeting. Notice must be mailed, postage prepaid, or delivered by hand at least [INSERT NUMBER] days before the meeting to each member entitled to vote at the meeting, addressed to the member's address last appearing on the books of the Association, or supplied by the member to the Association for the purpose of notice. The notice shall specify the place, day, and hour of the meeting and, in the case of a special meeting, the purpose of the meeting. No change in the time or place of a meeting for the election of Directors, as fixed by these Bylaws, may be made within the [INSERT NUMBER] days immediately before the day on which the election is to be held. In case of any change in the time or place for an election of Directors, notice must be given in person to each member entitled to vote, or be mailed to the member's last known post office address, at least [INSERT NUMBER] days before the election is held.

Section 5. List of members. The Secretary shall prepare a complete alphabetical list of members entitled to vote. The list must be open for examination by any member at the principal office of the Association and the place of election for [INSERT NUMBER] days prior to the election.

Section 6. Proxies. Each member entitled to vote is, at every meeting of the members, entitled to vote in person or by proxy, in writing and signed by the member; but no proxy may be voted after one (1) year from its date, unless it specifically provides for a longer period. A proxy is revocable at any time, and shall automatically cease upon conveyance of the home. The right to vote by proxy is subject to the right of the Board of Directors to close the transfer books or to fix a record date for voting members as hereinafter provided; and, if the Directors do not exercise this right, no vote may be cast at an election for Directors by anyone who has become a member of the Association within [INSERT NUMBER] days of the election. Only one (1) vote may be cast with respect to each home in the Community. If joint owners are unable to agree among themselves about how to vote on any given matter, they lose their right to vote on the matter, in accordance with Article II, Section 2 of these Bylaws.

Section 7. Quorum. At a noticed meeting of members entitled to cast votes, or of proxies entitled to cast votes, 33% of the total votes constitute a quorum for any action, except as otherwise provided in the Certificate of Incorporation or in these Bylaws. If, however, a quorum is not present at a meeting, the members entitled to vote have the power to adjourn the meeting, without notice other than announcement at the meeting, until a quorum is present.

ARTICLE V BOARD OF DIRECTORS: SELECTION; TERM OF OFFICE

Section 1. Number. The property and business of the Association shall be managed and controlled by its Board of Directors, consisting of three (3) or more Directors, not to exceed [INSERT NUMBER]. Except for the initial Board of Directors, Directors must be members of the Association.

Section 2. Election. At the first meeting of the members, as set forth above, the members shall elect the Directors for a one (1) year term. The Directors shall hold office until the next annual election and until their successors are elected and qualify.

Section 3. Removal. Any Director may be removed from the Board, with or without cause, by a majority vote of the members of the Association. In the event of the death, resignation, or removal of a Director, a successor shall be selected by the remaining members of the Board, though less than a quorum, by majority vote, and shall serve for the remainder of the unexpired term of the Director's predecessor.

Section 4. Compensation. A Director may not receive compensation for any service rendered to the Association. However, a Director may be reimbursed for actual expenses incurred in the performance of his or her duties.

Section 5. Action taken without a meeting. Directors have the right to take any action in the absence of a meeting which they could take at a meeting by obtaining the written approval of all the Directors. Any action so approved has the same effect as though taken at a meeting of the Directors.

ARTICLE VI MEETING OF DIRECTORS

Section 1. Regular meetings. After each annual election of Directors, the newly elected Directors shall meet for the purpose of organization, the election of officers, and the transaction of other business, at a place and time fixed by the members at the annual meeting. If a majority of the Directors are present at that place and time, no prior notice of the meeting is required to be given to the Directors. The place and time of the meeting may also be fixed by written consent of the Directors.

Section 2. Special meetings. Meetings of the Directors may be called by the President on [INSERT NUMBER] days notice in writing or on [INSERT NUMBER] days notice by telephone to each Director, and shall be called by the President in like manner on the written request of two (2) Directors. A majority of the Directors shall constitute a quorum, but a smaller number may adjourn from time to time, without further notice, until a quorum is secured.

ARTICLE VII POWERS AND DUTIES OF THE BOARD

Section 1. Powers. The Board of Directors has the power to:

(a) Exercise for the Association all powers, duties, and authority vested in or delegated to the Association and not reserved to the membership by other provisions of these Bylaws or the Certificate of Incorporation;

(b) Declare the office of a member of the Board of Directors to be vacant if the member is absent from three (3) consecutive regular meetings of the Board of Directors;

(c) Employ a manager, an independent contractor, or other employees as the Board considers necessary, and to prescribe their duties;

(d) Close the membership rolls of the Association for a period not exceeding [INSERT NUMBER] days preceding the date of any meeting of members; and

(e) Negotiate the purchase of the community on behalf of the homeowners when authorized by a vote of the special membership.

Section 2. Duties. The Board of Directors has the duty to:

(a) Cause to be kept a complete record of all of its acts and corporate affairs, and to present a statement of its acts and corporate affairs to the members at the annual meeting of the members or at any special meeting when the statement is requested in writing by five (5) or more members of the Association;

(b) Supervise all officers, agents, and employees of the Association, and to see that their duties are properly performed;

(c) Procure and maintain adequate liability and other insurance considered necessary or desirable in connection with the services to be performed by the Association under these Bylaws;

(d) Cause all officers, employees, or independent contractors having fiscal responsibilities to be bonded, as the Board considers appropriate; and

(e) Perform other duties as provided in these Bylaws.

ARTICLE VIII COMMITTEES

The Board of Directors may, by resolution passed by a majority of the whole Board of Directors, designate committees that the Board considers necessary or desirable. Each committee shall consist of one (1) or more of the Directors of the Board of Directors and other member(s) of the Association as designated by the Board of Directors in the resolution. Committees shall meet at stated times or on notice to all by any of their own number. They shall adopt their own rules of procedure. A majority of committee members constitutes a quorum; the affirmative vote of a majority of the whole committee is necessary in every case. A committee has and may exercise the powers of the Board of Directors to the extent provided in the resolution that establishes it.

ARTICLE IX OFFICERS OF THE ASSOCIATION

The officers of the Association are a president, one or more vice-presidents, a secretary, a treasurer, and other officers that may, from time to time, be chosen by the Board of Directors. The president and vice-presidents must be chosen from among the Directors. The officers of the Association hold office until their successors are chosen and qualify in their stead. An officer chosen or appointed by the Board of Directors may be removed with or without cause at any time by the affirmative vote of a majority of the whole Board of Directors. If the office of an officer becomes vacant for any reason, the vacancy must be filled by the affirmative vote of a majority of the whole Board of Directors.

Section 1. Duties of the President. The President is the chief executive officer of the Association. The President has the duty to preside at all meetings of the members and Directors; to have general and active management of the business of the Association; to see that all orders and resolutions of the Board of Directors are carried into effect; to execute all agreements and other instruments in the name of the Association and to affix the corporate seal thereto when authorized by the Board of Directors.

The President oversees the general supervision and direction of the other officers of the Association to ensure that their duties are properly performed.

The President shall submit a report of the operations of the Association for the year to the Directors at their meeting next preceding the annual meeting of the members, and to the members at their annual meeting.

The President is an ex-officio member of all committees and has the general duties and powers of supervision and management usually vested in the office of the president of a corporation.

Section 2. Vice-President. The Vice-President or Vice-Presidents, in the order designated by the Board of Directors, are vested with all the powers and are required to perform all the duties of the President in the President's absence or disability, and shall perform other duties that may be prescribed by the Board of Directors.

Section 3. President Pro Tempore. In the absence or disability of the President and the Vice-Presidents, the Board may appoint from their own number a president pro tempore.

Section 4. Secretary. The Secretary or a designee shall attend all meetings of the Association, the Board of Directors, and all committee meetings. The Secretary acts as clerk of these meetings and shall record all of the proceedings of the meetings in a book kept for that purpose. The Secretary shall give proper notice of meetings of members and Directors, and shall perform other duties that are assigned to the Secretary by the President or the Board of Directors.

Section 5. Treasurer. The Treasurer has custody of the funds and securities of the Association, and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Association. The Treasurer shall deposit all monies and other valuable effects in the name and to the credit of the Association in the depositories designated by the Board of Directors.

The Treasurer shall disburse the funds of the Association as may be ordered by the Board or President, taking proper vouchers for these disbursements, and shall render to the President and Directors, whenever they may require it, an account of all the Treasurer's transactions as Treasurer and of the financial condition of the Association; and at the regular meeting of the Board next preceding the annual members' meeting, a like report for the preceding year.

The Treasurer shall keep an account of the members of record in the manner and subject to whatever regulations that the Board of Directors may prescribe.

The Treasurer shall give the Association a bond, if required in writing by the Board of Directors, in sum and in form and with corporate security satisfactory to the Board for the faithful performance of the duties of the Treasurer's office and for the restoration to the Association, in case of the Treasurer's death, resignation, or removal from office, of all books, papers, vouchers, money, and other property of whatever kind in the Treasurer's possession and belonging to the Association. The bond and security must, if required, be provided at the Association's expense. The Treasurer shall perform other duties that the Board of Directors may from time to time prescribe or require.

Section 6. Delegation of duties. In case of the absence or disability of any officer of the Association or for any other reason considered sufficient by the majority of the Board of Directors, the Board may temporarily delegate the officer's powers or duties to any other officer or to any Director.

ARTICLE X BOOKS AND RECORDS

The books, records and papers of the Association are subject to inspection by any member. The Certificate of Incorporation and the Bylaws of the Association are available for inspection by any member at the principal office of the Association. Copies may be purchased at a reasonable cost, to be determined by the Board of Directors, to defray copying and administrative costs, but not to exceed five dollars ($5.00) for both documents.

ARTICLE XI ASSOCIATION PAYMENTS

All checks, drafts, or orders for the payment of money must be signed by the President and the Treasurer, or by such other officer or officers as the members of the Association may approve.

ARTICLE XII MEMBERS OF RECORD

The Association is entitled to treat the title holder or holders of record of any home as members in fact of the Association, and accordingly are not bound to recognize any equitable or other claim to or interest in such home or memberships on the part of any other person, whether or not it has express or other notice thereof, save as expressly provided by the laws of Delaware.

ARTICLE XIII FISCAL YEAR

The fiscal year of the Association begins on the first day of January of each year.

ARTICLE XIV AMENDMENT

Section 1. Amendment. These Bylaws may be amended, altered, repealed, or added to at any regular meeting of the members or at any special meeting called for that purpose, by affirmative vote of the majority of the members of the Association.

ARTICLE XV INCORPORATED BY REFERENCE

All of the terms, conditions, matters, and information contained and more fully set forth in the Certificate of Incorporation and the Bylaws are incorporated by reference.

ARTICLE XVI MISCELLANEOUS

All reference herein to the masculine is deemed to include the feminine or neuter genders, and vice versa, as appropriate. All reference herein to the singular is deemed to include the plural, and vice versa, as appropriate.

IN WITNESS WHEREOF, the undersigned, being all of the Directors of the Association, have hereunto set their hands this ________ day of ________, 20____ .

Witness:

________________________                   ________________________

                      ________________, Director

________________________                   ________________________

                      ________________, Director

________________________                   ________________________

                      ________________, Director

CERTIFICATION

I, the undersigned, do hereby certify that I am the elected and acting secretary of the [COMMUNITY] Home Owners Association, a Delaware corporation, and that the foregoing Bylaws constitute the original Bylaws of the Association, as adopted at a meeting of the Board of Directors thereof, held on the ________ day of ________, 20____ .

IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the seal of the Association this ________ day of ________, 20____ .

                    ________________________

                      ________________, Secretary.

(c) If a community owner intends to offer more than 1 community for sale in a single transaction, a simple majority of members of the respective home owner associations in Delaware must vote in the affirmative to support their letter of response to the community owner. If a community owner offers a Delaware community for sale, along with 1 or more communities not located in the State, the community owner must afford the residents of the Delaware community a right of first offer as prescribed by this section for their community, separate and apart from the community or communities not located in the State.

(d)(1)a. If the Authority has informed the community owner that a registered home owner association exists in the community, the community owner shall send the right of first offer directly to the home owner association. The right of first offer shall be sent by overnight service with signature receipt.

§ 7028. Right of first offer; notice not required before sale of manufactured home community.

A manufactured home community owner is not required to give notice of or extend a right of first offer to a home owner association, DMHOA or its successor, or the Authority under the any of the following circumstances:

§ 7029. Right of first offer; response required by home owner association.

(e)(1)a. (a) A home owner association must respond in writing to the notice of a right of first offer and send the response by overnight service with signature receipt to the community owner or the community owner's agent or attorney within 30 calendar days from the date of the mailing of the notice sent by the community owner to the association or to the Authority. The home owner association’s response must clearly indicate that: 1 of the following:

(c) If the home owner association responds that it has no interest in purchasing the community, or fails to respond under § 7029, § 7030, § 7031, or § 7032 of this title, the community owner shall file an affidavit of compliance under § 7036 of this title.

(d) Failure of the home owner association to accept the price and any special conditions material to the transaction for the sale, transfer, or conveyance of the community as stated in the notice of right of first offer; to state an alternative price under § 7030 of this title; or to respond under § 7032 of this title, eliminates the right of the home owner association to purchase the community during the remainder of the 12-month period that commenced on the date of the community owner's notice of intention to sell, transfer, or convey all or part of the community.

(e) A home owner association may transfer or assign a right of first offer only to an organization formed or controlled by the home owners to assist only in the purchase and operation of the community. Therefore, other than the preceding condition in this subsection, a right of first offer is neither transferable nor assignable.

§ 7030. Right of first offer; offer of an alternative price.

§ 7031. Right of first offer; sale to a third-party at a lower price.

§ 7032. Right of first offer; sale to a third-party at a higher price.

(f) If a community owner has decided to sell, transfer, or convey all or part of the community, the community owner and the home owner association shall negotiate in good faith for the sale, transfer, or conveyance of the community to the home owner association. If a party fails to negotiate in good faith, the court shall award reasonable attorneys' fees to the prevailing party.

§ 7033. Right of first offer; contract of sale.

(g) (a) If a home owner association responds to the notice of right of first offer pursuant to paragraph (e)(1) of this section, under § 7029 of this title, or if the community owner agrees to sell the community to the home owner association pursuant to paragraph (e)(2) of this section, under § 7030 of this title, the home owner association has an additional 30 days to formalize the agreed price, terms, and conditions into a contract of sale. This 30-day period may not be used to renegotiate the price, terms, or conditions agreed to during the first 30-calendar-day period unless mutually agreed to in writing. Time is of the essence.

(h)(1) (c) Upon a formalized contract of sale being signed by both parties, the change of ownership of the community must be completed within 90 days. Time is of the essence.

§ 7034. Right of first offer; failure to complete sale.

§ 7035. Right of first offer; auction.

(i)(1) (a) If the Authority has sent the required annual notice to a community owner and the community owner then decides to sell, transfer, or convey all or part of the manufactured home community at auction, the community owner shall notify the home owner association directly of its intention if the Authority has informed the community owner of a registered home owner association in that community. The community owner's notice must also be sent to DMHOA or its successor, to the Authority. A copy must be sent pursuant to § 7024 under § 7015 of this title to each home owner in the affected community. If the Authority has not informed the community owner that a registered home owner association exists in the community, the community owner must send the notice of the intent to convey the community at auction directly to the Authority. The notice shall include a list of the known names and mailing addresses of all home owners in the community. The Authority shall, within 5 business days of the receipt of the notice from the community owner, send the notice to all home owners on the list.

(j) If a community owner intends to offer more than one community for sale in a single transaction, a simple majority of members of the respective home owner associations in Delaware must vote in the affirmative to support their letter of response to the community owner. If a community owner offers a Delaware community for sale, along with 1 or more communities not located in the State, the community owner must afford the residents of the Delaware community a right of first offer as prescribed by this section for their community, separate and apart from the community or communities not located in the State.

(k) A home owner association may transfer or assign a right of first offer only to an organization formed or controlled by the home owners to assist only in the purchase and operation of the community. Therefore, other than the preceding condition in this subsection, a right of first offer is neither transferable nor assignable.

(l ) If a community owner or a home owner association fails to comply with any provision of this section, either party has standing to seek equitable relief, including declaratory relief, injunctive relief, and the appointment of a receiver. The offending party is liable for actual damages. If a court of competent jurisdiction finds that the offending party wilfully and intentionally failed to comply with the requirements of this section, it is a per se violation of the Consumer Fraud Statute, § 2511 et seq. of Title 6, and the aggrieved party may be entitled to recover treble damages. In any action under this section, the court may award reasonable attorneys' fees and costs.

§ 7036. Right of first offer; affidavit of compliance.

(m) Affidavit of compliance with the requirements of this section. Subchapter IV of this chapter.

(n) Chapter 71 of this title does not apply to the sale, transfer, or conveyance of manufactured home communities under this section.

(o) Right of first offer; exceptions to notice required before the sale of a manufactured home community. --

Notwithstanding any provision to the contrary a manufactured home community owner is not required to give notice of or extend a right of first offer to a home owner association, to DMHOA or its successor, or to the Authority under the following circumstances:

Section 33. Amend Chapter 70, Title 25 of the Delaware Code by creating a new Subchapter V after § 7036 of Title 25 by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter V. Delaware Manufactured Home Relocation Trust Fund.

Section 34. Amend § 7011, Title 25 of the Delaware Code by transferring § 7011 to § 7041 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7011. § 7041. Delaware Manufactured Home Relocation Authority.

(a) The Authority shall be administered by a board of directors (Board) made up of the following 5 (“Board”) as follows:

(b)(1) The board of directors of the Authority Board may employ or retain such persons as are reasonable and necessary to perform the administrative and financial transactions and responsibilities of the Authority and to perform other necessary and proper functions not prohibited by law. The Authority is responsible for all direct and indirect costs for its operations, including, but not limited to, including receipts and disbursements, personnel, rental of facilities facilities, and reimbursement to other State agencies for services provided and, therefore, must be fiscally revenue-neutral.

(c) The Authority's board of directors shall: Board shall do all of the following:

(d) The Authority and its board of directors may:

Section 35. Amend § 7012, Title 25 of the Delaware Code by transferring § 7012 to § 7042 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7012. § 7042. Delaware Manufactured Home Relocation Trust Fund.

(a) The Delaware Manufactured Home Relocation Trust Fund (Trust Fund) (“Trust Fund”) is established in the Division of Revenue of the Department of Finance for exclusive use by the Delaware Manufactured Home Relocation Authority to fund the Authority's administration and operations. All interest earned from the investment or deposit of moneys in the Trust Fund must be deposited into the Trust Fund.

(b) Moneys in the Trust Fund may be expended only: for only the following purposes:

(c) (d) The Trust Fund terminates on July 1, 2024, unless terminated sooner or extended by the General Assembly.

(d) (e) The cap on the Trust Fund is $15 million. The cap may be adjusted, eliminated eliminated, or reinstated by the board of directors of the Authority Board at any time, subject to the voting requirements of § 7011(c)(3) under § 7041(c)(3) of this title.

(e) (f) If the Trust Fund ceases to exist, the funds held at the time of dissolution must be liquidated as follows:

(f)(1) (g)(1) The board of directors of the Authority Board shall set a $3.00 monthly assessment for deposit in the Trust Fund for each rented lot in a manufactured home community. The board Board may adjust, eliminate eliminate, or reinstate the assessment, and shall notify landlords and tenants of each adjustment, elimination elimination, or reinstatement pursuant to board under Board regulations.

(g) (h) The Authority may not for any reason, including age, income level level, or geography, exempt any landlord or tenant from paying the Trust Fund assessment.

(h) (i) The Trust Fund must be audited annually. If the State Auditor's Office performs the audit, the Authority shall pay the cost of the audit to the State from the Trust Fund the cost of the audit. Fund. The completed audit must be made available to the public by placing it on a website, by offering it as a hard copy for a fee which reflects reasonable reproduction cost, or in some other manner determined by the Authority.

(i) (j) In addition to providing for an annual audit pursuant to subsection (h) under subsection (i) of this section, the Authority shall make available to the public, at least on a quarterly basis, the amount of the payment made to each tenant and landlord, along with a description of the property related to the payment and the reason for the payment.

Section 36. Amend § 7013, Title 25 of the Delaware Code by transferring § 7013 to § 7043 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7013. § 7043. Relocation expenses; payments for nonrelocatable homes.

(a) If a tenant is required to relocate due to a change in use or conversion of the land in a manufactured home community as set forth in § 7010(b) under § 7024(b) of this title and complies with the requirements of this section, the tenant is entitled to payment from the Trust Fund of the lesser of:

(b) The determination by the board of the amount of a relocation payment determined under subsection (a) of this section is final and may not be appealed.

(b) (c) A tenant is not entitled to compensation for relocation under subsection (a) of this section if: if any of the following apply:

(c) (d) Compensation for nonrelocatable homes.

(d) (e) Except as provided for abandonment in subsection (f) under subsection (g) of this section, in order to obtain payment from the Trust Fund for the relocation of a manufactured home, a tenant must submit to the Authority, with a copy to the landlord, an application for payment which includes: includes all of the following:

(e) (f) The Authority shall approve or reject payment to a moving or towing contractor within 30 days after receipt of the information required by this section, and forward a copy of the approval or rejection to the tenant, with a voucher for payment if payment is approved.

(f) (g) In lieu of the procedure in under subsection (a) of this section, a tenant may abandon the manufactured home in the manufactured home community. A tenant shall must receive a payment from the Trust Fund for the abandoned manufactured home. Before collecting a payment, a tenant shall deliver to the Authority a current State of Delaware title to the manufactured home duly endorsed by the owner of record, a valid release of all liens shown on the title, and a tax release. The amount of the payment shall be set by the Authority. The Authority's determination of the amount of the payment is final and may not be appealed.

Section 37. Amend § 7014, Title 25 of the Delaware Code by transferring § 7014 to § 7044 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7014. § 7044. Payment of funds to landlord for removal and/or or disposal of abandoned homes.

(a) A landlord is entitled to receive from the Trust Fund payment in an amount determined by the Board to be sufficient to remove and/or dispose of or dispose, or both, a non-relocatable or abandoned manufactured home pursuant to § 7013 (c) and (f) under paragraphs § 7043(d) and (g) of this title.

(b) Payment for removal and/or disposal or disposal, or both, of a manufactured home pursuant to under subsection (a) of this section must be authorized by the Authority and made in the form of a voucher issued to the Division of Revenue of the Department of Finance, directing the Division to issue a check in a designated amount to the landlord.

(c) If the Trust Fund does not have sufficient moneys to make a payment to a landlord pursuant to under this section, the Authority shall issue a written promissory note to the landlord for funds due and owing. Promissory notes may be redeemed in order of issuance of the notes as additional moneys come into the Trust Fund.

(d) If a landlord realizes a profit from the removal and/or disposal or disposal, or both, of a manufactured home, the landlord shall reimburse the Trust Fund for any profit gained by the landlord pertaining to that home.

(e) A landlord may not receive payment from the Trust Fund if the landlord has failed to pay the landlord’s share of the total Trust Fund assessment during the course of tenancies or has failed to remit the tenant’s share as required by § 7012(f)(2) under § 7042(g)(2) of this title.

(f) It is a class A misdemeanor for a landlord or a landlord’s agent to file any a notice, statement statement, or other document required under this section which is false or contains a material misstatement of fact.

Section 38. Amend § 7015, Title 25 of the Delaware Code by transferring § 7015 to § 7045 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7015. § 7045. Payment of funds to homeowners. tenants.

(a) When a payment to a tenant is authorized by the Authority, payment must be made in the form of a voucher issued to the Division of Revenue of the Department of Finance, directing the Division to issue a check in a designated amount to the named tenant.

(b) If the Trust Fund does not have sufficient moneys to make a payment to a tenant pursuant to under this section, the Authority shall issue a written promissory note to the tenant for funds due and owing. A promissory note may be redeemed in order of issuance of the notes as additional moneys come into the Trust Fund.

(c) It is a class A misdemeanor for a tenant or a tenant’s agent to file any a notice, statement statement, or other document required under this section which is false or contains a material misstatement of fact.

Section 39. Amend Chapter 70, Title 25 of the Delaware Code by transferring Subchapter III of Chapter 70, Title 25 to Subchapter VI of Chapter 70, Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter III.Affordable Manufactured Housing VI. Rent increase; justification.

Section 40. Amend § 7040, Title 25 of the Delaware Code by transferring § 7040 to § 7050 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7040. § 7050. Purpose.

Manufactured housing has become a vital source of affordable housing in Delaware, particularly as a homeownership opportunity for low-income households who otherwise would likely not be able to move into homeownership. In recent years years, Delaware has experienced a difficult economic climate which has resulted in a crisis in affordable housing availability. Additionally, manufactured home owners make substantial and sizeable investments in their manufactured homes. Once a manufactured home is situated on a manufactured housing community site, the difficulty and cost of moving the home gives the community owner disproportionate power in establishing rental rates. The continuing possibility of unreasonable space rental increases in manufactured home communities threatens to diminish the value of manufactured home owners' investments. Through this subchapter, the General Assembly seeks to protect the substantial investment made by manufactured home owners, and enable the State to benefit from the availability of affordable housing for lower-income citizens, without the need for additional state funding. The General Assembly also recognizes the property and other rights of manufactured home community owners, and seeks to provide manufactured home community owners with a fair return on their investment. Therefore, the purpose of this subchapter is to accommodate the conflicting interests of protecting manufactured home owners, residents residents, and tenants from unreasonable and burdensome space rental increases while simultaneously providing for the need of manufactured home community owners to receive a just, reasonable reasonable, and fair return on their property.

Section 41. Amend § 7041, Title 25 of the Delaware Code by transferring § 7041 to § 7051 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7041. Definitions § 7051. Rent increase; notice.

The definitions contained in § 7003 of this title shall apply to this subchapter. Unless otherwise expressly stated, if a word or term is not defined under § 7003 of this title, it has its ordinarily accepted meaning or means what the context implies.

A landlord may not increase a tenant's lot rent more than once during any 12-month period, regardless of the term of the tenancy or the term of the rental agreement.

Section 42. Amend § 7042, Title 25 of the Delaware Code by transferring § 7042 to § 7052 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7042. § 7052. Rent justification.

(a) A community owner may raise a home owner's rent for any and all 12-month periods governed by the rental agreement in an amount greater than the average annual increase of the Consumer Price Index For All Urban Consumers in the Philadelphia-Wilmington-Atlantic City area ("CPI-U'') for the most recently available preceding 36-month period period, provided the community owner can demonstrate the increase is justified for all of the following conditions:

(b) The Delaware State Housing Authority shall monitor the CPI-U and report to the Authority findings and recommendations relevant to the cost of rent in manufactured home communities in Delaware.

(c) One or more of the following factors may justify the increase of rent in an amount greater than the CPI-U:

(d) A community owner shall not incorporate the cost of a civil penalty, criminal fine, or litigation-related costs for rent-related proceedings into rent charged under any circumstance. A community owner also shall not utilize as justification for any future rental increase the cost of capital improvements or rehabilitation work, once that cost has been fully recovered by rental increases that were incorporated into a prior rental increase in excess of CPI-U, where the prior rental increase was properly implemented under this subchapter.

Section 43. Amend § 7043, Title 25 of the Delaware Code by transferring § 7043 to § 7053 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7043. § 7053. Rent increase dispute resolution.

(a)(1) A community owner shall give written notice to each affected home owner and to the home owners' association, if one exists, and to the Delaware Manufactured Home Relocation Authority (the Authority), (“Authority”), at least 90 days prior to any increase in rent. The notice shall identify all affected home owners by lot number, name, group group, or phase. If the affected home owners are not identified by name, the community owner shall make the names and addresses available to any affected home owner, home owners' association association, and the Authority, upon request.

(b) If the proposed rent increase exceeds the CPI-U, the Authority shall schedule approve a final meeting between the parties at a mutually-convenient time and place to be held community owner and the affected home owners, and the home owners’ association, if one exists, to discuss the reasons for the proposed increase. The final meeting must be held within 30 days from the mailing of the notice of the rent increase. increase, to discuss the reasons for the increase At the community owner’s election, the Authority shall also schedule 1 or more optional informal meetings prior to the final meeting.

(c) At or before the final meeting the community owner shall, in good faith, disclose in writing all of the material factors resulting in the decision to increase the rent. When market rent is a factor used by the community owner, the community owner shall provide a range of rental rates from low to high, and when relevant the mean and median; this disclosure shall include: must include all of the following:

For purposes of this subsection, "related party'' means any of a person's parents, spouse, children (natural or adopted) and siblings of the whole and half-blood.

(d) The parties may agree in a writing signed by the community owner and at least 1 affected homeowner home owner or the home owners' association may agree to extend or continue any meetings required by this section to a date specified in the writing and approved by the Authority as reasonable. the final meeting required under this section by doing all of the following:

(e) At the community owner’s election, the community owner may schedule 1 or more informal meetings, before or after the final meeting, to discuss the proposed rent increase.

(c) (f) After the final meeting, any affected home owner who has not already accepted the proposed increase, or the home owners' association on the behalf of 1 or more affected home owners who have not already accepted the proposed increase may, within 30 days from the conclusion of the final meeting, petition the Authority to appoint a qualified arbitrator to conduct nonbinding arbitration proceedings. If the thirtieth day is a Saturday, Sunday, legal holiday, or other day on which the office of the Authority is closed, the 30-day period shall run until the end of the next day on which the office of the Authority is open. Only if a petition is timely filed, the Authority shall select an arbitrator who is a member of the Delaware Bar with appropriate training in alternative dispute resolution. The Authority may select an arbitrator from the list of arbitrators maintained by the Superior Court of the State, or by soliciting applicants for a list maintained by the Authority, or through another method which the Authority, in its discretion, has determined will be sufficient to result in the selection of an appropriate arbitrator. The tenants and the landlord must each pay $250 to the Delaware Manufactured Home Relocation Trust Fund to be applied to the arbitrator's fee. The Authority shall pay all direct arbitration costs in excess of the $500 collected from the home owners and community owner. All other costs shall be the responsibility of the respective parties. The arbitration must be held within 60 days from the date of the petition.

(d) (g) The Delaware Uniform Rules of Evidence shall be used as a guide by the arbitrator for admissibility of evidence submitted at the arbitration hearing.

(e) (h) Unless waived by all parties, testimony will be under oath or affirmation, administered by the arbitrator.

(f) (i) Testimony shall be transcribed and shall be considered a written record.

(g) (j) The arbitrator will render a decision employing the standards set forth in § 7042 under § 7052 of this title.

(h) (k) The arbitrator will render a written decision within 15 days of the conclusion of the arbitration hearing.

(i) (l) The home owners will be subject to the rent increase as notified; however, if the rent increase is not approved through the process provided in this section, the community owners shall rebate the increase.

Section 44. Amend § 7044, Title 25 of the Delaware Code by transferring § 7044 to § 7054 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7044. § 7054. Appeal.

The community owner, the home owners' association, or any affected home owner may appeal the decision of the arbitrator within 30 days of the date of issuance of the arbitrator's decision. The appeal shall be to the Superior Court in the county of the affected community. The appeal shall be on the record and the Court shall address written and/or oral arguments of the parties as to whether the record created in the arbitration is sufficient justification for the arbitrator's decisions and whether those decisions are free from legal error.

Section 45. Amend § 7045, Title 25 of the Delaware Code by transferring § 7045 to § 7055 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7045. § 7055. Penalties.

A community owner who raises a home owner's rent more than the annual average increase of the CPI-U for the preceding 36-month period without having obtained approval of the Authority shall be required to complying with this subchapter, must immediately reduce the rent to the amount in effect before the unauthorized increase and rebate the unauthorized rent collected to the home owners with interest. The Department of Justice shall have authority over this section.

Section 46. Amend § 7046, Title 25 of the Delaware Code by transferring § 7046 to § 7056 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7046. § 7056. Exemption.

(a) Resident-owned communities shall be exempt from the provisions of this subchapter.

(b) Any deed subject to lease community shall be exempt from the provisions of this subchapter. A deed subject to lease community is a community wherein each homeowner home owner has a deed subject to lease recorded with the recorder of deeds, has a long-term lease of at least 40 years' duration where the lease includes specific rent increases, and wherein each home is of modular construction.

Section 47. Amend Chapter 70, Title 25 of the Delaware Code by transferring Subchapter II of Chapter 70, Title 25 to Subchapter VII of Chapter 70, Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

Subchapter II. VII. Tenant's Receivership.

Section 48. Amend § 7031, Title 25 of the Delaware Code by transferring § 7031 to § 7061 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7031. § 7061. Petition for receivership.

Any tenant or group of tenants 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: landlord of any the following:

Section 49. Amend § 7032, Title 25 of the Delaware Code by transferring § 7032 to § 7062 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7032. § 7062. Necessary parties defendant.

(a) Petitioners shall join all of the following as defendants:

(b) Petitioners shall not be prejudiced by a failure to join any other interested parties.

Section 50. Amend § 7033, Title 25 of the Delaware Code by transferring § 7033 to § 7063 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7033. § 7063. Defenses.

It shall be a sufficient defense to this proceeding if any defendant of record establishes that: any of the following:

Section 51. Amend § 7034, Title 25 of the Delaware Code by transferring § 7034 to § 7064 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7034. § 7064. Stay of judgment by defendant.

Section 52. Amend § 7035, Title 25 of the Delaware Code by transferring § 7035 to § 7065 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7035. § 7065. Receivership procedures.

(a) The receiver shall be the Division of Consumer Protection of this State, or its successor agency.

(b)(1) Upon its appointment, the receiver shall make within 15 days an independent finding whether or not there is proper cause shown for the need for rent to be paid to it, and for the employment of a private contractor to correct the condition complained of in § 7031 under § 7061 of this title and found by the court to exist.

Section 53. Amend § 7036, Title 25 of the Delaware Code by transferring § 7036 to § 7066 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7036. § 7066. Powers and duties of receiver.

The receiver shall have all the powers and duties accorded a receiver foreclosing a mortgage on real property, and all other powers and duties deemed necessary by the court. Such powers and duties shall include, but are not necessarily limited to, include collecting and using all rents and profits of the property, prior to and despite any assignment of rent, for the purposes of: any of the following purposes:

Section 54. Amend § 7037, Title 25 of the Delaware Code by transferring § 7037 to § 7067 of Title 25 and then by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 7037. § 7067. Discharge of receiver; costs.

(a) In addition to those situations described in § 7035 under § 7065 of this title, the receiver may also be discharged when: when all of the following have occurred:

(b) Upon subsections (a)(1) and (a)(2) of this section being satisfied, the owner, mortgagee mortgagee, or any lienor may apply for the discharge of the receiver after paying to the latter all moneys expended by that receiver and all other costs which have not been paid or reimbursed from the rents and profits of the property.

(c) If the court determines that future profits of the property will not cover the cost of satisfying subsections (a)(1) and (a)(2) of this section, the court may discharge the receiver and order such action as would be appropriate in the situation, including but not limited to terminating the rental agreement; and may order the vacation of the mobile home park within a specified time. In no case shall the court permit repairs which cannot be paid out of the future profits of the property.

Section 55. This Act takes effect 180 days after its enactment into law.

Approved June 13, 2019