Delaware General Assembly

CHAPTER 35-

FORMERLY

HOUSE BILL NO. 2

AS AMENDED BY

HOUSE AMENDMENT NOS. 1,2 & 4

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

Section 1. Amend Title 25 of the Delaware Code, by striking the descriptive heading of Part VI, Title 25 of the Delaware Code and by substituting in lieu thereof a new descriptive heading to read:

“Part VI. Manufactured Home Communities”

and by striking the descriptive heading of Chapter 70 of Title 25 of the Delaware Code and by substituting in lieu thereof a new descriptive heading to read:

“Chapter 70. Manufactured Homes And Manufactured Home Communities."

Section 2. Amend Subchapter I of Chapter 70, Title 25 of the Delaware Code, by striking Subchapter I in its entirety and by substituting in lieu thereof the following:

"Subchapter I. Manufactured Home Owners and Community Owners Act.

§7001. Purposes and policies; enforceability.

(a) This subchapter must be liberally construed and applied to promote its underlying purposes and policies, which are:

(b) This subchapter applies to all rental agreements for manufactured home lots and regulates and determines the legal rights, 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 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.

§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, 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.

(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 governing the relationship between a manufactured home owner (tenant) and a manufactured home community owner (landlord), the Residential Landlord-Tenant Code set forth in Part III of this 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 and those of the Residential Landlord-Tenant Code, this subchapter governs issues pertaining to the rental of lots in manufactured home communities.

§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.

(a) 'Agreement' means a written rental agreement.

(b) 'Authority' means the Delaware Manufactured Home Relocation Authority.

(c) 'Common area' means shared land or facilities within a manufactured home community over which the landlord retains control.

(d) 'Community owner' or 'landlord' means the owner of two or more manufactured home lots offered for rent. It includes a lessor, sub-lessor, park owner, or receiver of two or more manufactured home lots offered for rent, as well as any person, other than a lender not in possession, who directly or indirectly receives rents for two or more manufactured home lots offered for rent and who has no obligation to deliver such rents to another person.

(e) 'Guest' or 'visitor' means a person who is not a tenant or resident of a manufactured home community and who is on the premises of the manufactured home community with the express or implied permission of a tenant or resident of the community.

(f) 'Hold over' means to retain possession of a rented lot in a manufactured home community after the termination, non-renewal, or expiration of a rental agreement governing the rented lot.

(g) 'Holdover' means an act of retaining or a tenant who retains possession of a rented lot in a manufactured home community after the termination, non-renewal, or expiration of a rental agreement governing the rented lot.

(h) 'Home owner' or 'tenant' means an owner of a manufactured home who has a tenancy of a lot in a manufactured home community; a lessee.

(i) 'Landlord' or 'community owner' means the owner of two or more manufactured home lots offered for rent. It includes a lessor, sub-lessor, park owner, or receiver of two or more manufactured home lots offered for rent, as well as any person, other than a lender not in possession, who directly or indirectly receives rents for two or more manufactured home lots offered for rent and who has no obligation to deliver such rents to another person.

(j) 'Lease' or 'rental agreement' means a written contract between a landlord and a tenant establishing the terms and conditions whereby a manufactured home is placed upon or is allowed to remain upon a rented or leased lot in a manufactured home community.

(k) 'Manufactured home' means a factory-built, single-family dwelling: (1) transportable in one or more sections, which is either (8) body feet or more in width and forty (40) body feet or more in length, or, when erected on site, has more than four hundred (400) square feet in living area; and (2) with or without a permanent foundation and designed to be used as a year-round dwelling when connected to the required utilities; and (3), if manufactured since June 15, 1976, built in accordance with manufactured home construction requirements promulgated by the federal Department of Housing and Urban Development (HUD) or by other applicable codes. 'Manufactured home' is synonymous with 'mobile home', 'trailer', and similar terms used elsewhere in this title.

(l) 'Manufactured home community' means a parcel of land where two or more lots are rented or offered for rent for the placement of manufactured homes. Manufactured home community is synonymous with 'mobile home park', 'trailer park', and 'trailer court'.

(m) 'Notice' means a written announcement, warning, or other communication delivered to or served upon a person, as designated in statute.

(n) 'Premises' means the rented lots in a manufactured home community, the structures upon them, and the facilities and appurtenances thereon, as well as the grounds, common areas, and facilities held out for the use of the tenants and/or residents generally or whose use is contracted for between landlord and tenant.

(o) 'Quiet enjoyment' includes the peaceful possession of the premises in a manufactured home community without unwarranted disturbance.

(p) 'Recreational vehicle' means a travel trailer, camping trailer, park trailer, camper, camper motor home, or similar accommodation which is primarily designed as temporary living quarters for recreational camping or for seasonal or travel use and which either has its own motor power or is mounted on or drawn by another vehicle.

(q) 'Rent' means money paid by a tenant to a landlord for the possession, use, and enjoyment of a rented lot and other parts of the premises in a manufactured home community pursuant to a rental agreement. For purposes of summary possession, rent includes late fees for rent, other fees and charges, including utility charges, and the tenant's share of the Delaware Manufactured Home Relocation Trust Fund assessment.

(r) 'Rental agreement' or 'lease' means a written contract between a landlord and a tenant establishing the terms and conditions whereby a manufactured home is placed upon or is allowed to remain upon a rented or leased lot in a manufactured home community.

(s) 'Resident' means a person who resides in a manufactured home located in a manufactured home community. A resident may or may not be a tenant.

(t) 'Tenant' or 'home owner' means an owner of a manufactured home who has a tenancy of a lot in a manufactured home community; a lessee.

(u) 'Trust Fund' means the Delaware Manufactured Home Relocation Trust Fund.

(v) 'Utility charge' means a charge by a landlord or others to a tenant for a commodity such as water, sewer, electricity, fuel, propane, cable television, or trash.

(w) 'Utility service' means a service provided by a landlord or others to a tenant for a commodity such as water, sewer, electricity, fuel, propane, cable television, or trash.

§7004. Exemption.

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, and nothing in this subchapter may be construed as determining, regulating, or governing the legal rights of parties to any lease or rental agreement for the ground on which a recreational vehicle is situated.

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

A landlord may not rent a lot in a manufactured home community without first delivering a copy of the rental agreement, a copy of the rules, standards, and fee schedule of the manufactured home community, and a copy of this subchapter to the prospective tenant who shall acknowledge such delivery by signing a receipt.

§7006. Provisions of a rental agreement.

(a) A rental agreement for a lot in a manufactured home community must contain:

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

(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:

(d) If a court of competent jurisdiction finds that a landlord has willfully included in the rental agreement a provision in violation of subsection (b) of this section, the tenant is entitled to recover three (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, or municipal statutes, ordinances, 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 one thousand dollars ($1,000).

§7007. 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:

§7008. 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, 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 days of notification is a basis for termination of the rental agreement pursuant to §7010A of this subchapter.

(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 for a period of at least 2 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, 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 $25.00.

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

(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 of this subchapter. Optional-user fees include, but are not limited to, fees for the use of a swimming pool, marine 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 twelve-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 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 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, or service previously provided pursuant to the rental agreement is discontinued, the landlord shall adjust the tenant's rent, charge, or fee payment by deducting the landlord’s direct operating costs of providing the discontinued utility, facility, or service. An adjustment is determined as follows:

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

(a) If a landlord fails to substantially comply with the provisions of a rental agreement, or if there is a material non-compliance with this subchapter or any statute, 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 his or her 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 his or her 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, 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, reasonable expenditures necessary to obtain adequate substitute housing while the manufactured home is uninhabitable or while an imminent threat to health, 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 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.

§7010. 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:

(b) If a change is intended 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:

(c) 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.

§7010A. 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:

(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 one lease period or overlap two 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, even when corrected by the tenant, a landlord may immediately terminate the rental agreement and bring an action for summary possession and any monies due, or may refuse to renew the agreement pursuant to §7007 of this subchapter. 'Repeated instances of noncompliance' include:

(d) A landlord may not terminate a rental agreement or refuse to renew a rental agreement pursuant to subsection (c)(1) of this section unless the landlord notifies the tenant after the 3^rd separate occasion within 12 consecutive payment periods that a subsequent incident of noncompliance described in subsection (c)(1) of this section may result in either the immediate termination of the rental agreement or the non-renewal 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, 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.

§7011. Delaware Manufactured Home Relocation Authority.

(a) The Delaware Manufactured Home Relocation Authority ('Authority') is administered by a board of directors made up of nine members, four of whom are appointed by the Governor from a list of at least 10 nominees submitted by the largest not-for-profit association representing manufactured home owners in this State. Of the four, one must be an owner and resident of a manufactured home located in Sussex County, one must be an owner and resident of a manufactured home in Kent County, and one must be the owner and resident of a manufactured home in New Castle County. The fourth must be an owner of, but need not necessarily reside in, a manufactured home located in this State. Another four members are appointed by the Governor from a list of at least 10 nominees submitted by the largest not-for-profit association representing the manufactured home industry in this State. There is no requirement that any of these four members reside in Delaware; however, each member must be either a community owner or an agent or designated representative of a community owner. One additional member is appointed by the Governor from the public-at-large. There is no requirement that the at-large member reside in Delaware. All members of the board of directors serve for 6-year terms. Each term ends on June 30. The terms are staggered so that no more than the terms of 3 members end on any June 30.

(c) The Authority's board of directors shall:

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

§7012. Delaware Manufactured Home Relocation Trust Fund.

(a) The Delaware Manufactured Home Relocation Trust Fund (Trust Fund) is established in the Consumer Protection Unit of the Attorney General's Office 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 monies in the Trust Fund must be deposited into the Trust Fund.

(b) Monies in the Trust Fund may be expended only:

(c) The Trust Fund terminates on July 1, 2014 unless terminated sooner or extended by the General Assembly.

(d) The cap on the Trust Fund is $10 million. The cap may be adjusted, eliminated, or reinstated by the board of directors of the Authority at any time, subject to the voting requirements of §7011(c)(3) of this subchapter.

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

§7013. Relocation expenses; payments for non-relocatable homes.

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

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

(c) Compensation for non-relocatable homes.

(d) Except as provided for abandonment in subsection (f) 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:

(e) 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) In lieu of collecting payment from the Trust Fund pursuant to subsection (a) of this section, a tenant may abandon the manufactured home in the manufactured home community and collect from the Trust Fund $1,500.00 for a single-section home or $2,500.00 for a multi-section home, as long as the tenant delivers to the Authority a current State of Delaware title to the manufactured home duly endorsed by the owner or owners of record, valid releases of all liens shown on the title, and a tax release.

§7014. Payment of funds to landlord for removal and/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 a non-relocatable or abandoned manufactured home pursuant to §7013(c) and (f) of this subchapter.

(b) Payment for removal and/or disposal of a manufactured home pursuant to subsection (a) of this section must be authorized by the Authority and made in the form of a voucher issued to the Consumer Protection Unit of the Attorney General’s Office, directing the Unit to issue a check in a designated amount to the landlord.

(c) If the Trust Fund does not have sufficient monies to make a payment to a landlord pursuant to 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 monies come into the Trust Fund.

(d) If a landlord realizes a profit from the removal and/or disposal 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 tenants' share as required by §7012(f)(2) of this subchapter.

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

§7015. Payment of funds to homeowners.

(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 Consumer Protection Unit of the Attorney General’s Office, directing the Unit to issue a check in a designated amount to the named tenant.

(b) If the Trust Fund does not have sufficient monies to make a payment to a tenant pursuant to 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 monies come into the Trust Fund.

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

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

Following a determination by a court of competent jurisdiction 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 non-renewal of the rental agreement without the consent of the landlord, the tenant is liable for, and the landlord is entitled to receive, a payment of double the periodic rent under the terminated, expired, or non-renewed rental agreement, but only if the tenant held over and/or holds over in bad faith. Double-rent is computed and prorated for each day the tenant remained in and/or remains in possession of the lot after the date on which the rental agreement terminated, expired, or was not renewed. If a holdover is determined to be in good faith, the landlord is entitled to a payment of the periodic rent under the rental agreement, computed and prorated for each day the tenant remained in and/or remains in possession of the lot after the date on which the rental agreement terminated, expired, or was not renewed.

§7017. Effect of unsigned rental agreement; persons serving in the armed forces

(a) If the landlord does not sign a written rental agreement which has been signed and tendered to him or her 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 him or her 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. A landlord may not include a provision in a rental agreement with a person serving in the armed forces of the United States that the person provide more than 2 weeks advance notice to the landlord of the person's intention to terminate the rental agreement in the event that the person's military orders for reassignment do not provide the person with more than 2 weeks notice of transfer.

(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.

§7018. Security deposits; pet security deposits.

(c) The purposes of a security deposit are:

(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 one year from the expiration or termination of the rental agreement, the tenant makes a claim in writing to the landlord.

(h) Pet deposits.

§7019. 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, 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 sixty (60) days after the landlord delivers to the tenant written notice of the amended rule, whichever is later.

§7020. 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 his or her manufactured home into compliance with the standard within 9 years of the promulgation of the standard or be subject to a summary possession proceeding pursuant to 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 (a), (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 (a), (b), or (c) of this section, but an established or amended standard promulgated pursuant to subsection (b) or (c) of this section is not effective until the date specified in the established or amended standard or sixty (60) days after the landlord delivers to the tenant written notice of the established or amended standard, whichever is later.

§7021. Rent increases.

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.

§7022. Manufactured home transfer; rented lot transfer.

(a) This section governs the sale or transfer of title of a manufactured home which the buyer or transferee intends to retain in the manufactured home community.

(b) A rental agreement for a lot in a manufactured home community is not transferable from the tenant who owns the manufactured home on the lot to the buyer or transferee to whom the tenant intends to sell or transfer title to the home, unless the home qualifies for retention in the manufactured home community according to written standards promulgated pursuant to §7020 of this title, and unless the landlord accepts the buyer or transferee as a tenant. Acceptance or rejection of a buyer or transferee under this subsection must be on the same basis by which the landlord accepts or rejects any prospective tenant. A landlord who rejects a prospective tenant must give the rejected prospective tenant a written statement that explains the cause for the rejection.

(c) A tenant who owns a manufactured home in a manufactured home community and plans to sell 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 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. Failure on the part of a tenant to so notify the landlord is grounds for termination of the tenant and landlord's rental agreement by the landlord.

(d) If a landlord accepts a prospective tenant, the transfer of an existing rental agreement must be completed using one of the following two methods. The selection of the method is at the exclusive discretion of the tenant/seller of the manufactured home, and the buyer is bound by that selection.

(e) Notwithstanding the provisions of this section and of §7020 of this subchapter, 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 of this subchapter 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 his or her 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 subsection (e) of this section is subject to a summary possession proceeding pursuant to Chapter 57 of this title.

§7023. 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:

(c) If a tenant proves that a landlord attempted to commit or committed an act pursuant to subsection (b) of this section within 90 days of the tenant's action under paragraphs 1 through 4 of subsection (b) 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:

(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.

§7024. Delivery of written notice.

(a) Unless otherwise specified, notice required by this subchapter 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 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, 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 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 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 US 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.

§7025. Enforcement.

A violation of a provision of this subchapter by a landlord is within the scope of the enforcement duties and powers of the Consumer Protection Unit, or its successor, of the Attorney General’s Office.

§7026. Sale or rent of manufactured home community.

A manufactured home community owner shall notify the tenants of the manufactured home community within 20 days of the owner's acceptance of any bona fide offer to buy or rent the community.

§7027. Change of use; conversion.

This subchapter governs a change in use of a manufactured home community, as described in §7010(b) of this subchapter, 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 3. Amend §5702(11), Title 25 of the Delaware Code by striking the phrases "mobile home lots" and "Mobile Home Lots and Leases Act" as they appear therein and by substituting in lieu thereof respectively the following: "manufactured home lots" and "Manufactured Home Owners and Community Owners Act".

Section 4. The presence of an unenforceable provision in a manufactured home community lot rental agreement which exists because a statutory provision was changed by this Act and so exists when this Act takes effect does not constitute a punishable offense as long as the landlord makes no attempt to enforce the unenforceable provision.

Section 5. Amend Title 25 of the Delaware Code by striking the descriptive heading of Chapter 71 of Title 25 and substituting in lieu thereof:

"Conversion of Manufactured Home Communities to Manufactured Home Condominium or Cooperative Communities"

Section 6. Amend §7101, Title 25 of the Delaware Code by striking §7101 in its entirety and by substituting in lieu thereof the following:

"This chapter provides a procedure for the orderly transition of a manufactured home community from single-unit rental to multiple-unit usage as a manufactured home condominium or cooperative community.".

Section 7. Amend §7102(6), Title 25 of the Delaware Code by striking §7102(6) in its entirety and substituting in lieu thereof the following:

"(6) 'Multiple-unit usage' means use as a manufactured home condominium or cooperative community.".

Section 8. Amend Chapter 71, Title 25 of the Delaware Code by striking the word "mobile" wherever it appears and substituting in lieu thereof in each place the word "manufactured"; and by striking the word "park" or "parks" wherever it appears and substituting in lieu thereof in each place the word "community" or "communities" respectively.

Section 9. This Act is effective 90 days after its enactment into law.

Section 10. Severability clause.

If any provision of this Act or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or application, and, to that end, the provisions of this Act are declared to be severable.

Section 11. Promissory notes and other financial obligations of the Delaware Manufactured Home Relocation Authority are the sole obligation of the Authority, are not backed by the full faith and credit of the State, and may under no circumstances be transferred to the State.