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

The Delaware Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, both prohibit discrimination based on source of income, which is defined as including rental payments from any government program. However, both laws also provide that a landlord's nonparticipation in a government-sponsored rental assistance, voucher, or certificate system cannot be the basis for an administrative or judicial proceeding. Like Senate Bill No. 293, Senate Substitute No. 1 for Senate Bill No. 293 revises both the Delaware Fair Housing Act and Residential Landlord-Tenant Code to repeal the exemption to discrimination based on source of income that allows a landlord to discriminate against tenants who participate in government-sponsored rental assistance programs because this exemption contributes to a lack of affordable housing in this State. There is currently a severe shortage of affordable housing for extremely low-income households in Delaware, with only 38 affordable rental units available for every 100 extremely low-income households. In addition, studies have shown that people who use government subsidies to move from high-poverty neighborhoods to communities with more opportunity have measurable health improvements and the children in these families earn more in adulthood than children who remain in high-poverty neighborhoods. Also like SB 293, SS 1 for SB 293 delays the effective date of this Act to allow the opportunity for Delaware's 5 public housing authorities (PHAs) to do all of the following: 1. Streamline their procedures associated with housing vouchers. 2. Conduct outreach and education to landlords about how this Act changes the law. This outreach will include information explaining that while the law prohibits a landlord from having a blanket policy of not accepting government assistance to pay rent, it does not require a landlord to accept all applicants who receive rental assistance, such as applicants who have a history of evictions or not paying utility bills. SS 1 for SB 293 differs from SB 93 by as follows: • Adds whereas clauses that provide an expanded explanation of current law. • Adds whereas clauses that explain the process Delaware’s 5 PHAs are undertaking to streamline the procedures required when landlords accept housing vouchers. • Requires that the Delaware State Housing Authority provide a report by March 1, 2028, that contains the status of each streamlining recommendation and data comparing the utilization of vouchers before and after the effective date of this Act. • Provides a specific effective date of January 1, 2026. • Provides a sunset date, December 31, 2028, unless repealed or extended by a subsequent act of the General Assembly.