Housing

This Act aims to increase this State’s supply of housing. Despite rapid development, Delaware is facing a significant and growing shortage of affordable housing. Senate Joint Resolution No. 8 of the 1st session of the 153rd General Assembly created a pilot program designed to encourage local zoning reform efforts that would help increase affordable housing. While several local jurisdictions have taken advantage of the assistance offered by Senate Joint Resolution 8, the scope of the problem is statewide, and it will take more than isolated local reform to scale up housing production, particularly affordable housing production, to the degree necessary to meet this State’s needs. This Act seeks to address those needs by increasing access to housing for all income levels while allowing local jurisdictions the flexibility to develop their own strategies for doing so. This Act is a second Senate substitute for Senate Bill No. 23 and differs from the first Senate substitute for Senate Bill No. 23 as follows: (1) Senate Substitute No. 2 refines the process that occurs if a County fails to rezone in accordance with its comprehensive plan within 12 months. Like Senate Substitute No. 1, it provides that if rezoning does not occur as required, a property owner’s application must be approved if the requested zoning classification is consistent with future land use map or map series and implementing provisions of the comprehensive plan. Senate Substitute No. 2 adds that denial can only occur if the County makes written findings that the requested zoning classification is inconsistent with the future land use map or map series or implementing provisions of the comprehensive plan, or that the application fails to satisfy procedural or submission requirements. If neither of these apply, the application must be approved within 120 days, unless the applicant agrees in writing to an extension. Previously, the application had to be approved within 90 days. (2) Senate Bill No. 23 required a minimum of 4 mandatory elements of an affordable housing plan. Senate Substitute No. 1 increased the number of required elements of the affordable housing plan from 4 to 5 by moving an element from optional to mandatory. That element was that an affordable housing plan for a jurisdiction with greater than 10,000 population must include the identification of 1 or more zoning designations that allow and are suitable for residential uses where emergency shelters, group homes, recovery homes, or other supportive housing are allowed as a permitted use without a conditional use or other discretionary permit required. Senate Substitute No. 2 removes this as a mandatory element and changes the newly optional element to read, “the amendment of land use regulations to allow transitional housing, emergency housing shelters, group homes, recovery homes, or other supportive housing as a permitted use in at least 1 residential zone.” It also removes the 10,000 population cap, making the element an option for all local jurisdictions, regardless of population size. (3) Senate Bill No. 23 and Senate Substitute No. 1 for Senate Bill No. 23 required the Director of the Delaware State Housing Authority to approve all affordable housing plans. Senate Substitute No. 2 shifts the role of Delaware State Housing Authority to a more collaborative one by requiring local jurisdictions to work with the Delaware State Housing Authority to develop its plan. (4) Senate Substitute No. 2 gives local jurisdictions credit for measures they are already taking to increase affordable housing. Any elements of affordable housing plans adopted on or after July 15, 2024, count toward meeting the requirements of the plan. This avoids duplication of efforts and recognizes the meaningful affordable housing work that many local jurisdictions are already doing. (5) Senate Substitute No. 2 recognizes that some jurisdictions are very close to completing their comprehensive plans by exempting jurisdictions from some provisions of the Affordable Housing Act if they will be adopting their next comprehensive plan before February 1, 2027. If a local jurisdiction falls into that category, it does not need to comply with the provisions of § 9222 of the Act prior to its next 5-year review of its comprehensive plan. (6) Senate Substitute No. 2 creates a new section addressing by-right residential uses and mixed-use uses with a majority residential component. The language around by-right review and approval previously included in the mandatory elements of an affordable housing plan section is replaced with a reference to the newly created section. Under that section, a residential development application or a mixed-use application with a majority residential component for a use that is permitted by-right under the zoning ordinance of a county or local jurisdiction will be reviewed through an administrative review and approval process, provided the application complies with objective standards, as defined in this Act. A local jurisdiction may still require review or approval by a planning commission, planning board, or other administrative body as long as the review is limited to determining compliance with objective standards. (7) Senate Bill No. 23 and Senate Substitute No. 1 for Senate Bill No. 23 stated that the Governor’s review and certification of comprehensive plans would focus in part on consistency with State development policies. Senate Substitute No. 2 modifies this slightly to require plans to “demonstrate consideration of State development policies.” The goal of this change is to avoid limiting local jurisdictions to simply mirroring the contents of State development policies like State Spending Strategies, while still requiring that they consider such policies in developing their comprehensive plans. (8) Senate Substitute No. 2 adds definitions for “homeownership unit,” “rental unit,” and “by-right” to Title 29. (9) Senate Bill No. 23 and Senate Substitute No. 1 referred to mixed-use developments in one of the elements that may be included in an affordable housing plan. Senate Substitute No. 2 clarifies that such mixed-use developments must have a majority residential component. (10) Senate Substitute No. 2 adds to the list of 10 (now 11) options available to local jurisdictions to meet their obligation to increase and diversify affordable housing. This new option allows a local jurisdiction to implement a strategy that is not listed among the original 10 elements, from which local jurisdictions must select 5, but that the Delaware State Housing Authority approves as meeting the goals of that section of this Act. (11) Senate Bill No. 23 and both substitutes require counties to amend their official zoning maps within 12 months of the adoption of or revision to their comprehensive plans. If a county does not do so, a rezoning application filed by a property owner must be approved if the requested zoning classification is consistent with the comprehensive plan, unless the county makes certain findings. If an application is submitted under this provision, a county must make a completeness determination within a certain time period, or the application is deemed complete. In Senate Bill No. 23 and Senate Substitute No. 1, that period was 10 days. Senate Substitute No. 2 increases it to 21 days. Like the first substitute for Senate Bill No. 23, Senate Substitute No. 2 differs from Senate Bill No. 23 as follows: (1) Both substitutes remove a provision that would have given County comprehensive plans the force of law. Current law, where only the land use map or map series component of the comprehensive plan has the force of law, remains in place. (2) Both substitutes reduce the amount of time a County has to rezone to conform land use with its comprehensive plan from 18 to 12 months. (3) Senate Bill No. 23 gave local jurisdictions 20 days to complete revisions to comprehensive plans that were returned by the Governor for further revision. Both substitutes increase that period to 45 days and add additional details regarding the revision and certification process. (4) Both substitutes reduce the requirements for the affordable housing plan under newly created Subchapter III of Chapter 92 of Title 29 to reflect the fact that local jurisdictions already include some of the information required under Senate Bill No. 23 in their comprehensive plans. (5) Senate Substitute No. 1 and Senate Substitute No. 2 both remove some of the reporting requirements included in Senate Bill 23 to simplify the process for local jurisdictions. Reporting is still mandatory, and the Delaware State Housing Authority and the Office of State Planning Coordination are still required to publish reported information on the Housing Authority website on an annual basis so that the public can see how local jurisdictions are meeting their obligations under this Act. (6) Both substitutes remove technical corrections that appeared in Senate Bill No. 23. Those corrections had been intended to make current code consistent with the standards of the Delaware Legislative Drafting Manual, but the substitutes remove them to avoid confusion over which changes are technical, and which are substantive. Under § 1 of Article IX of the Delaware Constitution, this Act requires a two-thirds majority vote because the amendments it makes to Title 22 of the Delaware Code would indirectly amend the charter of one or more incorporated municipalities.

This Act establishes the Rights and Responsibilities Guide for Landlords and Tenants Committee (“Committee”) within the Delaware Real Estate Commission (“Commission”). The Commission is tasked with drafting, maintaining, and distributing a comprehensive, statewide rights & responsibilities guide (“guide”) for landlords and tenants with support from the Committee. This guide will reference responsibilities that a tenant or landlord must follow, including federal, state, county, and municipal requirements. This Act also requires a landlord or real estate service provider to provide the guide to prospective tenants entering a landlord-tenant relationship governed under Part III of Title 25. The guide must also be provided at each time a rental agreement is renewed if the renewal is for a term of 1 or more years. The guide may be provided in electronic or paper format. The guide is deemed a statutorily required form under 24 Del. C. § 2912. Real estate service providers may be subject to discipline for misrepresenting the availability or content of the required form. Additionally, failure to provide the guide when required is deemed an unlawful practice under § 2513 of Title 6 and a violation of Subchapter II of Chapter 25 of Title 6. Section 4 of this Act requires the Commission to provide a report to the General Assembly with findings about what disclosures or documents are required to be made to tenants independent of the guide and whether the Commission recommends other law be changed to incorporate those disclosures and documents into the guide. This Act is effective upon enactment into law and, except for the penalty provisions, is to be implemented the earlier of the following: (1) One year from the date of the Act’s enactment. (2) Notice by the Director of the Division of Professional Regulation published in the Register of Regulations that both of the following have occurred: a. The report required under Section 4 of this Act has been provided to the General Assembly. b. The guide this Act creates has been published by the Delaware Real Estate Commission. Penalty provisions are to be implemented 180 days after the remainder of the Act is implemented. If this Act is implemented before the report under Section 4 of this Act is provided to the General Assembly, the report must be provided to the General Assembly within 180 days after the Act is implemented.

This Act repeals the sunset date on the rent increase calculations for manufactured home communities that were enacted as a pilot under Senate Bill No. 317 (151st General Assembly), 83 Del. Laws, c. 341. Under this Act, the calculations used for rent increases under § 7052A and § 7052B of Title 25 replace the grounds for rent increases under § 7052 of Title 25.

For conveyances having a property value of less than $350,000, the state will not assess a realty transfer tax. This Act also reduces the State's rate of realty transfer tax by 1/4% per year for 4 years, for residential property conveyances having a property value of $350,000 to $500,000.

This Act updates the Right to Representation statute by moving certain duties to the office of the State Courts Administrator and clarifies terminology used within the statute.

This Act prohibits discrimination based on weight, height, or body size in transportation, public accommodation, housing, commerce and trade, employment, jury selection, education, and public administration. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act prohibits discrimination in public schools, including school districts and charter schools, based on race, ethnicity, creed, color, religion, national origin, sex, sexual orientation, gender identity, protective hairstyle, body size, pregnancy or childbirth or related conditions, disability, genetic information, socioeconomic status, familial status, immigration status, or housing status. Under this Act, the Department of Education is required to update its regulations to align the protected classes therein with those in the general non-discrimination provision created by this Act. In addition to creating this non-discrimination provision [§ 136 of Title 14], this Act also does the following: 1. Aligns the protected classes in § 506, pertaining to restrictions on charter schools, with the newly created non-discrimination provision in § 136 of Title 14. 2. Amends the definition of bullying in § 4161 of Title 14 to include written, electronic, verbal, or physical acts that target a student, a school district or charter school volunteer, or a school district or charter school employee based on the target’s membership in any protected class under the newly created non-discrimination provision in § 136 of Title 14, or based on the target’s age. 3. Aligns the protected classes included in paragraph (b)(2)f. of § 4164 of Title 14 with the additional protected classes included in the newly created non-discrimination provision in § 136 of Title 14. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act repeals the cap on the amount of money in the Delaware Manufactured Home Relocation Trust Fund (Trust Fund), resolving contradictory provisions in current law regarding the Delaware Manufactured Home Relocation Authority (DEMHRA) Board’s authority to adjust the amount in the Trust Fund. Under § 7042(e) of Title 25, the DEMHRA Board can adjust, eliminate, or reinstate the cap on the Trust Fund with the approval of at least 3 of the 5 members of the DEMHRA Board. However, § 7042(e) also provides a dollar amount cap on the amount in the Trust Fund, which under the Delaware Constitution, DEMHRA cannot change. DEMHRA needs to be able to adjust the cap on the Trust Fund because under § 7041(b)(1) and § 7042(b) of Title 25, the money in the Trust Fund is the only money available to DEMHRA to pay administrative costs and to carry out DEMHRA’s responsibilities under Chapters 70 and 71 of Title 25. Recent legislation has given DEMHRA additional responsibilities under subchapter VI of Chapter 70 when a community owner seeks to increase the rent, but DEMHRA does not receive any appropriations to support this work. Instead, except for money appropriated for board meeting stipends, DEMHRA is “responsible for all direct and indirect costs for its operations under § 7042 of this title, including receipts and disbursements, personnel, rental of facilities, and reimbursement to other state agencies for services provided and, therefore, must be fiscally revenue-neutral.” This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual by revising § 7041(c)(3) of Title 25 so that the number of Board members who must vote in favor of adjusting the Trust Fund is clearly stated with the Board’s other responsibilities.

In Chapter 70, Subchapter V of Title 25, the Manufactured Home Relocation Trust Fund was established. It is administered by a Board of Directors. The Board was directed to set a monthly assessment for deposit in the Trust Fund for each rented lot in a manufactured home community. This Act removes the cap of the Trust Fund, currently set at $15 million. This Act also raises the amount of the tenant portion of the monthly assessment to be redirected to the Delaware Manufactured Home Owner Attorney Fund from 50 cents of the tenant portion to $1.50. This Act takes effect on the date of enactment.

This Act allows tenants who are being evicted for failure to pay rent to remain in their homes if they pay all amounts owed prior to being evicted. It also makes technical corrections to conform existing law to the standards of the Drafting Manual. This Substitute differs from the original Act by incorporating the changes from Senate Amendment No. 1 to Senate Bill No. 116 which includes the following changes: - Increased the time from 12 to 24 months for the lookback period for restricting the number of times the right of redemption is available to a tenant. - Puts a requirement to proactively file with the court a request for a stay of the writ if payment is made after the writ of possession has been posted. - Makes clear that payment after posting of the writ only stays the writ until the payment has cleared and dismissal is not required until such time. This Substitute also adds the following changes based on further input from stakeholders: - Makes it clear that this Act only applies to evictions based on failure to pay rent. - Clarifies that any rent that is due under the terms of the lease must also be paid, in addition to any demanded past due and per diem rent, for redemption to apply. - Adds language that the landlord may restrict any payments to methods accepted under the terms of the lease, and the landlord may further restrict any payments made after judgment is entered to certified checks or money orders.