HB 131

Abstract

This bill sets forth the framework by which a homeowner will pay the disputed rent increase amount to the community owner until final resolution of the rent increase dispute. The community owner must keep each payment of the disputed rent increase amount in an escrow account in a federally-insured banking institution and provide in writing the location of the account to the Delaware Manufactured Home Relocation Authority (Authority) and the Consumer Protection Unit of the Attorney General’s Office and the account number within 30 days of the first dispute rent increase payment. This bill prohibits the community owner from using the escrowed funds for any purpose not expressly permitted by this subsection. This bill requires the community owner to maintain a separate escrow account for each community owned and financial records such that the Consumer Protection Unit can audit such records. This bill provides penalties if the community owner fails to provide the location of the escrow account or place the rent increase dispute payments into an escrow account at a federally-insured banking institution. The bill provides that upon final resolution, if the rent increase dispute resolves in favor of the home owner, then the community owner must return the disputed rent increase held in the escrow account including any interest. If the community owner prevails, then the community owner is entitled to the dispute rent increase amount held in the escrow account plus any accrued interest.