SB 23

Abstract

Section 7042 of Title 25 of the Delaware Code lists the completion and cost of any capital improvements or rehabilitation work in a manufactured home community, as distinguished from ordinary repair, replacement, and maintenance, as a factor that may justify an increase in rent but only until the cost of the improvement has been fully recovered. Like Senate Substitute No. 2 for SB 23, this Act clarifies this provision by making the recovery of such capital improvement or rehabilitation work a fee under § 7008, the fee section of this chapter, so that it is a separate charge from rent and provides notice requirements regarding the fee. This Act provides a revised definition of capital improvement and rehabilitation work. This definition is placed in the definitions section of Chapter 70. Chapter 70 defines rent as including fees, preserving a community owner’s ability to enforce payment of the fee. By identifying this assessment as a fee, it is clearly identified as separate from a base rent increase. Senate Substitute No. 3 for Senate Bill No. 23 differs from Senate Substitute No. 2 for Senate Bill No. 22 as follows: 1. It removes lines from the definition of capital improvement or rehabilitation work that conflict with the rest of the definition. 2. It adds the requirement that capital improvement or rehabilitation work must benefit the entire manufactured home community. 3. It limits the correction of deficiencies to comply with changes to building codes or laws enacted after construction was completed. 4. It clarifies that the community owner must still comply with other provisions of the rent justification law, § 7042(a)(1) and § 7043 of Title 25, before imposing this fee. 5. Permits a challenge to the fee to be consolidated with other proceedings challenging a rent increase under § 7042 and § 7043 of Title 25. 6. It adds that the fee must be collected at a rate of 10% of the cost of the capital improvement or rehabilitation work or over the number of years necessary to not exceed 10% of the rent, whichever amount is lower. This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.