DE SB199

Defines "capital improvement or rehabilitation work" to include construction of new assets, alterations to existing assets for new functions or technology, and remediation of code deficiencies enacted after construction, but excludes routine maintenance.

Creates a separate fee (rather than rent increase) to recover capital improvement costs, capped at the lower of 10% of the improvement cost or 10% of rent, recovered evenly over multiple years.

Requires community owners to provide 90 days written notice before charging the fee, specifying the improvement details, total cost, fee amount, and termination date.

Prohibits community owners from incorporating civil penalties, criminal fines, or litigation costs into rent and prevents using capital improvement costs to justify future rent increases once the cost has been fully recovered through the fee.

Makes capital improvement fees subject to the same challenge procedures as rent increases under existing Delaware law.