DE SB110

Establishes a capital improvement assessment fee that community owners can charge to recover costs of new assets, material additions to existing assets, or repairs from extraordinary circumstances (not ordinary wear and tear).

Limits capital improvement assessment fees to the lower of 10% of improvement cost or 5% of rent, recovered evenly over time, and requires 90 days written notice with detailed information about the improvement and fee calculation.

Restricts capital improvement assessment fees to community owners without health/safety violations in the preceding 12 months and those complying with maintenance requirements, with fees subject to existing rent increase dispute resolution procedures.

Repeals "market rent" as a justification factor for rent increases and prohibits recovery of costs for capital improvements that have already been fully recovered through prior rent increases.

Clarifies that rent increases (including capital improvement assessment fees) can only occur once per 12-month period, with increases up to the Consumer Price Index (CPI-U) taking effect automatically after 90 days and higher increases requiring arbitration approval.