SB9 Summary

• Establishes new rent increase formulas for manufactured home communities effective for 5 years, allowing owners to increase rent based on 24-month CPI-U (with 3.5% base plus 50% of CPI-U up to 7%), market rent (phased over 7-10 years), or mutual written agreement with homeowners.

• Requires community owners to provide surety bonds or letters of credit equal to 100% of proposed rent increases if health or safety violations exist, with refunds to homeowners if violations are not corrected within 1 year.

• Expands lot rental assistance eligibility from 30% to 40% of county median income and creates a new limited assistance program for households earning 40-55% of median income with sliding-scale rent caps.

• Mandates that county governments, health departments, and environmental agencies notify the Delaware Manufactured Home Relocation Authority, Department of Justice, and state legislators when health or safety violations are found in manufactured home communities.

• Requires community owners to provide 90-120 days' written notice of rent increases to affected homeowners, homeowners' associations, and the Authority, with detailed documentation of allowed expenses available on websites and in management offices.