AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE LANDLORD-TENANT CODE.

Legislation Document

SPONSOR:

Sen. Hansen & Sen. Richardson & Rep. K. Johnson & Rep. D. Short

Sens. Brown, Buckson, Cruce, Hocker, Hoffner, Huxtable, Lawson, Lockman, Mantzavinos, Paradee, Pettyjohn, Pinkney, Poore, Seigfried, Sokola, Sturgeon, Townsend, Walsh, Wilson; Reps. Berry, Morrison, Snyder-Hall

DELAWARE STATE SENATE

153rd GENERAL ASSEMBLY

SENATE BILL NO. 292

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO THE LANDLORD-TENANT CODE.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 5102, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

§ 5102. Exclusions from application of this Code.

The following arrangements are not

intended to be

governed by this

Code, unless created solely to avoid such application:

Code:

(1) Residence

at an institution, whether public or private, where such residence

that

is

merely

incidental to

detention or to the provision of medical, geriatric, educational, counseling, religious or similar services, including (but not limited to) prisons, student

services or programs provided by any of the following:

a. A facility operated by a health care provider licensed under § 7971 of Title 29.

b. Student

housing provided

and operated

by a

college or school, old-age homes, nursing homes, homes for unwed mothers, monasteries, nunneries and hospitals.

school, including an institution of higher education.

c. An institution under the control of the Department of Correction.

d. A monastery or convent.

(2) Residence by a member of a fraternal

organization

organization, as defined in § 2593 of Title 6,

in a structure operated for the benefit of the organization.

(3)

Residence in

Transient lodging provided by

a hotel, motel,

cubicle

hotel

or

other similar lodgings.

tourist home, as “hotel”, “motel”, and “tourist home” are defined in § 6101 of Title 30.

Section 2. Amend Chapter 55, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5512A. Rules and regulations relating to reentry funds.

(a)(1) The requirements under this section apply if money from any of the following is used to pay all or part of a tenant’s rent:

a. The Bureau of Community Corrections Special Services Fund under § 6533(g) of Title 11.

b. The Justice Reinvestment Fund for Reentry Services under § 1387(b) of Title 4.

c. Any other appropriation of state money for which eligibility is based on an individual’s need for housing after release from the custody of the Department of Correction or the Department of Services for Children, Youth and Their Families.

(2) For purposes of this section, “fund” means a source under paragraph (a)(1) of this section.

(b)(1) The person responsible for payments from a fund under subsection (a) of this section must give a landlord all of the following:

a. An explanation of the requirements under this section.

b. Information necessary to contact the fund, including a phone number and mailing address.

c.1. The model discharge plan.

2. The Department of Health and Social Services, in consultation with the Department of Justice, shall develop the model discharge plan for use under this section.

(2) The information required under paragraph (b)(1) of this section must be provided to the landlord in writing, with or before making the first payment under subsection (a) of this section.

(c) Before a lease can be terminated under § 5502 or § 5513 of this title, the landlord must do all of the following in regard to the tenant for whom funding is received under subsection (a) of this section:

(1) Assist the tenant in completing a discharge plan that includes shelter or housing.

(2) Provide notice that the tenant’s lease is being terminated as follows:

a. To the person making payments from the fund under subsection (b) of this section.

b. If the landlord knows that the tenant is under the supervision of the Department of Correction, to the Department of Correction and the local law enforcement agency.

(d) The contents of a complaint under § 5707 or § 5708 of this title must include a brief statement of how the landlord has complied with the requirements under subsection (c) of this section, including a copy of all required notices.

(e)(1)a. If a landlord fails to comply with the requirements under subsection (c) of this section, the landlord is debarred from receiving payments from any fund under subsection (a) of this section for 1 year.

b. The period of debarment under paragraph (e)(1)a. of this section begins the day after the person responsible for payments from that fund determines that the landlord failed to comply with the requirements under subsection (c) of this section.

(2) Within 5 days of determining that a landlord has failed to comply with the requirements under subsection (c) of this section, the person responsible for payments under paragraph (b)(1) of this section must provide written notice of the landlord’s debarment to all of the following:

a. That landlord.

b. Each fund under subsection (a) of this section.

c. Each tenant of that landlord who is receiving rental assistance from that fund.

(3) Within 5 days of receiving a notice under paragraph (e)(2)b. of this section, the person responsible for payments must provide notice of the landlord’s debarment to each tenant of that landlord who is receiving assistance from the fund.

(4) The notice to a tenant under paragraph (e)(2)c. or paragraph (e)(3) of this section must include the date that payments from the fund for that tenant’s rent will cease and the tenant’s options under subsection (f) of this section.

(f) If a landlord is debarred from receiving payments under subsection (e) of this section, the tenant is not responsible for share of the rent that was paid by the fund and may do any of the following:

(1) Continue the tenancy through the current rental agreement without payments from the fund. If the tenant continues the tenancy, the amount of rent is equal to the amount of the tenant’s share of the rent, calculated by subtracting the amount paid by the fund from the total rent under the rental agreement.

(2) Provide written notice that the tenant is terminating the lease. The effective date of a tenant’s lease termination under this paragraph (f)(1) effective may be any of the following:

a. Immediate.

b. No less than 30 days and no more than 60 days from the first day of the next month following the date of the notice. A tenant who provides notice under this paragraph (f)(2)b. may subsequently terminate the lease immediately.

(g) A violation of this section shall be deemed an unlawful practice under § 2513 of Title 6 and a violation of subchapter II of Chapter 25 of Title 6.

Section 3. Amend § 5141, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

§ 5141. Definitions.

For purposes of Part III of this title:

(19) “Landlord-Tenant Code” or “this Code” means the Residential Landlord-Tenant Code under Part III of this title.

Section 4. Amend § 5512, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows and redesignating accordingly:

§ 5512. Rules and regulations relating to certain buildings; landlord remedies.

(a) This section applies to rental agreements for the rental of single rooms in a building if all of the following apply:

(1) The building is the primary residence of the landlord.

(2) No more than 3 rooms in the building are rented to tenants.

(3) No more than 3 tenants occupy the building.

(4) Section 5512A of this title does not apply.

Any

(b) Notwithstanding any other

provision of the Landlord-Tenant

Code (Chapters 51 through 59 of this title) to the contrary notwithstanding, written

Code, a

rental

agreements

agreement

for the rental of

a

single

rooms

room

in certain buildings

in a building under subsection (a) of this section

may be terminated

and a landlord may bring a proceeding for possession as follows:

(1) Under a written rental agreement,

immediately upon notice to the tenant for a tenant’s material violation of a regulation

which has been

that was

given to

a

the

tenant at the time of contract or

lease, and in cases where

lease.

(2) If

there is no written lease, either 15 days after written notice to the tenant of a breach of the covenant of quiet enjoyment

of

or

similar

conduct,

conduct

or 30 days after written notice for any other

reason,

reason.

and the landlord shall be entitled to bring a proceeding for possession where:

(1) The building is the primary residence of the landlord; and

(2) No more than 3 rooms in the building are rented to tenants; and

(3) No more than 3 tenants occupy such building.

Section 5. (a) This Act takes effect 6 months after its enactment into law.

(b) Section 5512A of Title 25 applies to rental agreements entered into on or after [the effective date of this Act].

Section 6. This Act is known as “The Grace Peterson Act”.

SYNOPSIS

This Act requires that when all or part of the tenant’s rent is paid from a state fund for reentry services, a landlord must assist the tenant in completing a discharge plan to attempt to provide a warm handoff before terminating the tenant’s lease. This Act also closes a loophole in existing law that allows unlicensed or uncertified operators of residential housing to claim exemption from the Residential Landlord-Tenant Code, including the procedural requirements for an eviction.

Existing laws prohibit someone from losing their housing without notice because

• A landlord must comply with the notice and judicial procedure under the Residential Landlord-Tenant Code, Part III, Title 25.

• Licensed health care providers must provide discharge planning before an individual is required to leave a residential treatment program under § 1127, § 5161, and § 3004J of Title 16.

• Certified recovery homes must make a reasonable effort to connect a resident with appropriate services when terminating the resident’s admission agreement under § 2206A of Title 16.

Section 1 of this Act closes a loophole in current law that allows some landlords to claim their tenants are excluded under § 5102(1) of Title 25 from the protections required before eviction under the Residential Landlord-Tenant Code without being required to provide discharge planning or connecting the resident with appropriate services. This Act revises 3 of the exclusions by using the modern terms and where possible, the applicable licensing law for this State, to prevent housing providers from claiming exclusion from the Residential Landlord-Tenant Code even if the provider is not licensed or certified to provide services. This Act does not apply to or revise the exclusions to the Residential Landlord-Tenant Code under paragraphs (4) through (6) of § 5102 of Title 25, including the existing exclusion for certified recovery houses.

Section 2 of this Act creates new requirements under § 5512A of Title 25 if all or part of a tenant’s rent is paid using money from a State reentry fund. Before or with the first payment, the person responsible for payments from the fund must provide the landlord with an explanation of these requirements, contact information, and the model discharge plan. The Department of Health and Social Services (DHSS), in consultation with the Department of Justice (DOJ), must create a model discharge plan. Then, before terminating the tenant’s lease, the landlord must assist the individual in creating a discharge plan that includes shelter or housing and provide notice that the tenant’s lease is being terminated as follows:

• To the person making rent payments from the fund.

• If the landlord knows that the tenant is under the supervision of the Department of Correction, to the Department of Correction and the local law enforcement agency.

If a landlord fails to comply with the discharge planning and notice requirements, the landlord is debarred from receiving payments from any State reentry fund for 1 year. If the landlord is receiving payments from a State reentry fund for any other tenants, those tenants are not responsible for the share of the rent that was paid by the fund and have the option to do any of the following:

• Continue the tenancy without payments from the fund. If the tenant chooses to continue their tenancy, the amount of their rent becomes the tenant’s share of the rent, calculated by subtracting the amount paid by the fund from the total rent under the rental agreement.

• Terminate the lease immediately.

• Terminate the lease with 30 to 60 days notice.

These requirements are enforceable by the Department of Justice and also by the Justice of the Peace Court, because the contents of an eviction complaint must include a brief statement of compliance with the requirements under § 5512A(c) and copies of all required notices.

Section 3 of this Act is a technical clarification to clarify that “this Code” and “Landlord-Tenant Code” both refer to the Residential Landlord-Tenant Code under Part III of this title. Both “this Code” and “Landlord-Tenant Code” are used throughout Chapter 51 through Chapter 59 of Title 25 as abbreviations of the Residential Landlord-Tenant Code and under § 101 of Title 1, “this Code” could also refer to the entire Delaware Code.

Section 4 of this Act makes the new requirements for reentry funds under § 5512A of Title 25 applicable to the rental of single rooms in owner-occupied buildings under § 5512 of Title 25. Section 4 also reorganizes the existing language in § 5512 because as 1 sentence, the current language is difficult to understand.

This Act takes effect 6 months after enactment to provide time for DHSS and DOJ to develop the model discharge plan and for agencies, including the Department of Correction and local law enforcement agencies, to develop policies and procedures necessary to implement and respond to notification under these requirements. The new requirements under § 5512A of Title 25 apply to rental agreements entered into on or after the effective date of this Act.

This Act also makes technical corrections to conform existing law to the standards of the Delaware Legislative Drafting Manual.

This Act is known as “The Grace Peterson Act”.

Author: Senator Hansen