Committee advances bill removing sunset on manufactured-home rent rules

The Delaware House Housing Committee voted to circulate Senate Bill 235, a measure that would remove the sunset on the statute governing how lot rents may be adjusted in manufactured-home communities and make the current rent-adjustment framework permanent.

Sponsor Representative Williams said SB 235 continues the framework created by earlier legislation (SB 317) and removes the sunset while retaining the methods community owners use to raise base rents. "So we're just removing the sunset," Williams said, summarizing the bill.

Joyce O'Neil, president of the Delaware Manufactured Homeowners Association, told the committee that more than 20,000 Delaware families rely on manufactured housing and that without the bill lot rents "could jump to full market rent after 07/01/2027, raising monthly costs by $100 to $400, putting many households at risk." O'Neil urged support for keeping protections that phase in market increases over seven to ten years.

Representatives of community owners and industry groups, including Robert Tunnel of Potnet's Communities and Jerome Heisler, said they support making the negotiated framework permanent because it tempers large spikes and provides predictability. Witnesses and drafting staff explained that the statute allows certain additional expenses — including property taxes and employee costs — to be considered in calculating permitted increases, but that the current formula limits sudden large jumps.

On procedural action the committee moved to release SB 235. A roll-call vote produced affirmative votes by the members present; the chair said the bill will be circulated for additional signatures and, if it receives the required number, reported out and announced on the House floor.

What’s next: The bill was circulated for signatures to be reported out of committee when it reaches the required count.