Lot rental assistance program; limited eligibility

# (a)

# (1)

A community owner shall provide lot rental assistance under this section if a manufactured home community has more than 25 manufactured home lots.

# (2)

This section does not prohibit a community owner from doing any of the following:

a. Offering a lot rental assistance program in a manufactured home community with 25 or fewer manufactured home lots.

b. Offering a lot rental assistance program that provides benefits greater than the benefits under this section.

c. Expanding eligibility for participation in a lot rental assistance program.

# (b)

A homeowner is eligible for lot rental assistance under this section if all of the following apply:

# (1)

The lot rent increase takes effect on or after July 1, 2022.

# (2)

The homeowner meets the qualifications under subsection (c) of this section.

# (3)

The homeowner and other occupants do not receive any other rental assistance funding.

# (c)

A homeowner in a manufactured home community who is eligible for Social Security Disability or Supplemental Security Income benefits or who is 62 years of age or older is eligible for lot rental assistance from the manufactured home community owner if the homeowner meets all of the following criteria:

# (1)

The homeowner must have owned the manufactured home or resided in the home in the manufactured home community for the 5 consecutive years before requesting lot rental assistance under this section.

# (2)

The homeowner must reside full time and exclusively in the manufactured home in the manufactured home community, and the manufactured home must be the homeowner’s only residence.

# (3)

A homeowner qualifies for limited lot rental assistance if the total income of the homeowner and all occupants is greater than 40% and below 55% of the county median household income, as determined by the United States Department of Housing and Urban Development.

# (4)

The total assets of the homeowner and all occupants do not exceed $50,000. For purposes of this section, “total assets” means all of the following:

a. All liquid assets, including bank accounts, stocks, and bonds.

b. The total amount of excess lien paydowns against the manufactured home during the previous 5 years that exceed the scheduled amortization of the lien balance.

# (5)

The homeowner and occupants must provide to the community owner all documentation necessary to determine eligibility for lot rental assistance, such as bank records, eligibility letters, tax returns, and brokerage statements.

# (6)

The homeowner, occupants, and the manufactured home must be in substantial compliance with all manufactured home community rules, regulations, and standards.

# (d)

If eligible under this section, the homeowner’s lot rental assistance is a limit on the amount of the rent increase, which is calculated by reducing the homeowner’s rent as follows:

# (1)

Multiplying the amount of the rent increase as follows:

a. If the median household income is greater than 40% and below 42%, by 24.25%.

b. If the median household income is equal to or greater than 42% and below 44%, by 38.5%.

c. If the median household income is equal to or greater than 44% and below 46%, by 52.75%.

d. If the median household income is equal to or greater than 46% and below 48%, by 67.00%.

e. If the median household income is equal to or greater than 48% and below 50%, by 81.25%.

f. If the median household income is equal to or greater than 50% and below 52%, by 85.50%.

g. If the median household income is equal to or greater than 52% and below 55%, by 95.50%.

# (2)

A homeowner’s rent increase under this section is the greater of the amount calculated under paragraph (d)(1) of this section or 1.5% of the amount of the rent increase.

# (e)

For the purpose of benefiting persons aged 62 and older, this section establishes a narrow exception to the prohibition against housing discrimination on the basis of “age” under § 5116 of this title and the Delaware Fair Housing Act, Chapter 46 of Title 6.

# (f)

A lot rental assistance credit received by a homeowner under this section is not transferable upon the sale of the manufactured home or the transfer of the rental agreement to a third-party purchaser. If a rental agreement is transferred under § 7013 of this title, thereafter the transferee must pay the full amount of rent due under the lease.