DelawareSS 2 for SB 56153rd General Assembly (2024–2026)SenateWALLET

AN ACT TO AMEND TITLE 25 OF THE DELAWARE CODE RELATING TO MANUFACTURED HOME TITLE TRANSFERS.

Sponsored By: Kyra L. Hoffner (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 2 benefits, 0 costs, 6 mixed.

Heirs keep manufactured-home lease protections

A manufactured-home lot lease does not end because a tenant dies, even when the last tenant dies. It transfers to an heir living there; otherwise, heirs receive it for one year, and estates receive one-year protection. Buyers also receive the lease unless transfer requirements are materially unmet or the transfer right has ended. Owners cannot end the lease because heirs or estates transfer it to non-tenant occupants already living there. Heirs cannot be required to complete a full tenancy application or be barred solely for owning only part of the home. Only heirs planning to live there can face a criminal background check, and only if not completed before the death.

Homeowners gain protection against pressured sales

Community owners cannot use undue pressure to make tenants sell to them or give up lease-transfer rights. This conduct is also an unlawful consumer practice. Tenants can sue for actual damages for listed conduct, including unreasonable application denials intended to block transfers. When a court finds willful conduct, damages equal the greater of three times actual damages or three times monthly rent, plus reasonable court costs. Buyers, transferees, sellers, and former homeowners can also seek rent changes or a court order requiring the owner to buy. They can bring these claims whether the violation happened before or after transfer.

Estates get time but must notify

After the last tenant dies, community owners must wait at least 90 days before starting a court case for possession. Estates and heirs have a nonpayment defense when estate administration prevents rent payment for up to 90 days. Late fees and court costs may still be owed, and owners may change locks for safety. Within 90 days after a tenant dies, the estate representative—or inheriting heirs if no estate opens—must notify the owner. The notice must name new owners, give their addresses and known phone numbers, and identify known intended residents.

Home sellers face fewer lease barriers

Manufactured-home sellers do not need to give the 60-day notice used to prevent lease renewal when moving a home. Community owners cannot add sale requirements beyond the law's transfer steps. Missing advance sale notice alone no longer allows immediate lease termination when the buyer keeps the home in the community. Tenants moving a home off the lot must give written notice at least 60 days before lease expiration. That notice must explicitly say the home is moving off the lot, unless both sides agree to a different notice period.

Home sellers get premium, face purchase option

Manufactured-home sellers must notify the community owner before listing, allowing an inspection before the later purchase-option step. After agreeing to a sale, sellers must give written notice at least 3 weeks before transfer. Notice must include the buyer's name, address, price, and terms; late notice can require moving the sale date. The community owner has 7 days after timely notice to choose to buy for 110% of the written contract price. Exercising the option requires a nonrefundable deposit equal to 5% of the contract price, and the seller must transfer title. Settlement must use the stated sale date unless both parties agree otherwise in writing. The option excludes specified foreclosures, family sales, trusts with family beneficiaries, co-owner transfers, gifts, inheritance, and transfers by operation of law.

Homebuyers get repair time, face enforcement

Community owners must use reasonable written standards for appearance, upkeep, safety, and housing-code compliance, including the 1976 federal manufactured-home code. A home's age cannot be the sole or main reason to deny its sale or continued stay. Owners choosing an exterior inspection must inspect within 10 days of sale-intent notice and list violations and rules within 7 days afterward. Buyers becoming tenants generally have 90 days after transfer to make changes; November 1–March 1 transfers have until June 1. Parties can agree in writing to more time, and owners must allow reasonable extensions when work cannot reasonably finish on time. Buyers must describe their efforts and completion plan, then finish started work within a reasonable time. Failure to meet these written standards can allow immediate lease termination by written notice and a court case for possession.

Homeowners get paid for surrendering lease transfers

Community owners can offer payment in a lease addendum to end a homeowner's lease-transfer right; homeowners need not accept. Payment must equal the greater of $1,500 or 36 times the monthly difference between market rent and current lot rent. Owners must explain in writing that keeping the current rent when transferring the lease is likely to increase home sale value. Sellers must disclose known below-market rent or that a new lease applies, and owners must disclose rent to inquiring buyers. Owners completing these deals must report them to the Delaware Manufactured Home Relocation Authority by January 31 for the previous year.

Homebuyers get faster rental application decisions

Prospective manufactured-home buyers and transferees can apply for lot tenancy before sale notice and without a sale contract. Applications can proceed while inspections are underway. Community owners may require an application and charge the fee allowed by law. Owners must give written acceptance or rejection within 10 days after receiving the complete application and applicable fee, down from 15. Rejections must identify the specific eligibility requirement not met and explain why.

Sponsors & Cosponsors

Sponsor

Kyra L. Hoffner
Democratic • Senate

Cosponsors

William J. Carson
Democratic • House
Daniel Cruce
Democratic • Senate
Mara Gorman
Democratic • House
Kimberly Williams
Democratic • House
Larry Lambert
Democratic • House
John "Jack" Walsh
Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 57 • No: 0

House vote • 6/26/2025

Passed (SM required)

Yes: 39 • No: 0

Senate vote • 6/12/2025

Passed (3/4 required)

Yes: 18 • No: 0

Actions Timeline

Signed by Governor
9/3/2025Governor
Passed By House. Votes: 39 YES 1 ABSENT 1 VACANT
6/26/2025House
Reported Out of Committee (Housing) in House with 8 On Its Merits
6/17/2025House
Assigned to Housing Committee in House
6/12/2025House
Passed By Senate. Votes: 18 YES 1 NOT VOTING 2 ABSENT
6/12/2025Senate
Reported Out of Committee (Housing & Land Use) in Senate with 3 Favorable, 2 On Its Merits
6/11/2025Senate
Adopted in lieu of the original bill SB 56, and Assigned to Housing & Land Use Committee in Senate
6/10/2025Senate

Bill Text

Current
6/10/2025
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