DEMHRA Report for DMHOA Jan. 28th Meeting

Information from January 16, 2025 Meeting and December 12, 2024 Minutes

Chair's Report

Changes to HB212 were discussed. The Chair wanted to make sure the Board was aware of these changes as to how the lot rents are now calculated. See 7052A(c) for additional information on the new calculations.

Executive Director's Report: 

HB212 was amended by the Senate (Amendment #1) that now decreases the cap of the rent from 7% to 6.1% of the CPI-U. Nothing else has changed and landowners shall follow the certification process now in place, keeping in mind the new rent increase cap.

If a community has 25 or more tenants paying lot rent, the landowner must participate in the lot rent assistance program. Landowners do not receive any monetary compensation from outside government agencies.

Mr. Sutton, our Executive Director, attended the Manufactured Housing Subcommittee meeting in November. Discussed was the introduction of legislation that offers low interest loans for tenants who wish to purchase a community when it is for sale. A community must have an HOA to be able to purchase a community. He was asked to provide data by the next meeting on how many communities are registered with DEMHRA and how many communities have gone through a change in use in the last 10 years. This information was readily available and to date there are 171 communities, and there have been 14 communities that went through change in use in the past 10 years.

Legal Counsel Report: 

The DOR reported, as of 1/3/25, there were no changes since its last report. Email reminders for 1st quarter payments are sent out on the 20th reminding communities they are now considered one quarter late.

Arbitration: (Update on Status of Open Dockets):

• Docket 04-2019 (Wild Meadows HOA vs. Wild Meadows LLC): As of 1/7/25 the settlement papers have been signed and the matter is considered CLOSED.

• Docket 02-2021 (Ridgewood Manor vs. Ridgewood Manor LLC): As of 1/7/25, Mr. Sharp reported there was no changes from the last update. He is still waiting for confirmation from the attorneys as to the contents of the docket.

• Docket 03-2021 (Canterbury Crossing BOA vs Canterbury Crossing MHP): As of 1/13/25, Mr. Panicola reported that a decision was issued in November affirming the arbitrator's decision. The time to appeal to the Superior Court expired in December, and the case is now considered CLOSED.

Rent Increase Certification Requests:

There were 36 rent certifications sent out in December. See § 7051A. Rent increase; health or safety violations in Title 25 for additional information.

Update on Parks for Sale:

• Holly Oak Park – Park is still up for sale.

• Dalton’s MHP – Update 1/8/25. The park is in process of completing the purchasing agreement, and will let DEMHRA know when it’s done.

• Mt. Pleasant MHP – The park was sold 12/19/24 and the new owner is setting up the account with the DOR.

Update on Parks Going Through Change in Use:

• Timberlane - There are 16 applications remaining.

• Pine Haven - There are 2 remaining.

• Lazy Pine Retreat - There are 5 remaining.

• Lakeland - No applications have been received. It was discovered that this park went through a change in use for Phase I in 2015, and this is Phase II. There are 17 homes in the community that are affected

• Lake Forest – They contacted Mr. Sutton for assistance in preparing the documents required for a change in use. There are 26 homes in the community that are affected.

• Two Applications for funds were approved for Lazy Pine Retreat at our last meeting. They included one non-relocatable single-wide for $12,000 plus $300 appraisal fee. Another single-wide was approved for $5000 for demolition. 

Financial Matters: (as of December 2024)(amounts are rounded to nearest dollar)

• The Trust Fund assessments collected during December totaled $7578.00, plus interest of $36,965.00. No funds were paid out for December in for relocation assistance. The Trust Fund as of December 31th is $14,407,791.00.

• The 2024 Legal Fund Year-to-Date is $125,736.00.

• The December CPI/U was 3.608%, effective January 15th. This would equate to an increase of 5.30% for one-year leases beginning in May and June.

Our next meeting has not been confirmed. It will be either Thursday February 13th or 20th, 2025 at 1:30. Our address is 1979 S. State Street in Dover and is opened to the public.

Please visit our website for additional information at demhra.delaware.gov.