AMEND Senate Bill No. 194 by striking lines 1 through 264 of the bill and substituting in lieu thereof the following:

"Section 1. Amend Subchapter I, Chapter 70, Title 25 of the Delaware Code by striking §7004 in its entirety, and substituting in lieu thereof the following:

'§7004. Requisites for rental or offer of mobile home lot; penalties.

a.        No landlord or tenant may offer a lot in a mobile home park for rent without delivering a copy of the rental agreement to the proposed lessee, which agreement shall be executed before the lessee can occupy the leased premises. No person may move a mobile home into a mobile home park or place personal belongings into a mobile home in this State until a written agreement has been signed by such person and the lessor of the premises. Before a current or prospective tenant signs a rental agreement or occupies the premises, the landlord shall:

1.        deliver a copy of the rules and regulations and the fee schedule of the mobile home community to the tenant, who shall sign a receipt therefor;

2.       deliver a copy of this subchapter to the tenant or prospective tenant who shall sign a receipt therefor.

3.       deliver a copy of the rental agreement which shall contain the following:

a.        A specific identification of the site to be leased;

b.       A stipulation of the total amount of annual rental for the site;

c.       A stipulation of the term of payment, whether monthly, quarterly, semiannually of annually;

d.       The amount due for each installment;

e.       The amount of any late payment fee;

f.         A description of each service, facility, and utility service that the landlord will provide, which clearly identifies the availability, capacity and connection fee for all utility services at the proposed site in order to assure the proper and adequate installation of utilities and of the mobile home;

g.       A description of any termination and renewal option;

h.       A specific reference to this subchapter as the law that governs the relationships between the tenant and landlord.

a.        No landlord shall offer for rent any lot in a mobile home park if such lot does not conform to the applicable state, county or municipal statutes, ordinances or regulations under which said mobile home park was created, or under which said mobile park currently and lawfully exists.

b.       A violation of subsection (b) of this section shall be punishable by a fine of not more than one thousand dollars ($1,000).'

Section 2. Amend Subchapter I, Chapter 70, Title 25 of the Delaware Code by striking §7006 in its entirety and substituting in lieu thereof the following:

'§7006. Term of Rental Agreement and Renewal of Rental Agreement.

a.        If only the lot is rented, a landlord shall offer all current and prospective tenants a rental agreement for a term of:

1.        one year; or

2.       a lesser period as the tenant may request; or

3.       a longer period as is mutually agreed upon by the parties.

a.        Upon the expiration of the term, the rental agreement shall be automatically renewed, for the same term and with the same provisions as the original agreement, subject only to modified provisions relating to the amount of rent, unless:

1.        the tenant shall notify the landlord in writing, a minimum of sixty days prior to the expiration of the rental agreement, that the tenant does not intend to renew it; or

2.       a shorter or longer term is agreed to by the parties; or

3.       other changes, except for those relating to the amount of rent, are also specifically agreed to by the parties;

4.       the landlord shall notify the tenant in writing, a minimum of sixty days prior to the expiration of the rental agreement, that the agreement will not be renewed for due cause, as described in §7010.'

Section 3. Amend Subchapter I, Chapter 70, Title 25 of the Delaware Code by striking §7008 and substituting in lieu thereof:

'Section 7008. Fees and Services

a.       A "fee" is defined as a monetary obligation assessed by the landlord to the tenant, in addition to rent, for a service actually furnished to the tenant, or for an expense actually incurred, as a direct result of the tenant's use of the rented lot. For purposes of this chapter, the word "fees" and the word "charges" are used interchangeably.

b.       All fees or charges by the landlord shall be clearly disclosed in a fee schedule attached to the rental agreement.

c.       A landlord may charge or add a fee if it relates to a service actually furnished to the tenant, or for an expense actually incurred as a direct result of the tenant's use of the rented lot. Failure to pay such fee may be the basis for termination of the rental agreement as provided for in §7010 of this chapter.

d.       A landlord may charge a late payment fee if:

1.       the rent is not paid within five days after the due date specified in the rental agreement; and

2.       the rental agreement provides for a late payment fee.

a.       A landlord may also charge an optional user fee for the use of certain facilities. Failure to pay such user fee may not be the basis for termination of the rental agreement. Continued use of such facilities without paying the user fee may result in termination of the rental agreement as provided for in §7010. User fees may include, but are not limited to:

1.       use of pool;

2.       use of marine facilities; or

3.       use of tennis courts.

a.       The amount of any fee charged shall be reasonably related to the cost of providing the service upon which such fee is based.

b.       A fee shall not be increased more than once during a twelve month period, regardless of the term of the rental agreement. The landlord shall notify the resident, in writing, of any increase or additional fee at least sixty days prior to the effective date of the increase or change. A fee increase or additional fee is unenforceable unless proper notice has been given.

c.       An entrance or exit fee is prohibited. An entrance fee is defined as any fee in excess of $50 charged to a tenant prior to the tenant's occupancy of the leased premises, including an application fee, except for those fees for utilities, direct services actually rendered, or the use of facilities which must be identified and described in the rental agreement or a separate notice pursuant to §7004 of this title.

d.       In the event a service previously provided pursuant to the rental agreement is discontinued, there shall be an adjustment in the lot rental amount, relating to the landlord's direct costs of providing said service. The adjustment, if any, shall be determined as follows:

1.       No less than sixty days prior to the discontinuance of said service, the landlord shall notify all affected tenants of the change, and include in the notification an explanation of the changes and the direct costs associated with same;

2.       Within ten days of landlord's notice, the tenants may appoint a committee, not to exceed five members appointed by the board of directors of the tenants association, or by a majority of the tenants if there is no association. The committee shall meet with the landlord at a mutually convenient time and place to discuss the discontinuance of said service;

3.       At the meeting, the landlord shall disclose and explain all material factors for the proposed discontinuation of service, together with supporting documentation. The direct operating cost of the said service as determined by the mobile home park's independent public or certified public accountant, shall be binding upon both the landlord and tenant.'

Section 4. Amend Subchapter I, Chapter 70, Title 25 of the Delaware Code by striking subsection (a)(2) of §7010 and substituting in lieu thereof the following:

'(2) Nonpayment of rent or fees;'

Section 5. Amend Subchapter I, Chapter 70, Title 25 of the Delaware Code by striking §§7010(g), (h) and (i) in their entirety and substituting in lieu thereof the following:

'(g) If a change is intended in the use of land on which a mobile home park or a portion of a mobile home park is located and the landlord intends to terminate a rental agreement or to evict a mobile home owner due to the land use change, the landlord shall notify all affected mobile home owners in writing as follows:

1.        The landlord shall notify the mobile home owner by written notice, certified and first class mail, no less than one year (365 days) before the actual termination of a rental agreement due to a change in land use. Such notice shall include an offer to purchase the mobile home at a fair market value based on where the mobile home is located.

2.       The mobile home owner has the right to sell the mobile home to the landlord at the price offered or to any other party, provided the mobile home is removed from the premises. The mobile home owner shall notify the landlord by certified and first class mail, within 30 days, from the receipt of notice or return "unclaimed" of said notice of the acceptance or rejection of the stated offer to purchase the mobile home by the landlord. If the mobile home owner rejects the landlord's offer, then both the mobile home owner and the landlord shall, within 45 days, obtain separate appraisals from certified manufactured home appraisers. Both appraisers must hold a current manufactured housing valuation certification number. Each party shall bear the costs of his/her appraisal. Utilizing the initial offer and the two appraisals, the two closest values shall be averaged to determine the price to be paid by the landlord. The third value whether it be the initial offer by the landlord or one of the appraisals, shall be discarded and not considered in the calculation; or

3.       Any other agreement mutually entered into by the landlord and the mobile home owner as to relocation or compensation for the mobile home, shall be considered binding and enforceable.

4.       When the change in use is the result of an infrastructure failure or government mandate, then the landlord must provide one year (365 days) notice unless a shorter notice is required or necessary for the landlord to comply with governmental, health or safety issues.

(h) For the purposes of this subchapter, change in use of the land does not include any land use change which is contemplated by Chapter 71 of this title."

SYNOPSIS