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Applying for Rental Assistance

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An important explanation of the updated lot rental assistance program

There are times when a homeowner’s household income decreases substantially. The death of a loved one, or some other dramatic change in income. With the passage of Delaware SB317, the lot rent assistance program changed dramatically. Previously, it was almost impossible to qualify for this program. Effective July 1, 2022, the program has significantly improved. Under this legislation, a community owner shall provide lot rental assistance to qualified homeowners. Qualifications are as follows:

 

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

  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 are greater than 40% and below 55% of the county median household income as determined by the US Department of Housing and Urban development.

  4. The total assets of the homeowner and all occupants do not exceed $50,000. Total assets means all liquid assets including bank accounts, stocks & and 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, tax returns, etc..

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

  7. The above is an abbreviated text taken from Delaware Title 5, Chapter 70 Sub-Chapter II 7022B. The complete text can be found at https://delcode.delaware.gov/title25/c070/sc02/index.html#7022.

 

There is no single downloadable application for the Delaware lot rental assistance program; instead, homeowners must contact their community owner to get information and apply. Community owners are required to provide eligible homeowners with the necessary paperwork, which includes submitting documentation to verify eligibility, such as bank statements and tax returns. 

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