An Act To Amend Title 25 And Title 31 Of The Delaware Code Relating To Rent Increases In Residential Rental Agreements And Rental Unit Data Collection.
By addressing rampant rent increases, the bill aims to tackle the burden on Delaware's renters, particularly those who are cost-burdened, meaning they spend over 30% of their income on rent. As over 50% of the state’s renters fall into this category, the legislation seeks to stabilize housing costs and thereby promote economic security. Moreover, this measure is anticipated to mitigate the risk of homelessness and improve overall community welfare by ensuring that families can maintain secure and affordable housing. The Delaware State Housing Authority (DSHA) is tasked with monitoring the proposed limits and reporting on their effectiveness, which adds a level of accountability and transparency to the implementation of this bill.
House Bill 455 introduces significant reforms aimed at alleviating the housing crisis in Delaware by establishing statewide rent stabilization measures. The bill amends Title 25 and Title 31 of the Delaware Code, applying limitations on rent increases for residential rental agreements renewed from January 1, 2025, through December 31, 2034. It restricts rent increases to a maximum of 5% unless a higher limit dictated by the Consumer Price Index (CPI-U) is applicable, which can cap increases at 7%. This approach ensures that rental costs do not escalate disproportionately when compared to income growth, with the intention to protect renters who are currently facing financial strain from rising rents.
Sentiment surrounding HB 455 tends to be supportive among housing advocates and community leaders who prioritize affordable housing access. Many view it as a vital step toward protecting vulnerable renters and addressing systemic inequalities in housing. Conversely, some landlords and property owner groups express concern that these limits could discourage investment in rental properties and adversely affect the housing market's responsiveness. This division highlights the broader debate between tenant protections and the rights of property owners, creating a scenario where constructive dialogue is necessary to balance these interests.
The implementation of HB 455 is not without contention, particularly concerning the exemptions carved out for certain rental agreements. Owner-occupied structures with two dwelling units, for example, are excluded from the rent increase limits. Critics argue this invites inequalities into the housing market where some renters may continue to face significant increases while others remain protected under new regulations. Additionally, the requirement for landlords to submit annual data to the DSHA to gauge rental market conditions also raises concerns about feasibility and compliance mandates, particularly for smaller landlords.