Delaware 2023 2023-2024 Regular Session

Delaware Senate Bill SB293 Draft / Bill

                    SPONSOR:      Sen. Lockman & Rep. S. Moore & Rep. Dorsey Walker & Rep. Wilson-Anton       Sens. Pinkney, Townsend; Reps. Lambert, Morrison, Phillips           DELAWARE STATE SENATE   152nd GENERAL ASSEMBLY       SENATE BILL NO. 293       AN ACT TO AMEND TITLE 6 AND TITLE 25 OF THE DELAWARE CODE RELATING TO FAIR HOUSING.      

     

     SPONSOR:      Sen. Lockman & Rep. S. Moore & Rep. Dorsey Walker & Rep. Wilson-Anton       Sens. Pinkney, Townsend; Reps. Lambert, Morrison, Phillips     

SPONSOR: Sen. Lockman & Rep. S. Moore & Rep. Dorsey Walker & Rep. Wilson-Anton
Sens. Pinkney, Townsend; Reps. Lambert, Morrison, Phillips

 SPONSOR:  

 Sen. Lockman & Rep. S. Moore & Rep. Dorsey Walker & Rep. Wilson-Anton 

 Sens. Pinkney, Townsend; Reps. Lambert, Morrison, Phillips 

   

 DELAWARE STATE SENATE 

 152nd GENERAL ASSEMBLY 

   

 SENATE BILL NO. 293 

   

 AN ACT TO AMEND TITLE 6 AND TITLE 25 OF THE DELAWARE CODE RELATING TO FAIR HOUSING. 

   

  WHEREAS, both the Delaware Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, prohibit discrimination based on source of income, which is defined as including rental payments from any government program; and   WHEREAS, both the Delaware Fair Housing Act and Residential Landlord-Tenant Code include an exemption so that a landlord's nonparticipation in a government-sponsored rental assistance, voucher, or certificate system (voucher) is not a basis for an administrative or judicial proceeding; and   WHEREAS, this exemption means that the laws prohibiting discrimination based on source of income explicitly allow discrimination against people who have a source of income that can only be used to pay for housing; and   WHEREAS, Delaware has a severe affordable housing shortage, with only 38 available and affordable rental units for every 100 extremely low-income renters; and   WHEREAS, voucher recipients face significant hurdles in finding units to rent; and   WHEREAS, when voucher recipients are unable to secure housing before their voucher expires, they lose their voucher and thus, this crucial housing assistance for which they are eligible; and   WHEREAS, New Castle County gives voucher holders 120 days to find housing, but currently only 42% of voucher holders find units during that window due to the lack of affordable housing; and   WHEREAS, this is a decrease from 2022, when 50% of New Castle County voucher holders were able to secure housing with their voucher; and   WHEREAS, in Kent and Sussex counties, only 36% of households with federal Housing Choice Vouchers administered by the Delaware State Housing Authority (DSHA) were able to secure housing with their voucher in 2023; and   WHEREAS, even voucher holders that receive case management services under the DSHA-administered State Rental Assistance Program (SRAP) experience difficulty renting a unit and only 79% of SRAP voucher recipients were able to secure housing with their voucher in 2023; and    WHEREAS, a New York University study of jurisdictions that enacted laws prohibiting source of income discrimination against housing voucher holders found that these laws lead to more upwardly mobile moves among existing voucher holders; and   WHEREAS, research by Opportunity Insights, based at Harvard University, found that children who grow up in communities with more cross-class interaction are much more likely to rise up out of poverty; and   WHEREAS, both DSHAs  2020 Delaware Statewide Analysis of Impediments to Fair Housing Choice  and the Infrastructure & Environment Subcommittee of the African American Task Force, established under Section 39(j)(1)d. of SB 260 (150  th  ), recommended prohibiting discrimination against tenants with housing vouchers.   NOW, THEREFORE:   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:    Section 1. Amend 4607, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:     4607. Exemptions in certain situations.    (j)  A landlord is not required to participate in any government-sponsored rental assistance program, voucher, or certificate system. A landlords nonparticipation in any government-sponsored rental assistance program, voucher, or certificate system may not serve as the basis for any administrative or judicial proceeding under this chapter.   [Repealed.]    Section 2. Amend 5116, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:     5116. Fair housing provisions.    (e)  A landlord not be required to participate in any government-sponsored rental assistance program, voucher, or certificate system. A landlords nonparticipation in any government-sponsored rental assistance program, voucher, or certificate system may not serve as the basis for any administrative or judicial proceeding under this chapter.   [Repealed.]    Section 3. This Act takes effect as follows:    (1) On the first day of the month after the date in paragraph (2) of this section.   (2) Five months following its enactment into law.      

 WHEREAS, both the Delaware Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, prohibit discrimination based on source of income, which is defined as including rental payments from any government program; and 

 WHEREAS, both the Delaware Fair Housing Act and Residential Landlord-Tenant Code include an exemption so that a landlord's nonparticipation in a government-sponsored rental assistance, voucher, or certificate system (voucher) is not a basis for an administrative or judicial proceeding; and 

 WHEREAS, this exemption means that the laws prohibiting discrimination based on source of income explicitly allow discrimination against people who have a source of income that can only be used to pay for housing; and 

 WHEREAS, Delaware has a severe affordable housing shortage, with only 38 available and affordable rental units for every 100 extremely low-income renters; and 

 WHEREAS, voucher recipients face significant hurdles in finding units to rent; and 

 WHEREAS, when voucher recipients are unable to secure housing before their voucher expires, they lose their voucher and thus, this crucial housing assistance for which they are eligible; and 

 WHEREAS, New Castle County gives voucher holders 120 days to find housing, but currently only 42% of voucher holders find units during that window due to the lack of affordable housing; and 

 WHEREAS, this is a decrease from 2022, when 50% of New Castle County voucher holders were able to secure housing with their voucher; and 

 WHEREAS, in Kent and Sussex counties, only 36% of households with federal Housing Choice Vouchers administered by the Delaware State Housing Authority (DSHA) were able to secure housing with their voucher in 2023; and 

 WHEREAS, even voucher holders that receive case management services under the DSHA-administered State Rental Assistance Program (SRAP) experience difficulty renting a unit and only 79% of SRAP voucher recipients were able to secure housing with their voucher in 2023; and 

  WHEREAS, a New York University study of jurisdictions that enacted laws prohibiting source of income discrimination against housing voucher holders found that these laws lead to more upwardly mobile moves among existing voucher holders; and 

 WHEREAS, research by Opportunity Insights, based at Harvard University, found that children who grow up in communities with more cross-class interaction are much more likely to rise up out of poverty; and 

 WHEREAS, both DSHAs  2020 Delaware Statewide Analysis of Impediments to Fair Housing Choice  and the Infrastructure & Environment Subcommittee of the African American Task Force, established under Section 39(j)(1)d. of SB 260 (150  th  ), recommended prohibiting discrimination against tenants with housing vouchers. 

 NOW, THEREFORE: 

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE: 

  Section 1. Amend 4607, Title 6 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 

   4607. Exemptions in certain situations. 

  (j)  A landlord is not required to participate in any government-sponsored rental assistance program, voucher, or certificate system. A landlords nonparticipation in any government-sponsored rental assistance program, voucher, or certificate system may not serve as the basis for any administrative or judicial proceeding under this chapter.   [Repealed.] 

  Section 2. Amend 5116, Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows: 

   5116. Fair housing provisions. 

  (e)  A landlord not be required to participate in any government-sponsored rental assistance program, voucher, or certificate system. A landlords nonparticipation in any government-sponsored rental assistance program, voucher, or certificate system may not serve as the basis for any administrative or judicial proceeding under this chapter.   [Repealed.] 

  Section 3. This Act takes effect as follows: 

  (1) On the first day of the month after the date in paragraph (2) of this section. 

 (2) Five months following its enactment into law. 

   

  SYNOPSIS   The Delaware Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, both prohibit discrimination based on source of income, which is defined as including rental payments from any government program. However, both laws also provide that a landlord's nonparticipation in a government-sponsored rental assistance, voucher, or certificate system cannot be the basis for an administrative or judicial proceeding.      This Act revises both the Delaware Fair Housing Act and Residential Landlord-Tenant Code to repeal the exemption to discrimination based on source of income that allows a landlord to discriminate against tenants who participate in government-sponsored rental assistance programs because this exemption contributes to a lack of affordable housing in this State. There is currently a severe shortage of affordable housing for extremely low-income households in Delaware, with only 38 affordable rental units available for every 100 extremely low-income households. In addition, studies have shown that people who use government subsidies to move from high-poverty neighborhoods to communities with more opportunity have measurable health improvements and the children in these families earn more in adulthood than children who remain in high-poverty neighborhoods.      This Act delays the effective date of this Act to allow the opportunity for all of the following to occur:   1. Conduct outreach and education to landlords about how this Act changes the law. This outreach will include information explaining that while the law prohibits a landlord from having a blanket policy of not accepting government assistance to pay rent, it does not require a landlord to accept all applicants who receive rental assistance, such as applicants who have a history of evictions or not paying utility bills.   2. Explore opportunities to streamline and standardize the processes used by government assistance.   Author: Senator Lockman  

 SYNOPSIS 

 The Delaware Fair Housing Act, Chapter 46 of Title 6, and Residential Landlord-Tenant Code, Chapter 51 of Title 25, both prohibit discrimination based on source of income, which is defined as including rental payments from any government program. However, both laws also provide that a landlord's nonparticipation in a government-sponsored rental assistance, voucher, or certificate system cannot be the basis for an administrative or judicial proceeding. 

  

 This Act revises both the Delaware Fair Housing Act and Residential Landlord-Tenant Code to repeal the exemption to discrimination based on source of income that allows a landlord to discriminate against tenants who participate in government-sponsored rental assistance programs because this exemption contributes to a lack of affordable housing in this State. There is currently a severe shortage of affordable housing for extremely low-income households in Delaware, with only 38 affordable rental units available for every 100 extremely low-income households. In addition, studies have shown that people who use government subsidies to move from high-poverty neighborhoods to communities with more opportunity have measurable health improvements and the children in these families earn more in adulthood than children who remain in high-poverty neighborhoods. 

  

 This Act delays the effective date of this Act to allow the opportunity for all of the following to occur: 

 1. Conduct outreach and education to landlords about how this Act changes the law. This outreach will include information explaining that while the law prohibits a landlord from having a blanket policy of not accepting government assistance to pay rent, it does not require a landlord to accept all applicants who receive rental assistance, such as applicants who have a history of evictions or not paying utility bills. 

 2. Explore opportunities to streamline and standardize the processes used by government assistance. 

 Author: Senator Lockman