Section 7042 - Delaware manufactured home relocation trust fund(a) The Delaware Manufactured Home Relocation Trust Fund ("Trust Fund") is established in the Division of Revenue of the Department of Finance for exclusive use by the Delaware Manufactured Home Relocation Authority to fund the Authority's administration and operations. All interest earned from the investment or deposit of moneys in the Trust Fund must be deposited into the Trust Fund.(b) Moneys in the Trust Fund may be expended for only the following purposes:(1) To pay the administrative costs of the Authority, except Board member compensation for meeting attendance under § 7041(b)(2)b. of this title.(2) To carry out the objectives of the Authority by assisting manufactured home owners who are tenants in a manufactured home community where the community owner intends to change the use of all or part of the land on which the community is located or where the community owner intends to convert the manufactured home community to a manufactured home condominium community or to a manufactured home cooperative community pursuant to Chapter 71 of this title, and by assisting manufactured home community owners with the removal or disposal, or both, of nonrelocatable or abandoned manufactured homes.(3) To carry out the Authority's responsibilities under Subchapter VI of this chapter.(4)To fund the Delaware Manufactured Home Owner Attorney Fund under § 7046 of this title(c) After notifying the manufactured home owners who are tenants in a community owner's manufactured home community that the community owner intends to change the land use or to convert the community under paragraph (b)(2) of this section, if the community owner does not change the land use or convert the community within 3 years of notification, or if the Authority finds there is prima facie evidence under § 7024(c)(2) of this title that the owner did not intend in good faith to change land use, the community owner shall, within 30 days of the date the Authority provides written notice to the community owner, reimburse the Authority for whatever moneys the Authority has expended from the Trust Fund with respect to that manufactured home community, along with double the legal interest rate. The date of the mailing of notice by the Authority is deemed the date that a community owner is notified about reimbursing the Authority. However, if the community owner, with due diligence, has not been able to complete the change-in-use process within 3 years, the Authority may grant a reasonable extension to the community owner to complete the process.(d) Except as required for liquidation under subsections (f) and (k) of this section, the Trust Fund terminates on July 1, 2029, unless terminated sooner or extended by the General Assembly.(e) The cap on the Trust Fund is $15 million. The cap may be adjusted, eliminated, or reinstated by the Board at any time, subject to the voting requirements under § 7041(c)(3) of this title.(f) If the Trust Fund ceases to exist, the funds held at the time of dissolution must be liquidated as follows:(1) Fifty percent of the total funds, on a per capita basis, to tenants of rented lots in manufactured home communities in Delaware who have occupied the lots for at least the 12 months immediately prior to the time of the dissolution.(2) Fifty percent of the total funds to landlords owning rented lots at the time of dissolution, prorated on the number of lots actually rented by the landlords for at least the 12 months immediately prior to the time of dissolution.(g)(1)a.The Board shall set a monthly assessment for deposit in the Trust Fund for each rented lot in a manufactured home community. The Board may adjust, eliminate, or reinstate the assessment, and shall notify landlords and tenants of each adjustment, elimination or reinstatement under Board regulations. b. One-half of the monthly assessment set under paragraph (g)(1)a. of this section is the obligation of the tenant of rented lot, and 1/2 of the assessment is the obligation of the landlord. c. Beginning on December 11, 2019, the landlord portion of the monthly assessment is credited 50 cents for each rented lot. d. Beginning on December 11, 2019, 50 cents of the tenant portion of the monthly assessment for each rented lot is redirected to the Delaware Manufactured Home Owner Attorney Fund under § 7046 of this title. (2)a. The monthly assessment set under this subsection must be paid as follows: 1The tenant's portion of the monthly assessment under paragraph (g)(1)d. of this section is the obligation of the tenant of the rented lot 2 The landlord's portion of the monthly assessment under paragraph (g)(1)c. of this section is the obligation of the landlord. b.The landlord shall collect the tenant's portion of the assessments under this section on a monthly basis as additional rent. The landlord shall remit to the Trust Fund both its portion and the tenant's portion of the assessments on a quarterly basis. The landlord is responsible for safeguarding all assessments it collects. Failure by a tenant to pay to the landlord the tenant's portion of the assessment as additional rent is grounds for termination of the rental agreement under § 7016 of this title. An assessment is not due or collectable for a vacant lot. (3) If a lot is rented for any portion of a month, the full monthly assessment must be paid to the Trust Fund.(4) If a rental agreement contains a capping provision which limits the amount by which rent may be increased, the Trust Fund assessment is deemed not to be rent for purposes of rent increases.(5)a. If within 30 days of the quarterly due date a landlord fails to remit to the Trust Fund both its portion and the tenant's portion of the assessment, the Authority may notify the landlord in writing, demanding payment and stating that, unless the required payment is made within 7 days from the date of mailing, legal action may be initiated to collect any assessment, interest, at the rate of 1% per month until paid in full, or other sums due and owing. Any written notice must comply with § 7015 of this title. If the Authority is awarded a judgment in its favor, the Authority may request and the court shall award reasonable attorney's fees, costs, and expenses. Failure by the Authority to provide the notice under this paragraph (g)(5)a. of this section is not prejudicial to the Authority's right to pursue such cause of action. b. A landlord may assert as an affirmative defense to legal action initiated under paragraph (g)(5)a. of this section that a tenant has failed to pay its portion of the assessment. There is a rebuttable presumption that the tenant has paid its required assessment amount in full(h) The Authority may not for any reason, including age, income level, or geography, exempt any landlord or tenant from paying the Trust Fund assessment.(i) The Trust Fund must be audited annually. If the State Auditor's Office performs the audit, the Authority shall pay the cost of the audit to the State from the Trust . Fund. The completed audit must be made available to the public by placing it on a website, by offering it as a hard copy for a fee which reflects reasonable reproduction cost, or in some other manner determined by the Authority.(j) In addition to providing for an annual audit under subsection (i) of this section, the Authority shall make available to the public, at least on a quarterly basis, the amount of the payment made to each tenant and landlord, along with a description of the property related to the payment and the reason for the payment.(k) If the Delaware Manufactured Home Owner Attorney Fund ceases to exist, the funds held at the time of dissolution must be liquidated on a per capita basis to tenants of rented lots in manufactured home communities in Delaware who have occupied the lots for at least the 12 months immediately before the time of the dissolution. Amended by Laws 2023, ch. 21,s 2, eff. 4/26/2023.Amended by Laws 2019, ch. 141,s.s4, eff. 12/11/2019 and s 22 eff. 12/12/2019.Added by Laws 2019, ch. 38,s 35, eff. 12/10/2019.