Delaware Department of Justice
Attorney General Kathy Jennings

Education

The MHO provides resources to home owners, HOAs, and community owners about manufactured housing law and other relevant laws, rules, and regulations. The majority of resources are available under Helpful Links. Some are also available as print resources.

The MHO can also provide speakers to present on issues relevant to manufactured housing in Delaware.

Alternative Dispute Resolution

In situations where there is an ongoing dispute between parties, the parties involved may wish to attempt to resolve their dispute without having to go through the time and expense of litigation. For example, community owners and home owners in a dispute about whose responsibility it is to correct a problematic condition in the community may wish to attempt to resolve the matter with a negotiated solution prior to any potential litigation.

Although parties can negotiate resolutions to disputes on their own, they often benefit from assistance from a neutral third party. Such assistance can take several forms that are collectively called “Alternative Dispute Resolution” or “ADR.”

Home owners and community owners who wish to attempt to resolve their disputes without litigation can request mediation services through the MHO. Both parties must agree to mediation for the MHO to provide services.

Complaint Investigation and Resolution

The MHO accepts complaints from home owners and attempts resolve those complaints by working with both home owners and community owners to find mutually agreeable resolutions. When a dispute cannot be resolved, the MHO investigates the complaint to determine if there have been violations of Delaware laws. The MHO does not represent either side of the dispute.

If the MHO concludes that there appear to be violations of Delaware laws that the Consumer Protection Unit is empowered to enforce, the MHO will refer the matter to the CPU.  The CPU will make the final determination as to whether to file an enforcement action on behalf of the State of Delaware.  Other matters may be referred to other enforcement agencies as appropriate, and those agencies will determine what actions to take based on their own procedures.

Other than very limited investigation to ensure that proper notices were sent out and that the statutorily required meetings occurred, the MHO does not investigate rent increases subject to the Rent Justification Act. 25 C. §§ 7050-7056. Challenges to rent increases are initiated by filing a petition for arbitration with the Delaware Manufactured Home Relocation Authority (“DEMHRA”).  DEMHRA has sample letters and forms available on its website, including petitions for arbitration. The MHO cannot investigate whether any particular rent increase should be considered justified under the Rent Justification Act.

To file a complaint with the MHO, please download and complete the complaint form or at this link.

Visit the DOJ’s public reports portal for a full archive of the MHO’s Annual Reports and Manufactured Homeowner Attorney Fund Reports.

If you have a manufactured housing issue that you would like the ombudsperson to review, please fill out our online Manufactured Housing Complaint Form.

If you prefer, you may complete the complaint form by downloading a PDF of the form and returning it to us via the mailing address or email listed on the form.

If you are unable to complete the online form or download the pdf, please contact the Consumer Mediation Unit and ask to have a paper copy of the form mailed to you. The Consumer Mediation Unit can be reached by phone at 800-220-5425 or by email at consumer.protection@delaware.gov

Online Manufactured Housing Complaint Form

PDF version of the Manufactured Housing Complaint Form (Español | 中文 | 한국어 | हिन्दी | Kreyòl Ayisyen | Français)

If you are filing a complaint on behalf of someone else who wants you to provide ongoing assistance, they must complete a limited power of attorney to authorize you to assist them. A sample form is available here. Form Limited Power of Attorney.

The MHO’s model bylaws for HOAs were previously incorporated into the Delaware Code as an example of bylaws that comply with Delaware law.  HOAs are not required to utilize these bylaws but must ensure that their bylaws comply with Delaware law.   These model bylaws are provided here as a courtesy for home owners who are forming HOAs.  The MHO makes reasonable efforts to ensure that these bylaws are kept current but cannot guarantee that the bylaws will be changed immediately after changes in the relevant statutes take effect.  Home owners wishing to form an HOA are advised to consult the Delaware Code or with an attorney.

General Questions

What is a manufactured home?

A manufactured home (previously called a “mobile home”) is a house that is assembled offsite and then towed into place (or placed on a truck and moved). They can either be a single piece (“single section” or “single-wide”) or multiple pieces (“multi-section” or “double-wide”). Manufactured homes are sometimes called “trailers,” but this not a fair description of manufactured homes.

Although manufactured homes can be permanently affixed to a foundation, they need not be.

Is a manufactured home the same as a “pre-fabricated” or “modular” home?

No. Although “pre-fabricated” or “modular” homes are partially constructed off-site, they are assembled on-site and built to the same requirements as “normal” homes. Manufactured homes are completely assembled off-site (with the exceptions of the need to join the two sections of a multi-section home and to hook up utilities) and are built to meet different requirements.

Are manufactured homes mobile?

Sort of. Although manufactured homes can be moved, it can be very expensive to move them. It is much more complicated than hooking the home up to a truck and pulling it away. Once homes reach a certain age, the cost and difficulty to move them may make them functionally immobile.

Is a manufactured home like a recreational vehicle (RV) or camper trailer?

No. RVs and camper trailers are designed to be temporary dwellings that one can use while one is travelling. Manufactured homes are designed to be permanent residences even if they are only used seasonally.

Do manufactured homes have deeds and titles like “regular” homes?

Usually not. Manufactured homes have titles, but they are titled through the Department of Motor Vehicles. There is an exception if the home is permanently affixed to a foundation. If a manufactured home is permanently affixed to a foundation, it can be treated like a “regular” home.

What laws and rules apply to manufactured homes?

In addition to the laws that apply to all property such as environmental laws and zoning, there are some specific laws that apply to manufactured homes. Construction standards are different for manufactured homes than for “regular” homes, and financing options can be different. Outside of the realms of home construction, purchasing, and financing, the major differences in applicable laws are based on who owns your home and who owns the ground on which it sits. Although there are exceptions, as a general matter:

• If you own your home and you own the land on which the home sits, the home is treated like any other home (although it may be different for zoning).
• If you rent your home, the home is considered a rental property and is treated like any other rental property (e.g., an apartment). Residential rentals are covered under the Residential Landlord / Tenant Code, which can be found in chapters 51 through 59 of Title 25 of the Delaware Code. Review the full Delaware Landlord Tenant Code (see chapters 51-59) or a printable summary.
• If you own your home but rent the ground on which it sits (usually called a “lot lease”), your lot lease is most likely covered under the Manufactured Home and Manufactured Home Communities Act, Chapter 70 of Title 25 of the Delaware Code.

Do manufactured homes gain value over time?

As a general matter, it is the ground underneath a home that becomes more valuable, not the home itself. As such, if you own the home and the ground, the combination of home and ground may increase in value over time just like any other home. On the other hand, if your home is situated on land that you do not own (e.g., if you rent a lot in a manufactured home community), it is unlikely that your home will increase in value over time. All of that said, real estate markets can be unpredictable. Anything can happen.

Should I buy a manufactured home?

Buying any home is a huge decision, and there are many factors that should be considered before making your decision. Do your research on homes and communities. Get a home inspection, especially for older homes. Look for a home inspector who has training or experience with manufactured homes. If you are considering buying a home in a manufactured home community, talk to current residents. Find out the history of the community, including a history of the rent increases. If you are unsure about something regarding a home or a community, make sure you get an answer before you buy.

Manufactured Housing & Rent Increases

When can community owners increase the rent?

Community owners can increase the rent when the home owner’s lease renews, but they cannot increase the rent more than once every 12 months. This means that if you have a 1-year lease, your rent can be increased every time your lease renews. If you have a 6-month lease, your rent can be increased every other time your lease renews (i.e., once every 12 months).

How do I know when my lease renews?

When you originally entered into the lease, it should have had a start date and an end date. Most leases have a duration of one year. If the lease does not have a duration stated, the law assumes that the duration is one year.

Is there a maximum amount that the community owner can increase the rent?

No. Community owners can seek rent increases in any amount, but amounts in excess of an inflationary measure (the “CPI-U”) are subject to challenge under the Rent Justification Act. The CPI-U can be found here.

What is the procedure when a community owner wants to increase the rent?

First, the community owner must send notices to affected home owners and to the Delaware Manufactured Home Relocation Authority (“DEMHRA”). The notices must be sent at least 90 days before the rent increase is scheduled to take effect. If the rent increase does not exceed the CPI-U, this is the end of the process, and the rent increase goes into effect when scheduled. If the rent increase exceeds the CPI-U, the community owner must schedule a meeting with the affected home owners. At or before the meeting, the community owner must provide information in writing about the reasons for the rent increase.

How do home owners challenge a rent increase under the Rent Justification Act?

After the meeting with the community owner, home owners have 30 days to challenge the rent increase by filing a petition for arbitration with DEMHRA. A sample form can be found here. A home owners association can also file a petition for arbitration on behalf of its members.

Do I need a lawyer in a Rent Justification Act arbitration?

No, but it can be very helpful to have an attorney. Home owners, HOAs, and community owners have all been permitted to appear in rent justification arbitrations without lawyers.

What happens in a rent justification arbitration?

The arbitration is similar to a trial. Before the arbitration, there will be requests for information between the parties, and the parties will exchange documents and witness lists. At the arbitration, there will be a court reporter. Witnesses will be sworn in just like in court. Witnesses will testify, and documents will be entered into evidence. After the arbitration, the arbitrator will weigh the evidence and decide whether the rent increase was justified under the requirements of the Rent Justification Act. If either side is unhappy with the decision, they can file an appeal with the Superior Court.

What happens while the case is being decided?

The rent increase goes into effect as scheduled. If the home owners eventually win at arbitration (or if the amount of the rent increase is reduced), the community owner must refund or credit the excess money paid by the home owners.

Can the Office of the Manufactured Housing Ombudsperson (“MHO”) represent me or my HOA in challenging a rent increase if we think that it isn’t justified?

No. The MHO is part of the Delaware Department of Justice. The Delaware Department of Justice represents the State of Delaware and cannot represent individuals (or groups).

Can the MHO at least look at the information the community provided and let us know if the rent increase is justified or give us some strategies for how to win at arbitration?

No. The MHO cannot provide legal advice on your particular situation. While the MHO can, and does, provide general information about rights and responsibilities under the law, it cannot provide any legal advice about anyone’s particular situation.

Is there anything that the MHO can do about rent increases?

The MHO’s authority to investigate rent increases is very limited. The MHO may be able to investigate if the community owner is not sending out timely notices, is not scheduling the required meetings with the home owners, is raising the rent more than once every 12 months, or is otherwise failing to follow the procedural requirements of the Rent Justification Act. The MHO cannot investigate whether a particular rent increase is justified.

Lease Termination

Is it true that manufactured home lot leases are “perpetual” leases?

No. Manufactured home lot leases exist for a particular length of time, called a “term” or “duration.” Manufactured home lot leases often have a one-year term. Longer or shorter leases are possible if the parties agree to them in writing.

Does that mean that a home owner can be kicked out when the lease ends?

No. Ordinary residential leases (e.g., for an apartment) can be terminated by either party if they give adequate notice prior to the end of a term. Lot leases are different. The community owner is required to renew the lease upon its expiration unless:

1. the home owner provides notice to the community owner stating that the home owner intends not to renew the lease (60 day notice required) or
2. the community owner notifies the tenant that the community owner has “due cause” (discussed below) to terminate the lease (90 day notice required).

Can the community owner change the lease when it renews?

No, except for the amount of rent. All other provisions of the lease, including the duration of the lease, must be kept the same unless both sides agree to the change.

When can a home owner terminate the lease?

At the end of the term of the lease, by giving 60-days’ notice to the community owner. When the home owner sells the manufactured home, the lease terminates automatically once the buyer enters into a new rental agreement with the community owner. If the seller chooses to transfer the existing lease to the buyer, the lease does not terminate (because it has been transferred), but the seller’s obligations under the lease are terminated once the transfer is completed/ During the first month of occupancy, if the community owner is not substantially complying with provisions of the rental agreement or is not complying with the laws governing manufactured home communities. At any time, if there is a condition that deprives the home owner of a substantial part of the benefit and enjoyment that the rental agreement entitles them to, if the condition is NOT caused by the home owner or the home owner’s guests AND

1. The community owner does not fix the condition within 15 days of when the home owner mails written notice to the community owner or
2. The condition makes the premises uninhabitable or poses an imminent risk to the home owner’s health, safety, or welfare.

Within the first 18 months of occupancy, if the community owner intentionally misrepresented a material fact about the community, the services therein, or the provisions of the rental agreement if:

1. The community owner did so for the purpose of getting the home owner to enter into the rental agreement AND
2. The home owner relied on the misrepresentation.

What is “due cause” that allows a community owner to not renew or to terminate a lease?

Due Cause is one of two things:

1. A change in land use, meaning that the community owner is going to use the land as something other than a manufactured home park where it leases lots. A community owner must give at least a 1-year notice to home owners in order to change the land use. There are specific procedures that must be followed, and home owners can receive payments to help with cost of moving their homes
2. The home owner failing to comply with the lease. Depending on the nature of the noncompliance, the community owner may be able to terminate the lease immediately or may only be able to do so if there is additional noncompliance. In order to do this, there are specific notices that the community owner must send. Be sure to read the lease, any additional rules, and the relevant section of the Delaware Code carefully.

My community owner sent me a notice stating that I violated the lease and my lease is now terminated. Does that I mean I have to leave?

No. Only a court can order you to return possession of the lot to the community owner. The community owner cannot use “self help” (e.g., placing locks on the doors, putting a locked chain across your driveway, etc.) to make you leave.

The notice my community owner sent me says that I will be considered a “holdover” tenant if I do not leave by a certain date and that I will have to pay double rent if I do not leave. Is that true?

Not exactly. The court may require you to pay double rent from the date of lease termination if the court finds that you held over in bad faith. If the court finds that the holdover is in good faith, you are only liable for regular rent.

My community owner has filed a case in court against me. I have received the notice of the trial date. Do I have to go to court?

YES. To clarify, no one is going to put you in handcuffs and take you to jail if you do not go to your eviction trial. That said, if the community owner shows up and you do not, you are probably going to lose.

Do I need an attorney if I go to court?

You are allowed to go to court and argue your case without an attorney, but it can be very, very helpful to have an attorney. The Justice of the Peace Court has a special rule that allows corporations and similar entities to be represented by someone other than an attorney if they fill out the appropriate paperwork.

I can’t afford an attorney. What should I do?

Home owners can try contacting Legal Services Corporation of Delaware or Community Legal Aid Society, Inc. They might be able to help.

I own my home. If I get evicted, does that mean I lose my home?

No. You own your home. You are being evicted from the lot. You have every right to take your home with you. Whether it is practical to do so may be a different question.

Delaware Department of Justice
Office of the Manufactured Housing Ombudsperson
820 N. French St., 5^th Floor
Wilmington, DE 19801

Phone:  (800) 220-5424
Fax:  (302) 577-6499
manufactured.housing@delaware.gov