Why Should Delaware Care?
Delaware law allows tenants to withhold rent from landlords if essential repairs and maintenance are not provided. But the process can be difficult for renters who may lack the knowledge or resources to follow the proper legal steps. A recent Wilmington proposal aimed at helping renters to better access this protection was recently approved after being previously vetoed by Mayor John Carney.
The Wilmington City Council has reached a compromise with Mayor John Carney over a landlord/tenant proposal that had previously sparked the first mayoral veto in two years.
Last week, the council passed a revised version of the proposal to create a city escrow account, where tenants can deposit rent when landlords fail to provide basic services.
And this time, the measure has Carney’s support.
Caroline Klinger, a spokeswoman for the mayor, said Carney’s earlier objections around costs and around “unintended legal consequences” for the city have been resolved.
“We appreciate the collaboration on this issue,” she said in a statement.
The original legislation, proposed by Councilwoman Yolanda McCoy in April, aimed to give tenants a city-managed account that would hold their rent if a landlord failed to provide basic amenities, such as hot water, heat, or electricity.
Under Delaware Law, tenants can already withhold two-thirds of their daily rent if their landlord does not provide those and other vital services.
McCoy previously said she intended to give tenants a secure place to withhold rent, while also offering landlords verifiable proof that money is being safely held.
The initial legislation would have put the city’s Department of Licensing and Inspections in charge of the program, requiring additional staffing and improved software, according to the city. The cost estimate for the program was $300,000 annually, which Carney said the city couldn’t afford.
Following his veto in October, the council was split on what to do. Council members Christian Willauer, Shané Darby, and Coby Owens urged their colleagues to vote to override it.
But, others, such as Councilman James Spadola, sided with the mayor and repeated his concerns about costs.
Instead of pushing for a veto override, McCoy met with the mayor’s administration to revise the legislation. Then, during a November council meeting, McCoy outlined several of her key revisions, which sought to preserve the program while addressing Carney’s concerns.
“What has happened is the administration was very uneasy about the ordinance that was presented a few weeks ago, and so what I’ve had to do is I’ve actually had to go back and tie up some of the loose ends,” McCoy said during the meeting.
Now, the recently approved legislation gives the city the option to secure a third-party to run the program, at a cost to the city of about $100,000.
The bill was also revised to ensure the city is not superseding state law, and only allows a tenant to participate in the program if their landlord fails to provide heat, water, hot water, and electricity. State law allows for renters to withhold rent for other services that violate a tenant’s rental agreement.
McCoy’s revisions also state that renters do not have to be current on their rent to utilize the program.
The program will go into effect 120 days after Carney signs it into law, which he has not yet done.
Klinger says the administration hasn’t yet decided if it will run the program through the city or through an outside vendor.
