3 Del. Admin. Code § 701-9.0

Current through Register Vol. 28, No. 5, November 1, 2024

Section 701-9.0 - Dwelling Property Hardship Exceptions

9.1 Except as set forth in Section 9.7 hereof, owners of real property who have executed a District Agreement or a preservation easement that incorporate the restrictions in effect prior to the Senate Bill No. 333 amendments are entitled to apply to the Foundation for a hardship exception allowing for the transfer of dwelling property to parties who are not otherwise entitled to residential use of the dwelling property under the District Agreement or Preservation Easement, subject to the provisions of 3 Del.C. § 909 (a)(2)(b) and the following requirements.

9.2 An applicant for a hardship exception shall submit the following information in writing to the Foundation:

9.2.1 name and property interest of applicant in the dwelling property;

9.2.2 acreage of the dwelling property subject to application;

9.2.3 date on which the District was established;

9.2.4 number of dwellings and acreage of residential use currently on the property in the District;

9.2.5 the nature of the hardship condition and reasons justifying the granting of a hardship exception;

9.2.6 the extent to which the hardship condition is unavoidable.

9.3 The Foundation shall consider hardship conditions involving the following circumstances:

9.3.1 the sale or transfer of the dwelling property compelled by foreclosure, court order, or marital property division agreement;

9.3.2 the sale or transfer of the dwelling property compelled by job transfer;

9.3.3 the sale or transfer of the dwelling property compelled by health conditions;

9.3.4 the sale or transfer of the dwelling property required to avoid insolvency or bankruptcy; and

9.3.5 other circumstances of an unusual and extraordinary nature which pose a practical hardship to continued ownership of the dwelling property and which are unavoidable.

9.4 Hardship exceptions will not be granted when no real hardship exists and the primary consequence of the sale or transfer of the dwelling property is financial gain.

9.5 The applicant shall bear the burden of establishing the existence of hardship circumstances, and shall provide to the Foundation documentation in support of the application, and any documentation requested by the Foundation, provided however, that documentation involving privileged information may be submitted on a confidential basis.

9.6 The Foundation may require the applicant for a hardship exception to appear before the Foundation Board to present the application, and an applicant shall be entitled to appear before the Board to make a presentation by submitting a written request to the Foundation.

9.7 The granting of a hardship exception by the Foundation shall be subject to the following conditions:

9.7.1 the dwelling property following transfer shall be used only for residential purposes;

9.7.2 the transferred property shall not qualify for District benefits or benefits of Preservation Easements;

9.7.3 if the transferred property is subject to a Preservation Easement prior to transfer, payment shall be made to the Foundation in an amount equal to twenty-five (25) percent of the current fair market value of the land subject to transfer;

9.7.4 the transferee shall execute a Declaration in recordable form as prescribed by the Foundation which includes the acreage allowed for dwelling housing and the restrictions which apply to the real property;

9.7.5 the Foundation may require the transferor to execute a Declaration in recordable form as prescribed by the Foundation to evidence the status of allowable dwelling housing property on lands retained by the transferor which are in the District or subject to a Preservation Easement; and

9.7.6 such other terms and conditions considered necessary by Foundation to address the nature of the hardship condition.

9.8 The hardship provisions set forth herein shall not apply to the owners of real property who, pursuant to 3 Del.C. § 909 (a)(4)(c), have elected to be released from the restrictions of 3 Del.C. § 909 (a)(2)(b).

3 Del. Admin. Code § 701-9.0

19 DE Reg. 482 (12/1/2015) (Final)