Section 7052A - Rent increase; justified base rent increase calculations(a)(1) This section applies to a lease when notice of a rent increase is provided on or after [the effective date of this Act] until [the date 5 years after the effective date of this Act].(2) Any of the following may continue beyond [the date 5 years after the effective date of this Act]: a. A phased rent increase in effect under paragraph (d)(3) of this section.b. An agreement under paragraph (b)(1)c. of this section.(3) After [the date 5 years after the effective date of this Act], this section continues to apply to rent increased under this section, including an additional rent increase under § 7052B of this title, until the end of the period for the rent increase.(b)(1) If a community owner is in compliance with § 7051A of this title, a community owner may increase rent under 1 of the following: a. Paragraph (c)(2) of this section, based on the CPI-U.b. Subsection (d) of this section, based on the market rent.c. Notwithstanding subsections (c) and (d) of this section, a community owner and a homeowner may, under a separate written agreement, mutually agree to a rent increase effective for longer than 1 calendar year.(2) In addition to a rent increase under paragraph (b)(1) of this section, a community owner may increase rent under § 7052B of this title, if the community owner includes a written reservation of rights as follows:a. In the notice for a rent increase under paragraph (c)(2) or subsection (d) of this section.b. In the agreement to a rent increase under paragraph (b)(1)c. of this section.(c)(1)a. For purposes of this section, "24-month CPI-U" means the average annual increase of the CPI-U for the most recently available preceding 24-month period.b. The Delaware State Housing Authority shall monitor updates to the CPI-U and within 5 days after new CPI-U data is released, calculate the 24-month CPI-U and report the 24-month CPI-U to DEMHRA.(2) A community owner may increase rent in an amount that does not exceed the following:a. If the 24-month CPI-U is equal to or below 6.1%, by 3.5% of the rent plus 50% of the 24-month CPI-U up to an amount that does not exceed 6.1%.b. If the 24-month CPI-U exceeds 6.1%, by the 24-month CPI-U.(3) Notwithstanding paragraphs (1) and (2) of this subsection, in periods of extremely high inflation, community owners are further restricted from increasing rent in a single year as follows: a. If the calculation under paragraph (2) of this subsection would result in a rent increase between 6.1% and 8%, a community owner must limit the rent increase to 6.1%.b. If the calculation under paragraph (2) of this subsection would result in an increase greater than 8%, a community owner must limit the rent increase to 6.1% plus 50% of the 24-month CPI-U above 6.1%.(4)a. If the community owner must reduce the rent increase due to paragraph (3) of this subsection, the community owner may apply the difference between the percentage increase calculated under paragraph (2) of this subsection and the amount applied under paragraph (3) of this subsection in the next 12-month rent increase period so long as it would not cause the rent to increase beyond the limits contained in paragraph (3) of this subsection. b. A community owner may continue to carry forward any rent increase percentage not applied under paragraph (4)a. of this subsection until such rent increase percentage has been applied in a future year.(5)a.Before providing notice of a rent increase under this subsection (c), a community must receive certification from DEMHRA that the rent increase is in compliance with paragraph (c)(2) of this section, as follows:
1. At least 20 days before providing notice of the rent increase, a community owner must submit written notice of this rent increase to DEMHRA and the Consumer Protection Division of the Department of Justice.2. Within 10 days of receiving the notice under paragraph (c)(3)a.1. of this section, DEMHRA shall provide a written reply to the community owner that either provides certification that the proposed rent increase complies with paragraph (c)(2) of this section or states that the proposed rent increase cannot be certified.b. A community owner must provide a copy of the certification under paragraph (c)(3)a.2. of this section with the notice of the rent increase.c. If DEMHRA does not provide certification under paragraph (c)(3)a.2. of this section, a community owner must submit a new notice under paragraph (c)(3)a.1. of this section before increasing rent under this subsection (c).(6) The Superior Court has jurisdiction over disputes under this subsection (c). (d)(1) A community owner may increase rent to bring the amount of rent to a market rent.(2) Section 7053 of this title applies to a rent increase under this subsection (d).(3) A rent increase under this subsection (d) must be phased in equally as follows: a. Over 7 years, if the increase under paragraph (d)(1) of this section is an amount that equals 50% or less of the rent on the date of the notice of the rent increase.b. Over 10 years, if the increase under paragraph (d)(1) of this section is an amount that equals more than 50% of the rent on the date of the notice of the rent increase.Amended by Laws 2023, ch. 531,s 1, eff. 11/2/2024.Added by Laws 2021 , ch. 341, s 4, eff. 7/1/2022.