Mobile home park fees in Delaware

Delaware's Manufactured Home Owners and Community Owners Act (25 Del. C. Chapter 70) places specific limits on the types and amounts of fees a manufactured home community may charge, and caps the utility rate a landlord may pass on to residents. What follows is a general explanation of how those limits work; for a specific charge or dispute, consulting a licensed attorney in Delaware is worthwhile.

What the statute says

Section 7020 controls fees and utility rates. On the utility rate ceiling:

The rate charged by a landlord for a utility may not exceed the utility's retail consumer rate, and the rate charged by the landlord may be adjusted without notice on a monthly basis.

On fees and the frequency of increases:

A fee may not be increased more than once during any 12-month period, with 60 days' written notice required before increases take effect.

On application fees: the fee may not exceed "the greater of 10% of the monthly lot rent or $50," and records must be kept for two years.

Section 7008 prohibits rental-agreement provisions imposing late fees exceeding "the greater of $25 or 5% of the monthly rental payment."

The statute also requires that optional-user fees — for amenities such as pools, tennis courts, or marine facilities — be "reasonably related to the cost of providing the facility or service." And before assessing any fee, §7020 requires notice and allows the resident five days to correct the underlying condition.

How it works in general

Delaware ties most fees to documented costs or statutory ceilings. Utility pass-throughs cannot exceed the retail consumer rate for the utility; this applies monthly and without a separate notice requirement as retail rates shift. Non-utility fees require 60 days' advance notice and cannot increase more than once in 12 months. Application fees are capped at the greater of 10% of monthly lot rent or $50. Late fees in the rental agreement are capped at the greater of $25 or 5% of monthly rent. Optional amenity fees must bear a reasonable relationship to cost. If a third-party utility bill is paid by the landlord on a delinquent resident's behalf, §7020 allows recovery of a fee not exceeding the greater of 5% of the payment or $25.

Common scenarios

General examples Delaware community residents commonly encounter:

• A notice of a fee increase arrives. The 60-day advance notice requirement and the once-per-12-months limit under §7020 are the key controls.
• An application fee is charged to a prospective buyer applying for lot assignment. The §7020 cap — the greater of 10% of monthly lot rent or $50 — applies.
• A late charge appears on a statement. The §7008 ceiling of the greater of $25 or 5% of monthly rent limits what the rental agreement can impose.
• A utility charge on the community bill appears to exceed the retail rate. Section 7020 prohibits charging above the utility's retail consumer rate.
• An optional amenity fee increases. Reasonableness relative to the cost of providing the facility is what §7020 requires.

Other authorities that may apply

Section 7020 and §7008 work together with the written rental agreement, which under §7008 must include a complete fee schedule identifying each service. Utility regulation also involves the state or local utility provider's own tariff and any applicable Public Service Commission rules. Federal law may apply in particular situations. The overall fee framework under Chapter 70 supplements — and in most cases overrides — any contrary provision in the rental agreement.