Currently, the Delaware Fair Housing Act and Residential Landlord-Tenant Code includes an exemption so landlords do not face legal action if they choose to not accept government-sponsored rental vouchers.
This exemption contradicts the Delaware Fair Housing Act, which codifies no real estate entity can discriminate based on source of income.
State Sen. Elizabeth Lockman (D-Wilmington) introduced legislation to fix this loophole in 2021, but the bill ultimately failed to receive a full vote in the House after passing in the Senate.
She is now re-introducing the legislation after highlighting statistics showing the difficulty voucher holders are having in finding housing.
In 2023, only 42% of rental assistance voucher holders in New Castle County found units due to the lack of affordable housing in Delaware.
That percentage was even lower in Kent and Sussex counties, where only 36% of households with federal Housing Choice Vouchers secured housing.
Additionally, only 79% of voucher holders that receive case management services under the Delaware State Housing Authority-administered State Rental Assistance Program (SRAP) were able to secure housing in 2023.
“We know that this is part of the solution, and I believe it’s time now for us to act by eliminating this contradiction in our law, closing this loophole allowing discrimination, and finally moving Delaware passed this policy and all that it does to contribute to our housing crisis," Lockman said during the bill's hearing in the Senate Housing Committee.
The main reason landlords do not accept vouchers is the requirement that a public housing authority must inspect the unit before it can be rented, which landlords explain is often a delayed process that can lead to income loss.
Executive Director of the Delaware Apartment Association (DAA) Debra Burgos says DAA wants to support the legislation, but she’s concerned the implementation timeline is too quick and there are more talks to be had to improve efficiency.
“We’ve done a lot of work with this streamlining and working with the housing authorities to do what we can to fix some of these inefficiencies and issues to make it easier for everyone, and we want to make sure that that focus isn’t lost," Burgos said.
Lockman says she is receptive to Burgos’s concerns, and told the committee an amendment is in the works to reevaluate the timeframe.
The bill was released from committee and waits for a full vote on the Senate floor.
