Wilmington City Council created a rent escrow program at its Dec. 5 meeting despite a veto from Mayor John Carney in October.
Councilmember Yolanda McCoy tried to get the approval for a rent escrow program three times. And it’s only on her latest attempt that she received City Council and the mayor’s approval.
Mayor John Carney has until the 15th to sign it into law.
Once it has Carney’s official approval, city staff have 120 days to either find a third party to manage the program or implement it on its own. McCoy says the third party option was something the mayor wanted to see after his October veto.
“Having to hire someone full time through the city would actually be a little bit more costly…” McCoy said. “They're definitely trying to focus on finding that third party to be able to operate this program. And you know, they have some people in mind now.”
Without a third party to operate the program, it’s estimated to cost the city about $300 thousand, which would include a full-time employee, their benefits and the software needed to run a program like McCoy proposed.
In the statement explaining his veto, Carney said the program was too costly and put the city at risk of a lawsuit. His office collaborated with McCoy in the new rendition of the ordinance.
Under the measure, if a landlord doesn’t address issues that make a space unlivable – like no heat, water or electricity – within 48 hours, tenants will have the ability to withhold two-thirds of their rent and store it with the city’s program until the issues raised are addressed.
Wilmington code and Delaware state law already permits the withholding of two-thirds of rent once 48 hours passes without a vital service or utility. The ordinance allows the city to store the funds residents want to set aside for rent.
McCoy said this ordinance has always been a big deal to her as she has went through times where she didn’t have savings or funds readily available.
“I wanted to make sure that I eliminated more people from getting evicted because [...] they had to use the money that they set aside for the rent withholding to fix their car…” McCoy said. “I do feel as though it will provide more of our tenants here within the city understanding about what their rights are, what the landlord is supposed to be doing.”
McCoy added she hopes the program will also call attention to tenant rights in the city and make sure both parties are held accountable to their lease agreements.
Looking forward, McCoy plans to have an informational meeting with a landlord group to inform them of the changes this ordinance makes.
