Real Estate Transfer Tax:
Members of the General Assembly continue to work to meet revenue targets. Revenues being discussed include some contribution from the counties, repeal of part of the gross receipts tax and several others. It's important that until the budget is passed REALTORS
® weigh in with their elected officials in opposition to any increase in the real estate transfer tax. If you have not yet contacted your Senator and/or Representative, DAR encourages you to do so. If you need contact information, please e-mail Charlotte Herbert at
charlotte@delawarerealtor.com or call Charlotte at 734-4444, ext. 12.
Busy Week for Eminent Domain:
SB 245, legislation which seeks to eliminate the use of eminent domain for redevelopment purposes, passed the Senate, was reported out of the House Transportation, Land Use and Infrastructure Committee and passed the House of Representatives 38-0. The legislation is at the Governor. It is uncertain whether she will sign it, veto it with time for an override, veto it with no time to override or let it go without signature.
Representative Hocker Introduced HB 488 on June 12th:
The bill addresses DAR's concerns including revising the definition of blight, establishing a substantive procedural process in order to use eminent domain as a tool of last resort and to provide for just compensation.
Tax Ditch Bill Clears House Committee:
HB 452, providing a three-tiered system for tax ditch right-of-ways and grandfathering existing structures, was reported out of the House Agriculture Committee. It is expected to be considered by the House next week.
Banning Deed Restriction or Covenants Prohibiting Solar Systems:
SB 258 which bans covenants or deed restrictions from prohibiting solar systems passed the Senate this week with an amendment specifying roof-mounted systems only. The legislation is expected to be considered by the House Committee on Energy and Natural Resources on Wednesday. While DAR supports alternative energy sources, we are opposed to governmental efforts to override private deed restrictions. We believe the government should not interfere with the rights of property owners to privately regulate the use of their properties. Most deed restrictions do not prohibit rooftop solar panels. We remind homeowners that there is already an expedited procedure in Chancery Court for homeowners to resolve disputes about deed restrictions. We encourage homeowner committees to consider voluntarily amending their deed restrictions to permit alternative energy sources as their community sees appropriate. Below is a list of the members of the Energy and Natural Resources Committee. If your Representative is on the list we strongly encourage you to contact them to express your opposition. In addition, we encourage all members to contact their Representative in the General Assembly to voice your concerns about this legislation.
House Energy and Natural Resources Committee:
Gerald Hocker, Chair
Joe Booth, Vice-Chair
V. George Carey
Gregory Hastings
Nick Manolakos
William Outten
Pamela Thornburg
Bethany Hall-Long
John Kowalko
Valerie Longhurst
Michael Mulrooney
Diana McWilliams
Robert Walls
Tax Increment Financing:
House Bill 451 was introduced on June 10 and reported out of the House Committee on Housing and Community Affairs on June 11th. The bill enables Sussex County to take advantage of the opportunity to development and redevelopment infrastructure impact costs financed through the establishment of tax increment financing districts and the establishment of special development districts.
Hearing Set for June 23 on Proposed Inland Bays Pollution Control Strategy:
DNREC's Division of Water Resources Watershed Assessment Section will hold a public hearing 6 p.m. Monday, June 23 on the proposed Inland Bays Pollution Control Strategy. The hearing will be held at the Georgetown CHEER Center,
20520 Sandhill Road, Georgetown.
The proposed Strategy includes provisions to establish riparian buffers to filter pollutants before they flow into the Inland Bays and their tributaries. The Strategy includes a map highlighting the primary and secondary waters and the proposed buffer widths. Primary waters, including the Inlands Bays and tributaries with continual streamflow and state-regulated wetlands, require buffer widths of 100 feet, while secondary waters, including bay tributaries with intermittent streamflow, require 60 foot buffers. Buffer widths may be reduced to 50 feet on primary waters and to 30 feet on secondary waters with enhanced stormwater management and a development-wide nutrient management plan.
The proposed Strategy also requires the pump-out and inspection of onsite wastewater treatment and disposal systems (septic systems) that serve homes and businesses which are sold or transferred to other owners. In addition advanced treatment for nitrogen reduction is required for all new and replacement onsite wastewater and disposal systems on properties located within 1000 feet of tidal waters and wetlands, as mapped in the proposed Strategy. All new and replacement systems would be required to use this technology in 2015.
The Inland Bays Pollution Control Strategy is available on DNREC's website, www.dnrec.delaware.gov or by contacting Maryann Pielmeier, Division of Water Resources, (302) 739-9939.
The regulations can go in to effect as early as August. It is imperative that REALTORS® attend the public hearing on June 23 to voice their concerns.
Delaware Uniform Common Interest Ownership Act:
Senator Amick along with Senator Sokola and Representatives Valihura, D. Short and Marshall introduced SB 273 on June 4th, which establishes a Delaware Uniform Common Interest Ownership Act (DUCIOA). According to the legislation, the impetus behind revising the current law governing condominiums, time shares, cooperatives and planned communities derives from issues not addressed by current Delaware Law. These types of property ownership fit into a category referred to as a "common interest community." Existing law makes it relatively easy for a property owner or developer with little or no oversight to establish a common interest community, but fails to provide a framework with the flexibility for finding equitable solutions to the issues which arise when the uninitiated are thrust together in an unfamiliar social setting created by a common real estate investment.
The bill incorporates, where feasible, the ongoing operations of existing common interest communities, but excludes any requirement that they change existing documents or impact fundamental rights under those documents. An existing community may elect, subject to the requirements of its existing documents, to amend those documents to comply with any requirements of this bill. However, in addition to complying with the requirements imposed by existing documents, any amendments to the existing documents must comply with the new requirements as to threshold issues such as notice and recording. And many of the procedures for better governance of communities apply to all pre-existing communities.
Examples of items not addressed in the existing body of law, which are addressed in the DUCIOA, include: (i) the situation which often occurs when the developer of a planned community encounters unexpected financial conditions and seeks to change the nature of the community to the detriment of existing unit owners; (ii) the need for the developer to fully reveal all aspects of the planned community, including rights "hidden" in the documents which permit the developer, his assigns or an entity foreclosing on the property to change the community by adding or subtracting additional units or changing the character of the community; (iii) protection for the community when a developer or unit owner fails to pay their proper share of the community common expenses; (iv) a procedure by which the community may address changing circumstances which require it to acquire additional property, dispose of property or negotiate with a developer who is unable to meet its obligations; (v) a solution to the problem of how purchasers in a common interest community may protect themselves when a developer fails to meet its obligations and has incurred financial reverses unrelated to the community which take preference to the obligation to the community; (vi) the requirement that formal promises made by a developer regarding the common elements or amenities of the community rise to the same legal status as formal commitments made in conjunction with the purchase of real property; (vii) the impact of sweetheart agreements put in place by the developer which extend beyond the developer's control of the community; and (viii) the problem when the community has not made any provision for reserves for the repair and replacement of systems or buildings.
It is not intended that the DUCIOA will supplant the requirements of any County as to its planning and development function. However, it does extend to all State residents uniform protection to all participants in the planned community process. The bill requires any entity seeking to sell units in a common interest community to prepare a public offering statement which will bind the author.
The bill was dropped for discussion purposes and will likely move next session. If you have any comments or suggestions, please contact Charlotte Herbert at charlotte@delawarerealtor.com or 734-4444, ext. 12.
7 Legislative Days Remaining:
DAR is looking for REALTORS
® interested in coming to Legislative Hall the last two days of session to show our commitment to private property rights. If you are interested or would like more information, please contact Charlotte Herbert at
charlotte@delawarerealtor.com or at 734-4444 ext. 12.
