Commentary: Leased-land corporations are conning millions of dollars out of the economy

These leased-land corporations count on Delaware legislators to not be aware of the shortage of affordable housing, which drives the cost of housing so high that many of them want to increase the minimum wage.”

Here is why passing Senate Bill 132 is so important to all Delawareans: It is no joke that every person living in Delaware is hurt when excessive lot rent increases are taken from seniors, retired military members and low-income homeowners, removing money from the state’s economy. We are talking about the millions and millions of dollars each year that can’t be spent in the local economy. Like magic, that money flows into the hands of investors who do not pay Delaware taxes, which adds to the hurt.

It’s all because of the poorly written laws that encourage buyouts of communities by conglomerates who raise rents to unconscionable levels. SB 132 would close loopholes and remove inequities that permit the exorbitant rent increases.

Since buying a brand-new, customized manufactured home in a new Dover community in 2003 — with a total investment of nearly $200,000 — I have watched the leased-land magicians at work. Promised a country club existence living out our golden years, my wife and I have experienced the assessed value of our home disappear to $72,600 in 2020, as the rent soared! Throughout Delaware, while the costs of homes vary, once a home is bought, the equity of the private property disappears.

These leased-land corporations count on Delaware legislators to not be aware of the shortage of affordable housing, which drives the cost of housing so high that many of them want to increase the minimum wage.

They also don’t want lawmakers to realize that a home on leased land is no longer in the “free market.” If it was, and you were unhappy with the management of your community, you can take your home elsewhere. Delaware law and the cost of moving effectively kill that.

In February 2020, in The Wall Street Journal, a reporter wrote, “Park owners don’t worry much about tenants leaving as they would have to take their home with them. Despite the name, moving mobile homes is expensive and difficult.”

I am a big fan of the “Fool Us” TV show with ace magicians Penn & Teller, during which guest magicians try to fool the hosts. Penn & Teller have to let the guest know that they are aware how the trick is done, without revealing that information to the public. They do it in code.

Here’s the leased-and code ... revealed.

The magic distractions

• “It is only out-of-state vacation home owners who we are taking advantage of.” Not with all the seniors in the red Delaware Manufactured Homeowners Association shirts who gathered multiple times at Legislative Hall before the pandemic. The shirts represent 40,000 to 50,000 people throughout Delaware.
• “We can make this law better if we work on it.” The leased-land corporations have used this diversion tactic for years to stall bills until it’s too late in the session to pass.
• “Form a task force, and we can get the job done!” I was on the last task force, and nothing controversial was considered. Even the innocuous providing of a receipt for a rent payment failed to be included. Why is this standard, everyday, essential business practice important on leased land? If the leased-land corporations delay depositing a check until after the deadline four times, they can oust a homeowner.
• “I may not live in Delaware or pay personal taxes here, but my rents have been fair.” How does that get rid of the inequities in the law that permit the excessive rent increases for the leased-land corporations willing to pay huge prices for domestic companies because Delaware is easy pickin’?

What political philosophy puts protecting a private, profiteering business with no stake in Delaware over the best interests of the state economy and its citizens in need of affordable housing? Passing SB 132 helps everyone living in Delaware.

Fred Neil is serving his third term on Dover City Council.