A $300,000 price tag killed Delaware's HOA ombudsperson expansion
A $300,000 price tag killed Delaware's HOA ombudsperson expansion
2026-09-03 · Delaware · Legislation · Did not pass
Delaware has one Common Interest Community Ombudsperson for the whole state. In 2024 that office logged 84 formal complaints, 456 formal email inquiries and 26,775 general emails. A bill to give it three county deputies and a dedicated funding stream was introduced on June 10, 2026, carried a fiscal note of $292,617 a year, and was never placed on a committee agenda.
HB 469 died in House Judiciary when the 153rd General Assembly adjourned on June 30, 2026.1
Who filed it
The prime sponsor was Representative Jeff Hilovsky, with Senator Eric Buckson as additional sponsor and Representatives Hensley, Collins and K. Johnson as cosponsors — a predominantly Republican bill in a Democratic-majority legislature, which is context rather than explanation.
The bill record carries a single action: “6/10/26 — Introduced and Assigned to Judiciary Committee in House.” The page's own note says a “Committee Hearing takes place within twelve legislative days.” The committee-meeting history is empty. It never happened.
What it would have created
Three Deputy Ombudspersons, one per county, appointed by the Ombudsperson, each acting as the primary local point of contact for unit owners, associations and declarants, each able to assist in investigating alleged violations under delegated authority, each reporting quarterly on complaint volume and disposition.
A Common Interest Community Ombudsperson Fund — nonlapsing, held in the Treasury, administered by the Ombudsperson under Controller General oversight. It would have been capitalised by legislative appropriations, by grants and contributions, and by fees charged for meetings, mediation and other alternative dispute resolution, election monitoring and vote counting. Spending was authorised for office operations and technology, deputy salaries, independent experts for investigations, and education for owners, associations and declarants.
The Act would have taken effect January 1, 2027.
The fiscal note is the story
The Office of the Controller General filed a fiscal note dated June 11, 2026 — the day after introduction.2 The Department of Justice estimated the bill required 3.0 FTE Legal Assistant III positions. The costs:
- FY2027: $21,900 one-time plus $145,856 recurring (six months of personnel funding)
- FY2028: $292,617
- FY2029: $298,374
The Controller General's own oversight cost was recorded as “indeterminable at this time.”
A roughly $300,000 recurring general-fund request, introduced 20 days before adjournment, in the same weeks the FY2027 budget was being closed out, went nowhere. That is not mysterious. It is worth noting for contrast that HB 469 received more procedural investment than SB 352, the reserve-and-inspection bill filed two weeks later, whose fiscal note was marked “Not Required” — and both died in their first committee.
What the office actually handles, and why deputies were proposed
The scale of the mismatch is documented in the Ombudsperson's own statutory report. In calendar 2024 the office received 84 formal complaints (36 statutorily complete, 48 incomplete but tracked), resolved 82, and carried 8 into 2025. It fielded 456 formal email inquiries requiring research, 56 informal inquiries, and 26,775 general emails. It made 12 referrals to the Court of Common Pleas community mediation programme — one of which bundled seven complaints from a single community. It provided election services for exactly two communities all year.3
The office also estimates there are more than 3,000 common interest communities in Delaware, and cannot reliably identify which ones they are.
Two Advisory Council seats remain unfilled. The Council met five times in 2024, all by Zoom, with public attendance of 38 to 70 per meeting against 0 to 6 before the pandemic.
What the ADR-fee provision would have changed
This is the part worth flagging for boards and owners, because it is a structural change dressed as a funding mechanism.
Delaware's CIC dispute resolution is currently free to the parties. HB 469 would have let the office charge fees for mediation, election monitoring and vote counting, and would have directed those fees into the fund that pays the deputies. That makes the service partly self-financing — and it also puts a price on the one route a Delaware homeowner has that does not require a lawyer and the Court of Chancery.
The bill set no fee schedule and no waiver provision. Whether that would have improved access or narrowed it is genuinely unresolved on the text, and the bill died before anyone had to answer it. Our Delaware dispute resolution page sets out what the process currently costs and what it can and cannot compel.
One structural fact that explains a lot
The Ombudsperson's office operates under statute alone. We searched the Delaware Administrative Code for “Ombudsperson” and found zero results; a search of the Register of Regulations for “common interest community” also returns zero results across all volumes.4
Delaware's internal dispute resolution process, its fair election procedure and its complaint process are all creatures of 29 Del. C. §§ 2540–2546 plus office-issued forms — not codified regulation. There is no agency rulemaking to expand the office incrementally. Everything it does or does not do goes through the General Assembly, which is exactly why a bill dying in committee matters here more than it would elsewhere.
What to watch next
Reintroduction would have to happen in the 154th General Assembly, from January 2027. As a spending bill it competes with the FY2028 budget cycle. Nothing is pre-filed — the legislature's database returns zero bills for the 154th General Assembly — and no legislator has announced an intention to refile it.
The document most likely to move this is the Ombudsperson's 2025 annual report, due around December 2026. The office's recommendations are statutorily required to go to the Governor, the Attorney General, the General Assembly and the Chief Justice, and several have been restated unchanged since 2022.
Related Delaware HOA Topics
- HB 469, 153rd General Assembly — bill record and action history (introduced June 10, 2026; died in House Judiciary without a hearing) ↩
- HB 469 fiscal note, Office of the Controller General, June 11, 2026 (3.0 FTE; FY2028 $292,617; FY2029 $298,374) ↩
- Delaware DOJ, Common Interest Community Ombudsperson, 2024 Annual Report (dated Dec. 18, 2025), reporting under 29 Del. C. § 2544(16) ↩
- 29 Del. C. ch. 25, subch. IV — Common Interest Community Ombudsperson Act (§§ 2540–2546) ↩
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