We explain HOA law in plain English, but we are not your lawyer and this is not legal advice. Here is why that matters.

Delaware's housing law removed the hearing where HOAs used to object

Delaware's housing law removed the hearing where HOAs used to object
Delaware · Legislation

Delaware's housing law removed the hearing where HOAs used to object

Delaware's major 2026 housing law does nothing to HOA covenants. What it did do is eliminate the public hearing for “by-right” developments — which is the forum where an existing community's maintenance corporation historically objected to a neighbouring project's drainage, traffic and interconnectivity.

Senate Substitute 2 for SB 23, the Housing for Every Delawarean Act, was signed July 13, 2026 as 85 Del. Laws c. 343. Its sponsors were Senator Russell Huxtable of Lewes and Representative Kendra Johnson of Bear.1

What it requires

Municipalities with 2,000 or more residents must adopt affordable housing plans, increase residential density, and select at least five affordability measures from a statutory menu.

And it replaces public hearings for by-right developments with public meetings at which residents may submit written comments only, confined to whether the proposal meets objective zoning standards.2

What happened in Sussex County

Within weeks, the county stopped hearing subdivisions.

Sussex County cancelled public hearings on two subdivisions — 64 homes near Millsboro and 70 near Harbeson — and paused hearings on major subdivision applications pending legal review. Officials said as many as 25 applications representing thousands of units could advance without hearings, and voiced “serious, fundamental concerns” about local control. Council took the matter up on July 28, 2026.3

Also enacted in the same session: HB 450, raising the traffic-impact-study trigger to 500 additional peak-hour trips and creating transportation impact fees; and HB 89, establishing mandatory mediation for consumer complaints about home contractors.

✓ Your Delaware State Pass is active — the full analysis below is unlocked

The covenant question, answered clearly

Before anything else, the misconception worth killing. SB 23 does not touch private community covenants. We had its full text checked for “covenant,” “common interest,” “unit property,” “declaration” and “deed restriction.” Zero occurrences of any of them.

A sweep of the entire 153rd General Assembly found no enacted covenant-preemption provision of any kind — not for accessory dwelling units, not solar, not clotheslines, not flags, not electric-vehicle charging. The bill that would have voided ADU-prohibiting covenants, SB 87, cleared committee 5-0 in May 2025 and sat on the Senate Ready List for fourteen months without a floor vote.

So your declaration is unchanged. Density mandates aimed at municipal zoning are routinely reported as though they reach recorded restrictions. In Delaware, so far, they do not.

What actually changed for an existing community

The loss is procedural, and it is real.

An association or maintenance corporation adjacent to a proposed development has no covenant claim against it — the developer is not bound by your declaration. Its leverage has always been the public land-use process: appearing at a hearing to raise drainage onto existing lots, traffic through the community's entrance, stormwater capacity, interconnectivity and buffers.

For a by-right project, that hearing is now a meeting taking written comment confined to whether the proposal meets objective zoning standards.

Two consequences follow. Written comment is a weaker instrument than testimony — there is no exchange, no follow-up question, no record built by cross-examination. And “confined to objective zoning standards” excludes exactly the discretionary arguments associations made: that a technically compliant design will still flood the community next door.

We should be clear that neither the statute nor Sussex County's reaction mentions homeowners associations. The connection between the hearing's removal and an association's practical influence is our reading of the mechanism, not something the sources state.

What an association can do instead

File written comment, properly framed. The permitted scope is whether the proposal meets objective standards. That is not nothing: stormwater management standards, buffer widths, setbacks and road specifications are objective. A comment framed as “this design does not satisfy the county's stormwater standard, for these reasons” is admissible; “this will harm our community” is not.

Engage before the application. Comprehensive plans, ordinance amendments and infrastructure standards are still adopted through ordinary legislative process with hearings. The Sussex open-space amendment and its cluster-subdivision companion are pending votes right now — and they will decide what future by-right approvals look like.

Know who ends up maintaining the drainage. This is where it lands financially. In Sussex County, an association typically maintains the stormwater facilities in and adjacent to its community, and the pending open-space amendment would let naturally designed ponds count toward a developer's open-space obligation. New Castle County has gone the other way, with a Stormwater Maintenance District Program that lets the county take over long-term maintenance.

Fund it. Delaware does not require planned communities to hold reserves at all — DUCIOA's mandate reaches condominiums and cooperatives. Our Delaware reserve studies page sets out that gap; the state's own Ombudsperson reports owners in such communities saying they “expect large, unaffordable, special assessments.”

The infrastructure the hearings were about

Sussex County spent 2026 rewriting the standards that by-right projects will now be measured against, and the sequence is worth knowing:

In January the stormwater ordinance was delayed six months at the Sussex Conservation District's request, with a commissioner arguing the county has an enforcement problem rather than a regulatory gap. In March, council adopted Ordinance 4044 with 16 amendments — and the county engineer conceded the original goal of eliminating 90% of discharges “is no longer realistic.” In April, Planning & Zoning recommended four further ordinances, including open space and preliminary plat with interconnectivity.

Objective standards matter far more when they are the only thing a neighbour may comment on.

What to watch next

Sussex County's legal review and whatever it concluded after taking the matter up on July 28, 2026. Whether the paused applications proceed without hearings. And the two pending Sussex ordinances — Open Space Amendment and Cluster Subdivision — both of which the county lists as awaiting a vote.

For a Delaware board, the practical horizon is short: the by-right meeting process is law now, and the window to influence the standards it applies is the ordinance calendar, not the application calendar.

Related Delaware HOA Topics

← All Delaware HOA Topics

  1. Senate Substitute 2 for SB 23, Housing for Every Delawarean Act — full text (signed July 13, 2026; 85 Del. Laws c. 343); contains no covenant, declaration or deed-restriction provision
  2. Olivia Marble, “Delaware General Assembly roundup: Housing reforms,” Spotlight Delaware, July 14, 2026 — SB 23, HB 450, HB 89
  3. Ella Walker and Olivia Marble, “Sussex County cancels subdivision hearings in wake of SB 23,” Spotlight Delaware, July 23, 2026

Stay on top of Delaware HOA law

Every week: new Delaware legislation, court rulings, and regulatory developments affecting condos, planned communities, and property managers. Free.

Check your inbox to complete your sign up.

No spam. Unsubscribe anytime.