FOR IMMEDIATE RELEASE | May 19, 2026
Contact: Joe Edelen (302) 743-7013
DOVER – To close existing loopholes in Delaware’s Residential Landlord-Tenant Code, the state Senate on Tuesday unanimously passed Senate Bill 292, sponsored by Senator Stephanie Hansen, which ensures there is a warm hand-off when an individual is evicted from reentry housing.
Named after Grace Peterson, the legislation follows the 2023 carjacking and kidnapping of the 80-year-old Seaford resident by a man evicted from the House of Mercy halfway house, who brutally attacked her and left her for dead in Maryland’s Wicomico River. Ms. Peterson fortunately survived, and the bill aims to close the gaps that allowed the halfway house to claim exemption from the Landlord-Tenant Code.
“We all know that Grace Peterson is a very tough woman, and our laws must be equally as strong to prevent such a horrifying chain of events from ever happening to any Delawarean again. This situation certainly wasn’t fair to Mrs. Peterson, or to the man in reentry housing who was evicted with no discharge plan or warm hand-off that would have prevented this violent attack,” said Senator Stephanie Hansen. “We must make sure that landlords who receive State reentry funds are playing an active role in their tenants’ next steps, which will bolster the safety of all communities in Delaware.”
Under SB 292, a landlord must assist a tenant in completing a discharge plan and provide them a warm hand-off before terminating the tenant’s lease, if all or part of the tenants’ rent is paid from a state fund for reentry services.
This legislation will close a loophole in current law – which House of Mercy used – that exempts some landlords from Landlord-Tenant Code by claiming they provide “counseling services.” This gap excludes these tenants from eviction protections, such as warnings and a court hearing.
The discharge plan under SB 292 will be developed by the Delaware Department of Health and Social Services in conjunction with the Department of Justice, and must include shelter or housing plans before a lease is terminated. SB 292 will be enforced by the Department of Justice and the Justice of the Peace Court.
This act will apply to all landlords who accept rental payments from a State reentry fund, such as The Bureau of Community Corrections Special Services Fund and The Justice Reinvestment Fund for Reentry Services.
It will also apply to any landlord who accepts any other State housing funds tied to an individual’s release from the Department of Correction or Department of Services for Children, Youth, and Their Families. Certified recovery houses are exempt from SB 292.
In addition to completing the discharge plan before terminating a lease, landlords will be required to notify the person making payments from the reentry fund. If a landlord knows the tenant is under DOC supervision, they must also notify DOC and the local law enforcement agency.
If a landlord violates the discharge plan and notice requirements, they would be banned from receiving payments from a State reentry fund for 1 year and are subject to consumer fraud penalties outlined in Delaware Code.
“Our justice system is centered around rehabilitation, and that doesn’t end when incarcerated individuals leave prison,” said Rep. Kendra Johnson, House Prime sponsor of SB 292. “Imagine coming back into society after several years of being away from it, with no money, no housing, and limited resources. It’s hard. And just as we have the power to put people away, we must make sure they are able to re-enter it. By requiring a proper discharge plan and a warm hand-off, SB 292 helps to ensure a smooth transition from incarceration by connecting the resident with appropriate services, without the pain of being left to fend for themselves.”
If adopted, SB 292 will take effect 6 months after enactment to give DHSS and DOJ time to develop the model discharge plan and for agencies to implement policies and procedures for responding to the notification requirements under the bill.
SB 292 has been delivered to the House of Representatives for further consideration.
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