CHAPTER 190

FORMERLY

HOUSE BILL NO. 354

AS AMENDED BY HOUSE AMENDMENT NOS. 1 AND 2

AN ACT ENTITLED THE DELAWARE STATE HOUSING AUTHORITY REORGANIZATION ACT OF 1987", AMENDING TITLES 29 AND 31 OF THE DELAWARE CODE TO TRANSFER THE DELAWARE STATE HOUSING AUTHORITY FROM THE DEPARTMENT OF COMMUNITY AFFAIRS TO THE DELAWARE DEVELOPMENT OFFICE AND TRANSFERRING THE FUNCTIONS OF THE DIVISION OF HOUSING TO THE DELAWARE STATE HOUSING AUTHORITY AND TRANSFERRING SUPERVISION OF THE DELAWARE STATE HOUSING AUTHORITY FROM THE SECRETARY OF COMMUNITY AFFAIRS TO THE DIRECTOR OF THE DELAWARE STATE HOUSING AUTHORITY, AND RELATING TO THE BOND-ISSUING POWER OF THE DELAWARE STATE HOUSING AUTHORITY AND TO THE FUNDS AND ACCOUNTS OF THE STATE HOUSING AUTHORITY.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 50, Title 29 of the Delaware Code by adding a new subchapter IA as follows:

"Subchapter IA. Delaware State Housing Authority. §5020. Eindinos and purpose.

The General Assembly finds and declares that:

(1) The efficiency, effectiveness and performance of housing development in the State will be enhanced by transferring the Delaware State Housing Authority from the Department of Community Affairs to the Delaware Development Office, by transferring the functions of the Division of Housing from the Department of Community Affairs to the Delaware State Housing Authority and by transferring the supervision of the Delaware State Housing Authority from the Secretary of Community Affairs to the Director of the Delaware State Housing Authority, in order to meet the increased responsibility placed upon the states to solve housing problems for low and moderate income citizens without substantial assistance from the federal government, because henceforth the Delaware State Housing Authority will have to (a) compete in an entrepreneurial environment, recognizing the need for constant innovation, (b) be particularly sensitive to changes in the tax laws and their impact on housing development, (c) develop apublic-private partnership for low and moderate income housing development with housing-related private enterprise and the financial community in the private sector, and (d) promote low and moderate income housing development as an integral part of the State's overall economic development.

(2) All contractual obligations of the Delaware State Housing Authority to its bondholders and others shall be preserved.

(3) The integration and coordination of two agencies of State government which participate in bond financing and other activities for economic
development in the State of Delaware will be enhanced by having the Delaware State Housing Authority located administratively within the Delaware
Development Office.

§5021. Penottionl

(a) 'Housing Director' means the Director or Acting Director of the Delaware State Housing Authority.

(b) 'Issuing Officer' or 'issuing officer' means the Housing Director.

(c) 'State Authority' or 'State Housing Authority' means the Delaware State Housing Authority.

§5022. Transfer and eSiAbliShiTgla: Powers ants/sates.

(a) There is hereby transferred to and thereby established within the Delaware Development Office the Delaware State Housing Authority which shall have all of the rights, powers and duties heretofore granted to the Delaware State Housing Authority in Chapter 40 of Title 31 of this Code.

(b) The Delaware State Housing Authority shall have the power to perform and shall be responsible for the performance of all of the powers, duties and functions heretofore vested in the Division of Housing pursuant to Section 8608 of this Title, heretofore vested in the Department of Housing pursuant to Chapters 40, 43 and 45 of Title 31 of this Code, and heretofore vested in the State Bureau of Housing pursuant to Section 4303, 4315 and 4317 Title 31 of this Code.

§5023. Housing director

(a) The administrator and head of the Delaware State Housing Authority shall be the Housing Director. The Housing Director shall be appointed by the Director of the Delaware Development Office with the written approval of the Governor. The Housing Director shall be a person qualified by training and experience to perform the duties of the office. The Housing Director shall be paid an annual salary
established by the Director of the Delaware Development Office within the limitation of the funds appropriated therefor. The Housing Director shall serve at the pleasure of the Director of the Delaware Development Office, who may remove the Housing Director from office with the written approval of the Governor.

(b) In the event of the death, resignation, temporary incapacity or removal of the Housing Director, and prior to the appointment of a successor, the Director of the Delaware Development Office may appoint any qualified employee of the Delaware State Housing Authority to serve as Acting Housing Directory. During an absence from the State, the Housing Director may appoint any qualified employee of the Delaware State Housing Authority to serve as Acting Housing Director during such absence. In either case, the Acting Housing Director shall have all the powers and shall perform all the duties and functions of the Housing Director during absence or incapacity or until a successor is duly appointed.

(c) The Delaware State Housing Authority shall consist of the Housing Director who shall serve ox officio. The Housing Director shall hold office as the Housing Authority for the term of appointment as Housing Director. Should a vacancy occur in the office of Housing Director, the Housing Authority shall consist of the Acting Housing Director until a successor Housing Director is duly appointed.

(d) The Housing Director shall be the Chairman and Issuing Officer of the Delaware State Housing Authority. The powers of the Delaware State Housing
Authority and all duties heretofore vested in the Secretary of Community Affairs as related to the Delaware State Housing Authority shall be vested in the Housing Director, and all action taken by the Delaware State Housing Authority shall be taken by the Housing Director or by a designee acting on behalf of the Housing Director as provided in this subchapter.

(e) All references to the Secretary of the Department of Community Affairs and Economic Development in Chapter 40 of Title 31 of this code shall be deemed to refer to and mean the Housing Director.

(f) The Housing Director shall report to and be supervised by the Director of the Delaware Development Office regarding administrative matters and annually shall prepare and submit to the Director of the Delaware Development Office a proposed budget for the operations of the Delaware State Housing Authority.

(g) The Housing Director shall not be subject to Chapter 59 of this Title. §5024. Division of housing.

(a) All functions of the Division of Housing are transferred to the Delaware State Housing Authority.

(b) All employees of the Division of Housing shall be employed by the Delaware State Housing Authority. All such employees and their successors shall continue to retain all rights, protections and privileges of the State classified service pursuant to Chapter 59 of this Title.

§5025. Council on housing.

(a) The Council on Housing is continued and shall serve in an advisory capacity to the Housing Director and shall consider matters relating to housing in this State and such other matters as may be referred to it by the Governor or the Housing Director. The Council may study, research, plan and advise the Housing Director and the Governor on matters it deems appropriate to enable the State Housing Authority to function in the best possible manner.

(b) The Council on Housing shall be composed of 9 members. The term of
appointment to the Council shall be 3 years, and no person shall be appointed for more than two consecutive 3-year terms. Those members of the Council on Housing
appointed pursuant to Section 8609 of this Title, whose terms have not expired as of the effective date of this subchapter, shall continue to hold their memberships on the Council until their current terms expire.

(c) At least 4, but no more than 5, members of the Council shall be affiliated with 1 of the major political parties and at least 3, but no more than 4, members shall be affiliated with the other major political party; provided, however, that there shall be no more than a bare majority representation of 1 major political party over the other major political party. Any person who declines to announce his political affiliation shall also be eligible for appointment as a member of the Council.

(d) Members of the Council shall serve without compensation, except that they may be reimbursed for reasonable and necessary expenses incident to their duties as members of the Council.

(e) A Chairman of the Council shall be chosen by the members of the Council from among its members and shall serve in that capacity for a term of 1 year and shall be eligible for reelection.

(f) Any appointment pursuant to this Section to replace a member whose position becomes vacant prior to the expiration of his term shall be filled only for the remainder of that term. Any person appointed to serve out the remainder of an unexpired term shall be eligible for appointment to two consecutive full 3-year terms.

§5026. Transition Provisions.

(a) All property, including all books, records, papers, maps, charts, plans, equipment and other materials owned by or in the possession of any agency of the State and used in connection with a function transferred by this subchapter to the Delaware State Housing Authority shall on the effective date hereof be delivered into the custody of the Delaware State Housing Authority. All investigations,
petitions, hearings and legal proceedings pending before, or instituted by, any agency from which functions are transferred by this subchapter and which are not concluded prior to the effective date hereof shall continue unabated and remain in full force and effect, notwithstanding the passage of this subchapter and, where necessary, may be completed before, by or in the name of the Delaware State Housing Authority. All orders, rules and regulations made by any agency from which
functions are transferred by this subchapter and which govern such functions and which are in effect upon the effective date hereof shall remain in full force and effect until revoked or modified in accordance with law by the Delaware State Housing Authority. All contracts and obligations of any agency made or undertaken in the performance of a function transferred by this subchapter to the Delaware State Housing Authority and being enforced on the effective date hereof shall, notwithstanding this subchapter, remain in full force and effect and shall be performed by the Delaware State Housing Authority.

(b) All definitions and references to any commission, board, department, council or agency which appear in any other Act or law, to the extent that they are consistent with this subchapter and in connection with any function transferred by this subchapter to the Delaware State Housing Authority shall be construed as referring and relating to the Delaware State Housing Authority.

(c) All definitions and references to any director, commissioner, executive secretary, commission, board or a council member or other similar person which appear in any other Act or law, to the extent they are consistent with this subchapter and in connection with the function transferred by this subchapter to the Delaware State Housing Authority, shall be construed as referring to or relating to the equivalent person or persons and their powers, duties and functions as established and created in this subchapter.

(d) All contracts and obligations of the Delaware State Housing Authority prior to the effective date hereof shall remain in full force and effect.

(e) All other laws or parts of laws now in effect inconsistent with this subchapter are hereby repealed, superseded, modified or amended so far as necessary to conform to, and give full force and effect to, this subchapter."

Section 2. Further amend Chapter 50, Title 29 of the Delaware Code by adding to Section 5005 the following subdivision:

"(15) To supervise the administration of the Delaware State Housing Authority."

Section 3. Amend Chapter 86, Section 8603, Title 29 of the Delaware Code by striking paragraph a., paragraph (2) in its entirety and renumbering the present subparagraphs b., c., d., and e. as subparagaphs a., b., c., and d. respectively.

Section 4. Further amend Chapter 86, Title 29 of the Delaware Code by striking Section 8608 in its entirety.

Section 5. Amend Chapter 86, Title 29 of the Delaware Code by striking Section 8609 in its entirety.

Section 6. Amend Section 8616, Chapter 86, Title 29 of the Delaware Code by striking subsection (2) and renumbering the remaining subsections as "(2)". "(3)". "(4)", "(5)", and "(6)" respectively.

Section 7. Amend Chapter 40, Title 31 of the Delaware Code by striking the words and phrases "Secretary", "Secretary of the Department", "Secretary of the Department of Community Affairs", "Secretary of the Department of Community Affairs and Economic Development" and "Secretary of Community Affairs & Economic Development" where they appear in that Chapter and substituting in lieu thereof the phrase "Housing Director".

Section 8. Amend Chapter 40, Title 31 of the Delaware Code by striking from Sections 4002 and 4015 the word "Department" where it appears in those Sections and substituting in lieu thereof the phrase "Delaware State Housing Authority".

Section 9. Amend Section 4050, Chapter 40, Title 31 of the Delaware Code by striking the phrase in the Department of Community Affairs and Economic Development" and substituting in lieu thereof the phrase "in the Delaware Development Office," and by further striking from Section 4050 the phrase "4305, 4306, 4314, 4317, and 4318" and substituting in lieu thereof the phrase "4304, 4306, 4307, 4314, and 4317".

Section 10. Amend Chapter 40, Section 4053, Title 31 of the Delaware Code by inserting in paragraph a. of subdivision (17), following the phrase "direct obligations" and before the phrase "of the United States or the State", a comma and the phrase "or obligations guaranteed by,".

Section 11. Amend Section 4053, Chapter 40, Title 31 of the Delaware Code by adding to subsection (17) of Section 4053 the following paragraphs:

"j. Contracts for the purchase and sale of obligations described in paragraphs a. through e. and in paragraph 1. of this subsection;

k. Interest-bearing notes issued by a bank, trust company, national banking association or other depository institution or by a bank holding company, an insurance company or other financial institution;

1. Shares of any investment company that (1) is registered under the Investment Company Act of 1940, as amended, (ii) invests substantially all of its assets in short-term high-quality money-market instruments, limited to obligations issued or guaranteed by the United States Government, and (Iii) maintains a constant met asset value per share; and

m. Other investment arrangements made pursuant to an investment agreement authorized by a resolution of the Authority."

Section 12. Amend Section 4053 (18), Chapter 40, Title 31 of the Delaware Code by

inserting, following the phrase "hereinafter shown" and before the first semicolon, the phrase "without regard to the treatment of interest thereon for federal income tax purposes".

Section 13. Amend Section 4054 (a), Chapter 40, Title 31 of the Delaware Code by

Inserting following the phrase "with the approval of the issuing officer", and before the phrase "issue bonds", the phrase and subject to the authorization required by Section 7402 of Title 29.

Section 15. Amend Section 6102 (h), Title 29 of the Delaware Code by striking the phrase "or the Department of Community Affairs and Economic Development" and the phrase or Department", and inserting after the phrase for such purposes" the phrase "; provided, further, that any interest or other earnings which accrue on balances in any accounts managed by the Delaware State Housing Authority shall not be deposited in the General Fund..

Section 16. Insofar as the provisions of this Act are inconsistent with any general,

special or local laws, or parts thereof, this Act shall be controlling.

Section 17. If any Section, part, phrase or provison of this Act or the application

thereof shall be held invalid by any court of competentjurisdiction, such judgment shall be confined in its operation to that Section, part or phrase, provision or application thereof directly involved in the controversy in which judgment shall have been rendered and shall not affect or impair the validity of the remainder of this Act or the application thereof.

Section 18. This Act shall be effective July 1, 1987.

Approved July 16, 1987.