Bill Text: DE SB343 | 2025-2026 | 153rd General Assembly | Draft
Bill Title: An Act To Amend Title 25 And Title 29 Of The Delaware Code Relating To The Homeownership Using Savings And Earnings Plan Act.
Sponsorship: Partisan Bill (Democrat 12)
Status: (Introduced) 2026-06-12 - Assigned to Finance Committee in Senate [SB343 Detail]
Download: Delaware-2025-SB343-Draft.html
|
SPONSOR: |
Sen. Huxtable & Sen. Townsend & Rep. K. Johnson |
|
Sens. Hansen, Sokola; Rep. Berry |
DELAWARE STATE SENATE
153rd GENERAL ASSEMBLY
SENATE BILL NO. 343
AN ACT TO AMEND TITLE 25 AND TITLE 29 OF THE DELAWARE CODE RELATING TO THE HOMEOWNERSHIP USING SAVINGS AND EARNINGS PLAN ACT.
WHEREAS, access to affordable housing remains a significant challenge for many Delaware residents facing rising costs and limited savings, especially first-time home buyers; and
WHEREAS, helping residents save for homeownership can lead to increased economic stability and generational wealth-building for Delaware families; and
WHEREAS, the Homeownership Using Savings and Earnings Plan (HOUSE Plan), a first-time home buyer savings account program, offers a practical and flexible solution that encourages financial responsibility and long-term planning by allowing individuals to save and use funds for eligible costs associated with purchasing a home, such as down payments and closing costs; and
WHEREAS, supporting first-time buyers can stimulate local real estate markets, construction, and related sectors, resulting in broader economic benefits across this State; and
WHEREAS, renters who transition into homeownership are more likely to invest in their communities, increasing civic engagement and neighborhood stability; and
WHEREAS, the HOUSE Plan places minimal administrative burden on financial institutions and the State while maximizing impact for account holders and their families; and
WHEREAS, passing the HOUSE plan will align Delaware with other states that have empowered residents to prepare for and achieve the goal of homeownership through targeted savings incentives.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:
Section 1. Amend Title 25 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
Chapter 17. Homeownership Using Savings and Earnings Plan.
§ 1701. Establishment; purpose; short title.
(a) The Homeownership Using Savings and Earnings Plan (HOUSE Plan) is hereby established.
(b) The purpose of the HOUSE Plan is to promote housing stability and economic opportunities for homeownership by expanding access to homeownership for first-time home buyers and encouraging savings for eligible home purchase expenses in a convenient and cost effective manner.
(c) This chapter may be cited and referred to as “The HOUSE Plan Act”.
As used in this chapter:
(1) “Account” means an individual account, a trust account, or a savings account established under this chapter.
(2) “Account holder” means an individual or individuals identified at the time an account is opened as having the right to withdraw funds from the account.
(3) “Allowable closing costs” means a disbursement listed on a settlement statement for a qualified beneficiary to purchase a home in this state.
(4) “Board” means the HOUSE Plan Board established under this chapter.
(5) “Eligible costs” means expenses associated with purchasing a home in this state. “Eligible costs” includes all of the following:
a. Down payment costs.
b. Allowable closing costs.
c. Mortgage loan origination fees.
d. Appraisal and inspection fees.
e. Realtor commissions.
f. Required insurance premiums.
g. Other customary expenses associated with purchasing a home.
h. Security deposit and payment for the first month of rent relating to a residence that is a qualified beneficiary’s primary residence.
(6) “Financial institution” means a bank, a commercial bank, a national bank, a savings bank, a savings and loan, a thrift institution, a credit union, an insurance company, a trust company, a mutual fund, an investment firm or other similar entity authorized to do business in this state.
(7) “First-time home buyer” means an individual who is a resident of this state and who has not owned or purchased, either individually or jointly, a home in this state in the last 7 years.
(8) “Home” means a dwelling located in this state that is occupied as the primary residence of the account holder. “Home” includes a stand-alone residential structure, duplex or townhouse unit, manufactured home, trailer, mobile home, condominium unit, or cooperative. “Home” does not include a dwelling that the account holder does not occupy or is not the account holder’s primary residence.
(9) “Qualified beneficiary" means an individual, including an account holder, who resides in this state at the time of settlement on the purchase of a home in this state and meets all of the following:
a. The individual has not owned or purchased under contract for deed, either individually or jointly, a home in or outside of this state in the last 7 years.
b. The individual is designated as the beneficiary of an account.
(10) “Plan” means the Homeownership Using Savings and Earnings Plan established under this chapter.
(11) “Plans Management Board” means the board under § 2722 of Title 29.
(12) “Settlement statement” means the statement of receipts and disbursements for a transaction related to real estate, including a statement under the Real Estate Settlement Procedures Act of 1974, 12 U.S.C. § 2601 et seq., as amended, and associated regulations, or an executed sales agreement for the purchase of a manufactured home being conveyed as personal property.
§ 1703. The Plan.
(a) An account holder may establish an account under this chapter by making an initial contribution to the Plan in the name of a designated beneficiary. Once a contribution is made, it becomes part of the Plan and subject to this chapter.
(b) An account holder may maintain only 1 account under this chapter.
(c) An individual may jointly establish an account with another individual if the joint account holders are both first-time home buyers and file a Delaware income tax return either jointly or married filing separately.
(d) Any person may contribute to an established account, including an account holder’s employer.
(e) Contributions to an account may be made only in cash, by check, or through electronic funds transfer (EFT).
(f) An account holder may contribute annually to an account as follows:
(1) If the account holder is 1 individual, up to $10,000.
(2) If the account holder is more than 1 individual, up to $20,000.
(g) An account holder’s personal annual income may not exceed any of the following:
(1) If the account holder is 1 individual, $168,000.
(2) If the account holder is more than 1 individual, a combined income of $252,000.
(h) Aggregate lifetime contributions to an account may not exceed $100,000.
(i) Interest and investment earnings derived from the account may remain in the account and do not count toward annual contribution limits.
(j) An account holder must use the funds in an account for eligible costs related to the purchase of a home within 20 years following the date on which the account is established.
(k) A qualified beneficiary may use the funds from an account for eligible costs regardless of whether the qualified beneficiary purchases the home as sole owner or jointly with another individual.
( l ) Contributions made to an account are made after-tax. Earnings on amounts held in the account accrue free from Delaware income taxation, if the funds are used for eligible costs.
§ 1704. Account withdrawals; penalties.
(a) Withdrawal from an account may be made on 30 days’ written notice to the Board or on shorter notice as the Board may provide by regulation. A withdrawal must be designated as a qualified withdrawal or a nonqualified withdrawal. The application for withdrawal must provide the information and be made on the forms that the Board determines is necessary to enable the Board to determine the nature of the withdrawal.
(b) An account withdrawal paid to or for the benefit of any person during any calendar year must be reported to the person and the Internal Revenue Service. The report must be made at the time and contain the information required by law.
(c) The Board shall establish by regulation a more than de minimis penalty for a nonqualified withdrawal on the portion of the withdrawal that constitutes income.
(d) Penalties collected under this section may be used to defray the Plan’s costs.
§ 1705. Prohibitions.
An account or interest in an account may not be assigned, pledged, or otherwise used to secure or obtain a loan or other advancement.
(a) The HOUSE Plan Board is established to oversee the design, implementation, and initial administration of the Plan under this chapter.
(b) The Board consists of 5 members comprised as follows:
(1) The following 2 members, who serve by virtue of each member’s office, each of whom may select a designee who is an individual from that member’s office to serve in that member’s stead and at that member’s pleasure:
b. The Secretary of the Department of Finance.
(2) The chair of the Plans Management Board, who may select a designee who is a member of the Plans Management Board or 1 of its committees.
(3) Two public members who, by reason of education or experience, are qualified to serve. The Governor shall appoint these 2 members. These members serve 2–year terms, subject to earlier termination upon dissolution of the Board as provided in this chapter.
(c) A member who selects a designee must provide the designation to the chair in writing. A designee has the same duties and rights as the member the designee represents.
(d) The Board shall elect a chair and vice chair from among its members.
(e) A majority of the members must be present at a Board meeting in order to have a quorum and conduct official business. A vacancy on the Board is not counted for quorum. An action of the Board is affirmed by a vote of a majority of the members.
(f) The Board shall meet at least 4 times annually. The Board chair may call and set the agenda for a special meeting of the Board.
(g) The Board may adopt procedural rules to carry out its functions under this chapter.
(h) The Office of the State Treasurer shall provide reasonable staff support to assist the Board in performing its duties under this chapter.
(i) The Board may establish committees. Committee membership may include an individual who is not a Board member.
(j) A Board member receives no compensation but may be reimbursed for the member’s actual and necessary expenses incurred in the performance of the member’s official duties.
(k) A Board meeting or documents related to investment strategy or negotiations concerning investment of Plan money is exempt from Chapter 100 of Title 29.
§ 1707. Board powers and duties.
(a) The Board shall establish, design, develop, implement, maintain, and oversee the Plan under best practices for first-time home buying saving vehicles and consistent with this chapter.
(b) The Board shall, through marketing initiatives, education initiatives, or publication of online resources, encourage participation, homeownership saving, and sound investment practices. The Board shall provide or make available information regarding the Plan, including its applicability and registration requirements, with special emphasis on participation eligibility.
(c) The Board shall adopt rules or promulgate regulations to govern the Plan.
(d) The Board shall maintain, invest, and reinvest the funds contributed into the Plan consistent with the investment restrictions that the Board establishes. The investment restrictions must be consistent with the Plan’s objectives, and the Board shall exercise the judgment and care then prevailing which a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, with due regard to the probable income and level of risk from investments of money belonging to the State under policies the Board establishes. The Board may consult with the Investment Subcommittee of the Board of Pension Trustees in the development of investment alternatives.
(e) Subject to applicable procurement requirements, the Board may do any of the following:
(1) Enter into a contract, agreement, or arrangement for goods or services necessary or desirable for carrying out the purposes of this chapter, including recordkeeping, administrative, consulting, accounting, legal, asset management, or investment advisory services to assist in establishing, maintaining, administering, operating, or implementing the Plan.
(2) Retain, employ, or contract for the services of private or public financial institutions, depositories, consultants, investment advisors or managers, third party plan administrators, research or technical support, or other services necessary or desirable to carry out the purposes of this chapter.
(f) The Board may charge and collect reasonable administrative fees from an account holder and use the fees, and appropriations and other funds dedicated to supporting the Plan, to defray reasonable program expenses.
(g) The Board shall require information from an account owner as is necessary to establish compliance with the Plan.
(h) The Board may discuss the opportunity for qualified minority-, woman-, veteran-, and disabled-owned financial firms, or firms with a record of equity, diversity, and inclusion within the firm, as a provider of investment advisory services.
(i) Unless terminated earlier as provided in this subsection (i) of this section, the Board shall disband and cease to exist, effective as of December 31, 2029, at which point all of the Board’s duties and functions under this chapter are transferred to and assumed by the Plans Management Board. At any time after full implementation of the Program, the Board, by majority vote, may disband and transfer no less than all of its duties and authority under this chapter to the Plans Management Board, if the Plans Management Board, by majority vote, agrees to assume the duties and authority prior to December 31, 2029.
§ 1708. Standard of care.
The Board, its committees, and each of the Board’s or its committees’ members shall discharge their duties with respect to the Plan solely in the interest of Plan account holders and beneficiaries and for the exclusive purpose of providing Plan benefits to account holders and beneficiaries, including defraying reasonable expenses in administering the Plan and under other program documents and applicable law.
§ 1709. Investment direction.
(a) The Plan, the Board, each of the Board’s members, or the State may not insure an account or guarantee a rate of return or an interest rate on a contribution, or be liable for loss that a person incurs as a result of participating in the Plan.
(b)(1) The Board and each of its members are entitled to the immunities under Chapter 40 of Title 10. In addition, a Board member is not liable for an act or omission made during the member's tenure on the Board, or for loss a person incurs as a result of a Board member’s participation in the Plan.
(2) The State shall indemnify each Board member who is a party to or is threatened to be made a party to a threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative or investigative, arising due to the member's participation in the Plan; against expenses, including attorney's fees if the Attorney General determines that the Board member is not entitled to representation by the State; judgments, fines, or amounts paid in settlement that the member actually and reasonably incurs in connection with the action, suit, or proceeding. This paragraph applies only if the member acted in good faith and in a manner the member reasonably believed to be in the best interest of the State, and with respect to any criminal action or proceeding, if the member had no reasonable cause to believe that the member's conduct was unlawful.
(3) Expenses that a Board member incurs in defending a civil, administrative, or investigative action, suit, or proceeding must be paid by the State in advance of the final disposition of the action, suit, or proceeding upon authorization by a majority of the members of the Board and by the Governor.
(c) The Board, in the exercise of its sole discretion and without liability, may remove the Plan's funds from a financial institution and reinvest the funds in a similar or different investment alternative at another financial institution at any time.
Section 2. Amend Title 29 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:
§ 2722. Plans Management Board.
The Plans Management Board is established. The Board’s purpose is to administer each of the following plans and programs (collectively, “the Plans”), in accordance with each plan’s or program’s individual purpose:
(1) the The Delaware DE529 Education Savings Plan established pursuant to under subchapter XII, Chapter 34 of Title 14, 14.
(2) the The Delaware Achieving a Better Life Experience Program established pursuant to under Chapter 96A of Title 16, 16.
(3) the The Deferred Compensation Program established pursuant to under Chapter 60A of this title, title.
(4) and the The Expanding Access for Retirement and Necessary Saving Program (EARNS) established pursuant to under Chapter 38 of Title 19 (collectively, “the Plans”), in each case, in accordance with the individual purposes of each of the Plans. 19.
(5) The Homeownership Using Savings and Earnings Plan (HOUSE Plan) established under Chapter 17 of Title 25.
(1) With respect to the Deferred Compensation Program, and the EARNS Program, and the HOUSE Plan, (Programs) the Board, its subcommittees, and each of their members shall discharge their duties with respect to the Programs solely in the interest of the participants and beneficiaries of the Programs and for the exclusive purpose of providing Programs’ benefits to the participants and their beneficiaries, including defraying reasonable expenses of administering the Programs, with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use to attain the purposes of the Programs.
(e) Powers and duties of Board.
(9) Assume the powers and duties of all of the following:
a. the The Delaware EARNS Program Board established under Chapter 38 of Title 19.
b. The HOUSE Plan Board established under Chapter 17 of Title 25.
Section 4. Section 1 of this Act takes effect following the date of publication in the Register of Regulations of a notice that the State Treasurer submits stating that funding necessary to implement the Plan, as reflected in the fiscal note for this Act, has been received from the General Assembly or another source.
Section 5. Section 2 of this Act takes effect on December 31, 2029, or upon the date the HOUSE Plan Board under Chapter 17 of Title 25 disbands and transfers its powers and duties to the Plans Management Board under Chapter 27 of Title 29, whichever is first to occur. If the Plans Management Board, by majority vote, agrees to assume the HOUSE Plan Board’s powers and duties before the HOUSE Plan Board disbands, the Plans Management Board shall publish notice of the assumption of powers and duties in the Register of Regulations.
SYNOPSIS
This Act creates a first-time home buyers' savings plan, called the Homeownership Using Savings and Earnings Plan (the HOUSE Plan), to ignite future homeownership in Delaware by helping residents save for their first home.
The HOUSE Plan offers a practical solution that encourages financial responsibility and long-term planning by allowing individuals to save and use funds for eligible costs associated with purchasing a home, such as down payments and closing costs, and costs associated with acquiring a rental lease for a primary residence, such as security deposits and payment of the first month of rent.
Earnings on amounts held in in a HOUSE Plan account accrue free from Delaware income taxation. This Act sets how much account holders may contribute, both annually and over the lifetime of an account, and specifies annual income caps for eligibility to open an account. Funds must be used within 20 years after the account is opened.
This Act also establishes the HOUSE Plan Board to oversee the design, implementation, and preliminary administration of the Plan.
This Act makes homeownership more attainable, builds generational wealth, and strengthens communities, without direct state spending.
Author: Senator Huxtable
