Lawsuit Filed Against Hometown America Corporation
(SUSSEX COUNTY, Del.) - Raising rent is raising controversy in some mobile home communities near Rehoboth Beach.
Kim Knieep said she received the paperwork in the mail with two options.
"We had two forms," Knieep said. "One you could not arbitrate and take a lesser rate and one to take the higher rate, but you had the right to arbitrate if you wanted to."
Knieep said she took the lesser rate and signed not to negotiate her rent price. In a 17-page law-suit Attorney General Matt Denn claims Hometown America Corporation is violating Delaware law by sending out these forms. Denn said Hometown America Communities is the fifth largest owner of manufactured housing in the United States.
"We lived here for 10 years in two different houses," Knieep said. "We like the development. When we moved in this development we knew that the rent was going to go up every year."
While some tenants agreed to sign, the State Attorney's office said they should not have to. Denn said he has filed suit against Hometown America. He is asking them to declare the rent notices as invalid. He also wants all affected tenants to be reimbursed for three months rent. WRDE News reached out to Hometown America Communities which is based in Chicago, but have yet to hear back.