The Wilmington City Council’s Community Development and Urban Planning Committee voted May 8 to release Ordinance 25‑18, an amendment to Chapter 34 of the city code that would establish a city‑managed escrow account for tenants who withhold rent while pursuing habitability repairs.

Councilmember Yolanda McCoy, the ordinance sponsor, described the escrow account as an alternative to tenant withholding that would provide a secure place for withheld funds, notify landlords, and allow the city to hold funds until inspection and agreement that required repairs are complete. "So instead of just keeping the money for yourself, the tenants can now put the withheld rent into a secure account managed by the city, and this shows that they are not just skipping payments, that they're serious about the problem and wanna get it fixed," McCoy said.

McCoy told the committee she intends to work with the administration on operational procedures and said she would not advance it to a full‑council vote until the administration and sponsor had ironed out details. "I will not be moving it to the full floor until we have all of the procedure worked out," she said.

Daniel Walker, deputy chief of staff for policy and communications, told the committee the mayor’s office opposes the ordinance as written and flagged administrative impacts. Walker said the mayor’s office estimated an initial fiscal note for its responsibilities at more than $250,000 and warned that Land Use and Planning and License & Inspection staff would face new responsibilities for eligibility, compliance and determinations that could expose the city to liability.

Supporters, including some council members and tenant advocates, said an escrow account would give renters accountability and a secure means to hold funds while awaiting repairs. Opponents — including landlord groups and several individual landlords who testified — said the city already has enforcement tools, including L&I inspections and civil fines, and cautioned that the ordinance could slow enforcement and deter investment.

Action: Motion to release Ordinance 25‑18 to the full council was made, seconded and carried with all present voting in favor. Committee members emphasized the release does not mean final language is set: the sponsor plans to continue meeting with the administration and stakeholders to refine operational procedures before pursuing a floor vote.

Next steps: With the committee release complete, the escrow ordinance will be scheduled for full council consideration; sponsor McCoy and administration staff said they will continue to collaborate on administrative procedures, fiscal estimates and enforcement protocols before the council floor vote.