Wilmington council rejects residential rent-stabilization ordinance after hours of testimony

Wilmington City Council on Thursday rejected a substitute ordinance to create residential rent stabilization for nonexempt rental units after a lengthy public-comment period and council debate.

Councilwoman Darby introduced Substitute No. 1 to Ordinance 25-016, saying the measure had been revised after meetings with landlords, community advocates and other council members. “We will increase it to 5% or CPI, whichever is greater,” Darby said as she summarized the floor amendments that added procedural safeguards for landlords and tenants and gave the city’s License & Inspection (L&I) office time to implement the program.

The proposal drew dozens of public speakers during an extended comment period. Tenants, seniors and tenant advocates urged passage, describing steep rent hikes and displacement. “Rent stabilization will help prevent people from falling into homelessness and build a more stable, equitable landscape,” Erin Gallagher said. Landlord groups and small-property owners opposed the measure, saying it would discourage investment or unfairly limit small landlords’ flexibility; Jeffrey Sheridan, president of Greater Wilmington Housing Providers, said, “Our group stands firmly against rent control, rent stabilization, or any other policies to discourage the much needed investment in our city.” Local property managers also urged the council to focus on removing permit and administrative barriers instead.

Council members debated amendments and implementation details on the floor before voting. Council voted to adopt four floor amendments earlier in the meeting; that amendments vote passed by roll call (9 yeas, 1 present, 1 nay, 2 absent). Those amendments raised the cap from an initial 3% to 5% (or the 12‑month CPI change, whichever was higher), created an appeals process, required L&I to collect base‑rent documentation beginning six months after enactment, set a 10-business-day response timeline for the Department of Land Use and Planning on requests for exceptions, and expanded membership of the Housing Stability Subcommittee.

After the amendments were adopted, the council held a roll-call vote on the amended substitute ordinance. The final tally was 6 yeas, 5 nays, 1 present and 1 absent; the motion failed. The yes votes came from Councilman Owens, Councilwoman Darby, Councilwoman Harley, Councilwoman Willower, Councilman Hackett and President Ernest Congo. The no votes were recorded for Councilwoman Oliver, Councilman Field, Councilwoman Bracey, Councilwoman Cabrera and Councilman Spadola; Councilwoman McCoy was recorded as present. President Congo announced the ordinance defeated following the roll call.

Supporters said the ordinance was a necessary, immediate measure to curb displacement while other longer-term housing strategies are pursued. Opponents — including some small landlords who spoke at the meeting — argued the ordinance would punish responsible owners and reduce the supply of rental housing, and they urged the council to prioritize permit-processing and inspections reforms instead.

Votes at a glance

- Substitute No. 1 to Ordinance 25-016 (Residential rent stabilization): Motion to adopt (final vote) — failed; roll call 6 yeas, 5 nays, 1 present, 1 absent. Motion text: “Substitute number 1 to ordinance number 25-016, an ordinance to amend chapter 34 of the city code to provide for residential rent stabilization.” Mover: Councilwoman Darby; second: not specified in transcript. Key amendments adopted earlier (before final vote): raise cap to 5% or CPI (whichever is greater); L&I to collect base-rent documentation at license renewal 6 months after enactment; Department of Land Use and Planning to respond to exception requests within 10 business days; appeals process and annual subcommittee reporting.

- Resolution 25-032 (request to state legislature for authority to levy a cigarette tax): adopted; roll call 9 ayes, 0 nays, 4 absent. Motion to adopt and send to Dover passed by roll call.

- Resolution 25-033 (request the General Assembly consider extending last-call hours to 2 a.m.): adopted; roll call recorded as 7 yeas, 1 nay, 2 present, and 3 absent. The measure was approved as a council resolution to send to Dover.

- Ordinance 25-024 (amend chapter 44: exemption for elderly and disabled persons from real estate taxation): adopted on third reading; roll call 10 yeas, 0 nays, 3 absent. The ordinance updates eligibility thresholds tied to federal poverty measures and the reassessment schedule.

- Resolution 25-034 (additional grant funding, housekeeping grant administration): adopted; roll call 10 yeas, 0 nays, 3 absent. (Transcript indicates the item is routine grant funding confirmation.)

- Resolution 25-035 (appointments/reappointments to Board of Pensions and Retirement): adopted; roll call 9 yeas, 0 nays, 4 absent.

Why it matters

Council’s vote leaves the city without the local rent‑stabilization authority that proponents argued would immediately limit destabilizing rent hikes. Supporters said the ordinance would have provided neighborhood stability and homelessness prevention while other housing production and regulatory reforms proceed. Opponents warned of unintended consequences for small landlords and for housing supply, and urged more administrative fixes at L&I and the Department of Land Use and Planning before imposing new limits.

What happens next

Council members and community groups signaled they will continue advocacy on the topic. The amendments lawmakers adopted describe an implementation path — appeals, data collection, and an annually reporting subcommittee — that could be revisited if a future council again brings a rent‑stabilization ordinance forward. Separately, the council approved resolutions asking the state legislature to authorize a local cigarette tax and to consider extending last-call hours to 2 a.m.; both are requests that would require state action to implement.

Reporting note: Quotes in this story come from the council meeting transcript and are attributed to speakers who spoke during the public-comment period or on the council floor.