Heated Debate Erupts At Wilmington Council Committee Meeting Over Rent Control And Tenant Protections

Cheyenne McGowan resident of the 5th District wearing a “rent is too damn high!” T-shirt.

Cheyenne McGowan resident of the 5th District, commenting in favor of rent stabilization wearing a T-shirt with the phrase “THE RENT IS TOO DAMN HIGH!”

WILMINGTON — Tensions flared at Wilmington City Council’s Community Development & Urban Planning Committee meeting on May 8, where councilmembers, administration officials, landlords, and tenants clashed over a pair of housing ordinances aimed at addressing affordability and landlord accountability.

Rent Escrow Ordinance clears Committee, despite administration pushback

6th District Council Member Yolanda McCoy presented Ordinance 25-018, which would allow tenants to pay withheld rent into a city-managed escrow account while repairs are pending. McCoy emphasized the ordinance as a fairer, more structured alternative to state-level rent withholding laws.

“This is about giving renters a secure, accountable way to withhold rent — not skipping payments,” McCoy said.

But administration officials immediately pushed back. Daniel Walker, Deputy Chief of Staff for Policy, called the ordinance costly and legally risky, estimating a $250,000 fiscal impact and warning that requiring city inspectors to interpret lease agreements could open the city to litigation.

Darby dismissed the objections. “We actually have too many inspectors for a city of our size,” she said. “One of those inspectors can be trained. The administration’s excuse is a poor one.”

The committee voted to release the ordinance, with plans to continue administrative coordination before it appears on a future full council agenda.

Public and lawmakers clash during Rent Stabilization Hearing

The most contentious moments came during the discussion of Substitute No. 1 to Ordinance 25-016, Council Member Shané Darby’s rent stabilization proposal to cap rent increases at 3% annually, with exceptions for affordable housing, new construction, and small owner-occupied buildings.

“This isn’t just about protecting the poor,” Darby said in her introduction. “This is about the working class and middle class being priced out of their homes. If landlords are upset, it’s because their unchecked, unethical behavior is finally being challenged.”

Councilmembers sparred over the bill’s language, fiscal impact, and feasibility. Chief of Staff Daniel Walker argued the policy was unsupported by national data and would place unrealistic burdens on the city’s Land Use department.

“There is no clear, definitive belief that this actually benefits the people we’re here to represent,” Walker said. “This could cost $180,000 in its first year and requires planners to determine landlord return on investment — that’s not their job.”

With dozens of public commentators, the public comment portion turned chaotic, with frequent interruptions, applause, and vocal outbursts.

At one point, the committee chair, Maria Cabrera, had to reprimand the audience: “We’re not going to be doing that — screaming, yelling. We’re going to respect everybody’s opinion in this chamber tonight.”

Many attendees wore T-shirts reading “THE RENT IS TOO DAMN HIGH,” exhibiting strong community interest in proposal. Public commenters in favor of the ordinance included tenants, housing advocates, and longtime Wilmington residents who shared personal stories of rent increases and unsafe living conditions.

Cheyenne McGowan, a resident of the Fifth District, described the measure as a response to a growing affordability crisis, pointing to the recent end of the state’s housing stability program and citing an estimated 3,641 evictions in the city.

“This is a right now issue. This is a right now problem,” she said.

McGowan also questioned the motives behind some opposition, suggesting the debate had shifted from residents’ needs to concerns over profit and property.

“It’s clear that this is not about people. To some of these commenters, it’s about profit, land and wealth,” she stated.

Landlords, realtors, and property managers voiced strong opposition to the rent stabilization proposal, raising concerns about unintended consequences and long-term effects on the city’s housing market.

Jeff Sheraton, president of the Greater Wilmington Housing Providers, cited a similar ordinance passed in St. Paul, Minnesota, which he said led to “an 80% decrease in new multifamily building permits” after its adoption. “

Rent control will be catastrophic for our city,” he said. “Bad policy discourages investment.”

Debra Burgos, representing the Delaware Apartment Association, argued that while rent increases are a burden for tenants, landlords are also facing rising costs, including a 33% increase in hazard insurance for affordable housing properties.

“Rent stabilization does the opposite of helping,” she said. “Those that are in their houses right now may benefit, but in the long term, it will reduce supply and increase the cost for those that are not controlled.”

Others warned the ordinance would push smaller landlords to sell properties, potentially reducing available rental units.

“If they [landlords] sell their properties and move out, it’s only going to be owner occupants that move in,” said local landlord and realtor Renee Spruiel. “Where will the renters go?”

Several commenters said rising repair, tax, and insurance costs have already made it difficult to maintain properties without adjusting rents, and questioned whether the city had the infrastructure to administer the policy fairly.

The committee did not vote on the rent stabilization ordinance, and no clear timeline was given for further action.