31 Del. C. ch. 44 § 4401
Parties
Operative Text
(a) In a proceeding brought pursuant to § 4400 of this title, the Delaware State Housing Authority shall join as defendants: (1) The record owner or owners at the time of the filing of the petition and/or such owner’s heirs, executors, administrators or successors as existing at the time petition is filled; and (2) Persons having an equitable or legal interest of record at the time the petition filed, including an interest to a judicial sale or a statutory sale pursuant to § 8771 et seq. of Title 9. (b) Lien holders as persons whose real or equitable interests in the housing development may be adversely affected by a petition pursuant to this chapter shall not be deemed to be necessary parties and shall not be required to be joined as a defendants. Notice in writing, however, shall be given to the above classes of persons in the manner prescribed from time to time by the Rules of Civil Procedure of the Court of Chancery for the State. (c) The Chancery Court may make all necessary rules respecting the form of process, the manner of issuance and return thereof, modes of proof and the manner of notice to persons having an interest in the housing development which relate to the custodian proceedings.
Section 4401 of Title 31 of the Delaware Code establishes who must be included as parties in a custodian proceeding brought under § 4400. When the Delaware State Housing Authority files such a petition, it is required to name as defendants the property's record owners and anyone holding a legal or equitable interest in the property at the time of filing. Lien holders are not required defendants but must receive written notice, and the Court of Chancery retains authority to set procedural rules governing how these proceedings are conducted.
Plain English — not legal advice.
Under 31 Del. C. § 4401, property owners and those with recorded legal or equitable interests in a housing development are subject to being named as defendants if the Delaware State Housing Authority initiates a custodian proceeding against the property. Compliant operators generally keep ownership records current and ensure that any transfers of interest are properly recorded, since the petition targets whoever holds record title at the time of filing. Owners with mortgages or other liens on the property should be aware that lien holders receive written notice even though they are not required defendants.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 4401 of Title 31 governs the procedural structure of custodian proceedings, which can be a mechanism used when housing conditions have deteriorated significantly. While this provision primarily addresses which parties must be joined in such a proceeding, tenants living in a housing development subject to a § 4400 petition may have an interest in how the proceeding unfolds, since a custodian appointment can affect management and habitability of their homes. Tenants seeking to understand their rights in connection with a custodian proceeding may wish to consult a tenant-rights organization or review the Court of Chancery's procedural rules for guidance on how notice and process work under this section.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 22, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References In
Rules and statutes that cite this regulation