The City of Wilmington's Rent Escrow Program helps protect eligible renters living in unsafe housing conditions. Through the program, qualifying tenants may be permitted to place their rent into a secure escrow account while certain life safety violations are addressed. 

The program is administered through a partnership between the City of Wilmington's department of Licenses & Inspections (L& I) and the First State Community Action Agency (FSCAA).

What is the City of Wilmington’s Voluntary Rent Escrow Program?

The Voluntary Rent Escrow Program allows eligible residential tenants to temporarily deposit rent into a secure escrow account when a landlord fails to provide and/or restore hot water, heat, water, or electricity after receiving the notice required under Delaware law. The program provides tenants with a structured process while encouraging landlords to promptly restore essential services.

Who administers the Rent Escrow Program?

The City of Wilmington has designated First State Community Action Agency (FSCAA) as the third-party administrator for the program. FSCAA manages tenant eligibility, escrow payment administration, financial counseling, case management, and reporting. The Department of Licenses & Inspections remains responsible for conducting inspections and verifying qualifying code violations. 

FSCAA can be contacted via phone at (302) 856-7761.

Who is eligible to participate?

 To qualify, tenants must:

1. Occupy a residential rental property within the City of Wilmington.
2. Have provided the written notice required under 25 Del. C. § 5308 to their landlord.
3. Allow the landlord at least 48 hours to restore the interrupted essential service.
4. Obtain an inspection from the Department of Licenses & Inspections confirming the property lacks hot water, heat, water, or electricity.

Submit all required program documentation, including a copy of the lease and notice provided to the landlord. 

How do tenants enroll in the program?

Eligible tenants should contact FSCAA to begin the intake process. FSCAA will verify eligibility, collect the required documentation, establish the tenant’s case file, provide financial counseling, and, once eligibility is confirmed, establish the tenant’s rent escrow account.

Where are escrow funds held, and are they secure?

Escrow payments are deposited into a dedicated, segregated escrow account administered by FSCAA. The funds are maintained separately from FSCAA’s operating accounts, tracked individually for each household, and managed under strict financial controls to ensure transparency, accountability, and audit compliance.

Can FSCAA provide legal advice or decide disputes between landlords and tenants?

No. FSCAA does not provide legal advice, determine tenant rights, authorize rent withholding, or resolve disputes. Legal questions, landlord-tenant disputes, and court matters must be handled through the appropriate court, legal services provider, or other authorized entity.

When can escrow funds be released?

Escrow funds may only be released in accordance with City Code Section 34-151(e) upon one of the following: 

1. A court order directing how the funds should be distributed.
2. A joint written affidavit signed by both the landlord and tenant authorizing the release of funds.
3. Written proof that the tenant has legally terminated the rental agreement.