- A total of $30 million has been set aside to incentivize developers to build affordable housing units.
- The Catalyst Fund provides $20 million in construction lending and a “sales gap subsidy” to turn vacant buidings into affordable homeownership opportunities.
- The Market Pressure Relief Fund will provide financial assistance to developers to relieve construction material cost increases due to the pandemic.
Delaware has made $30 million available with the launch of two programs aimed at incentivizing the development of affordable housing units.
The Delaware State Housing Authority announced two programs – funded by the state’s American Rescue Plan Act – that will provide financial assistance to developers to transform vacant properties into affordable homeownership opportunities and relieve the pressure of increased construction material costs.
The state’s housing crisis has only gotten more dire in the last year, despite local organizations and developers regularly celebrating new affordable housing complexes opening. The latest National Low Income Coalition housing report found the shortage in affordable units grew by 17%.
Meanwhile, the economy remains volatile – interest rates have risen, inflation remains high and supply chain issues still plague various industries – making affordable housing development less desirable to those seeking favorable profit margins.
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Delaware launched the programs earlier this year to combat those forces with a “multi-tiered approach to address the state’s housing crisis and strengthen communities.”
The Catalyst Fund
This offers developers construction lending and a “sales gap subsidy” to transform vacant and blighted properties into affordable units for low- and moderate-income homebuyers. There was $20 million in housing development assistance made available.
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A virtual information and update session for developers will be hosted at 11 a.m. Thursday. Registration is required.
The Market Pressure Relief Fund
This provides $10 million in assistance to relieve construction material cost increases caused by the pandemic.
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Additional programs and funding will roll out later this year, and state officials say they continue to explore different ways to assist developers in expanding affordable housing opportunities.
Low-Income Housing Tax Credit deadline
Housing developers have until Friday, April 28 to submit applications for the housing tax credit program. Developers who meet the eligibility requirements for the low-income housing tax credit may also be able to access ARPA funding to “encourage both new units and the preservation of existing units.”
To stay updated on housing program announcements in Delaware, sign up for the housing authority’s newsletter.
Got a tip? Contact Amanda Fries at afries@delawareonline.com. Follow her on Twitter at @mandy_fries.
