Since this past spring, Sussex County Council has been talking through ways to bring more affordable housing to the area, especially for the county’s workforce.
This week, the council approved legislation that legislators hope will be an essential step in reaching that goal.
This new ordinance aims to “overhaul and improve” the original legislation that established the Sussex County Rental Program, according to a county press release. The county established this program in 2006 to incentivize more developers to include affordable units in their plans.
Since its creation though, only one project has successfully gone through the program, providing not much more than two dozen affordable units in the entire county.
For reference, Sussex County commissioned a housing report in 2019, which revealed that nearly 10,700 households in Sussex County were severely cost-burdened, spending more than half of their income on housing each month. Nearly one-third of Sussex County residents, including about one-half of all renters and more than one-quarter of homeowners, spent 30% or more of their monthly income on housing costs.
And this was before the pandemic complicated housing further.
This is why some like County Council President Michael Vincent have been pushing for change, such as a rewrite of the Sussex County Rental Program.
“Housing costs are top of mind for everyone these days, especially teachers, health care workers, and service staff from the hospitality industry,” Vincent said in a statement. “These are folks who want to live where they work, but often have to look miles away for something affordable. That has to change. We believe reworking our existing rental program is a good first step to helping people find their next home.”
This ordinance passed unanimously on Tuesday and goes into effect immediately. –
The vote followed a series of public hearings and discussions, which helped direct some of the final amendments − such as requiring a comprehensive review of this ordinance in the next five years, changing the required percentage of affordable units from 30% of the total units to 25%, and widening where these projects can be located to include commercial areas as listed on the future land-use map.
More highlights from the new legislation
The new ordinance prompts the following changes to the Sussex County Rental Program, or SCRP, according to Sussex County Council:
- Streamlines the approval process for these projects, as long as they include 25% of the units as affordably priced, and these units would remain in the rental program for perpetuity.
- Increases the density calculus from 2 units per acre to 12 units per acre for the number of permitted units in apartment projects developed under the SCRP.
- Establishes design criteria for all SCRP developments, including greater setbacks to offset the higher permitted density.
- Streamlines the administrative aspects of approving SCRP tenants and monitoring compliance with the program, while clarifying penalties for non-compliance
Developments under the rental program must:
- Be in areas with central public sewer and water.
- Be located along roadways classified by the Delaware Department of Transportation as ‘principal arterial’, ‘minor arterial’ or ‘major collector’, to promote locations in proximity to employment centers and transit connectivity. (This replaced the requirement to be near DART routes.)
- Be limited to areas identified in the County’s Comprehensive Plan as commercial areas, town centers, developing areas, or the coastal area.
What else is the county doing to address affordable housing?
Another way that the county is attempting to improve access to affordable housing is through the Housing Trust Fund, which opened to applicants this spring.
Mostly funded through the American Rescue Plan Act, the Housing Trust Fund allows developers or other groups like nonprofits to apply for grants up to $50,000 for every affordable housing unit built, either as a rental or owner-occupied housing. The county set a maximum of $500,000 per project.
The fund also includes a component for individual homeowners or renters: Eligible applicants can receive loans ranging from $10,000 to $30,000 for the purchase of affordable housing. The loans will be prorated with zero percent interest and forgiven after 10 years of homeownership.
Looking for more information on this topic? Here are more stories
EMPLOYER-PROVIDED HOUSING:Why these big-name beach businesses say they have no choice but to house their employees
SHORT-TERM RENTALS:This Delaware beach town is set to regulate short-term rentals. 5 things you should know
ENERGY INCENTIVES:How this solar-powered modular home could help solve Delaware’s affordable housing crisis
HOUSING TRUST FUND:What to know about Sussex County’s new affordable housing program opening Friday
PROPOSED SOLUTIONS:Work near the beach but can’t afford to live here? How the county, others plan to fix that
A CLOSER LOOK:Why Sussex County’s young workforce feels ‘handcuffed’ by lack of affordable housing
Emily Lytle covers Sussex County from the inland towns to the beaches, with a focus on health-related issues. Got a story she should tell? Contact her at elytle@delmarvanow.com or 302-332-0370. Follow her on Twitter at @emily3lytle.
