Elected officials in Sussex County have acknowledged that one of the county’s most formidable challenges is providing affordable housing. People who work in these communities, they say, should be able to live here, too.
Now, the state’s fastest-growing county is ready to begin a new program that aims to support both individuals seeking housing and developers looking for incentives to build more affordable options.
The county’s Community Development & Housing office will begin accepting applications for its Housing Trust Fund program on Friday.
The program, which is primarily funded through American Rescue Plan Act funds, includes two components: one-time forgivable loans that individuals can use for something like a down payment on a house, as well as grant opportunities for developers working to increase the amount of affordable housing options in the county.
Assistance for buyers
Individual applicants must meet income requirements to qualify. In this program, they can make up to 120% of the area median income, but the focus will be on those earning less than 65%.
The median household income for Sussex County between 2016 and 2020 was $64,905, according to the U.S. Census Bureau.
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Once they qualify, applicants can receive loans ranging from $10,000 to as much as $30,000 for the purchase of affordable housing. The loans will be prorated with zero percent interest and forgiven after 10 years of homeownership, according to the Sussex County news release.
This is widening opportunities for potential homeowners or renters since applicants previously had to earn 80% or less of the area median income and could only receive up to $10,000 in assistance.
The county will begin to accept individual applicants beginning Friday and continue on a rolling basis as long as funding is available.
Assistance for developers
Developers or other groups like nonprofits can 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 units must be marketed toward individuals and households meeting income eligibility requirements, as defined under the Housing Trust Fund program.
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Applications for development grants will be accepted in a series of rounds with the first scheduled to run between April 1 and 29.
Affordable housing as a priority
Sussex County Finance Director Gina Jennings previously outlined these new programs during a March 8 presentation on how the county planned to use ARPA funding. The Housing Trust Fund will be funded by $6.8 million, with most of that coming from ARPA and the remaining $500,000 from the Sussex County budget.
County Council President Michael H. Vincent said that affordable housing has been top of mind for the public and the council, especially in Sussex County where he said there is a soaring real estate market.
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The county identified affordable housing as a priority for the next 25 to 30 years in its 2018 comprehensive plan.
“We all have to live somewhere, and every community needs affordable housing options,” he said. “Hopefully, this program will provide the seed money that working families and housing advocates can use to cultivate an environment of affordability, one that guarantees people can continue to live, work, and play in Sussex County for decades to come.”
The Housing Trust Fund comes after numerous public discussions and meetings with stakeholders, particularly housing advocates, and was among the recommendations made in a 2019 housing study that looked at affordability in southern Delaware, according to Brandy B. Nauman, director of the County’s Community Development & Housing Office.
“This is a tremendous step for Sussex County, one that I hope will have a meaningful outcome for the countless families and individuals out there looking for quality and affordable housing,” Nauman said. “I’m proud that the county is stepping up to be a leader in helping to bridge the affordability gap that, left unaddressed, would only grow wider in time.”
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Reporter Shannon Marvel McNaught contributed to this report.
Emily Lytle covers Sussex County from the inland towns to the beaches. Got a story she should tell? Contact her at elytle@delmarvanow.com or 302-332-0370. Follow her on Twitter at @emily3lytle.
