Approximately $50 million in funding for affordable housing and housing development initiatives to strengthen communities throughout Delaware.
DSHA will use American Rescue Plan Act (ARPA) funding to develop a multitiered approach to address the affordable housing crisis across the state. DSHA will create the following programs as part of this initiative, and will administer the programs through 2026:
- Catalyst Fund (Expected launch: Summer 2022) ? Creating and preserving affordable homeownership opportunities through the acquisition and rehabilitation of vacant homes in Delaware?s neighborhoods. These funds will be administered in partnership with Cinnaire, a certified Community Development Financial Institution that offers lending options for community development construction.
- Cinnaire will offer construction lending by leveraging ARPA funds to incentivize for-profit and nonprofit developers to purchase, renovate, or replace vacant and blighted properties. The for-profit or nonprofit developer will receive ARPA funding as part of their construction project financing so that the cost of the new or rehabilitated home remains affordable to low-income residents.
- Market Pressure Relief Fund (Expected launch: Summer 2022) ? Relieving economic cost pressures on Delaware?s affordable housing
development community. This will provide additional financing to owners of affordable multifamily rental projects currently under construction that have faced construction cost increases due to supply chain disruptions and inflation to ensure these projects are completed.
- Accelerator Fund (Expected launch: Fall 2022) ? Leveraging once-in-a generation funding available to unlock Delaware?s development potential. The Accelerator Fund will provide an incentive to market-rate rental developers with planned construction projects to provide affordable rental units in their new or renovated properties. The developer will receive an upfront payment from DSHA, funded by ARPA, which will offset construction costs. As part of the funding agreement, the developer will commit to an affordable monthly rent for a specified number of units in a project that would otherwise be exclusively market-rate. This new program will also provide additional funds for traditional affordable rental developers that qualify for the federal Low-Income Housing Tax Credit.
- Preservation Fund (Expected launch: Spring 2023) ? Ensuring enduring affordability in Delaware?s existing affordable housing stock. These funds will offer financial incentives to ensure nearly 1,000 existing affordable rental units eligible to convert to market rate instead remain in the affordable rental inventory.DSHA and its partners will host public meetings to gather feedback from the community and stakeholders before launching these new programs.
The first meeting will focus on the Catalyst Fund and will take place the week of July 25. The purpose of the meetings is to ensure that the programs are designed to best meet the goal of increasing the availability of affordable housing in Delaware.
More information, including upcoming meeting dates and program details, will be posted on destatehousing.com »
DSHA announced last week the launch of the Delaware Mortgage Relief Program, which can provide up to $40,000 in financial assistance to eligible households who experienced a COVID-19-related financial hardship that resulted in mortgage delinquency or forbearance. This program is supported by the federal Homeowners Assistance Fund, which was created under ARPA and distributed to states to provide relief for homeowners. Delaware received $50 million. Homeowners can apply for the program at demortgagehelp.com
“DSHA is committed to stewarding these funds efficiently and transparently. With these historic investments, our state is firmly positioned to meet the critical needs of Delawareans across the state.” – DSHA Director Eugene Young, Jr.
“We are using ARPA funds to make sure these affordable housing construction projects get through the finish line, support more Delawareans in becoming homeowners, and revitalize communities that were hit hard by the COVID-19 pandemic.” – Governor John Carney
“Access to affordable housing is vital to a person?s health and well-being. This ARPA investment will expand access to affordable housing options in communities that need it most, and make Delaware a stronger, healthier, more equitable state.?”– Lt. Governor Bethany Hall-Long
“The lack of housing options for working Delawareans has pushed homeowners and renters to pay more than their fair share to find a decent place to live, and Governor Carney?s embrace of this federal money will create much needed housing all across our state that stays within the budgets of working Delawareans.” – U.S. Senator Chris Coons
“When Senator Coons, Congresswoman Blunt Rochester and I were crafting the American Rescue Plan, this is just the kind of program we had in mind to help folks in need and strengthen our communities across the state.” – U.S. Senator Tom Carper
“We know that one of the most pressing needs in our state throughout the pandemic and during our recovery is the need for affordable housing. I commend Governor Carney and the State for deploying these resources as part of our mission to ensure that every Delawarean has access to safe and affordable housing.” – U.S. Representative Lisa Blunt Rochester