Why Should Delaware Care?
Homelessness in Kent and Sussex counties has dominated local debate in recent months. Now, as federal funds meant to improve rural health enter the state, Delaware officials are planning to build a homeless shelter in each of the counties. One proposal could see one of those centers a mile away from Delaware State’s campus.
Delaware officials are in talks to convert hundreds of Delaware State University dorms into a homeless shelter modeled after the New Castle County Hope Center.
The state would fund the endeavor using federal dollars it received last year to bolster rural health access.
Jon Starkey, DSU’s vice president for government relations, confirmed on Thursday the university is negotiating with state leaders about the property — a 132,000-square-foot building on U.S. Route 13 that houses up to 265 students.
He said the decision to consider a sale of some of its student housing comes as the campus has grown in recent years, and the university looks to downsize its real estate footprint.
“We are taking a hard look at several of our non-contiguous properties, and how we should rationalize our footprint to most effectively meet the current and future needs of the university,” Starkey said in a text message.
Should the plans materialize, the effort would stand up a government-run homeless shelter in a county that advocates say sorely lacks services. The facility would sit about a mile from Delaware’s second-largest higher education institution.
A spokesperson for the Delaware State Housing Authority confirmed the talks, saying the agency is “excited about plans to expand the Hope Center model in Delaware.”
In 2013, DSU purchased a Sheraton hotel on North DuPont Highway for $12 million, later converting it into student housing. The building is now called the “Living and Learning Commons.” It also houses the Delaware State University Early College High School, a charter school offering students the chance to earn a high school diploma and up to 60 hours of college credit.
It is unclear how much Delaware would spend on the property, assuming it goes through with a deal, but Kent County records currently value the building at more than $14 million.
In April, the Delaware State Housing Authority received $26 million to replicate the Hope Center model in Kent and Sussex County using federal grant dollars. Its initial $26 million award is the first batch of funding in what will amount to a five-year federal program.
The housing authority expects to receive close to $100 million by the end of the program, according to a non-binding document signed by the housing authority and the state health department outlining the project.
In a project timeline for the two Hope Centers, the state told the federal government it would secure its first property contract for one of the centers by the end of June. That center would then open by the end of September, according to the timeline.
The signed document tasks the housing authority with developing and operating the Hope Centers in both counties. Over the next five years, the document also said the housing authority should act as a landlord of the facility by managing its operations and “charging rent to all building tenants.”
“During the grant period, DSHA will ensure rent is paid through the grant to support mission-
aligned services identified in the project plan,” the agreement said.
A spokesperson for the housing authority said in an email it would charge that rent to service providers, not people seeking shelter. At the New Castle County center, ChristianaCare is a provider, among other programs.
Dover Mayor Robin Christiansen told Spotlight Delaware on Thursday that he and Police Chief Thomas Johnson will meet with Heckles early next week to discuss the proposal.
Christiansen said he was hoping to discuss security at the facility and address the concerns of nearby property owners. Unlike the New Castle County Hope Center, the DSU property is nestled among a busy commercial plaza that features a Sam’s Club, Lowe’s and an auto dealership.
New Castle County Hope Center
The two homeless shelters poised for development in Kent and Sussex County are modeled off a similar facility in New Castle County that Gov. Matt Meyer stood up in 2020 during his time as county executive.
Like the Dover proposal, New Castle County also purchased a Sheraton hotel. The facility, which is nearly 200,000 square feet, offers emergency shelter to people as they try to find stable housing elsewhere.
Since the Hope Center opened, Meyer has touted it as a success story, even as it has been subject to controversy over the years. County officials have it called the largest homeless shelter on the East Coast.
The county bought the hotel for close to $20 million at the end of 2020, from the same company that also was awarded a contract to manage the shelter.
But in early 2024, ownership and oversight of the facility was transferred back to the county shortly after an audit found the company did not properly report all money flowing into the facility.
Spotlight Delaware also reported that a resident expressed concerns about black mold in the facility amid an ongoing lawsuit that examined who was at fault for past water leaks into the Hope Center building. County officials have emphatically denied that the facility is unsafe.
Rural health funds
To open two new Hope Centers, Delaware will use funds from a federal grant program awarded to all 50 states aimed at bolstering rural health. In December, the feds awarded Delaware $157 million. The first batch it is poised to receive over the next five years.
The full award amount for the state remains unclear at this time, but Delaware will receive at least $500 million from the federal “Rural Health Transformation Program.”
Delaware officials said they plan to use those funds to invest heavily into health infrastructure in Kent and Sussex counties, including building the state’s first medical school as well as the two new Hope Centers in the lower counties.
State leaders also hope to fund 13 additional programs, including additional preventative care, financial assistance for medical students who commit to working in Delaware for five years after graduation, and robust nutritional education.
The Centers for Medicare & Medicaid Services (CMS), which will oversee the funding, said states can expect their annual award to change year over year based on performance and implementation.
CMS also said states can expect their year-two awards by the end of October 2026. It’s unclear how the 15 total initiatives budgeted by the state will be impacted by the fluctuating awards.
“We’re excited to share more details in the coming weeks, as Governor Meyer remains focused on lowering costs, improving access, and growing our healthcare workforce to benefit every family, regardless of income or ZIP code,” a spokesperson for the governor’s office said in December.
Karl Baker contributed to this report.
