Why Should Delaware Care?
In his second year in office, Wilmington Mayor John Carney made housing a focus in Delaware’s largest city. But debate with city council over how to spend city dollars exposed a divide over whether Wilmington should prioritize dollars for affordable housing developers or for immediate help to people in need.
A month after Wilmington officials debated how best to invest in affordable housing, Mayor John Carney vetoed a City Council-backed proposal to create a trust fund to pay for housing construction, homeless services, and first-time homebuyer assistance.
Carney vetoed the ordinance on Thursday, stating in a letter sent to the City Council that it “lacks a funding mechanism, and does not advance Wilmington’s strategy to create more affordable housing in a meaningful way.”
He also said the measure would create “a structurally weak advisory committee that duplicates existing bodies.”
In response, the sponsor of the ordinance, Councilwoman Shanè Darby, called on her colleagues to override the mayor’s veto during their next meeting, scheduled for July 2. An override would require nine votes from her colleagues.
In a prepared statement, Darby also sought to refute Carney’s arguments directly, stating that an advisory committee created by her ordinance would not duplicate existing city committees because hers would be permanent and would determine who gets dollars from her proposed housing trust fund.
She also said the City Council can “choose to fund it at any time.”
“We need a fund that creates long-term affordable units and that directly addresses homelessness,” she said in the statement.
The veto comes about a month after the Carney administration and City Council argued over how the city should invest in affordable housing as part of its next year’s budget.
Ultimately, the Council passed Darby’s trust fund, as well as Carney’s plan, included within the city budget, to deliver subsidies to developers of affordable housing projects.
The debate unfolded just as the city was facing ongoing criticisms over its response to homelessness, particularly at a city-sanctioned encampment at Christina Park.
The votes also followed a tense debate that occurred last year over a separate proposal from Darby that would have restricted rent increases in the city.
In an interview with Spotlight Delaware, Darby said she believes Carney vetoed her most recent ordinance because he’s “not a fan of me.”
Competing proposals
Darby first introduced her housing trust proposal in February.
A month later, Carney released his proposed city budget, and included within it was a $20 million housing proposal. Of that, nearly $17 million would fund a program to deliver subsidies to developers who build affordable housing.
But many members on the city council pushed back against Carney’s proposal, arguing the developer subsidies were too costly and wouldn’t address near-term housing needs of residents.
By May, City Council members embraced Darby’s housing trust proposal, making it the centerpiece of their competing housing plan. The biggest proponents were the City Council’s progressive bloc, which includes Darby, Christian Willauer and Coby Owens.
During a subsequent City Council meeting, several housing advocates also expressed support for Darby’s initiative, arguing it was urgently needed amid Carney’s decision to close the Christina Park encampment.
“Don’t fumble this opportunity. Pass the affordable housing trust,” Adam Whitley, a city resident, said during a May city council meeting.
In response, Carney reshaped his parallel housing plan within his proposed budget, paring it down to an $11.8 million housing package.
Ultimately, the City Council passed the city budget, preserving much of Carney’s proposal to use incentives to spur housing development.
Two weeks later, they also passed Darby’s separate housing trust ordinance.
Council members also continue to consider several other housing initiatives, including funds for eviction assistance and emergency rental assistance.
More money from developers?
If the City Council overrides Carney’s veto, Darby and Willauer have suggested that the city could pay for the trust fund by pulling dollars from its tax stabilization reserve, the general budget, the state bond bill, or developer fees.
To boost those developer fees paid to the city, Darby said that she is currently working on a measure that would require builders to pay the city when they build housing units that are not affordable.
Her measure would also require developers who use public funds for housing projects to designate a percentage of their units as affordable. She argued that measure is only possible if the housing trust fund is in existence.
“And then next year, for budget talks, we would infuse it with money from the budget,” Darby said.
