Why Should Delaware Care?
High rents have been a consistent problem in Sussex County, especially near the beaches. Reforms to a program meant to encourage developers to build more affordable housing appear to be working.
A proposed townhome development next to Route 1 may be the first of several new additions to Sussex County’s affordable housing program
The proposal, named Vintners Reserve, includes 370 market-rate townhomes and 67 income-restricted townhomes off Janice Road west of Lewes. The location is currently farmland that sits just north of the Nassau Valley Winery.
The state’s Preliminary Land Use Service, a state board that coordinates early reviews of developments, gave generally positive feedback for the project at its meeting Wednesday.
“This project will be a significant asset to the county and provide cost-burdened working Delawareans with houses closer to their jobs,” said Cole Shultz, a research specialist with the state’s housing agency.
Sussex County has a projected need of 2,643 affordable rental units by 2030, according to Delaware’s 2023 Housing Needs Assessment.
Vintners Reserve would be the first development in the Sussex County Rental Program after the council decided in June to allow higher rents and more density in the program to encourage more participation.
It would also be only the third development built in the affordable housing program since it began in 2008. But county spokesman Chip Guy said that about eight to 10 other developers have expressed interest in joining the program since the reforms.
Affordable housing proponents have long argued that new income-restricted homes near the beaches could help the low-wage workers that serve the beach communities have shorter commute times.
The project will not need to go through any public hearing process because it is considered a by-right project after being accepted into the affordable housing program. It still needs state and county permitting approvals, however, before it can begin construction.
What would the rents be?
The county council raised the rent cap to join the Sussex County Rental Program because developers said the previous rules did not make it financially feasible to build affordable housing projects.
The rents now have to be between $970 and $1,295 for a one-bedroom unit, between $1,165 and $1,550 for a two-bedroom and between $1,345 and $1,790 for a three-bedroom.
Those rents are based on what someone making 60%, 70% and 80% of the area median income could afford.
Lower-priced apartments would count as more units for the purpose of reaching a threshold of 25% affordable units.
For example, a housing developer would be able to charge a higher rent if a quarter of the units were rent-restricted. But they could decide to make only 15% of the units rent-restricted if they charged a lower rent on those apartments.
It appears that the developer behind Vintner’s Reserve will elect to keep the rents at the lowest tier, since only about 15% of the total units are planned to be rent-restricted.
