DE lawmakers introducing package of bills to address housing crisis
DELAWARE – Delaware lawmakers are working to address what they call a housing crisis.
Housing Agenda Introduced
Thursday, State Senator Russ Huxtable file a package of seven bills, named the Housing Agenda. The bipartisan package is aimed at incentivizing affordable housing construction, and bolstering state-run programs that put roofs over Delawareans’ heads.
“It’s a complicated issue, and no one bill will solve the issue,” said Sen. Huxtable. “Signaling reduction in costs, and potential subsidy sources is a great way to attract those who develop affordable housing.”
Representative Bill Bush, who is co-sponsoring one of the proposed bills, said addressing housing in Delaware is an urgent priority.
“We hear it all the time. It’s impacting our constituents, and we have to act now,” said Rep. Bush. “This is something that will take the effort of many legislators, as well as community members, in order to resolve this. There really isn’t one simple solution. I think we all wish there was.”
Senate Bills 22, 23, 25
Senate Bill 22 would create new state incentives to spur workforce housing development. The legislation is modeled on the Delaware State Housing Authority’s Downtown Development District Program, launched ten years ago. The new iteration would offer grants of up to 20% of construction costs for qualified projects in high-density areas.
And, under Senate Bill 23, municipalities and counties in the state would be directed to develop new ordinances. The codes would allow for construction of at least one accessory dwelling unit per single-family home. The spaces are often called in-law units or garage apartments. Lawmakers believe this effort could help increase the state’s housing supply.
The cost of building new, affordable housing projects would be lowered under Senate Bill 25. Low-to-moderate-income dwelling units would be exempt from Delaware’s 2% improvement tax with the legislation. Currently, the tax is levied on new construction valued at $10,001 or more, built within a year of the land being sold.
Senate Bills 244, 245, 246, 247
Senate Bill 244 would authorize any county that collects a lodging tax to allocate some or all of the funds towards their workforce and affordable housing programs. New Castle and Sussex Counties currently collect such taxes.
The Office of Foreclosure Prevention and Financial Education, and the Residential Mortgage Foreclosure Mediation Program, would be extended under Senate Bill 245. Both were created as temporary programs in the wake of the Great Recession, and have been extended multiple times already. The new legislation would remove each programs’ sunset dates.
Under Senate Bill 246, a dedicated revolving loan fund would be created. The fund would help support home repair programs under the Delaware State Housing Authority. Seed money from the state’s General Fund, or private donations, would help bolster the Housing Repair and Modification Fund under the legislation.
Finally, Senate Bill 247 would create clearer protections against predatory practices from landlords. The legislation would ensure that manufactured housing community owners are unable to raise rents within 12 months of a recorded health and safety violation.
Listening to Needs
Leading up to the creation of the package, lawmakers embarked on a listening tour up and down the state. Sen. Huxtable said it was important to hear constituents’ needs before putting pen to paper.
“It is a dynamic package, and more work is needed to fully address the crisis that impacts those that need a decent, safe, and affordable place to live, but also the communities that desperately need a balanced housing approach,” Sen. Huxtable said.
Looking Ahead
Sen. Huxtable acknowledges that some of these bills will come at a cost to the state. However, he argues that the legislation is designed to generate buy-in from the private sector.
“Some of them, we are going to have to fight for the resources to help address this issue,” Sen. Huxtable said. “This is one of the reasons I think the Delaware Workforce Housing Program is really important, because it actually leverages private investment into the program.”
