Delaware breaks ground on affordable housing expansion in Milford

MILFORD, Del. — A major affordable housing initiative is underway in Milford, where officials broke ground Thursday on the second phase of the Mispillion Station project, marking another step in Delaware’s ongoing effort to expand housing access across the state.

The project, backed by the Delaware State Housing Authority and private developers, will renovate 32 existing units and add 16 new ones. The upgrades are being funded through the federal Low-Income Housing Tax Credit (LIHTC) program, which has supported affordable housing development nationwide for decades.

“These units here in Milford were originally built in the 1970s and ’80s using federal rural development dollars,” said Matt Heckles of the Delaware State Housing Authority. “This tax credit deal we’re doing now allows us to go in and demolish and rebuild those units.”

Thursday’s groundbreaking also served as a celebration of four preliminary awards in the 2025 round of the LIHTC program. Altogether, the state allocated roughly $3.4 million in tax credits to support more than 200 affordable units across Delaware—including in Milford, Wilmington, Georgetown, and Lewes.

Governor Matt Meyer emphasized the urgency of addressing the state’s housing shortage.

“We are doing everything possible to build more housing units so that supply increases and prices will come down,” Meyer said. “We also have a long number of programs through the Delaware State Housing Authority.”

Since its inception in 1987, Delaware’s housing tax credit program has contributed to the creation of more than 10,000 affordable housing units statewide.