FOR IMMEDIATE RELEASE | May 16, 2025
Contact: Sarah Fulton (302) 401-1114
DOVER — Modeled after recommendations put forward by the Affordable Housing Production Task Force, Sen. Russ Huxtable and Rep. Kendra Johsnon filed three bills Thursday that will unlock new funding streams for the construction of affordable housing units in the First State.
“According to the Housing Needs Assessment conducted by the Delaware State Housing Authority, we know that approximately 45,000 housing units are needed to address current shortages in the state’s rental market and to keep up with projected population growth,” said Sen. Huxtable, who co-chaired the Affordable Housing Production Task Force alongside Rep. Johnson and Delaware State Housing Authority Director Matthew Heckles. “We are excited to bring forward the first three of many bills resulting from the months of hard work conducted by the task force.”
To give local governments more agency in incentivizing affordable housing construction, the Task Force recommended the adoption of Senate Bill 149. This legislation allows counties and municipalities to exempt Low-Income Housing Tax Credit (LIHTC) properties from property taxes and instead, require that they make an annual payment in lieu of taxes (PILOT) equal to 5% of the LIHTC’s annual net income as reported to the Delaware State Housing Authority. Under SB 149, a LIHTC property that is exempt from property taxes is also exempt from taxation by school districts.
Senate Bill 150 creates an Affordable Rental Housing Program. This legislation — which is modeled after the federal Section 515 program — enables the state to provide direct, competitive long-term mortgages with low interest rates through the Housing Development Fund to be used for the acquisition, rehabilitation, or construction of rental housing.
House Bill 185 would allow an applicant who seeks to create affordable housing to apply for Site Readiness Funds.
Administered by the Delaware Division of Small Business, the Site Readiness Fund promotes economic growth and stability by investing in the development or improvement of commercial and industrial sites to attract job-creating businesses. The Fund provides grants, loans or other economic assistance to qualified businesses or local governments that invest in constructing, renovating or improving infrastructure for sites that will attract new businesses or expand existing businesses within Delaware.
“Every piece of legislation in this package takes direct inspiration from the recommendations of the Affordable Housing Production Task Force (AHPTF), which was formed for the sole purpose of determining the best ways to increase the production of affordable rental units and homes in Delaware,” said Rep. Johnson, sponsor of HB 185. “We spent months working with stakeholders and experts to determine the best path forward, and now it’s time to take that hard work and turn it into action. We cannot afford to delay any actions when our affordable housing crisis is only growing more severe.”
SB 149 and SB 150 have been assigned to the Senate Housing & Land Use Committee; HB 185 has been assigned to the House Housing Committee.
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