Federal tax incentives available for qualifying investments in Opportunity Zones

DOVER, Del. – Governor John Carney announced on Thursday that communities and economically-distressed properties across Delaware could see additional private sector investment after 25 census tracts were designated as Opportunity Zones by the U.S. Department of the Treasury.

Earlier this month, Governor Carney nominated the tracts – from Claymont to Laurel – for the federal designation to spur additional private sector investment in Delaware communities. Qualified investors in the zones will become eligible for federal tax incentives. The Delaware sites include a mix of residential, commercial, and industrial properties that are well-positioned to compete for the significant investment needed in low-income communities across the state.

“Strengthening neighborhoods and communities across Delaware helps improve our economy, stabilize families, and make our state an even better place to live, work and visit,” said Governor Carney. “These Opportunity Zone designations will help build on our ongoing community development efforts, and encourage additional private investment where it can have the most impact – in economically-distressed communities. We look forward to working with private sector partners, and with local leaders across our state, on this important initiative.”

“The Office of State Planning is very excited about the certification of the Delaware Opportunity Zones,” said Connie Holland, Director of the Office of State Planning Coordination. “Working very closely with the Governor’s Office and realizing his mission to lead the state’s economic revitalization, this program will enhance our planning goals through private investment in distressed communities across the State. Delaware communities will see job and economic growth which can only be a benefit to all citizens of Delaware.”

Delaware’s Opportunity Zone tracts include neighborhoods in Wilmington; properties along the Route 9 Corridor in New Castle; areas in Dover, Milford, Georgetown, and Seaford, including the Seaford Nylon Capital Shopping Center; the STAR campus in Newark; and aging industrial sites along the Delaware River in northern New Castle County that are eligible for additional development and cleanup under the Coastal Zone Act.

Many of the newly-designated Opportunity Zone tracts are located within Downtown Development Districts, where investors may already qualify for state investment rebates, local tax abatements, affordable bridge loans, and other state and local incentives. Since the downtown program launched in 2015, roughly $21 million in state-funded investment rebates has leveraged $371 million of additional public and private investment in Dover, Georgetown, Harrington, Laurel, Milford, Seaford, Smyrna and Wilmington. Governor Carney’s recommended Fiscal Year 2019 budget sets aside an additional $8.5 million for the program.

“We look forward to having another tool in Delaware’s toolbox. These economic development incentives are vital to growing jobs and strengthening neighborhoods,” said Anas Ben Addi, Director of the Delaware State Housing Authority. “The future Opportunity Zone investments will further amplify the strength of Delaware’s downtown development impact.”

“As a Community Development Financial Institution (CDFI), Cinnaire is very excited to potentially facilitate these opportunity zone partnerships and strengthen Delaware’s economy,” said Jim Peffley, Executive Vice President of Cinnaire. “Delaware has been a priority target for most of our investment funds, and we are always seeking ways to bring new resources to the state.”

View a map of Opportunity Zones in Delaware.

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WILMINGTON – Families and others who want to learn more about buying a home can get a wealth of information at the free Delaware Homebuyer Fair this weekend. The April 21 event at the Chase Center on the Riverfront, running from 8 a.m. to 3 p.m., offers educational seminars on every aspect of homebuying, as well as the chance to connect with service providers in the real estate, financing, and home buying fields.

The event, in its eighth year, typically draws between 350 and 400 people. A complete agenda is available on DSHA’s website.

“The Homebuyer Fair offers a one-stop experience for people at all stages of the homebuying process to get all the information they need,” said Delaware State Housing Authority Director Anas Ben Addi. “We make it as easy as possible for potential buyers to become better prepared and feel comfortable with buying a home.”

Seminars will cover topics such as finding properties, obtaining low-cost financing, down payment assistance, home inspections and maintenance, and budgeting. Attendees can earn credit toward HUD Homebuyer Education Certificate requirements.

The Homebuyer Fair is presented by the Delaware State Housing Authority in partnership with the Delaware Federation of Housing Counselors. Sponsors include Caine Mitter, Comcast, Cozen & O’Connor, Drinker Biddle, the Delaware Health Care Commission, FHLB Pittsburgh, George K. Baum, Greenberg Traurig, GROWTH by NCRC, Highlands Mortgage, Hilltop Securities, Lakeview Loan Servicing, Meridian Mortgage, Sharon Stewart / Keller Williams, $tand By Me and Ward & Taylor.

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Media contact: Dan Shortridge, DSHA, 302-632-0470 (cell), dans@destatehousing.com

$4.3 million in rebates will leverage $53 million in economic investment

LAUREL – Ten downtown revitalization projects in Laurel, Georgetown, Dover and Wilmington have been selected for Delaware’s Downtown Development District Program rebates, with $4.3 million in rebates leveraging $53 million in total investment, Governor John Carney and the Delaware State Housing Authority announced Monday.

The DDD rebate program is a strong catalyst for private investment in Delaware’s downtowns, with $21 million in rebates issued or allocated having leveraged $371 million in total investment in eight districts over the last three years.

“Downtown revitalization is a centerpiece of our commitment to reinvesting in Delaware and making our communities stronger,” said Governor John Carney. “A small amount of state funding has leveraged hundreds of millions of dollars in private investment, making these partnerships among the best in our state. These investments are a vital tool in our economic development toolbox, and will have a long-term impact rippling out into surrounding neighborhoods.”

The Administration’s proposed budget for fiscal year 2019 includes $8.5 million for the DDD program, enabling the investments to continue across the state.

“We are pleased to support new projects that are creating homes, renovating empty buildings, leading to new construction, and bringing businesses and jobs to our downtowns,” said Anas Ben Addi, director of the Delaware State Housing Authority. “Community development is central to our mission, and we are encouraged by the continued strong interest in the Downtown Development District rebates in all eight districts.”

DSHA also announced the launch of the DDD StoryMap, an online tool developed with the University of Delaware that showcases projects in all eight districts. A link to the StoryMap is online at destatehousing.com/ddd.

Investments eligible for Downtown Development District rebate funds include capital investments on rehabilitation, expansion or new construction for commercial, industrial, residential or mixed-use buildings within the district boundaries. Rebates are issued after the project is completed. Qualified applicants include property owners, tenants, for-profit developers, nonprofit organizations, businesses and homeowners.

A new funding round will be announced later this spring for large projects in each of the districts. Small projects – investments of between $15,000 and $250,000 – are accepted on a rolling basis throughout the year contingent upon funding.

The 10 projects selected for rebates in this round include:

• Constructing 10 units (five duplexes) in the second phase of the townhome community of Villas on Broad Creek in Laurel.

• Expanding and rehabbing a building on East Laurel Street in Georgetown to include a laundry facility, coffee shop, beauty salon, apartments and office space.

• Building a 20,000-square-foot medical and professional office building in Dover.

• Renovation or redevelopment of four projects along Wilmington’s Market Street corridor:

O Renovating the bar inside the Queen Theatre;

O Redeveloping a vacant building into a hotel and restaurant; and

O Converting an office building into mixed-use retail and residential space.

O Redeveloping a building into a restaurant and apartments.

• Redeveloping a church building on Lombard Street in Wilmington into an employment training center, fresh produce retail operation, office space, and multipurpose community space.

• Redeveloping a building on North West Street in Wilmington into a commercial laundry and office space.

• Redeveloping a former cabinet manufacturer on North Church Street in Wilmington to house a church sanctuary, offices, classroom space and community center.

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Media contact:

Dan Shortridge, Director of Public Relations
Delaware State Housing Authority
dans@destatehousing.com
Office: 302-739-0271
Cell: 302-632-0470

DOVER — Delaware homeowners who face foreclosure, have fallen behind on their mortgage payments, or have questions about their mortgage can meet with lenders and housing counselors at two upcoming workshops in Dover on November 13 and Wilmington on November 14.

At each free workshop, homeowners can also get information from the Attorney General’s Office and the Delaware State Housing Authority about government programs, the Delaware foreclosure timeline, and preventing foreclosure frauds and scams. No reservations or appointments are needed.

The foreclosure workshops will be November 13 from 1 p.m. to 7 pm., with educational sessions at 2 p.m. and 5 p.m., at the Modern Maturity Center, 1121 Forrest Avenue, Dover, and November 14 from 3 p.m. to 7 p.m., with an educational session at 5 p.m., at the DoubleTree by Hilton Wilmington, 4727 Concord Pike Wilmington.

For more information, visit delawarehomeownerrelief.com or attorneygeneral.delaware.gov; email consumer.protection@delaware.gov; or call the Delaware Homeowner Relief Hotline at 800-220-5425 or the Attorney General’s Foreclosure Prevention office at 302-577-8393 or 302-577-8378.

Media contacts:
Department of Justice: Carl Kanefsky, 302-577-8949, carl.kanefsky@delaware.gov
Delaware State Housing Authority: Dan Shortridge, 302-739-0271, dans@destatehousing.com

DOVER — Delaware’s new home repair assistance initiative, the Statewide Emergency Repair Program, has received national recognition from the National Council of State Housing Agencies with a 2017 Annual Award for Program Excellence.

“We are honored to receive this award on behalf of our partners and the many Delawareans that this home repair work has helped,” said Delaware State Housing Authority Director Anas Ben Addi. “Simple repair work on leaky roofs, heating systems and electrical work can be out of reach for many, and we are pleased to be able to help homeowners remain in their homes.”

The award was given in the home improvement and rehabilitation subcategory, recognizing programs that best provide home improvement and rehabilitation financing.

The Statewide Emergency Response Program, or SERP, was created this year to provide a single point of contact for home repair assistance for low-income Delawareans. Previously, DSHA had funded repairs through a number of partners, depending on jurisdiction. The new program operates in all three counties and provides a streamlined approach through a contract with the Milford Housing Development Corporation, which operates the program.

“We are pleased that this program had a strong start and has already helped many families with essential, emergency home repairs,” said David Moore, President and CEO of the Milford Housing Development Corporation. “MHDC has been involved in home repair work for 25 years, and brings that experience to bear helping others with this new statewide program. We appreciate the recognition and look forward to continuing our partnership with DSHA.”

Since its launch in March, SERP has helped around 85 families with about $338,000 in emergency home repairs.

The program addresses emergency conditions threatening the health or safety of eligible Delaware homeowners and members of their households. Qualified applicants must own their home and have lived there for at least one year, and must meet income guidelines.

Situations that qualify include immediate health or safety threats such as heating system repairs (winter months), plumbing repairs (non-functioning), electrical repairs (in hazardous cases), roof repair or replacement (for active leaks), major structural repairs or urgent accessibility modifications. A portion of the funding goes toward assisting residents of manufactured housing or mobile homes.

Homeowners can apply to the Milford Housing Development Corporation at 302-491-4010 or toll-free at 844-413-0038. Staff will work with applicants to determine if they qualify.

The National Council of State Housing Agencies is a nonprofit, nonpartisan organization created by the nation’s state housing finance agencies. The Awards for Program Excellence recognize work at the state level and identify best practices and ideas that can be adapted in other areas.

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Media contact:
Dan Shortridge
Director of Public Relations
Delaware State Housing Authority
302-739-0271