Delaware State Housing Authority Seeks Nonprofit Applications To Develop Affordable Homeownership Units

Dover, Del. July 31, 2023 – Nonprofit housing developers wanting to renovate or build homes for Delawareans to purchase can now apply for the Catalyst Fund program through the Delaware State Housing Authority (DSHA).

The Catalyst Fund aims to promote neighborhood revitalization and an equitable recovery by supporting nonprofit efforts to address vacant properties in communities disproportionately impacted by the COVID-19 pandemic. Eligible development areas can be found here: https://arcg.is/afy5r0.

The State and Local Fiscal Recovery Funds and American Rescue Plan Act fund the program, which Governor John Carney and DSHA announced, along with other affordable housing development programs in July 2022.

“We are investing in housing development across our state so that more Delaware families have access to safe, affordable housing,” said Governor Carney. “The Catalyst Fund—created using ARPA funds—will help to incentivize more affordable housing construction projects in our communities. I encourage nonprofits to look into these opportunities today to support communities that were hardest hit during the COVID-19 pandemic.”

Applicants must be 501(c)(3) nonprofit organizations, demonstrate a stable source of construction financing, and complete an application available at http://destatehousing.com/Developers/dv_cf.php

Funds are available for for-profit developers. For-profit developers must apply through Cinnaire, DSHA’s Catalyst Fund program partner. For more information or questions, please email catalystfund@destatehousing.com

“Our new housing development programs, like the Catalyst Fund, build off of what our agency already does well, and that is increase housing opportunities for Delawareans,” said DSHA Director Eugene Young, Jr. “Our state has never seen such a historic investment in housing, and we must spend this money aggressively, and with a single purpose of helping Delawareans move into homeownership.”

About Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique in that it serves as a Public Housing Authority and a Community Development and Planning Agency. As a Public Housing Authority, DSHA receives funding from HUD to build, own and operate public housing in Kent and Sussex counties, two of Delaware’s three counties. For more information about DSHA, please call (302) 739-4263 or visit destatehousing.com. 


DSHA Seeks Applications For Recovery Housing Pilot Program Funded By Community Development Block Grant Funds

Dover, Del. July 17, 2023 – The Delaware State Housing Authority (DSHA) recently announced that it received $2.6 million in Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD) to administer the Recovery Housing Program (RHP) Action Plan

RHP aims to provide stable, temporary housing for up to two years for individuals in recovery from substance use disorders. DSHA provides funding to build or rehab recovery houses, while the Department of Health and Social Services and the Division of Substance Abuse and Mental Health fund recovery services. 

The deadline for applications for the RHP grant is August 11 at 4:00 p.m. Only 501(c) (3) nonprofit developers are eligible to apply, although partnerships with other nonprofit and for-profit organizations are encouraged. Applicants should contact DSHA to schedule a pre-application meeting. Grant awards are expected to be announced in October.

“Recovery Housing is an essential part of the substance use disorder treatment and recovery continuum of care,” said Cindy Deakyne, DSHA Housing Project Manager. “It provides safe, healthy, and substance-free living environments centered on peer support and a connection to services that promote long-term recovery, including mutual support groups and recovery services to reduce isolation and relapse. We are proud to oversee this important program.”

Delaware, with one of the highest rates per capita of substance addiction in the United States, was identified by HUD in 2019 as one of the states to receive Block Grant funding for the RHP pilot program. DSHA received $2.2 million in the first round of funding.

In 2022, DSHA awarded grants to two nonprofit organizations to purchase and renovate recovery houses. Impact Life Inc. operates Delaware’s first-ever residential recovery farm in Seaford for ten women and children, and atTAcK Addiction Foundation now operates a recovery house for ten men in Harbeson. 

“Since our grand opening, we have had many life-changing and fulfilling experiences,” said Domenica Personti, Chief Executive Officer of Impact Life. “The women who call this place home are learning to recover from substance abuse while also gaining agricultural skills in a safe, structured environment.”

With the most recent round of funding, DSHA expects to award grants for two or three more Recovery Houses in Delaware. Although the existing two houses are in Sussex County, DSHA welcomes applicants looking to open recovery houses in any of the state’s three counties.

“Addressing substance abuse in our community will take innovative and effective collaborations,” said DSHA Director Eugene Young, Jr. “We look forward to working with our state agency partners, local nonprofits, and the community to expand the number of recovery houses in the state and helping more residents on the road to a new life.”

Recently, the General Assembly passed HS1 for HB114, which creates a voluntary certification process for recovery homes in Delaware. This bill provides training and technical assistance for recovery residence operators and staff as well as enables the data collection needed to study the effectiveness of Delaware’s recovery residences. 

For more information and to apply for the RHP grant, please visit http://www.destatehousing.com/Landlords/dv_cdbg.php

 

About Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at: www.destatehousing.

 


DSHA Announces Preliminary Low-Income Housing Tax Credit Allocation

Approximately $3 Million To Build and Restore Affordable Rental Housing in Delaware

Dover, Del. July 12, 2023 – The Delaware State Housing Authority (DSHA) announced its preliminary project award rankings for the 2023 Low-Income Housing Tax Credit (LIHTC) allocation last week.

The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation’s history. 

Three development projects were awarded $3 million in 10-year federal LIHTCs this year. Recipients were selected based on criteria outlined in DSHA’s Qualified Allocation Plan, which include rent price, location, accessibility, and more. All projects must meet program requirements by the end of the year to receive a formal reservation of tax credit investments.

Project Name Project Type Project County # of Units
Chapel Branch Apartments New Construction – Family Sussex 35 LIHTC

7 Market

Cheer Gateway East New Construction – Senior Sussex  59 LIHTC
George Read Village Preservation – Family/Senior New Castle 72 LIHTC

 

Developers claim tax credits over ten years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years. 

DSHA receives an annual tax credit amount and awards credits annually through a competitive process. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or restore low-income rental housing.

“DSHA is consistently and aggressively adding new affordable rental units to Delaware’s housing stock,” said Eugene Young, Jr., Director of DSHA. “The development of these communities will transform the lives of families and seniors and bring us one step closer to solving the housing crisis in our state.”

DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state’s housing inventory. For more information please visit: http://destatehousing.com/Developers/dv_lihtc.php.

 

About the Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at www.destatehousing.com.


Delaware State Housing Authority Launches Four New Homeownership Programs for First-Time and Repeat Homebuyers

Competitive mortgage loan interest rates and $12,000 to $15,000 in down payment and closing costs are now available

Dover, Del. June 21, 2023The Delaware State Housing Authority (DSHA) announced today four new programs designed to increase access to homeownership in the First State. Now, whether a homebuyer is purchasing their first or next home, DSHA offers mortgage products that can make the dream of homeownership a reality. The four programs are: 

  • Smart Start Home Loan: A first mortgage loan formally known as “DSHA unassisted.” Interest rates will be priced daily and will be at or below current market rates. Program available for conventional and government loans. 
  • Home Sweet Home Program (Temporary): A zero-interest forgivable second loan of $12,000 to be used for down payment and closing cost assistance for homebuyers purchasing a home with a maximum sales price of $285,000.00 or less.Each year the homeowner(s) resides in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with verification the homeowner(s) has resided in the subject property as their primary residence
  • Delaware Diamonds Home Loan (Temporary): This is a zero-interest forgivable second loan of $15,000 to be used for down payment and closing cost assistance. This program will be eligible to current “essential workers” who live in the state of Delaware with an occupation in the following fields: education, medical, including first responders, retail such as grocery, general, and wholesale store employees, and veterans.Each year the homeowner(s) resides in the subject property as their primary residence, the loan balance will decrease by 10% up to year 10. The loan will be forgiven after 10 years with verification the homeowner(s) has resided in the subject property as their primary residence. 
  • First State Home Loan Program – FKA Preferred Plus: This is a zero-interest 2nd Formerly known as “Preferred Plus,” it will provide a 4% down payment and closing cost assistance loan based on the 1st mortgage final loan amount. The principal will be deferred until the following events: refinance, sales, transfer of title, and the property is no longer the borrower(s) primary residence (whichever comes first).

“The announcement of these programs is an important step in our efforts to provide all Delaware residents with the opportunity to enjoy the benefits of homeownership,” said Governor John Carney. “I want to thank the Delaware State Housing Authority for their dedication and leadership in this space and encourage Delaware families to look into these opportunities.”

“Homeownership is at the core of DSHA’s services. Our team is continuously formulating innovative and beneficial ways to help individuals access quality, affordable homes,” said Eugene R. Young, Jr., Director of DSHA. “These four programs will have a lasting impact on families, communities, and the state as a whole.”

The Smart Start and First State Home Loan programs will be subsidized by revenues from DSHA’s primary homeownership loan programs. The Home Sweet Home Program and Delaware Diamonds Home Loan are being funded by a $5 million commitment from the additional $30 million supplement allocated by Governor Carney to DSHA.

Buyers participating in the program must meet eligibility requirements for DSHA’s homeownership loan programs, including income limits and credit score (620 minimum). Renters looking to build credit can apply for the Delaware Tenant Rent Reporting Pilot Program, which reports on-time rent payments to Equifax, Experian, and TransUnion and on-time utility payments to TransUnion.

DSHA also offers financial counseling through HUD-approved housing counselors to help potential homebuyers improve their scores and get on the path to homeownership.

In correlation with the launch of these new programs, DSHA is also adjusting the income levels for its homeownership programs to provide more opportunities for residents to purchase homes in Delaware. The new income limits can be found on DSHA’s homeownership website.

The programs are available statewide, and DSHA will be working with its participating lenders to serve homeowners. See the complete lender list here

About the Delaware State Housing Authority

The Delaware State Housing Authority (DSHA), formed in 1968, provides quality, affordable housing opportunities, and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique because it serves as a Public Housing Authority in Kent and Sussex County and a Community Development and Planning Agency. For more information about the Delaware State Housing Authority, please call: (302) 739-4263 or visit our website at: www.destatehousing.com


Affordable Housing Development Gets A Significant Boost from Delaware’s American Rescue Plan Act Dollars

Millions are currently available for housing projects; Millions more are in the pipeline

Dover, Del. April 18, 2023 – The Delaware State Housing Authority (DSHA) has successfully launched two new affordable housing development programs funded by the American Rescue Plan Act (ARPA). Both programs are part of a multi-tiered approach to address the state’s housing crisis and strengthen communities. 

  • The Catalyst Fund ($20 million in housing development assistance), administered in partnership with Cinnaire, launched this month and offers developers construction lending and a sales gap subsidy through ARPA funds to transform vacant and blighted properties into affordable units for low- and moderate-income homebuyers. A virtual information and update session for housing developers will be hosted this Thursday, April 20, at 11:00 a.m. Registration for the session is required.
  • The Market Pressure Relief Fund (MPRF) ($10 million in housing development assistance),which launched in January 2023, relieves construction material cost increases caused by the COVID-19 pandemic on Delaware’s affordable housing development community by loaning ARPA funds to developers so that projects under construction are completed, and affordable housing units are added to the state’s inventory. Before the application deadline, affordable housing developers throughout the state applied and requested $4 million in assistance. DSHA is evaluating applications and will continue to explore ways to help more construction projects with the remaining MPRF funds. 

Governor John Carney and DSHA announced these programs, just two of five to be created, in July 2022. With more funding and programs in the pipeline this year, Delaware can further unlock potential housing development opportunities and ensure affordability in the existing housing stock.

For instance, ARPA funding will also be available to new creation and preservation development projects that intend to use the 2023 Low-Income Housing Tax Credit (LIHTC). Housing developers who meet eligibility requirements may include it with their LIHTC applications, due on Friday, April 28, 2023. If these applications are successful in the LIHTC allocation round, then the ARPA funding will be allocated to the projects to encourage both new units and the preservation of existing units.

Delawareans can stay informed about housing program announcements by signing up for DSHA’s newsletter at destatehousing.com/NewsAndEvents/newsletters.php.

“Delaware has never seen such a significant investment in housing. The programs DSHA is creating have never been executed at this scale,” said Eugene Young, Jr., Director of DSHA. “We’re thrilled with the progress made so far, and we’re not done yet. The impact of our efforts will allow Delaware to focus on what our housing landscape will look like well past 2026 when the funds expire.” 

ABOUT DELAWARE STATE HOUSING AUTHORITY

 The Delaware State Housing Authority (DSHA), formed in 1968, is dedicated to providing quality, affordable housing opportunities, and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique in that it serves as a Public Housing Authority and a Community Development and Planning Agency. As a Public Housing Authority, DSHA receives funding from HUD to build, own, and operate public housing in Kent and Sussex counties, two of Delaware’s three counties. For more information about the Delaware State Housing Authority, please call: (888) 363-8808 or visit our website at www.destatehousing.com.