WILMINGTON, Del. – Governor John Carney and the Delaware State Housing Authority (DSHA) on Thursday announced affordable housing and housing development initiatives to strengthen communities throughout Delaware.  

DSHA will use American Rescue Plan Act (ARPA) funding to develop a multitiered approach to address the affordable housing crisis across the state. DSHA will create the following programs as part of this initiative, and will administer the programs through 2026:

• Catalyst Fund (Expected launch: Summer 2022) – Creating and preserving affordable homeownership opportunities through the acquisition and rehabilitation of vacant homes in Delaware’s neighborhoods. These funds will be administered in partnership with Cinnaire, a certified Community Development Financial Institution that offers lending options for community development construction.
  • Cinnaire will offer construction lending by leveraging ARPA funds to incentivize for-profit and nonprofit developers to purchase, renovate, or replace vacant and blighted properties. The for-profit or nonprofit developer will receive ARPA funding as part of their construction project financing so that the cost of the new or rehabilitated home remains affordable to low-income residents.
• Market Pressure Relief Fund (Expected launch: Summer 2022) – Relieving economic cost pressures on Delaware’s affordable housing development community. This will provide additional financing to owners of affordable multifamily rental projects currently under construction that have faced construction cost increases due to supply chain disruptions and inflation to ensure these projects are completed.
• Accelerator Fund (Expected launch: Fall 2022) – Leveraging once-in-a generation funding available to unlock Delaware’s development potential. The Accelerator Fund will provide an incentive to market-rate rental developers with planned construction projects to provide affordable rental units in their new or renovated properties. The developer will receive an upfront payment from DSHA, funded by ARPA, which will offset construction costs. As part of the funding agreement, the developer will commit to an affordable monthly rent for a specified number of units in a project that would otherwise be exclusively market-rate. This new program will also provide additional funds for traditional affordable rental developers that qualify for the federal Low-Income Housing Tax Credit.
• Preservation Fund (Expected launch: Spring 2023) – Ensuring enduring affordability in Delaware’s existing affordable housing stock. These funds will offer financial incentives to ensure nearly 1,000 existing affordable rental units eligible to convert to market rate instead remain in the affordable rental inventory.

“We are investing in affordable housing development across our state so that more Delaware families have access to safe, affordable housing,” said Governor Carney. “We are using ARPA funds to make sure these affordable housing construction projects get through the finish line, support more Delawareans in becoming homeowners, and revitalize communities that were hit hard by the COVID-19 pandemic. Thank you to members of our federal delegation and President Biden for providing these important resources through the American Rescue Plan Act.”

DSHA and its partners will host public meetings to gather feedback from the community and stakeholders before launching these new programs. The first meeting will focus on the Catalyst Fund and will take place the week of July 25. The purpose of the meetings is to ensure that the programs are designed to best meet the goal of increasing the availability of affordable housing in Delaware. More information, including upcoming meeting dates and program details, will be posted on destatehousing.com. 

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

“DSHA is committed to stewarding these funds efficiently and transparently. With these historic investments, our state is firmly positioned to meet the critical needs of Delawareans across the state,” said Eugene Young Jr., Director of DSHA. “Whether you’re looking to rent, buy, or develop, we look forward to working in partnership with you to make Delaware a better place to live.”

Governor Carney on Thursday also announced over $28 million in ARPA-funded housing initiatives that will help improve current properties through rehabilitation, expand homeownership opportunities, and secure property for additional affordable housing development for low-income Delawareans.

Below are the projects included in the announcement:

Sussex County – $9.9 million

• NCALL Land Bank – $4 million to purchase property in Sussex and Kent counties for future affordable housing development.
• NCALL – $2.9 million to leverage $5 million in funding from the U.S. Department of Agriculture for the development of 40 affordable rental housing units for poultry industry workers.
• Sussex Habitat for Humanity – $3 million to assist with Kimmeytown Revitalization in Georgetown, develop an Affordable Homeownership Creation project that will construct approximately 27 new affordable homes, and additional smaller projects.  

Kent County – $6.9 million

• Dover Interfaith Mission for Housing – $5 million to acquire and develop three properties in Dover to address blight and homelessness.
• Milford Housing Development Corporation – $1.9 million to assist nearly 70 individuals in achieving homeownership through their homeownership programs and projects.

New Castle County – $11.5 million

• Todmorden Foundation/Woodlawn Trustees – $4.5 million to provide seniors in the City of Wilmington with additional affordable housing options.
• Wilmington Neighborhood Conservancy Land Bank – $4.5 million to address blight and provide revitalization to the houses around the new Bancroft School.
• Wilmington Housing Authority – $1.5 million to rehabilitate homes in the City of Wilmington and address blight. 
• Southbridge Beautification – $1 million to address blight and provide repairs to more than 50 homes.

“Access to affordable housing is vital to a person’s health and well-being,” said Lt. Governor Bethany Hall-Long. “The impacts of COVID-19 on our economy have made the dream of safe and affordable housing a more distant reality for many Delawareans. This ARPA investment will expand access to affordable housing options in communities that need it most, and make Delaware a stronger, healthier, more equitable state.”

“I applaud Governor Carney for addressing the affordable housing shortage in Delaware, a problem only made worse by the pandemic,” said U.S. Senator Tom Carper. “When Senator Coons, Congresswoman Blunt Rochester and I were crafting the American Rescue Plan, this is just the kind of program we had in mind to help folks in need and strengthen our communities across the state.”

“I’m proud to have worked with President Biden to maximize the amount of housing money in the American Rescue Plan to give Delaware’s renters and homeowners access to the safe neighborhoods and affordable housing that they deserve,” said U.S. Senator Chris Coons. “The lack of housing options for working Delawareans has pushed homeowners and renters to pay more than their fair share to find a decent place to live, and Governor Carney’s embrace of this federal money will create much needed housing all across our state that stays within the budgets of working Delawareans. I look forward to working with the governor and the rest of our state’s representatives in Washington to continue finding long-term solutions to our housing shortage.”

“We know that one of the most pressing needs in our state throughout the pandemic and during our recovery is the need for affordable housing,” said U.S. Representative Lisa Blunt Rochester. “That’s why I was so proud to help secure millions of dollars for Delaware through the American Rescue Plan Act to do just that. I commend Governor Carney and the State for deploying these resources as part of our mission to ensure that every Delawarean has access to safe and affordable housing.”

DSHA announced last week the launch of the Delaware Mortgage Relief Program, which can provide up to $40,000 in financial assistance to eligible households who experienced a COVID-19-related financial hardship that resulted in mortgage delinquency or forbearance. This program is supported by the federal Homeowners Assistance Fund, which was created under ARPA and distributed to states to provide relief for homeowners. Delaware received $50 million. Homeowners can apply for the program by visiting demortgagehelp.com.

In addition to the new projects announced on Thursday, Governor Carney previously announced a $26.4 million ARPA investment in housing funding for the purpose-built community in northeast Wilmington to accelerate the development of 350 affordable homes to completion.

ARPA was championed in Congress by members of Delaware’s congressional delegation – Senators Tom Carper and Chris Coons, and Representative Lisa Blunt Rochester – and signed into law by President Joe Biden in 2021.

Visit de.gov/rescueplan to learn more about Delaware’s ARPA investments.

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Delaware child care professionals now can submit to receive $1,000 direct payments from the Delaware Department of Education.

The state is using $10.6 million of its federal American Rescue Plan funding to pay for the bonuses, a first-of-its-kind initiative to show appreciation for and incentivize retention in a critical workforce.  Those professionals who are at least 18 years of age and work in licensed Delaware child care programs directly with children for at least 20 hours per week for at least 90 days are eligible.

“These professionals support our earliest learners and their families,” Secretary of Education Mark Holodick said. “COVID-19 highlighted just how essential their work is every day. Many of our licensed child care programs remained open throughout the pandemic, providing critical care for children and allowing their families to continue their work in our hospitals, correctional institutions, police and fire stations and other essential jobs.”

The Delaware Department of Education spent recent months building a secure data collection system, which will be used to collect employee information and verify eligibility. The application will be open for two months with all submissions due by July 29, 2022.

After being verified, licensed child care professionals can expect to receive their payments in up to 10 days if they choose direct deposit or up to 30 days if they choose to receive a check by U.S. mail.

Licensed child care professionals can find more information and apply online at de.gov/childcarebonus.

Media contact: Alison May, alison.may@doe.k12.de.us, 302-735-4006

New ARPA dashboard shows up to date progress of disbursements

State Treasurer Colleen Davis announces money from the first round of funds allocated in the American Rescue Plan Act of 2021 (ARPA) is heading to the to 55 non-county, non-metropolitan governments throughout Delaware.

“As soon as President Biden signed ARPA, we began developing a process to make the delivery of funds to local governments as fast and efficient as possible,” said Treasurer Davis. “Having a plan in place allowed us to easily exceed the deadline for distribution set in the legislation.”

The Office of the State Treasurer quickly developed a secure online form for local government officials to submit budget information. Once received, the information was verified and the amount each nonentitlement municipality would receive was calculated. After that information is confirmed and payment processes are in place, the local government receives its funds.

A new dashboard on the State Treasurer website shows the progress of the distribution process. The Delaware ARPA Funds Dashboard provides information for each municipality, including budgetary information required to calculate the ARPA distribution amount and where each government stands in the process of receiving its funds. The dashboard can be found at de.gov/arpa.

Any municipality that has yet to complete the required process to receive its money should do so immediately.

“The dashboard not only keeps the public informed about the process, it promotes transparency across the board, letting citizens know when their local officials get their money,” Davis said. “I felt these local governments receiving their own money needed to be a mandatory element of ARPA as the legislation was being developed, and I advocated for this important distinction from how money was distributed under last year’s CARES Act,” Davis said.

Davis, an Executive Board member of the State Debt Management Network and a member of the Government Finance Officers Association says both organizations supported the payments to the nonentitlement municipalities. Wilmington, Dover, the three county governments, and state government receive their ARPA funds directly from the United States Treasury.

“I also want to thank our colleagues in the Delaware Department of Finance and the Office of Management and Budget,” Davis said, “for their assistance ensuring a smooth process so the money can go to help as many Delawareans as possible in the ways their local governments deem most appropriate, as well as the members of our federal delegation for their help in communication with the U.S. Treasury.”

With the signing of the American Rescue Plan Act of 2021 (ARPA) on March 11, 2021, State Treasurer Colleen Davis will take the lead role in distributing the projected $85.6 million allocated to 55 local governments throughout Delaware.

Local funds totaling $19.53 billion from the $1.9 trillion economic stimulus package signed by President Biden will be distributed by the U.S. Treasury directly to the states for subsequent distribution to non-county, non-metropolitan governments. Treasurer Davis, as the custodian of Delaware funds, will receive the allocation for such local governments and make disbursements in accordance with ARPA. Wilmington, Dover, and the three county governments will receive ARPA funds directly from the United States Treasury.

“We are in contact with the federal government and are putting processes in place to ensure prompt distribution of ARPA funds to non-metropolitan cities and towns in Delaware,” said Treasurer Davis. “We will coordinate with local officials and make every effort to expedite the distributions so they can begin helping constituents.”

Treasurer Davis says the current timeline in ARPA calls for the federal government to release 50% of Delaware’s share of local funds (or approximately $42.8 million) within 60 days of the signing of the legislation. Under ARPA, the remaining 50% will be released no sooner than one year after the first disbursements are made.

“We are coordinating with the Department of Finance and the Office of Management and Budget and are committed to creating a process to streamline the payments,” Davis said. “Everyone in our office will do whatever is needed to efficiently and securely get the funds where they are needed as quickly as possible.”

Says Delaware is positioned well for recovery

President Biden has signed the American Rescue Plan Act of 2021, the $1.9 trillion economic stimulus package aimed to help the country’s economy return to pre-COVID strength. Delaware State Treasurer Colleen Davis believes the plan will play a big role in helping Delawareans.

“Those who need the most help should benefit quickly as the plan calls for $1,400 direct payments to most Americans and their dependents,” Davis said. “Individual taxpayers making up to $75,000 (or joint filers making up to $150,000) will receive the full amount. It also expands the child tax credit for one year, increasing to $3,600 for children under 6 and to $3,000 for kids between 6 and 17, with half of that money available in advance with payments to families from July 2021 to December 2021.”

The legislation also helps those who are out of work and finding it hard to pay for necessities like groceries. The $300 per week unemployment supplement remains in place until September 6th, with the first $10,200 in jobless benefits being tax-free, and the Supplemental Nutrition Assistance Program benefit increases by 15% through September.

“Another important element of the American Rescue Plan Act is much needed aid to employers,” according to Davis. “The restaurant industry, which has been hit so hard here in Delaware and around the country, receives approximately $30 billion dollars, with the legislation also expanding tax credits aimed at allowing companies to keep employees on their payrolls.”

Other provisions of the American Rescue Plan Act include:

• $350 billion in relief to state, local and tribal governments,
• $25 billion in rental and utility assistance and about $10 billion for mortgage aid
• $120 billion to K-12 schools
• $20 billion into Covid-19 vaccine manufacturing and distribution, along with roughly $50 billion into testing and contact tracing.

According to Treasurer Davis, “We are in discussions with officials in the U.S. Treasury and are standing by, ready to receive the funds, and put them to use here in Delaware.”

Treasurer Davis stressed that while we’ve all felt the negative effects of the economy over the past year, a lot of hard work and forethought has positioned Delaware very well.

“We have strong fiscal controls in place which not only protect us financially as we come out of these tough times, but also instill enough confidence to allow the State to maintain its Triple-A bond rating,” Davis said. “Responsible budgeting, the establishment of the Budget Stabilization Fund and the State’s Rainy Day Fund have certainly provided much needed insurance through the pandemic.”