Sussex County Housing Trust Fund - Development Fund

For information on the Housing Trust Fund, visit the main page here.

More information for Homebuyer applicants can be found here.

 

Development Fund

GOALS AND OBJECTIVES

  • Expand and create affordable housing opportunities for Sussex County households earning 65% or less of Area Median Income (AMI).
  • Funding pre-development and capital costs of affordable rental and homeownership housing.
  • Provide essential gap financing and local government support and leverage for other financing of the proposed project.

FUNDING SOURCE

The American Rescue Plan Act of 2021 (ARPA) was signed by President Biden on March 11, 2021.  Sussex County received $45.5 million in ARPA funding in two installments – one installment was received in May 2021 and the balance will arrive in May 2022.  To see the presentation made to County Council on March 8, 2022, with recommended uses, click here

Of the $45.5 million, $6 million is being used to expand the SCHTF Developer Grant Program.

ARPA funding must be expended by December 31, 2024.

FUNDING AVAILABILITY

SCHTF is making available $6,000,000 in grant funding to qualifying applicants for the creation or preservation of affordable housing.  The funding will be divided into two funding rounds – one in the spring of 2022 and the other in the spring of 2023.  The program will be reassessed following the expenditure of ARPA funding in 2024.  

  • Funding Round 1 – Spring 2022 - $3,000,000
    • Application Available – April 1, 2022 
    • Application Due – April 29, 2022 by 4:00 p.m.
    • Tentative Award Notice – May 25, 2022
  • Funding Round 2 – Spring 2023 - $3,000,000

REQUIREMENTS & REPORTING

Due to the infusion of ARPA funds into the SCHTF, all expenditures must satisfy an eligible purpose as stipulated by the U.S. Department of the Treasury (“Treasury”) in the final rule for the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).  The SLFRF Final Rule (“the Rule”) contains detailed descriptions of eligible and ineligible activities that may be funded with SLFRF.  For Sussex County’s Housing Trust Fund, recipients must use it as identified below.

To track all expenditures of SLFRF funds and to fulfill the County’s own reporting requirements per Treasury guidelines, the County requires full reporting of any activities performed with fiscal recovery funds for any successful applicant (Subrecipient).  The reports must be presented to the County quarterly.  Reports will be due to the County by the 10th of the following month.  Subrecipients are also required to register and maintain an updated profile on SAM.gov.  General reporting information is available in the SLFRF Compliance and Reporting Guidelines Update.  Further reporting information will be provided should your application result in a subaward.  

ELIGIBLE USES

  • Predevelopment Costs
    • Legal fees, architect fees, surveys, appraisal, environmental study, market study
  • Capital Cost
    • Construction, Acquisition, Rehabilitation

ELIGIBLE APPLICANTS

Please reference Sussex County’s Affordable Housing Support Policy for context. 

Eligible applicants must be able to justify their conformance with the criteria listed below.

    1. Homeownership: Sussex County considers an affordable housing project to be a housing project in which any portion thereof is designed or intended to serve households earning less than 125 percent of the Area Median Income for Sussex County as calculated by the U.S. Department of Housing and Urban Development annually, and which is comprised of at least one of the following elements:
      1. Seeking participation in Sussex County’s Moderately Priced Housing Unit (MPHU) Program
      2. Applying for funding by the Delaware State Housing Authority’s (DSHA) Housing Development Fund (HDF)
      3. Applying for HOME Investment Partnerships (HOME) funding through DSHA
      4. Applying for a Section 523 or 524 Rural Housing Site Loan through the U.S. Department of Agriculture (USDA) Rural Development
      5. Sussex County Habitat for Humanity
      6. Milford Housing Development Corporation
      7. Community Land Trust
      8. Other elements which, in the County’s discretion, meet the goals and objectives set forth in the Affordable Housing Support Policy Mission Statement. 
    2. Rental: Sussex County considers an affordable rental housing project to be a rental housing project in which any portion thereof is designed or intended to serve households earning less than 80 percent of the Area Median Income for Sussex County as calculated by the U.S. Department of Housing and Urban Development annually, and which is comprised of at least one of the following elements:
      1. Seeking participation in the Sussex County Rental Program (SCRP)
      2. Applying for funding by the Delaware State Housing Authority’s (DSHA) Housing Development Fund (HDF)
      3. Applying for HOME Investment Partnerships (HOME) funding through DSHA
      4. Applying for funding by DSHA’s Low Income Housing Tax Credits (LIHTC) program
      5. Applying for Multi-Family Mortgage Revenue Bond Program (MFMRB) financing through DSHA
      6. Applying for a Rural Rental Housing Loan through USDA Rural Development
      7. Applying for a Guaranteed Rental Housing Loan through USDA Rural Development
      8. Community Land Trust

APPLICATION

Round 1 funding application for developers can be found here.  Applications are due by 4:00 P.M. on Friday, April 29, 2022.  

Applications, Terms & Conditions Agreement, and Attachments should be submitted here.

Applications will be reviewed by the Sussex County Housing Trust Fund Advisory Board.  The Advisory Board will make award recommendations for consideration and approval by the Sussex County Council.  Following the County Council’s decision, applicants will be notified of their award.  

The application will require applicants to detail their experience with developing affordable housing, capacity related to federal grant administration, project budget information, project funding sources, site information, and project design and breakdown.  

Incomplete or late applications will not be accepted.