Sussex County creates pilot program to increase affordable rental housing

Georgetown, Del., Dec. 9, 2008: Sussex County is laying the foundation for affordable housing.

County Council, at its Tuesday, Dec. 9, 2008, meeting, approved a three-year pilot program to create an affordable rental housing supply within the County. The program, known as the Sussex County Rental Program, will offer incentives to developers who include, as part of their projects, rental units priced within 30 to 80 percent of area median income.

For a typical family of four, that would equal monthly rents ranging from $400 to $900 for a three-bedroom rental unit, such as an apartment or townhouse. Rentals in Sussex County, particularly in the beach area, can exceed $1,000 a month for two-bedroom units.

“One of the frequent comments we have heard over the years is that more needs to be done to make housing affordable in Sussex County,” said William Lecates, director of Sussex County Community Development & Housing. “As we’ve seen with the mortgage problems in recent months, home ownership just isn’t possible for millions of Americans. Instead, they have to look at renting as an alternative.

“But even affordable rentals elude many people in the marketplace. A major problem we have in Sussex County is that while rental prices have increased, the average wages have not kept pace, and often they have remained low or stagnant, particularly in the service industry,” Mr. Lecates said. “This program is aimed at helping that segment of the population.”

Under the program adopted by Council, incentives for developers include expedited review and a 20 percent density bonus for rental units on qualified lands. Qualifying areas within the county would be near town centers and within development districts. The program would not be available in rural areas, and units would have to remain in the program for at least 30 years.

County officials believe incentives are the best way to entice developers to include affordable rentals within their proposals. For instance, instead of applications taking more than a year to go through the typical zoning approval process, projects that include affordable rentals could be reviewed within three to five months.

Additionally, density bonuses would be granted to those developers who include affordable rentals within their projects, which cannot exceed 12 units per acre. However, those bonuses would apply only to the rental aspect of a project. A mixed-used community, for instance, could not see an increase in the number of owner-occupied homes because of affordable rental units included elsewhere in the project.

Prospective renters, meantime, would apply to the Community Development & Housing office to be considered for acceptance into the program. Qualified renters would have to meet income guidelines based on U.S. Housing and Urban Development standards, be U.S. citizens, have a clean criminal record, and live and work within Sussex County for at least year prior to submitting an application.

“This initiative is a means to an end,” County Council President Finley B. Jones Jr. said. “We have a solid, productive workforce here in Sussex, but there needs to be a stable supply of affordable housing for them. Jobs are no good if we don’t have somewhere for people to live.”

For more information on the Sussex County Rental Program, contact the Community Development & Housing office at (302) 855-7777. A copy of the ordinance can be found in the “Ordinances” section of the County’s Web site, at sussexcountyde.gov.

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