(The Center Square) – Addressing the housing crisis in Delaware is the focus of a new initiative using federal dollars, Gov. John Carney said.
The Delaware State Housing Authority, the governor announced, will be spending $28 million in funding from the American Rescue Plan Act to address affordable housing and housing construction development in an effort to strengthen communities through 2026.
“We are investing in affordable housing development across our state so that more Delaware families have access to safe, affordable housing,” Carney said in the release. “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.”
According to the release, a series of programs will be opened that will use federal aid through the Catalyst Fund this summer to create and preserve opportunities for homeownership with the purchase and rehabilitation of vacant homes throughout the state.
Cinnaire, according to the release, will use money to incentivize for-profit and nonprofit home efforts to offer lending options to purchase, renovate, or replace blighted properties.
The Market Pressure Relief Fund, according to the release, will be used to reduce economic cost pressures on affordable housing construction to provide another stream of financing for owners of affordable multi-family rental projects under construction.
The Accelerator Fund, which is expected to launch in the fall, will use ARPA dollars to open the state’s development potential for market-rate developers who plan construction on new homes to provide affordable rental units.
Delaware plans, according to the release, to launch the Preservation Fund next spring that will offer financial incentives for 1,000 existing affordable rental units in the state.
“DSHA is committed to stewarding these funds efficiently and transparently,” Eugene Young Jr., director of the Delaware State Housing Authority, said in the release. “With these historic investments, our state is firmly positioned to meet the critical needs of Delawareans across the state. “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.”
The state, according to the release, also launched the Delaware Mortgage Relief Program last week. The initiative offers up to $40,000 in financial aid for eligible households experiencing COVID-19 related hardship through using $50 million through the federal Homeowners Assistance Fund.