Sen. Russ Huxtable, D-Lewes.

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By Joseph Edelen

DOVER — As the nationwide housing crisis continues to impact Delaware residents, state lawmakers have introduced potential policy solutions aimed at lowering development costs and incentivizing the creation of new affordable housing units.

Known as “The Housing Agenda,” the widespread seven-bill package is being led by Sen. Russ Huxtable, D-Lewes, who held a listening tour on Delaware’s housing issues last fall.

From Wilmington to Georgetown and in between, the senator gathered feedback from state officials, housing developers, community advocates and members of the public on the realities of the crisis, as well as how to address these issues.

“Housing is foundational for the individual, the family, the communities, our businesses, our economy. We have a crisis here in Delaware and we have a crisis here in the nation, impacting all these areas,” Sen. Huxtable said during a press conference Thursday.

Currently, the state is short about 21,000 affordable-housing units compared to the approximate 6 million nationwide shortfall, according to statistics from the National Low Income Housing Coalition.

Amid the shortage, Delaware is projected to need 24,400 new units by 2030 — or 2,400 per year — to keep up with the rising demand for housing, according to the state’s 2023 Housing Needs Assessment.

To address these needs, the package includes Senate Bill 22, which encourages developers to create new units by establishing the Delaware Workforce Housing Program. The program, which is modeled after the state’s Downtown Development District initiative, would allow qualified investors to receive reimbursement of up to 20% of capital costs through a grant.

This proposal considers the unique housing needs of Delaware’s three counties and their respective municipalities, Sen. Huxtable said, and because it does not utilize geographical boundaries used through the Downtown Development District program, the reach of the policy is expanded to “craft a balance in the state.”

“One of the best things we need to do is … create sustainable, stable programs to attract the capacity in developing affordable housing and signaling a reduction of cost and potential subsidy sources is a great way to attract those who actually develop affordable housing,” he added.

Additional proposals in The Housing Agenda include Senate Bill 25, which lowers project costs by exempting the 2% realty transfer tax on contracts for the construction of affordable housing units.

It also features legislation that authorizes New Castle and Sussex counties to allocate some or all of monies collected by lodging taxes for county-specific workforce and affordable housing programs.

Another one of Sen. Huxtable’s policies builds off the state’s Residential Foreclosure Mediation Program and Office of Foreclosure Prevention and Financial Education, which were created amid the 2008 fiscal crisis. The legislation would make the programs permanent, as the Lewes Democrat touted the ability to help thousands of Delawareans at risk of foreclosure by preserving their homeownership.

Rounding out the package of potential housing solutions are bills to codify a Housing Repair and Modification Fund, which would assist low-income homeowners that need home repair assistance; to prevent landlords of manufactured housing communities from imposing rent hikes while health and safety violations exist; and to increase the housing supply in high-density areas by requiring counties and jurisdictions to establish ordinances allowing for the construction of at least one accessory dwelling unit per single-family home.

“It is a dynamic package, and more work is needed to fully address the crisis that impacts those that need a decent, safe and affordable place to live, but also, the communities that desperately need a balanced housing approach so we have a stable workforce that is sustainable for many generations,” Sen. Huxtable said.

Together, the senator said there is an interconnectivity between the seven bills and that they were a “great first step,” but further acknowledged that more work needs to be done to address Delaware’s housing crisis.

Components of The Housing Agenda have garnered bipartisan support from both chambers of the General Assembly. Following the introduction of the measures on Thursday, each bill was assigned to the Senate Housing and Land Use Committee for further consideration.