Because of the macro-economic conditions throughout the state, nonprofits, developers, and builders are the primary driving force behind housing production in Delaware.  

Like all public and private organizations, the product that a developer or builder produces may vary greatly, both in terms of quality, but also when judged through the lens of how willing they may be to be closely coordinated with state or local governments. A developer or builder may be reluctant to pursue some aspects of a project that might be desirable to state or local land use policy makers because it is simply not feasible from a financial perspective in their experience or opinion. Developers are frequently cast as villains, oftentimes unfairly. It is essential for the general public to remember that developers are in business, and businesses simply need to make money in order to survive and pay their contractors and employees. This may mean that some requests by state and local policy makers are unreasonable, but that does not mean that policy makers should not try to pursue their own goals and objectives.

Simply put, every parcel is strictly regulated by the land use and zoning codes applied to that parcel. Sometimes these uses are generalized into categories such as “residential,” “commercial,” or “industrial,” but every parcel of land is unique in terms of both its characteristics and the regulations and laws applied to that parcel. Obviously, housing deals largely with the “residential” designation. But what type of housing? This is where the details governing each parcel of land are determined by each of the 57 municipalities in Delaware, along with its three counties. 

According to HUD, the general rule of thumb is housing should cost no more than thirty percent of an individual’s gross monthly income. Unfortunately, this statistic is not achievable for every individual or family in the United States. According to Housing Alliance Delaware, the state lacks 18,000 affordable and available rental housing units for those looking to rent within these means.

Families 

According to the HUD Income Database, the average collective income for a four-person household in Delaware reaches just over 77,000 dollars a year. Therefore, the state needs to have an adequate stock and influx of housing options for most working-class families that fall within this income bracket. The housing options need to be not only suitable physically for an active and young family, but also financially feasible so these families have opportunities and ability to expand and grow.

Elderly 

According to the AARP Public Policy Institute, 89% of Americans aged 50 and over want to remain in their homes as long as possible. Similarly, The Road Ahead: AARP Survey on Community Services in Delaware found that 85% of Delawareans aged 65 or older believe it is “very important” or “extremely important” to remain in their home if possible. Therefore, many communities are becoming more concerned that they should adapt their local land use policies in order to better serve and assist these elderly residents who would prefer to stay in their homes.

Placement of newly developed and affordable housing options remains extremely important for a variety of reasons. In an ideal scenario, we would almost always want new housing to be located within close proximity to schools, public transit, shopping centers, and so forth. This is critically important for some demographic groups such as special needs populations, households without access to an automobile, and the elderly. This approach to housing development is a core element of planning.

State

To coincide with the set of housing strategies the state sets out every five years, the Delaware State Housing Authority is required by the U.S. Department of Housing and Urban Development to submit an annual report, laying out how the authority plans to allocate funds towards housing development and renovations for the fiscal year. The overall goal of the DSHA by providing these plans is to support the development of viable communities by providing decent housing and a suitable living environment for low- and moderate-income persons.

Local

22 Delaware Code §702 requires Delaware municipalities to develop a comprehensive plan every five years. A comprehensive plan may highlight potential issues that may arise over the next several years or even decades. Examples may include unforeseen shifts in demography (such as a growing elderly population), or show needs for more, or less, housing. In short, the requirement compels municipalities to continuously plan for and evaluate the future. Most Delaware towns and cities will offer their comprehensive plan on their website. The state’s PLUS portal is also an excellent resource, particularly for plans and projects happening right now. 

Municipalities may want to also consider implementing an affordability plan or housing inventory analysis or as a recommendation to include within a Comp Plan. Looking at the affordability of homes and income rates across various demographics can help guide municipal decision making in the near term.  

Municipalities may also opt to play a direct role in the provision of housing. If a municipality feels the need for the development of affordable housing and the market is not providing affordable housing, then a local government can always purchase property and pursue their desired housing development types on their own. Most recently, the state of Delaware received funding through the American Rescue Plan and allocated 26.4 million dollars to creating 350 affordable homes in Wilmington. While this development was created through nonprofits, the city encouraged affordable housing development throughout the process. This housing development project also included millions of dollars of investment in surrounding schools, transportation, healthcare, and community development.  

Obviously, the housing plan is only a single (yet highly integrated) component of a municipality’s comprehensive plan.  To be successfully implemented, it must be well aligned with the community’s future land use policies that will inform the municipality’s zoning regulations.”