Rescue Act funding aims to boost affordable housing in Delaware

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A housing and housing development initiative has been announced.

The Delaware State Housing Authority will use funding from the American Rescue Plan Act to expand the Catalyst Fund with the goal of preserving affordable homeownership opportunities through the acquisition and rehabilitation of vacant homes in neighborhoods across the Delaware. The funds will be administered in partnership with Cinnaire, a certified community development financial institution that offers lending options for community development construction.

Cinnaire will offer construction loans leveraging ARPA funds to incentivize for-profit and non-profit developers to purchase, renovate or replace vacant and run-down properties. The for-profit or non-profit developer will receive ARPA funding as part of their construction project financing to keep the cost of the new or rehabilitated home affordable for low-income residents. The program is expected to start this summer.

The Market Pressure Relief Fund – launch planned for this summer will provide additional financing to owners of affordable multi-family rental projects currently under construction who have faced increases in construction costs due to supply chain disruptions and inflation.

The Acceleration Fund will incentivize market rate rental developers with planned construction projects to provide affordable rental units in their new or renovated properties. The developer will receive an upfront payment from DSHA, funded which will offset construction costs. As part of the financing agreement, the developer will commit to an affordable monthly rent for a specified number of units in a project that would otherwise be exclusively at market rate. This new program will also provide additional funding to traditional developers of affordable rental housing who qualify for the federal low-income housing tax credit. The program is expected to start in the fall.

The pleasure of preservationDscheduled for launch in spring 2023 provide financial incentives to ensure nearly 1,000 existing affordable rental units qualify convert at market rate rather stay in affordable rental inventory.

“We are investing in the development of affordable housing across our state so that more Delaware families have access to safe and affordable housing,” Governor John Carney said. “We are using ARPA funds to ensure these affordable housing projects cross the finish line, help more Delawares become homeowners, and revitalize communities that have been hit hard by the Covid-19 pandemic. . Thank you to the members of our federal delegation and to President Biden for providing these important resources through the American Rescue Plan Act.

DSHA and its partners will hold public meetings to gather community and stakeholder feedback before launching these new programs. The first meeting will focus on the Catalyst Fund and will take place the week of July 25. The purpose of the meetings is to ensure that programs are designed to best meet the goal of increasing the availability of affordable housing in Delaware. More information, including upcoming meeting dates and program details, will be posted on destatehousing.com.

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