Delaware, situated on the mid-Atlantic coast of the United States, is bordered on one side by 25 miles of beachfront and is surrounded by the States of Maryland, New Jersey, and Pennsylvania. Delaware has a land area of 2,954 square miles, ranking it 49th in area among the 50 States. Among the State's largest employers are many nationally known companies, such as Kraft-General Foods, Playtex, Scott Paper, and DuPont Co., the State's largest employer. The State is home to Dover Air Force Base.
For implementation of its Consolidated Plan in 1995, the State of Delaware will have approximately $5 million in Federal entitlement funds and $1.5 million in program income from previous years.
The State of Delaware, through the Delaware State Housing Authority (DSHA), provided citizens the opportunity to comment on the draft Consolidated Plan. Public hearings were held in each of the State's three counties during February and April 1995. A notice of availability of the draft Consolidated Plan was published in the News Journal and Delaware State News newspapers.
The public comment period was April 8, 1995, to May 8, 1995. Copies of the draft Consolidated Plan were available to all 57 municipal governments, each county, all housing service providers, and a public library in each county.
Delaware had a population of 666,168 in 1990, up 12 percent from 1980. And, according to the 1990 census, New Castle County was the most densely populated county, with 441,946 people. Wilmington, the State's largest city, had a population of 71,529.
More than three-quarters of the State's citizens have high school diplomas. Among residents 25 and older, 77 percent have a high school diploma and more than 21 percent have a bachelor's degree or higher degree. In 1990, almost 9 percent of the population was living below the poverty level in Delaware, down 3 percent from 1980.
Of the total population, nearly 80 percent are white, about 16 percent are black, more than 2 percent are Hispanic, slightly more than 1 percent are Asian and Pacific Islander, and less than 1 percent are Native American.
Unemployment has declined significantly in Delaware since the early 1980s, when the unemployment rate was around 8 percent. In 1990, the unemployment rate began to rise, peaking at around 6 percent in 1991. By 1992, recovery began statewide and the rate dropped to 5.5 percent. According to the Delaware Labor Department, 1993 ended with a high 6 percent jobless rate in part because the DuPont Co., Delaware's largest employer, cut 1,000 jobs by the end of that year. In 1994, the State had a good recovery with a 4.5 percent jobless rate, almost 1 percent lower than the 5.4 percent national jobless rate.
Throughout the State, increased growth, pressures on environmentally sensitive lands, and limited infrastructure capacity are leading to an increasingly detailed and lengthy development review process. This, in turn, will affect housing affordability. In New Castle County, the problems of traffic congestion and future water supply constraints are central to growth in the housing stock. In Kent and Sussex counties, deterioration of water supply and distribution systems are expected to be growing problems. In Sussex County, the lack of a regional sewer system is limiting the availability of higher density, multifamily sites.
There are almost 40,000 renter households in Delaware earning less than 80 percent of median family income for their area. Of these households, slightly more than 24,000 have very low incomes and roughly 70 percent have a housing problem related to overpayment, substandard conditions, or both.
The current need for subsidized rental housing is estimated to be at least 12,000 additional units of rental assistance or rental housing to close the gap between what the market provides and what very low-income households can afford. At least 75 percent of this need exists among families, especially single female heads of households with children.
During the next 5 years, 4,650 households will need assistance to become first-time homebuyers; 950 of those will be low-income households.
In 1990 there were 289,919 housing units in Delaware, an increase of about 22 percent since 1980. Delaware's 1990 owner-occupancy rate of 70 percent was higher than the national average of 64 percent. The number of owner-occupied units rose 21 percent during the decade, while renter-occupied units rose 15 percent.
After the boom years of the 1980s, when demand for new housing drove production and prices up, Delaware, like the rest of the country, saw a downward swing in housing production. New housing construction in Delaware peaked in 1988 with a record 8,916 units built, then headed downward and hit bottom in 1991 with only 5,581 units built. Since then, housing production has taken an upward turn, showing an 8 percent increase in 1992 and 1993. But with rising interest rates in 1994, single-family housing production decreased by 4 percent and total housing production increased by only 1 percent.
Multifamily housing production picked up in 1994, showing a 57 percent increase over 1993, when 398 units were built. Mobile homes continue to grow in number, particularly in southern Delaware, where more people are finding them an affordable source of shelter.
About 7 percent of the State's housing stock is in substandard condition. Using the 1990 census figure for total housing units in Delaware, this amounts to about 20,500 units statewide.
Rental vacancy rates are low in Delaware and few rental units are being developed that are affordable at the income levels of people working in the major job growth sectors of the State's economy. About 35,000 renter households cannot afford the median rent in their county of residence.
Roughly 23 percent of all Delaware households earn incomes that are at or below 50 percent of the median area incomes for their county and either reside in substandard housing, or in units that they cannot afford. About 37 percent of the households are at or below 80 percent of the median income. Statewide, only about half of the renter households can afford monthly housing costs of between $250 and $499, or a mortgage of $38,000 to $75,000. Only 23 percent of renter households can afford monthly housing costs of $500 to $749, or a mortgage of $76,000 to $112,000. The State median home value is $100,100.
During a one-night census count of homeless persons on January 25, 1995, there were 738 homeless persons counted in New Castle County, 83 persons in Kent County, and 152 persons in Sussex County. Homeless service providers were unable to accommodate 60 percent of the people seeking shelter in 1992. There is an insufficient amount of bed space in emergency shelters statewide, and not enough transitional housing services to assist the homeless into permanent housing.
Although the State's primary strategy to combat homelessness is to create affordable permanent housing, the State plans to increase by 50 units the emergency and transitional housing available in the next 5 years.
The primary need of people who are threatened with homelessness is financial support during periods of economic crisis, and counseling to reduce the cost burden of housing exceeding 30 percent of the median income. Several agencies in the State offer supportive services including housing counseling and emergency funding to low-income State residents to help them remain in their homes.
The State's housing agency administers 354 public housing units. There is DSHA public housing in Kent County and Sussex County, but not in New Castle County. Other housing agencies provide 2,934 public housing units in all three counties. There are 1,629 people on waiting lists for public housing in Delaware.
The State also administers 791 Section 8 certificates and vouchers. There are 2,538 people on waiting lists for Section 8 vouchers and certificates.
The State Human Relations Commission recently adopted a new Fair Housing Act and promulgated appropriate regulations in compliance with the Federal Fair Housing Amendments of 1988. The State enacted the Delaware Fair Housing Act of 1992, which is substantially equivalent to Federal law. There are no court orders, consent decrees, or U.S. Department of Housing and Urban Development (HUD)-imposed sanctions that affect the provision of assisted housing or fair housing remedies in the State.
The State estimates that 79,105 units contain lead-based paint, based on the number of units built before 1978, when lead-based paint was banned in the United States. The presence of lead-based paint alone does not indicate the extent of exposure hazards.
Thirty-two percent of the total housing units in Delaware were built before 1940 and 47 percent of those homes are occupied by very low-income renters. According to 1990 census data, there are 18,697 children in Delaware under 18 years of age, with more than 11 percent living in families that have an income below the State poverty level. Also based on 1990 data, 79,105 housing units built before 1980 and occupied by very low- and other low-income households have the potential to be lead-based paint hazards, particularly to children under 18 years old.
DSHA has completed federally required lead hazard testing activities of all agency-owned public housing units using DSHA staff and equipment. DSHA does not plan to implement any additional lead hazard reduction activities until after the Community Development Block Grant (CDBG) program policies on lead-based paint abatement are released in Fiscal Year 1995. The State will continue to coordinate public and private efforts to reduce lead-based paint hazards and protect young children. It will integrate lead hazard evaluation and reduction activities into existing housing programs, promote comprehensive public health programs, and provide public information and education.
The Delaware State Department of Health and Social Services (DHSS) promotes a comprehensive and integrated system of services to meet the needs of adults with alcoholism and drug abuse problems. DHSS also promotes assisting people with disabilities caused by such problems to live productively in the least restrictive and most appropriate settings.
Delaware's known incidence of AIDS cases is relatively small, but has increased during the past few years. Because of the limited number of cases, this special population group is not considered a major need in Delaware's housing delivery system. DHSS is providing case management, including housing referrals and medical assistance, to this population. Because of the increase in AIDS cases in Sussex County, the Sussex County AIDS Committee plans to establish a group home in the county. At this time, the State continues to handle the AIDS population on a case-by-case basis with respect to housing.
There are a number of supported permanent housing units in Delaware for people with chronic mental illness. To become a resident of such homes, an individual must be screened by the State mental health agency to determine that the person does have a chronic mental illness and that he or she is capable of living successfully in the community. Residents also must have very low-incomes as defined by HUD.
The DHSS Division of Mental Retardation provides a full range of residential and developmental services to people with mental retardation in settings least restrictive to their needs including:
The estimated supportive housing needs for special populations include 332 units for mentally retarded persons, 1,664 units for mentally ill persons, and 2,500 units for the elderly.
One area that is of particular concern is the State's infrastructure needs. These include solid waste disposal, flood drain, water, street, sidewalk, and sewer improvements, and asbestos removal. Energy efficiency improvements, accessibility improvements, lead-based paint hazard reduction, and code enforcement also are high-priority needs.
The Delaware CDBG program has been designed to give maximum, feasible priority to activities that will benefit low- and moderate-income families, to aid in the prevention of slums and blight, and to meet other community development needs where existing conditions pose a serious and immediate threat to the health and welfare of the community, and where other financial resources are not available to meet such needs.
While the State has many needs, it has identified the following needs that require special attention:
Increase the supply of rental housing available to very low-income families. The State's strategy is to provide 300 units of very low-income rental housing during the coming year. The State also plans to maintain and expand use of public housing and Section 8 certificates and vouchers.
Increase housing opportunities for first-time homebuyers. The State plans to assist 800 households to become first-time homebuyers, half of which will be low-income households.
Increase the supply of standard housing by rehabilitating homes owned or rented by low- income families to meet the State Housing Code. The State's strategy is to rehabilitate 150 units of substandard housing owned or rented by low-income families.
Increase and improve the types of housing and services for the homeless, with a particular emphasis on transitional housing facilities. The State hopes to increase by 50 beds the emergency and transitional housing available in the State during the next year. The State will coordinate with housing service providers in creating 15 transitional housing units either at individual sites or in complexes that serve qualified families.
Increase supportive housing and services for special population groups, especially mentally retarded and mentally ill persons, and the elderly. The objective is to provide financing to acquire or construct 15 units for mentally retarded or mentally ill individuals in group home settings and to obtain financing to construct 250 units for the elderly.
To continue the recent trend of decreasing numbers of persons living below the poverty level, DSHA has established the framework for a Family Self-Sufficiency (FSS) program to address the issue of poverty. The purpose of this new Federal program is to promote development of local strategies that coordinate assisted housing programs with other public and private resources to empower eligible families to achieve economic independence and self-sufficiency. FSS can help families obtain the skills they need to achieve financial independence and move out of assisted housing.
Under this program, housing agencies must establish a Program Coordinating Committee (PCC) to secure commitments of public and private resources to provide supportive services to participating families and to help prepare and implement a FSS action plan. DSHA has established a local PCC consisting of social services agencies, private businesses, DSHA public housing residents, and public housing site managers. DSHA has established strategies for linking housing with various service providers. The strategy has been written in a formal action plan, and residents of all DSHA public housing and Section 8 residents have been encouraged to apply for FSS assistance.
Through DSHA, the State plays a central role in coordinating the allocation of affordable housing resources. In addition to several Federal resources, a number of State, local, private, and nonprofit resources will be available to various jurisdictions throughout the State.
Some State program resources include the State Housing Development Fund and the State Emergency Housing Assistance Fund. New Castle County has dedicated funds that are contained in a capital bond bill for homeownership initiatives. The city of Wilmington has a bond issue to create fair market housing for middle-income families.
Lending institutions and the Delaware Business Roundtable are working with the State to increase the business community's participation in affordable housing initiatives for first- time low-income homebuyers and the construction of new family rental housing. The Delaware Community Foundation (DCF) Leadership Program will assist community-based affordable housing development initiatives. Other foundation and corporate funds have been dedicated to DCF.
The State monitors housing activities covered in its Consolidated Plan. DSHA works with local housing agencies and local housing and community development departments within the State. Nonprofits will continue to be key providers of affordable housing and housing services. The State plans to continue encouragement of partnerships between nonprofit and for-profit housing developers. DSHA will work with the Delaware Business Roundtable on major new homeownership/new housing construction initiatives through the Delaware Housing Partnership.
Ms. Julia F. Loescher
Program Manager
Delaware State Housing Authority
18 The Green
PO Box 1402
Dover, DE 19903
302-739-4263