Sussex County Council unanimously approved a series of amendments Tuesday designed to expand affordable rental housing opportunities while updating subdivision design standards, actions county officials hope will help address southern Delaware’s growing housing affordability challenges.
The council adopted Ordinance 2601, amending the Sussex County Rental Program (SCRP), which incentivizes developers to construct affordable rental housing. The revisions adjust how affordable units are distributed among households earning 60%, 70% and 80% of the area median income while requiring developments to include a mix of units serving residents at each income level. Officials said the changes are intended to ensure affordable housing reaches a broader range of working families.
Supporters of the ordinance argued that the modifications make affordable housing projects more financially feasible while preserving affordability requirements. Council members noted that rising construction costs, financing expenses and land prices have made it increasingly difficult to develop below-market-rate housing in Sussex County. The revised formula provides developers with greater flexibility in structuring affordable units while maintaining safeguards to keep rents below market rates.
The ordinance also increases allowable building heights for SCRP developments to 60 feet, provided projects adjacent to residential neighborhoods incorporate step-back designs above 42 feet. Changes to setback requirements are intended to provide greater design flexibility and potentially allow more housing units to be constructed on eligible sites. Officials said removing some geometric constraints could help stimulate affordable housing production without eliminating neighborhood compatibility standards.
During discussion, council members acknowledged that the ordinance may not be perfect but described it as an important first step toward addressing the county’s affordable housing shortage.
“We do have to start from somewhere, and these are pretty sweeping changes overall to the program,” Councilman Steve McCarron said during deliberations.
McCarron emphasized that the county intends to monitor the program’s effectiveness and make adjustments if necessary.
“This is something that I think probably all of us are going to keep our eye on. If we didn’t get it exactly right, we can turn right back around and make sure we get it right,” McCarron said.
Working group member Mark Horner described the changes as “a great start” as the county works to expand attainable housing opportunities.
Questions were raised about whether developments should be required to provide units at all three affordability levels rather than concentrating them within a single income category. Supporters of the requirement argued that maintaining a mix of units is necessary to ensure the program serves a broader segment of the workforce and prevents developments from focusing solely on households at the highest eligible income level.
In a separate action, council approved Ordinance 2603, which updates subdivision design standards, including new requirements for future roadway interconnections between neighboring developments, additional screening requirements for utility infrastructure and parking areas, and clarifications regarding street design standards. County planners said the changes are intended to improve long-term transportation connectivity and community design.
Despite supporting the ordinances, concerns were raised about the impact continued growth could have on county infrastructure.
“I remain concerned that there is no provision going forward for any plan or report on the adequacy of infrastructure in application for residential building,” Councilwoman Jane Gruenebaum said before the final vote. “Infrastructure issues are the concerns that are top of mind for my constituency.”
Even with those concerns, both ordinances passed unanimously. County officials described the affordable housing amendments as an important step toward addressing one of southern Delaware’s most pressing issues. With housing costs continuing to rise and workforce housing becoming increasingly scarce, supporters said expanding attainable rental options will be critical to ensuring teachers, healthcare workers, first responders, retail employees and other essential workers can continue to live in the communities they serve.
