Housing Opportunities and Market Evaluation Presents Strategies Designed to Promote Housing Choice and Economic Vitality for Sussex County’S Residents and Workforce
Total Page:16
File Type:pdf, Size:1020Kb
Housing Opportunities + Market Evaluation Sussex County, Delaware November 2019 SUSSEX COUNTY HOUSING OPPORTUNITIES + MARKET EVALUATION Sussex County Council Michael H. Vincent, Council President Irwin G. Burton III, Council Vice President Douglas B. Hudson, Councilman John L. Rieley, Councilman Samuel R. Wilson, Jr., Councilman Planning & Zoning Commission Robert C. Wheatley, Chairman Kim Hoey Stevenson, Vice-Chairman R. Keller Hopkins, Commissioner J. Bruce Mears, Commissioner Holly Wingate, Commissioner County Staff Todd Lawson, County Administrator Gina Jennings, Finance Director/COO Brad Whaley, Director, Community Development & Housing Brandy Nauman, Fair Housing Compliance Officer, Community Development & Housing Janelle Cornwell, Director, Planning & Zoning Vince Robertson, Assistant County Attorney Consultant Team LSA Lisa Sturtevant Jennifer Skow David Huaman Photo on cover page is of Ingram Village in Ellendale Source: All photos in this report were taken by LSA Planning ii SUSSEX COUNTY HOUSING OPPORTUNITIES + MARKET EVALUATION Stakeholders Developers, Continued Advocates Amy Walls, Discover Bank Joe Mastrangelo, Carl Freeman Companies Bob McVey, Sussex County Association of Joe Reed, Boardwalk Development Kevin Gilmore, Sussex County Habitat for REALTORS Humanity Catherine McMahon, Seaford School District Mike Schaeffer, NVR/Ryan Homes Deb McKenna, People’s Place Devon Manning, Delaware State Housing Patricia Kelleher, NCALL Research, Inc. Authority Preston Schell, Ocean Atlantic Companies Dorothy Morris, Office of State Planning Robert Lisle, Insight Homes Coordination Russ Huxtable, Milford Housing Development Jim Martin, Shepherd’s Office Corporation Julio Sanchez, Department of Correction Tom Ford, Land Design, Inc. Justina Rmadat, People’s Place – SAFE Katie Millard, Sussex County Habitat for Groups Humanity Sussex County Group for Aging and Adults with Lillian Harrison, Delaware Community Physical Disabilities Reinvestment Action Council Sussex Housing Group Marcey Rezac, Delaware Coalition Against Domestic Violence Community Residents Marlena Gibson, Delaware State Housing Betty London, Resident Authority MelVinlene Truitt, Resident Michael Lambert, Diamond State Community Ronald Denn, Resident Land Trust Susan Kent, LOVE INC Tina Showalter, Housing Alliance Delaware Tyler Berl, Housing Alliance Delaware William Kinnick, Delaware Manufactured Home Owners Association Municipalities Ann Marie Townshend, City of Lewes Donald Donovan, Town of Greenwood Greg Durstine, Town of Ocean View Hal Godwin, Town of Greenwood Jill Oliver, Town of Ocean View Rob Pierce, City of Milford Housing Developers Beau Jones, Leon N. Weiner & Associates Christian Hudson, Hudson Management Doug Motley, Jack Lingo Asset Management Helen McAdory, Diamond State Community Land Trust iii SUSSEX COUNTY HOUSING OPPORTUNITIES + MARKET EVALUATION TABLE OF CONTENTS Executive Summary ............................................................................................................................2 Section 1 ............................................................................................................................................5 Background ............................................................................................................................................... 6 Housing Market Analysis and Needs Assessment .................................................................................... 7 Current Unmet Housing Needs ............................................................................................................... 12 Future Housing Needs ............................................................................................................................. 12 Annual Housing Targets .......................................................................................................................... 13 Evaluation of Current Housing Programs in Sussex County ................................................................... 15 Section 2 .......................................................................................................................................... 18 Economic Feasibility Analysis: Overview ................................................................................................ 19 Sensitivity Analysis/Key Findings ............................................................................................................ 20 Section 3 .......................................................................................................................................... 21 Strategy Recommendations .................................................................................................................... 22 Affordable Housing Definitions ............................................................................................................... 23 Implementation Framework ................................................................................................................... 27 Modify the Zoning Code to Promote Housing Affordability in Growth Areas Identified in the Comprehensive Plan ............................................................................................................................ 30 Establish a Local Housing Trust Fund................................................................................................... 35 Preserve the Existing Supply of Affordable Housing ............................................................................ 43 Appendix ......................................................................................................................................... 50 Request for Proposal Outline .................................................................................................................. 51 Affordable Housing Toolbox ................................................................................................................... 55 Economic Feasibility of Promoting Housing and Homeownership in Sussex County ............................. 68 Existing Affordable Housing Projects in Sussex County, Delaware ......................................................... 81 1 SUSSEX COUNTY HOUSING OPPORTUNITIES + MARKET EVALUATION Executive Summary This Housing Opportunities and Market Evaluation presents strategies designed to promote housing choice and economic vitality for Sussex County’s residents and workforce. These strategies are the culmination of an eight-month initiative, supported by a housing needs assessment and economic feasibility study. The recommendations benefitted from input from residents, homebuilders and developers, advocates, County staff, County Council, and Planning Commissioners; however, the strategies and actions presented in this report represent the views of LSA, the consultant team hired by the County to prepare the report. Housing Targets Based on the analysis of future housing needs, Sussex County is expected to need to add 1,549 net new housing units each year over the next 10 years, including 520 which will be vacant at any point. This level of housing production includes both market-rate housing, as well as below-market-rate housing. This projected level of future housing production is below recent new construction trends in the County, which suggests that the County could approve somewhat fewer housing units in the years to come and still meet projected housing demand. However, Sussex County has not seen construction of new homes at rents and prices that are affordable to lower-income households, including working individuals in key sectors of the local economy and individuals living on fixed incomes. Currently, there are nearly 10,700 households in Sussex County that are severely cost burdened, spending more than half of their income on housing each month. To help mitigate current and future housing challenges, support economic growth and promote a high quality of life for County residents, Sussex County should encourage the production of rental and for-sale homes affordable to households in different income ranges, as follows: Figure 1. Annual Housing Targets by Income Group, 2020 to 2030 period Affordable to households at: New Housing Units Less than 30% AMI 99 30% to 50% AMI 131 50% to 80% AMI 171 80% to 100% AMI 112 100% AMI or greater 515 Total households 1,029 Vacant units 520 Total housing units 1,549 Source: The Delaware Population Consortium Seasonal Vacancy Projection, 2015 Comprehensive Housing Affordability Strategy, LSA 2 SUSSEX COUNTY HOUSING OPPORTUNITIES + MARKET EVALUATION Affordable Housing Strategies This Plan includes three strategy recommendations prioritized to increase the production and preservation of housing at prices and rents currently not being delivered by the private market. Many of the recommended implementation steps must work in concert in order to be most effective. Modify the Zoning Code to Promote Housing Affordability in Growth Areas Identified in the 1 Comprehensive Plan. Given the County’s low base zoning, the County should 1) revise existing ordinances to better incentivize below-market-rate housing, with changes appropriately scaled to meet both housing needs of lower-income households and the economic realities of developing housing in Sussex County; and 2) review and modify the underlying zoning in all designated growth areas (i.e., Town Center, Developing Areas, Coastal Areas, and areas designated as Commercial). A zoning code that permits a range of housing types