Presentation and Discussion at Council Meeting on 10/26/2021

Once adopted, this ordinance will bring in a big change in the coastal area development. The rental apartments of up to 12 units/acre would be 'permitted' without public hearings or comments.

This P&Z staff recommendation was presented to the Council on 10/26/2021 by Todd Lawson and Jamie Whitehouse. It can be viewed from the Council meeting archive - from 0:33:00 to 1:17:45. Clippings included below are from this meeting archive.

Reported by media:

• WRDE: Sussex County Council Discusses Workforce Housing

• Cape Gazette: Sussex council looks at workforce housing ordinance - New program would provide more incentives for developers to build affordable rental units

Concerns/Questions:

• From what was presented, most of the eligible parcels on the map are in environmentally sensitive and vulnerable areas along Hwy 1 and Rt 24. However, other areas may later be added.

• The road near the eastern tip of Long Neck is known for sunny-day flooding and this area is the least suitable area for workforce housing. Since the whole Long Neck area of 3,000+ manufactured homes is served by one meandering country road, evacuation out of this area will be a nightmare.

• Is DelDOT working with this growth projection on Hwy 1 and Rt 24? How much will developers be required to contribute to the road improvements?

Carol Conroy of the League of Women Voters sent us her detailed summary of the presentation:

Powerpoint presentations were given by Mr. Lawson, Robertson and Whitehouse.

Mr. Lawson first reviewed the history, starting with the County’s land-use plan in 2018.

A consultant was hired to provide options for incentivizing developers to produce more moderately priced housing:

1. Modify county codes to promote such housing in areas identified for growth;

2. Create/fund Housing Trust Fund;

3. Preserve existing moderate-income housing.

He noted that options 2 and 3 were already in place, thanks to Community Development Bloc grant funds. Mr. Robertson stated that such housing could be encouraged by permitting developers to build up to 12 units per acre “by right,” and allowing such applications to be reviewed by P&Z staff without public hearings. Eligible sites would be located in areas designated as “coastal,” “developing,” and town centers.

He identified building criteria as development “guardrails:”

1. Building heights not more than 52 feet or more than four stories;

2. 50 percent open space;

3. Interconnectivity with nearby commercial areas;

4. Sidewalks and bike paths;

5. Proximity to public transportation, existing or planned; and

6. Water /sewer connections.

He added that such housing would be multifamily rental only and that 30 percent of the units built would be income-restricted to 80 percent of the County’s AMI (area median income).

Finally, financial penalties would be created for non-compliance and enforced via annual audits and certifications.

Mr. Whitehouse then provided sample designs for 10 and 30-acre spaces. He also showed Council members pictures of existing multifamily rental developments.

Council members asked questions during the presentations including:

1. Difference between “workforce” and “affordable housing. Presenters stressed that this housing did not involve any public financing, but lower-income residents could apply.

2. Actual market rates - the income measure, AMI, is the countywide median; there’s no East-West distinction. So rental rates would likely be:

1 bedroom - $595. discounted vs. $1,525 market rate

2 bedroom - $715. vs. $1,725

3 bedroom - $825 vs. $ !,995

3. Will the two incentives identified be enough to “incentivize” developers? Mr. Whitehouse pointed to the existing multifamily developments, some of which are being built now.

At the conclusion of presentations and discussion, Mr. Robertson asked if staff should begin developing a draft ordinance, which probably would be ready early next year. Mr. Vincent, reflecting a Council consensus, said “Yes - no reason not to start work.”