Affordable Housing Production Task Force Final Report April 2025
Introduction
The Affordable Housing Production Task Force (AHPTF), a bipartisan 20-member group created by Delaware’s House Bill 442, released its final report in April 2025. The document presents a stark but actionable roadmap for state and local governments, private partners, and nonprofits to tackle a severe shortage of affordable housing. According to the Delaware State Housing Authority’s (DSHA) 2023 Housing Needs Assessment, the state needs approximately 45,000 additional housing units, both rental and for-sale, to address current shortages and keep pace with projected household growth through 2030. Alarmingly, 50% of renters in Delaware are cost-burdened (spending more than 30% of income on housing), homelessness is rising, and homeownership rates continue to fall.
The report stresses that no single solution will suffice. Instead, a cross-sector approach is required one that reforms zoning, increases funding, streamlines permits, and supports vulnerable populations. The task force held dozens of meetings across the state, backed by five subcommittees, and approved nine overarching objectives to guide policy.
Key Findings: Why Affordable Housing is Out of Reach
The task force’s findings are grounded in hard data. Using 2023 HUD income limits for a two-person household, DSHA calculated the maximum affordable monthly housing costs by county. For example, a household at 30% of Area Median Income (AMI) in Delaware can afford only 978. In contrast, a case study of building a typical 2,000 sq. ft. single-family home in Sussex County revealed a total project cost of **384,000 statewide.
The report identifies three main drivers of the crisis:
Limited housing types – Zoning favors large single-family homes, discouraging duplexes, townhomes, accessory dwelling units (ADUs), and manufactured housing.
Regulatory and permitting delays – Discretionary reviews, traffic impact studies, and inconsistent local codes add years and significant costs.
Insufficient public funding – Even with regulatory reform, low-income households (0-50% AMI) need direct subsidies to afford safe housing.
Types of Housing to Encourage
The task force recommends promoting diverse housing types to increase supply and lower costs. These include:
Accessory Dwelling Units (ADUs) – Small secondary units on single-family lots.
Missing Middle Housing – Duplexes, triplexes, townhomes, and small multifamily buildings.
Manufactured Housing – Recognized as a cost-effective, quick-to-deploy option.
Micro-units and Single Room Occupancies (SROs) – Very small apartments (under 350 sq. ft.) with shared or private amenities.
Universal Design housing – Accessible to people with disabilities.
Infill development – Using vacant, abandoned, or underused parcels in existing infrastructure zones.
Priority locations include: State Strategies Investment Levels 1 & 2 (areas with existing infrastructure), near transit or planned transit, commercial-to-residential conversions, and state-owned properties.
Target Populations
While the task force’s charge covers all income levels, specific groups need tailored support:
Persons with disabilities – Require supportive housing linked to services (e.g., Section 811 model).
Extremely low-income households (below 30% AMI) – Need deep subsidies and emergency rental assistance.
Seniors, veterans, and survivors of domestic violence – Identified by the Community Focus Groups Subcommittee as facing unique barriers.
For policy purposes, the report defines affordable housing as rental units priced for households at or below 80% AMI and owner-occupied units at or below 120% AMI.
Nine Core Recommendations (Objectives)
The following objectives form the backbone of the report:
Objective 1: Increase/Expand Funding for Affordable Housing
The Finance & Development Subcommittee estimates that Delaware needs $100 million annually from the state for 30 years to address rental affordability, plus additional funds for homeownership and special populations. Public dollars would leverage private capital at least 1:1. Strategies include:
DSHA receiving $100M/year, indexed to CPI, prioritized for extremely low-income and disabled households.
Maximizing federal and state funds across agencies.
Creating a public/private development fund (modeled after Dallas Housing Opportunity Fund) for low-cost loans.
Encouraging municipal bond financing, tax increment financing (TIF), and general obligation bonds.
Objective 2: Implement Local Zoning Reform
Zoning reform is considered essential. The report recommends a legislative framework setting minimum state requirements for local governments (population >2,000), including:
Minimum density of 24 units per acre for multifamily districts; 4 units per acre for single-family districts.
Maximum lot sizes of 5,000 sq. ft. for single-family homes.
Minimum building height of 60 ft. for multifamily zones.
By-right administrative review (no rezoning or conditional use hearings) within growth areas.
Carrots (higher state funding for compliant jurisdictions) and sticks (state enforcement for noncompliance).
Objective 3: Streamline Approval/Permitting Process
Delays kill affordability. Recommended actions:
Set maximum timelines for project approvals.
Expedite reviews for affordable projects (e.g., DelDOT, stormwater permits).
Allow third-party “pay for review” for permits.
Waive fees for projects with affordability components.
Allow projects in Investment Levels 1 & 2 to opt out of PLUS review (a Delaware preliminary land use service).
Objective 4: Adopt a Statewide Building Code
Currently, 57 municipalities and three counties have inconsistent codes. A uniform state building code (with ADA compliance and universal design) would reduce costs and uncertainty. Localities must apply the code version in effect at project start through completion.
Objective 5: Strengthen Comprehensive Plan Requirements
Local comprehensive plans must be data-driven. The state should require:
Use of current housing data.
Zoning reforms aligned with plan goals.
Identification of enough land for densities needed to meet Housing Needs Assessment targets.
Objective 6: Provide Incentives to Developers
To engage private builders, the state and localities should offer:
Access to the Site Readiness Fund and Transportation Infrastructure Investment Fund (TIIF).
Fee reductions/waivers.
Waiver of Traffic Impact Studies for projects in Investment Levels 1 & 2.
Density bonuses.
Objective 7: Develop Construction Workforce Pipeline
Labor shortages drive up costs. Recommendations include:
Reducing journeyman/apprentice ratios set by the Delaware Department of Labor.
Requiring a construction career pathway in all Delaware high schools.
Changing apprenticeship funding to a DOL-administered line item (minimum $4 million base with matching grants for additional funds).
Objective 8: Assist in Purchase of Manufactured Housing Communities by Homeowners
To preserve existing affordable stock, the state should provide:
Advisory services for homeowners’ associations seeking to buy their communities.
State financial assistance (low-interest loans/grants) for acquisition of manufactured housing communities or land.
Objective 9: Optimize Existing Programs/Processes
DSHA should periodically review financing, minimum construction standards (including rehab projects), LIHTC pipeline caps, and the State Rental Assistance Program (SRAP). DelDOT must create a committee of experts to revise its Development Coordination Manual and Road Design Manual to reduce housing development costs.
Additional Considerations: Short-Term & Preservation
Short-Term Affordability Supports
Recognizing that new construction takes years, the task force recommends:
A permanent, sustainable statewide emergency rental assistance program.
More housing vouchers, including shallow subsidy vouchers for cost-burdened tenants.
Wraparound supports (medical, financial, food) for all renters.
Preservation Strategies
Losing existing affordable units would worsen the crisis. Strategies include:
Home repair programming for owner-occupants (including manufactured homes and persons with disabilities).
Long-term affordability restrictions (in perpetuity deed restrictions or community land trusts) for subsidized housing.
Subcommittee Highlights
The report includes detailed appendices from five subcommittees, which collectively approved 71 recommendations. Key examples:
Regulatory & Permitting – Proposed a pilot program in the Office of State Planning Coordination to help local governments implement master plans and affordable housing elements.
Finance & Development – Recommended reducing the realty transfer tax to 1% for owner-occupants at or below 120% AMI and standardizing the definition of affordable housing across government programs.
Construction – Suggested allowing mass timber in higher buildings, waiving impact fees for redevelopment of vacant/abandoned sites, and creating a committee to reassess DSHA construction standards.
Manufactured Housing – Proposed 10-year tax abatements for new manufactured homeowners below 40% AMI, chattel-to-real-property conversion, tie-down grants, and a financial advisor for homeowner acquisitions.
Community Focus Groups – Called for immediate action to increase supportive housing, seal eviction records that didn’t result in judgment, and prohibit local laws that restrict unrelated people from living together (which hurts low-income renters sharing housing).
Conclusion: From Report to Action
The report closes with a sobering acknowledgment: the scale of the problem requires immediate, sustained, and coordinated action. The task force co-chairs thank the public, advocates, and staff especially DSHA’s Caitlin Del Collo for their work. The document is not merely a study; it is a legislative and executive blueprint.
With approximately 45,000 units needed, rising homelessness, and half of all renters cost-burdened, Delaware policymakers are urged to use this report as a guide to pass zoning reforms, appropriate $100 million annually, streamline approvals, and build a construction workforce. The report’s final line is a call to action: “Now as policymakers, it is time for us to take action and use this report as a guide to inform our decisions moving forward.”