DELAWARE RURAL HOUSING CONSORTIUM
3 – Year Housing Development Plan

(The following is a condensed version of the plan. For a complete copy, please contact NCALL Research.)

WHO WE ARE

The Delaware Rural Housing Consortium is highly effective collaborative of seven (7) nonprofit rural housing developers including:

Appoquinimink Development, Inc.
Better Homes of Seaford, Inc.
Delmarva Rural Ministries, Inc.
Interfaith Mission of Sussex County, Inc.
Milford Housing Development Corporation
Millsboro Housing for Progress, Inc.
NCALL Research, Inc.

The Consortium's Steering Committee is made up of two persons from each member organization. This Steering Committee will oversee the three-year Housing Development Plan.

WHAT WE PROPOSE

The Consortium has developed a three-year Housing Development Plan to address the housing development needs of southern and central Delaware. This three-year initiative will result in the following outcomes:

    202 new affordable housing units
    510 new first-time homebuyers
     38 apartments with reduced rents
    750 Total Low-Income Delaware Families Served

WHAT WE NEED

The amount requested to achieve the above outcomes is $4,890,000. These needs include funding for construction financing, predevelopment expenses, subsidy write-down, homeownership counseling, rental housing annuity, and administration and program support. This investment will leverage an additional $52,560,000 from federal, state, and private sources.

WHY WE ARE UNIQUE

The Delaware Rural Housing Consortium's 3-Year Plan represents the largest rural housing effort in Delaware's history.

The Delaware Rural Housing Consortium is working hard to address the full continuum of housing needs in Delaware from emergency housing and affordable apartments to homeownership.

The Delaware Rural Housing Consortium is uniquely targeting the very low-income family and elderly population, often under 50% of county median, for its affordable housing

Every dollar committed to fill the GAP in the Consortium's Housing Development Plan will leverage $10.75 in additional federal, state, and private housing investment.

Mission

The specific mission of this three-year Housing Development Plan is "to provide affordable housing for lower income families, elderly, farmworkers, and homeless through the coordinated housing development efforts of the seven Delaware Rural Housing Consortium members to address the continuum of housing needs in central and southern Delaware." 

Objective #1: To develop affordable apartments for at-risk households.

Objective #2: To develop special housing programs that address specific rural housing needs.

Objective #3: Introduce the Rental Housing Annuity as a means of endowing projects and reducing rents for perpetuity.

Objective #4: To provide quality consumer education and counseling to enable renters to become mortgage-ready and purchase their first home.


TRACK RECORD

The seven nonprofit Consortium members have been responsible for most of the nonprofit rural, affordable housing developed in Delaware in the past five years.

Specifically, over the past five years, member organizations have:

  • Developed ten (10) affordable housing projects totaling 220 new units.
  • Leveraged $14,566,801 in attractive federal, state, and private financing.
  • Helped 548 rural families become first-time homebuyers.
  • Leveraged $43,205,583 in attractive CRA-type conventional mortgages and subsidized Rural Development (RD) mortgages and home improvements.
  • Assisted a total of 768 rural families to access decent, affordable housing.

The types of financing leveraged is broad indeed, demonstrating the expertise and significant accomplishments these organizations.


WHAT MAKES THE CONSORTIUM WORK?

The Consortium has a strong "infrastructure of services" that empower the seven nonprofits, synergistically allowing us to have a greater impact as a collective than as separate entities. The services foster quality housing and organizational development in an effective and efficient manner. These services are:

  • Rural Housing Technical Assistance
  • Shared Grant Writing
  • Government Relations
  • Synergism and Creativity
  • Public Awareness About Rural Housing
  • Networking to Learn, Partner, and Grow


2000 – 2002 CONSORTIUM FINANCING NEEDS

Federal and state financing
committed/expected          $ 13,671,862  (24%)

Private financing
committed/expected           38,888,138  (68%)

GAP financing, subsidy,
support needed                4,890,000  ( 8%)

TOTAL FINANCING NEEDS $57,450,000 (100%)


2000 – 2002 CONSORTIUM GAP BUDGET

Construction financing           $2,540,000 (52%)
Predevelopment expenses           200,000 ( 4%)
Subsidy write-down on homes        100,000 ( 2%)
Homeownership counseling          300,000 ( 6%)
Rental Housing Investment Certificate 1,000,000 (21%)
Administration & Program Support    750,000 (15%)

    TOTAL GAP NEEDED   $4,890,000 (100%)


2000-2002 GAP RAISED TO DATE

Fannie Mae Foundation    $10,000 grant

Enterprise Foundation       60,000 grant

Greenwood Trust Company 100,000 grant

Longwood Foundation      50,000 grant

Wilmington Trust Company  751,802 construction financing

County Bank             250,000 construction financing

Total Gap raised to date  $1,221,802   (25%)