Why It Is Difficult to Develop
 Affordable Housing in Delaware

Incomes are lower: Median incomes in Kent and Sussex are 28 to 33% lower making it very difficult to serve families whose incomes are below 80% and50% of median.

Affordability gap is wider: Incomes are substantially lower and housing development costs are not significantly different in Kent and Sussex, causing a wider gap.

Jobs are mostly service sector and agricultural: Modest paying jobs dominate rural Delaware with fast food, service sector, and poultry processing employment.

Fewer housing resources: Urban areas have access to more federal housing assistance through HUD, and often operate substantial city and county housing programs, unlike most rural areas.

Fewer banks and less housing credit: Kent and Sussex are home to fewer banks and less housing credit. Few banks have a rural CRA delineation areas and no Home Mortgage Disclosure Act reports are required in Kent and Sussex, causing less accountability.

Highest rate of substandard housing: Kent and Sussex Counties have a disproportionate 60% of the state's substandard housing that needs substantial rehabilitation or replacement.

Withdrawal of federal housing assistance: USDA's Rural Development has cut direct housing assistance by more than 50% since 1994. An example isa 72% cut from 540 to 150 million for rural rental housing, a program that has worked very well in Delaware. By contrast, HUD's housing budget and includes new programs and initiatives.

Smaller communities and counties face infrastructure problems: Public sewer and water systems are expensive to develop, to increase capacity, and to maintain. Most smaller communities and rural county governments have difficulties funding public utilities; yet, these systems are necessary if affordable housing is to be built. Some rural communities have no public systems such as Ellendale and Coverdale Crossroads, and their residents face health issues due to shallow wells and failing septic systems.

Dispersed population results in less advocacy: Rural households are often dispersed and somewhat isolated, less able to organize to effect change than more heavily populated neighborhoods.

Fewer nonprofit housing developers and providers: Traditionally, rural areas are home to fewer nonprofit housing development corporations which often have a greater need for capacity building and technical assistance than do better funded urban organizations.

Less access to charitable foundations and corporate giving: Fewer national foundations are geared towards rural development. Delaware's foundations are based in metropolitan Wilmington. Fewer corporations, banks, and large employers exist in rural Delaware. This causes corporate giving to suffer.

NIMBY (Not In My Back Yard) is alive and well in rural Delaware: Affordable housing often faces NIMBY pressures which are particularly damaging where less sophisticated land use laws prevail and where there is less access to multi-family zoned land.

This is why rural Delaware requires special attention and initiatives!

Copyright ©2001 NCALL Research, Inc.