DSHA awards $3.18M in tax credits for affordable housing projects

Map shows Delaware properties supported through Housing Development Fund and Low-Income Housing Tax Credit programs. (Courtesy of DSHA)

The Delaware State Housing Authority (DSHA) has announced $3.18 million in preliminary project awards through the 2025 Low-Income Housing Tax Credit (LIHTC) allocation cycle, supporting the creation and preservation of affordable housing across the state.

The funding will go toward four projects that together will create 105 new affordable units and preserve 116 existing units.

“Increasing housing supply, particularly by building new affordable rental units, is one of the many ways we can begin to solve the housing crisis in Delaware. Boosting supply also helps us reduce homelessness, a critical issue that DSHA is working to address,” said DSHA Director Matthew J. Heckles.

DSHA receives an annual tax credit amount and awards funding through a competitive process, with criteria outlined in its Qualified Allocation Plan. Developers selected through this program claim tax credits over 10 years, using the equity to attract additional financing for construction or rehabilitation.

“Like Governor Matt Meyer, we believe housing is a human right. All Delaware residents deserve to have a safe, secure and stable home, whether they own or rent. The allocation of tax credits we are announcing today will make that a reality for over 200 families immediately and hundreds more over the life of the program,” Heckles said.

Funded Projects

Village of Francis and Clare, Wilmington — A new senior high-rise with 51 units, the first high-rise project to receive LIHTC credits from DSHA.
Willows at Northstar, Lewes — A 46-unit new construction project, part of a master-planned development integrating affordable housing into a market-rate community.
Georgetown Apartments I, Georgetown — Preservation of 76 units, part of a larger community upgrade alongside Georgetown II Apartments.
Mispillion Station III, Milford — Renovation of 40 units, part of ongoing improvements within the Mispillion community.

“In Delaware, we are more than 19,000 rental units short of what we need to house residents, especially those who need affordable housing,” said Stephanie Griffin, DSHA’s Chief Production Officer. “These four LIHTC awards will enable developers of these projects to leverage their investments to provide much needed affordable housing to state residents.”

Properties financed with LIHTCs must remain affordable for at least 30 years. Since DSHA began administering the program in 1987, more than 10,000 affordable units have been added to Delaware’s housing stock.