Milford Breaks Ground on New Affordable Housing, but Growth Debate Over Pace and Infrastructure Continues

City and State officials, including Mayor Todd Culotta and Governor Matt Meyers, celebrate the groundbreaking on the second phase of a Mispillion Station, a new affordable housing project in Miford. (photo: delaware.gov)

For some, Mispillion Station represents renewal and opportunity. For others, it’s a sign that the city must pause and take stock before its growth outpaces its foundation.

MILFORD, Del. — City and state officials broke ground Thursday on the second phase of Mispillion Station, a major affordable housing project in downtown Milford that underscores both progress and unease over the city’s rapid expansion.

The development—backed by the Delaware State Housing Authority (DSHA) and private partners—will renovate 32 aging apartments and add 16 new units, replacing structures built in the 1970s and 1980s. The project is funded through the federal Low-Income Housing Tax Credit (LIHTC) program, part of a $3.4 million statewide allocation supporting more than 200 affordable units in Milford, Wilmington, Georgetown, and Lewes.

“These units here in Milford were originally built with rural development dollars,” said Matthew Heckles, DSHA director. “This tax credit deal allows us to demolish and rebuild those units so families can live in modern, safe, affordable housing.”

Governor Matt Meyer, who attended the ceremony, called the project essential to Delaware’s housing strategy. “We are doing everything possible to build more housing units so that supply increases and prices will come down,” Meyer said.

Mispillion Station II is being developed by Severn Companies LLC and Searfoss Development LLC, using nearly $547,000 in tax credits and more than $5 million in supplemental funding. A third phase has already received a preliminary award to preserve an additional 40 units.

Statewide affordable housing momentum

Since its inception in 1987, Delaware’s LIHTC program has supported the creation of more than 10,000 affordable housing units. Heckles noted that “for every $1 of tax credits invested, we raise roughly 90 cents in equity,” leveraging private capital that keeps rents within reach for families earning less than 60 percent of area median income.

“These credits don’t just build housing—they create jobs, support local economies, and ensure long-term affordability for working families,” Meyer said.

Local projects meet resistance

Even as Milford celebrates new investment, other proposed developments have ignited concern among residents and city leaders.

A plan to build 39 townhouses and one single-family home on Truitt Avenue—known as the Carlisle Lane subdivision—has twice been delayed by City Council after the Planning Commission recommended denial. The developer is seeking waivers for narrower streets, smaller setbacks, and partial encroachment into a nearby floodplain.

“I travel that street just about every day,” said Councilwoman Katrina Wilson. “If another car is coming, I have to pull over to let it pass. That’s before we add 40 new homes.”

Project engineer Ed Ide countered that the requested changes are minor. “We’re not asking for height or parking adjustments or rezoning classifications,” he said. “Each waiver stands on its own merit.”

Council voted 7–0 this week to table the measure again, indicating it may require further hearings before any vote.

Petition reflects broader unease

The controversy comes amid growing grassroots frustration over the city’s pace of development. During the summer, a petition circulated informally around Milford drew more than 180 signatures calling for a one-year moratorium on all new housing approvals.

The petition—shared through neighborhood Facebook groups, email chains, and door-to-door conversations—had no single organizer or civic sponsor, but reflected what residents described as “widespread anxiety” about infrastructure strain.

Supporters cited overburdened roads, crowded schools, and the erosion of Milford’s small-town identity as top concerns. Several parents said class sizes at Milford School District schools have grown noticeably in the past two years, while others pointed to longer commute times, traffic backups, and limited parking downtown.

“We’re not opposed to new families coming to Milford,” one signer wrote. “But every new development brings more students, more traffic, and more pressure on our schools and services.”

City weighs infrastructure capacity

City Manager Mark Whitfield acknowledged the petition and the sentiment behind it this summer but said any construction moratorium would require a legal justification under state planning law. He maintained that Milford’s water, sewer, and utility systems can handle projected growth, though he conceded that school capacity and transportation infrastructure remain points of concern.

“We understand why residents feel anxious,” Whitfield said. “That’s why we’re encouraging everyone to take part in the city’s comprehensive-plan discussions. Growth has to be managed carefully—but it can’t simply be stopped.”

Balancing progress and preservation

Milford’s situation mirrors a statewide challenge: expanding housing options while protecting the character and infrastructure of small towns. For some, Mispillion Station represents renewal and opportunity. For others, it’s a sign that the city must pause and take stock before its growth outpaces its foundation.

For now, the cranes and construction crews are moving ahead—building not only new housing, but the latest chapter in Milford’s ongoing debate over what kind of community it wants to become.