Governor Matt Meyer, Delaware State Housing Authority (DSHA), and Apennine Development Co. LLC, kicked off construction yesterday on Savannah Grove, a residential community in Georgetown that will offer 106 apartment homes, 16 of which will be available at reduced rent.

Backed by a $2 million loan from the Delaware State Housing Authority (DSHA), the project will set aside 16 apartments at below-market rents for 16 families.

GEORGETOWN — State officials and private developers broke ground this week on Savannah Grove, a 106-unit apartment community that leaders say will help address Sussex County’s housing crunch.

Backed by a $2 million loan from the Delaware State Housing Authority (DSHA), the project will set aside 16 apartments at below-market rents for families earning 65% of Area Median Income — roughly $1,000 per month at today’s rates.

Gov. Matt Meyer joined DSHA Director Matthew Heckles and Apennine Development officials at the ceremony, describing the project as a practical example of public-private partnership.

“This groundbreaking is about more than a celebration — it’s about taking action; building more workforce housing that Sussex County families can truly afford,” Meyer said.

The development, located at 20664 Savannah Road in Georgetown, will include six residential buildings with a mix of one-, two-, and three-bedroom units. Amenities will include a clubhouse, fitness space, and outdoor pool. Construction is expected to be completed by Jan. 1, 2027.

The total project cost is approximately $24 million, with Burke & Herbert Bank providing $16.5 million in construction financing.

The Taxpayer Investment Explained

The state’s role comes through a $2 million DSHA loan designed to make 16 units more affordable.

If divided evenly, that equals about:

$125,000 in public financing per below-market apartment.

However, the funding is structured as a loan — not a grant.

In a typical scenario — such as a 30-year loan at roughly 2% interest — the developer would repay the full $2 million over time, plus modest interest. That means:

Taxpayers are not writing a permanent check.
The capital is expected to be recycled.
The state acts more like a long-term lender than a donor.

The tradeoff is that the $2 million remains tied up in this project for decades before it can be reused elsewhere.

A Meaningful Win — But Small in Scale

For the 16 families who qualify, the impact is real. Lower rent can free up household income for essentials like groceries, transportation, and savings.

But the scale raises broader questions.

State housing assessments estimate Delaware faces a shortage of 15,000-20,000 affordable units statewide — particularly for households earning below 60% of median income. Against that backdrop, 16 units represent a modest addition.

Supporters argue this type of partnership model is fiscally responsible — using limited public dollars to unlock private construction without imposing mandates.

Critics of broader government intervention suggest that long-term affordability may depend less on targeted subsidies and more on:

Zoning reform
Faster permitting (as promised in the Meyers’ State of the State Addresses in January)
Lower regulatory costs
Increased overall housing supply

From that perspective, the larger debate isn’t whether Savannah Grove helps — it clearly does for those families — but whether projects structured this way can be scaled quickly enough to address a shortage measured in the thousands.

The Broader Policy Question

Savannah Grove reflects a middle-ground approach:

Limited public financing
Majority private capital
No sweeping new entitlement program
Modest number of income-restricted units

It is not a sweeping solution to Delaware’s housing crisis. It is a targeted investment in one community.

Whether similar projects can be multiplied statewide — and whether complementary reforms can lower construction costs across the board — will likely determine whether Delaware meaningfully narrows its housing gap over the next decade.

For now, Savannah Grove represents what housing policy often looks like in practice: incremental progress, long-term financing, and a reminder that solving a statewide shortage requires scale as much as symbolism.