As it began working toward amending rules concerning development, Sussex County Council heard presentations Feb. 11 from three groups involved in housing issues.

Speaking at a joint meeting of the council and the planning and zoning commission were Mike Riemann, president of the Home Builders Association of Delaware; Cailtin Del Collo, chief strategy advisor for the Delaware State Housing Authority; and Rachel Stucker, executive director for Housing Alliance Delaware.

Creating affordable and workforce housing was among the topics council members said they want to address this year.

Sussex County has a growing problem with homelessness and affordable housing, the presenters said.

Housing development is shaped not only by market demands, but also by ordinances that affect what and where they can build, Riemann said.

The cost of developing houses, and density and open space requirements, have encouraged housing sprawl into rural areas. Developers also find it more profitable to cater to more wealthy newcomers looking for large homes in Sussex County.

Riemann said developers seek the path of least resistance and will build projects that comply with the rules with no need for variances or other local approvals.

“It’s the safest play for the developer,” Riemann said. “The last thing that they want to do is spend hundreds of thousands of dollars, stand before you, get screamed at by 50 people who are not happy, and get turned down.”

Long-standing rules in Sussex County allow no more than two single-family houses per acre, and this is what developers produce, he said. 

Amending county rules to allow duplexes and smaller building lots would reduce costs, limit housing sprawl and fill needs for other types of housing that are affordable to more people, Riemann said.

Councilman Matt Lloyd said council needs to create rules to incentivize construction of small houses.

“More 2,000-square-foot houses are not going to solve our problem,” Lloyd said. 

County height restrictions typically do not allow for more than two residential floors above commercial space. Councilman Steve McCarron has been calling for increasing the limit in some areas to allow more units in a smaller space to prevent housing sprawl.

Current development projects leave many local residents unable to find adequate and affordable housing, Stucker said. Many restaurant servers and other lower-paid workers are being priced out of the market. They have to driver farther to find housing they or a group can afford, which increases traffic on the roads.

Housing is considered affordable if all of the related costs do not exceed 30% of a household’s gross monthly income, Del Collo said. These include rent/mortgage, utilities, insurance and utilities.

Her agency administers the state housing voucher program, public housing and a rental assistance program. It also serves as the state’s Housing Finance Agency, which has programs for homebuyers and existing homeowners, and helps finance construction and preservation of affordable rental and homeownership units. It administers federal and state community development programs.

Factors such as far too few homes and apartments, and high costs of many that do exist are creating problems for many residents, Del Colo said. Too few affordable housing and workforce housing options contribute to racial ownership gap, housing sprawl and homelessness.

Del Colo suggested creating zoning for small, single-family building lots, reducing minimum housing size rules, allowing multifamily zoning and creating incentives for diverse housing types.

Fair market rent in Sussex County has increased from $964 in 2002 to $1,398 this year, Stucker said.

The hourly wage of many workers is not nearly enough to afford housing, she said. That includes workers in the poultry industry, cooks, landscapers, nursing assistants, secretaries, retail sales employees and customer service representatives.

Stucker suggested the county establish zoning that allows multifamily housing by right, accessory dwellings on single-family lots, and multifamily residences above businesses in areas that are already developed and have access to public transportation.