Lewes Planning Commission Chair Nancy Staisey and LPC Affordable Housing Subcommittee Chair Bob Heffernan began a March 21 affordable housing workshop by explaining the current situation in Lewes.

Many stakeholders in Sussex County have referred to an affordable housing crisis, particularly in the eastern part of the county. The complexity of the issue makes it difficult for municipalities to properly address the problem. 

Heffernan spoke with Delaware State Housing Authority and Sussex County Habitat for Humanity representatives, and found Lewes was not alone in its troubles. He said there are programs available for financing and others with sweat equity that allow people to build their own houses.

The LPC recommended the following measures to mayor and city council members during their 5-year review: 

• Research the feasibility of expanding residential options on commercial properties
• Investigate options for city code updates to require diverse housing in new developments
• Consider options to require affordable housing set-asides in new developments
• Research accessory dwelling unit definitions and the feasibility of allowing them.

“I think you’ve heard that the need is real and that this is not a theoretical issue,” said City Manager Ann Marie Townshend.

One Sussex County initiative provides incentives to developers if they set aside 25% of units for households earning 50% or less of the area median income. Townshend noted the county’s AMI-based direct buyer assistance program that helps individuals make $10,000 to $30,000 down payments, and the development grant fund for $50,000 per unit up to $500,000 for developers.

Dutchman’s Harvest developer Preston Schell took advantage of the developer program when designing that 140-unit housing development. The Milford Housing Development Corporation has purchased 42 of the units for sale to households making 80% of the AMI. The remainder will be sold to people working locally. Lewes designated a portion of its American Rescue Plan Act funds to help subsidize housing costs at Dutchman’s Harvest.

Sussex Habitat Development and Advocacy Director Katie Miller introduced accessory dwelling units as a potential solution.  According to Miller, an ADU is a small home created inside, added to, or detached from the primary unit. ADUs are self-contained, with their own kitchen, sleeping area and bathroom. Lewes City Code does not currently permit them.

Miller noted ADUs help people live where they work and contribute to the local economy. If they are permitted, ADUs cannot become short-term rentals.

“You can increase the housing supply without creating drastic change. You can put it on lots that are already existing, and you can tap into water and sewer,” Miller said. “It is low-hanging fruit, because a lot of the infrastructure is already there.” 

“We've had to have people - [in order] to do the financing - take out the kitchens, take out the refrigerators, tear up the house, get it financed, get the financing out the door, then two weeks later, the kitchen and the refrigerator come back. How ridiculous is that?” Riddle said.

Miller said she is an advocate for creating new products more suitable to the current housing market.

Tiny homes are a product Dr. Michele Williams said could be a solution. Tiny homes seldom exceed 500 square feet and can be as small as 100 square feet. Constructed consciously, the units are generally made from renewable and environmentally friendly materials with an efficient design. Dr. Tiny, as she is called, said the homes provide owners with the same amenities as a larger house.

John Paradee, an attorney representing the owner of Donovan-Smith Manufactured Home Park, explained the potential for 30 new units in the recently annexed development. Paradee said his client is hoping to use the community development grant to build them, but code changes would be necessary before construction can begin. During the April 10 meeting, Lewes Mayor and City Council sent an ordinance that would ease restrictions on manufactured homes to the Lewes Planning Commission for further review.

Family Promise of Southern Delaware Executive Director Carolyn Kelly said there are misconceptions about who is homeless and how they came to be in that situation. She said 35 of the 40 families they help have members who work full time.

“We're talking about the folks who are all around us all the time,” Kelly said.

Family Promise’s role is prevention. Not only is becoming homeless traumatic for the whole family, but Kelly said homelessness can damage individuals’ credit ratings. They struggle to raise enough funds to afford a security deposit, and first and last months’ rent, making it nearly impossible to bounce back from such a situation.

The workshop and presentation, which contains information on housing initiatives, can be seen at ci.lewes.de.us/1399/Affordable-Housing. The LPC Affordable Housing Committee has not yet scheduled its first meeting.