Updated rental program enacted in Sussex

After more than three years of meetings and public hearings, Sussex County Council has voted to approve an amended Sussex County Rental Program ordinance.

A 2019 housing report, authored by consultant LSA, pointed to a need for more affordable workforce housing, especially in eastern Sussex County. The report also outlined options for county officials to consider. The previous ordinance, dating back to 2006, created a rental program, but only one project participated in the program.

At its Oct. 18 meeting, council voted 5-0 to approve the upgraded ordinance in an effort to incentivize more developers to construct multifamily housing projects with at least 25% of the units available to qualified renters whose annual income is 80% or less of the county's area median income.

Making the motion to approve the ordinance, Councilman Mark Schaeffer said through implementation of the program, council and staff will find things that could have been better. “However, this is a monumental step in the right direction,” he said.

“This has been a long time coming. We've had lots of input and this is a good place to start,” said Council President Mike Vincent.

Councilman John Rieley said he wanted to ensure that projects would not be built in rural areas. “We don't want to see these projects spring up on backroads in cornfields,” Rieley said.

Assistant county attorney Vince Robertson said there are several guardrails preventing that, including a mandatory hookup to central sewer and water systems.

The areas eligible for the program include commercial, coastal and developing areas and town centers.

Robertson presented several amendments to the original draft based on staff, public officials, builders, home advocate groups and public input, which council approved before voting on the overall ordinance.

About the rental program

The ordinance will provide incentives and design flexibility to developers to include affordable units in rental apartment and multifamily complexes.

In spite of an outcry to require public hearings for applications under the ordinance, that change was not made.

The ordinance allows developers to build apartment buildings with affordable units by right with density up to 12 units per acre without a public hearing that is usually required for multifamily housing. It will also speed up the review process.

Projects will be subject to site-plan review by the Sussex County Planning & Zoning Commission and county staff, as well as state and Sussex Conservation District review.

Regulations include: density up to 12 units per acre; open space of 50%; connection to central water and sewer service; interconnectivity to any adjacent commercially zoned properties; sidewalks on at least one side of all streets with connectivity to surrounding sidewalks; and interconnectivity to walking and biking trails. Projects must also include a streamlined administrative process of approving tenants and monitoring compliance with the program, while clarifying penalties for noncompliance.

The ordinance takes effect immediately, and will only apply to those projects built in the county’s jurisdiction of unincorporated areas.

Who qualifies for program

Brandy Nauman, director of county community housing and development, said under the ordinance, developers would be required to build 25% of the units as affordable units based on 80% of area median income. In Sussex County, that’s a household income of $60,100 for a family of four and $48,100 for a two-member family. Rent for apartments will be, on average, less than half the market-rate rent.

All screening, rental agreements and background checks would be handled by the project’s property management.

Amendments include:

• Deletion of the program eligibility requirements that renters must live or work in Sussex County for a year. Robertson said federal fair housing regulations are at issue. He said preference would be given to potential renters who have lived or worked in the county for a year.

• Addition of a mandatory comprehensive review of the program before Jan. 1, 2028, subject to economic, housing, development and land-use trends in the county.

• A change from 30% to 25% for the number of affordable units required in a project.

• The addition of commercial areas to town centers and developing areas where projects can be constructed.

• Removal of a requirement that all developments be located near an existing DART bus route. Robertson said the amendment would relate to road classifications, including at least 2,640 feet from a primary or minor arterial road or major collector road. “This will keep projects off rural roads,” Robertson said.

• A change in the maximum height requirement. Under the proposed ordinance, apartments can be 52 feet tall with 100-foot setbacks, which is 10 feet taller than the current county standard. If a developer choses to build at 42 feet, the setback is changed to 50 feet

• Removal of a requirement that the primary views from all units be open space or recreational amenities. “This is too limiting in design. We do not want to get into the business of design,” Robertson said.

For more information and to view the ordinance, go to sussexcountyde.gov/ordinances.