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Affordable Housing Development Gets A Significant Boost from Delaware’s American Rescue Plan Act Dollars



Johnathan Morris

Millions are currently available for housing projects; Millions more are in the pipeline

Dover, Del. April 18, 2023 – The Delaware State Housing Authority (DSHA) has successfully launched two new affordable housing development programs funded by the American Rescue Plan Act (ARPA). Both programs are part of a multi-tiered approach to address the state’s housing crisis and strengthen communities.

  • The Catalyst Fund ($20 million in housing development assistance), administered in partnership with Cinnaire, launched this month and offers developers construction lending and a sales gap subsidy through ARPA funds to transform vacant and blighted properties into affordable units for low- and moderate-income homebuyers. A virtual information and update session for housing developers will be hosted this Thursday, April 20, at 11:00 a.m. Registration for the session is required.

  • The Market Pressure Relief Fund (MPRF) ($10 million in housing development assistance),which launched in January 2023, relieves construction material cost increases caused by the COVID-19 pandemic on Delaware’s affordable housing development community by loaning ARPA funds to developers so that projects under construction are completed, and affordable housing units are added to the state’s inventory. Before the application deadline, affordable housing developers throughout the state applied and requested $4 million in assistance. DSHA is evaluating applications and will continue to explore ways to help more construction projects with the remaining MPRF funds.

Governor John Carney and DSHA announced these programs, just two of five to be created, in July 2022. With more funding and programs in the pipeline this year, Delaware can further unlock potential housing development opportunities and ensure affordability in the existing housing stock.

For instance, ARPA funding will also be available to new creation and preservation development projects that intend to use the 2023 Low-Income Housing Tax Credit (LIHTC). Housing developers who meet eligibility requirements may include it with their LIHTC applications, due on Friday, April 28, 2023. If these applications are successful in the LIHTC allocation round, then the ARPA funding will be allocated to the projects to encourage both new units and the preservation of existing units.

Delawareans can stay informed about housing program announcements by signing up for DSHA’s newsletter at

“Delaware has never seen such a significant investment in housing. The programs DSHA is creating have never been executed at this scale,” said Eugene Young, Jr., Director of DSHA. “We’re thrilled with the progress made so far, and we’re not done yet. The impact of our efforts will allow Delaware to focus on what our housing landscape will look like well past 2026 when the funds expire.”


The Delaware State Housing Authority (DSHA), formed in 1968, is dedicated to providing quality, affordable housing opportunities, and appropriate supportive services to low- and moderate-income Delawareans. In addition to its role as the State’s Housing Finance Agency, DSHA is unique in that it serves as a Public Housing Authority and a Community Development and Planning Agency. As a Public Housing Authority, DSHA receives funding from HUD to build, own, and operate public housing in Kent and Sussex counties, two of Delaware’s three counties. For more information about the Delaware State Housing Authority, please call: (888) 363-8808 or visit our website at

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