The Delaware State Housing Authority is not seeking an operating budget increase this year, and with the uncertainty of future federal dollars, some are worried the current budget is not enough.
The budget currently maintains the Housing Development Fund at $4 million, the State Rental Assistance Program at $4 million and the Student Housing Emergency Assistance Fund at $50,000.
When asked by State Sen. Laura Sturgeon (D-Woodbrook) if $4 million — which she pointed out has remained the same since 1987 — is enough to help address Delaware’s 20,000 affordable housing unit shortage, Heckles responded:
“There are other funding sources on the Bond Bill side that I think need to come into the calculation, but the need for housing is tremendous.”
Heckles is referring to Carney’s recommendation to increase spending for the Affordable Rental Housing Program and Urban Redevelopment Program by a collective $17 million.
Carney also recommended an $8 million allocation to the newly created Delaware Workforce Housing Program, which allows a workforce housing investor to be reimbursed up to 20% of the capital costs associated with workforce housing units they create.
Capital increase recommendations aside, Heckles says there is uncertainty around how the Trump administration’s plan to cut back on federal grants could affect the department.
He says the majority of federal support comes through community block grants, the emergency solutions grant program and support for unhoused people through the continuum of care.
“I don't know how we go to zero on them. The impacts would be — depending on what that looks like and what programs are touched — they're significant," Heckles said.
Several community advocates spoke during public comment arguing DSHA should be receiving 1% of the state’s operating budget, which for FY 26 would be $65 million.
Gov. Matt Meyer is expected to release his own recommended budget in March, but the General Assembly has the ultimate say on the final allocations from the state.
