The Delaware State Housing Authority broke ground on the Mispillion Station II project, which promises to rehabilitate 32 homes and add 16 more on South Walnut Street in Milford.
Developers Seven Companies LLC and Searfross Development LLC say the project was made possible in part by over $500,000 of low-income housing tax credit allocations, and more than $5 million in supplemental funding.
Delaware State Housing Authority Director Matthew Heckles says the tax credit program creates affordability by lowering construction costs.
“In exchange for lowering that construction cost, the rents are made more affordable for 30 years. When you bring down the up-front costs, there’s less debt that has to be placed on the project and therefore the project can work with lower rent." he said.
The project received over 500,000 dollars in low-income housing tax credit allocations, which the DSHA says will reduce the eventual rent prices of the units for the next 30 years.
Heckles says these units were first developed in the late 70s and early 80s.
“So now, we’re bringing new capital into these communities and making sure that they remain affordable for the next 30 years, but also that they receive the rehab that they need to modernize and provide quality. ” he said.
Through the tax credit program, developers will claim credits over the next 10 years, which state officials say will allow them to balance construction costs and provide lower rent prices.
The Housing Authority says this project is part of the 105 affordable units, and the preservation of 116 existing affordable units, announced in September.
Developers also received a preliminary 2025 low-income housing tax credit, which will be put towards preserving an additional 40 units as part of Mispillion Station III.
DSHA has administered low-income housing tax credits since 1987, adding more than 10,000 affordable units to the state’s housing inventory.
