The Savannah Grove project just outside of downtown Georgetown is a collaboration with the Apennine Development Company to bring 108 apartment homes to the area.
The development broke ground with Gov. Matt Meyer in attendance, who lauded the upcoming development.
“Savannah Grove shows what’s possible when smart policy, real investment, and strong partnerships come together to deliver real results,” said Governor Meyer. “This groundbreaking is about more than a celebration, it’s about taking action; building more workforce housing that Sussex County families can truly afford.”
The project will offer a mix of one-, two-, and three-bedroom units, with some of those apartments guaranteed to be priced below market-rate.
DSHA director Matt Heckles says this was achieved as a condition of a 2-million-dollar loan agreement between the Housing Authority and Apennine Development.
“That loan is the teeth that we have in the deal, so if the owners default on their compliance requirements, we have the ability to call the loan or make sure they’re complying in other ways.” he said.
Part of that loan agreement guarantees 16 of the units will be offered under market-rate, but not subsidized, says Heckles.
“This is really hitting that middle market: those families have good jobs, but as we know with high housing costs, even with a good job it can be really hard to afford housing and other costs of living.” he said.
Heckles says that “missing middle” housing is not just an issue in Sussex County but remains an issue across the First State.
"We see it all over the place. This is what I think is different about the housing market that we're in today." he said. "For two decades I've been doing this work, and we've concerned about people at the lowest end of the income scale- but this housing crisis... is stressing families that have good jobs"
Apartments will be a mix of one-, two-, or three-bedroom units. The finished project will also include “high quality amenities” according to Heckles. Site plans from the developer website show plans for a clubhouse, pool, and greenspace.
The DSHA is engaged in several different strategies to increase housing across the First State, said Heckles. DSHA is currently taking applications for low-income housing development tax credits.
