The Office of Management and Budget’s 2022 budget hearings start this week, and the Delaware State Housing Authority was among the first on the docket.
The DSHA is seeking $8.5 million in next fiscal year’s budget for the state’s Downtown Development District program.
That’s more than this year, but less than in previous years.
The program started in 2015 - offering to refund property owners and developers up to 20 percent of their construction costs for eligible redevelopment projects.
To date, it has helped 12 downtown areas in all three counties spur private investment to build commercial vitality of cities and towns, and draw long-term residents to them.
DSHA Director Anas Ben Addi says the program is not just for big investors - pointing out it has been used for housing, laundromats, and other small businesses.
"We have assisted small coffee shops. We have assisted folks here on Loockerman. We have assisted small restaurants," said Ben Addi. "So it's anything less than $350,000 is a small investment for us, and we have seen anything from $25,000 investments up to the $350,000."
Ben Addi says how the program has helped.
"It allows the downtowns to attract and keep investors and do it a way that leverages the public funding," said Ben Addi. "So, we're not paying for the entire investment, but we're serving as a sweetener to really bring some assurance that should bring some additional funding to the investors who are hesitant about investing in our downtown or repeated investments in our downtown."
Ben Addi notes that 60 percent of the projects funded are small projects.
In all, the state has invested $36 million in Downtown Development Districts, which it says has spurred $630 million total investment in the state’s downtowns with 217 projects funded.
