Sussex County details use of CDBG, home-rehab and ARPA funds to preserve affordable housing

At a March 4, 2025 public hearing, Sussex County Community Development staff outlined the county’s approach to preserving affordable housing and described planned Community Development Block Grant (CDBG) applications to the Delaware State Housing Authority.

Nicole Nalman, Community Development staff, said the program’s priorities — established by the state housing authority — include housing rehabilitation, sewer and water hookups, demolition and small infrastructure projects. The county’s typical use of CDBG funds is owner-occupied housing rehabilitation for low- and moderate-income households (80% area median income or below). Nalman said CDBG-eligible repairs include roofing, doors, windows, electrical, plumbing and HVAC work. The program requires that assisted homes be owner-occupied, insured or insurable, and current on county taxes; the county places forgivable liens (0% interest) tied to the size of the investment (for example, projects under $5,000 carry no lien; $5,000–$15,000 a five-year lien; $15,000–$40,000 a 10-year lien).

Nalman and Rehabilitation Program Coordinator Mike Jones reviewed recent activity: federal year 2022 (county year 2023) CDBG funding supported targeted projects in several municipalities and rural communities; county emergency funding ($300,000) helped 101 households; and county-administered HOME funds aided 12 households. Council previously allocated $3.2 million in ARPA funds to the home repair program between April 2022 and December 2024; that ARPA allocation enabled roughly 200 additional rehabilitation jobs across the county, including full-scale repairs and weatherization.

Staff described two operational improvements: a bulk purchase of metal/aluminum modular ramps (about 30 sets procured with $150,000 in state funding, stored by county facilities staff) to enable temporary, reusable accessibility ramps for residents after medical events, and a state-approved policy to cover the first year of homeowner insurance for some vulnerable households so residents can qualify for rehabilitation work (county pays first-year premium; homeowner responsible thereafter). Nalman said recent lead-paint testing and clearance requirements (for homes built before 1978) have increased project costs and the time required for rehabilitation.

Staff presented the list of municipalities and rural communities proposed for this year’s CDBG application and said the county will apply for roughly $2,000,000 in program dollars for emergency rehabs, utility hookups, scattered roofing and handicap accessibility. Nalman said the application package and targeted communities have been reviewed by the county’s CDBG advisory committee and DSHA; she noted a national-level risk that HUD funding could be reduced in future federal budgets and said staff will monitor that risk.

After the public hearing closed with no public speakers on the record, council adopted two resolutions: an Affirmatively Furthering Fair Housing resolution and an authorization to submit the CDBG applications to DSHA. Council members thanked staff for the presentation and recognized the program’s role in preserving existing housing stock.