New Castle County committee reviews $7.4M HUD plan; Hope Center awarded $2.3M VA per-diem grant

The New Castle County Community Service Committee on June 23 heard a detailed briefing on the county's proposed FY2027 HUD consolidated plan and related grant-funded programs, including an announcement that the Hope Center secured a three-year Department of Veterans Affairs per-diem award.

Nicole Waters, manager of the county's Division of Community Development and Housing, told the committee the consolidated plan prioritizes expanding affordable rental supply, reducing homelessness, improving public facilities and funding targeted public services. Waters said the county received 27 applications totaling about $3.9 million in requests across CDBG, ESG and HOME program categories and that available resources including carryforward and program income give the county roughly $7.4 million for projects in the 07/01/2026'06/30/2027 program year.

Waters outlined how the money would be used. She said $2.6 million in HOME funds would support development of 233 affordable rental units, including projects to convert a vacant nursing facility on Falk Road into about 100 one-bedroom and efficiency apartments targeted to seniors, veterans and people with disabilities, and a Delaware Valley Development Company project to create 60 units for households earning under 60% of area median income.

"A total of 2,600,000 in HOME funds will support the development of affordable rentals for low income persons with special needs, disabilities, and those experiencing homelessness," Waters said, adding the county's own rehab of 20 rooms at the Hope Center would provide long-term rentals at below-80% AMI.

On homelessness, Waters said $525,000 in combined CDBG and ESG funds would back seven programs focused on people experiencing or at risk of homelessness, with an emphasis on transitional housing that can support stays up to 24 months. The Hope Center will receive both operational support and funds for essential services; Family Promise was allocated $125,000 for rapid rehousing and stabilization case management.

Waters announced the county secured a three-year VA per-diem grant for the Hope Center she estimated at about $2.3 million total ("about $778,000 per year"). She said the award will include direct VA referrals and will allow the Hope Center to reserve roughly 15 to 20 rooms for veterans, including veterans with children, and to cover eligible expenses such as operations, staff salaries, case management, food, utilities, housing assistance and transportation.

"It's a 3 year grant, about $2,300,000. We will receive direct referrals by the VA to the Hope Center, approximately 15 to 20 rooms," Waters said.

Council members praised staff for maintaining federal compliance and for outreach to encampments. Councilman Street said the emergency housing work was vital and warned of the risk of unmanaged encampments if services were not available. "We don't have this, and we'll end up with another tent city in somebody's park," he said, urging continued support for emergency housing capacity.

Committee members asked whether the VA-funded accommodations would be housed at the Hope Center; Waters confirmed that the per-diem award is tied to the Hope Center and that the center will serve referred veterans. Members also discussed sharing the county's Hope Center model and training resources with other counties developing similar centers.

Waters closed by reminding the public that comments on the draft consolidated plan will be accepted through July 10 and that the draft is available online; she provided an email contact for submissions. The committee recorded no public comments during the meeting and adjourned after members thanked staff for the briefing.

The committee did not record final votes on the several grant-appropriation ordinances introduced; those items were presented and discussed during the meeting and remain subject to further committee or full-council action.