The Delaware housing-finance ecosystem
Delaware's housing pipeline draws on a mix of state agencies, federal pass-through programs, and local frameworks. Programs span the full spectrum: low-income rental, supportive housing for special-needs populations, workforce / missing-middle housing, homelessness prevention, first-time homebuyer assistance, mixed-use redevelopment, and disaster recovery. Below is a directory of every currently-active state-level and major-local program, organized by administering agency.
Delaware State Housing Authority (DSHA)
DSHA is Delaware's state housing authority, allocating federal LIHTC, issuing multifamily and single-family bonds, administering federal HOME, NHTF, Section 8 (statewide in jurisdictions without local PHAs), and operating Delaware's Housing Development Fund and primary first-mortgage homebuyer products.
Federal 9% LIHTC
Competitive · RentalDSHA allocates Delaware's federal 9% LIHTC ceiling — approximately $3.5 million in 2026 following OBBBA's 12% increase. Annual competitive QAP process.
4% LIHTC + Multifamily Bonds
Non-competitive · BondsNon-competitive 4% LIHTC paired with DSHA-issued multifamily revenue bonds.
Delaware Housing Development Fund
State capital subsidyDelaware's state-funded housing trust fund administered by DSHA. Supports affordable rental and homeownership development with low-interest loans and grants.
Strong Neighborhoods Housing Fund
Acquisition/rehab · Vacant propertiesDSHA program supporting acquisition and rehabilitation of vacant and distressed residential properties, creating affordable homeownership opportunities. Focused on Wilmington and other Delaware cities with elevated vacancy.
HOME Investment Partnerships
Federal pass-throughDSHA administers Delaware's HOME allocation, primarily for multifamily rental development paired with LIHTC.
National Housing Trust Fund (NHTF)
Federal pass-through · ELIDSHA administers Delaware's NHTF allocation for housing serving extremely-low-income households.
Section 8 Housing Choice Voucher (statewide)
Federal vouchers · DSHA adminDSHA administers Section 8 HCV statewide in jurisdictions not served by a local PHA.
Section 811 Project Rental Assistance
Operating subsidy · DisabilityDSHA administers Delaware's HUD Section 811 PRA allocation for extremely-low-income persons with disabilities.
Permanent Supportive Housing
Supportive housing · CoordinatedDSHA capital subsidy for permanent supportive housing combined with operating subsidies from Delaware Department of Health and Social Services.
Delaware Welcome Home Loan
Homeownership · Below-market mortgageDSHA's flagship single-family first-mortgage product offering below-market rates through participating lenders.
Delaware DPA
Homeownership · DPADSHA's down-payment assistance program providing forgivable second-mortgage loans combinable with Welcome Home Loan first mortgage.
DSHA Mortgage Credit Certificate
Homeownership · Federal tax creditFederal income-tax credit for eligible first-time buyers equal to a percentage of mortgage interest paid annually.
Senior Housing Initiative
Senior housing · Capital subsidyDSHA capital subsidy program specifically for senior affordable rental developments. Pairs with LIHTC and HOME for senior-only properties.
Delaware Department of State + Office of State Planning Coordination
Delaware's Department of State administers historic preservation programs including the state historic tax credit. Strong Neighborhoods is also a complementary state initiative.
CDBG (state-administered)
Federal pass-through · Non-entitlementDelaware administers federal CDBG for non-entitlement Delaware communities.
Delaware Historic Preservation Tax Credit
State tax credit · Historic rehabDelaware state historic tax credit for rehabilitation of certified historic structures. Pairs with federal HTC and 4% LIHTC for adaptive-reuse housing developments.
Wilmington, Dover, and major Delaware local programs
Wilmington, Dover, and Newark operate local affordable housing programs supplementing DSHA's statewide activity.
Wilmington Affordable Housing
Local subsidyWilmington operates affordable housing programs through the Department of Planning and Development supporting multifamily and homeownership development.
Newark / Dover Affordable Housing
Local subsidyNewark and Dover operate local affordable housing programs combining federal HOME and CDBG resources with local programs.
How Delaware programs typically combine
Programs combine differently depending on what you're building. A short reference of representative stacks across the program-type spectrum:
- Statewide 9% LIHTC: 9% LIHTC + Delaware HDF + HOME + NHTF.
- 4% LIHTC + bonds: 4% LIHTC + DSHA bonds + Delaware HDF.
- Strong Neighborhoods acquisition/rehab: Strong Neighborhoods Housing Fund + 9% LIHTC (where applicable) + Delaware HDF.
- Permanent supportive housing: 9% LIHTC + Section 811 PRA + DHSS operating subsidy.
- Historic adaptive reuse: Federal HTC + Delaware Historic TC + 4% LIHTC + DSHA bonds.
- First-time homebuyer: Delaware Welcome Home Loan + DPA + MCC.
Post-OBBBA implications
- Permanent 12% LIHTC increase: Delaware's annual 9% LIHTC ceiling is permanently larger starting 2026.
- 25% PAB financed-by test: for bonds issued after December 31, 2025, materially expanding the pipeline of 4% LIHTC deals that can be supported per dollar of bond volume cap.
- Permanent OZ designations: Qualified Opportunity Zone designations gain permanence; Rural OZ provisions may apply in qualifying portions of the state.
- Section 45L / 179D termination (June 30, 2026): Developers pursuing energy-efficient construction should accelerate placed-in-service dates.
This is educational reference material for affordable-housing practitioners, not legal, tax, financial, or investment advice. State program details, funding levels, and rules change frequently — consult the relevant state agencies and qualified counsel before structuring any transaction. See Disclaimer.