This chapter shall be known as the "Moderately
Priced Housing Unit Program" (the "MPHU Program" or the "Program")
and establishes mechanisms to stimulate the production and sale of
housing for residents with moderate incomes.
This chapter seeks to better protect the health,
safety and welfare of Sussex County's residents and workforce by stimulating
the provision of housing for residents with moderate incomes.
The Sussex County Council hereby finds that
a severe shortage exists within the County for housing for residents
with moderate incomes. Specifically, the Council finds that:
A. The County is experiencing rapid population growth.
From 1990 to 2000, the County's population increased by 38.3% from
113,229 persons to 156,638 persons. Most of these new residents are
classified as the "young elderly," defined as people entering pre-retirement
or early retirement that are financially well off.
B. This influx of affluent new households has created
significant new demand for public utilities, health and human services,
government services and retail and other commercial services, thereby
increasing the need for persons of moderate income employed in the
stated capacities and for the housing to accommodate those employees.
C. In turn, the supply of moderately priced housing has
decreased over the past 10 years as housing costs have escalated due
to the influx of affluent households. The most recent real estate
data suggests that households earning 50% to 125% of the area median
income have very few choices for modern, modest quality housing except
in the most western areas of the County and, even there, choices and
supply are limited.
[Amended 4-23-2013 by Ord. No. 2302]
D. Based on the most recent Department of Labor data,
a significant portion of the Sussex County workforce earns less than
125% of the area median income.
E. Based on this information, Council finds that new
development is not adequately addressing the housing needs of the
County's moderate-income residents and workforce. Continuation of
this trend will have a negative effect upon the ability of local employers
to maintain an adequate workforce.
F. The inadequate supply of housing for the County's
workforce is increasing the commuting distance to employment to include
commuting outside the County. This imbalance between jobs and housing
has undesirable transportation and environmental consequences. Longer
commuting overtaxes existing roads and transportation facilities and
significantly contributes to air and noise pollution and traffic congestion.
It also produces stress for affected employees and creates greater
than normal personnel turnover in the private businesses and public
agencies of the County. These circumstances adversely affect the health,
safety and welfare of County residents.
G. Projections suggest that the high level of demand
for higher priced housing will continue, driven by macro-population
factors, low County taxes and the proximity of the resort areas in
eastern Sussex, discouraging developers from offering a more diverse
range of housing in areas where the demand for housing and the workers
to support associated residents is strong. The production of moderately
priced housing is further deterred by the high cost of materials and
labor.
H. Housing industry experts advise that if land and development
costs can be reduced, modern, quality houses can be built and sold
at prices affordable to households of moderate income.
I. Given the proper incentives, the private sector possesses
the necessary resources and expertise to provide the type of moderately
priced housing needed in the County.
The Sussex County Council hereby declares it
to be public policy of the County to:
A. Encourage the creation of a full range of housing
choices, conveniently located in suitable living environments, for
all incomes, ages and family sizes.
B. Encourage the production of moderately priced housing
to meet the existing and anticipated future employment needs in the
County.
C. Assure that moderately priced housing is dispersed
throughout the County consistent with the Comprehensive Plan.
D. Encourage the production of moderately priced housing
by allowing increases in density to reduce land and development costs.
E. Encourage developments in Town Centers, Developing
Areas and Coastal Areas with 35 or more total dwelling units to include
a minimum number of moderately priced units of varying sizes on public
water and sewer systems.
[Amended 5-21-2019 by Ord. No. 2656]
F. Provide incentives for private developers to construct
moderately priced housing through tools such as the density incentive
(defined below).
G. Allow developers who are building qualified projects
an expedited review period.
[Amended 11-20-2007 by Ord. No. 1941]
H. Allow developers who are building qualified projects
an expedited review period.
The following words and phrases have the following
meanings:
APPLICANT
Any person, firm, partnership, association, joint venture,
corporation, or other entity or combination of entities owning or
controlling via contract qualified land (defined below) and any transferee
of all or part of the qualified land that, after this chapter takes
effect:
A.
Submits to the County for approval or extension
of approval a plan of housing development for any type of site review,
subdivision plan or development approval (hereinafter a "development
plan") that provides for the development of at least 35 dwelling units
on qualifying land in one or more subdivisions, parts of subdivisions,
resubdivisions, or stages of development; or
B.
With respect to land in zones not subject to
subdivision approval or site plan review, applies for building permits
for the construction of 35 or more dwelling units on qualifying land.
AT ONE LOCATION
All land of the applicant if:
A.
The property lines are contiguous; and/or
B.
The property lines are separated only by a public
or private right-of-way at any point; and/or
C.
The property lines are separated only by other
land of the applicant not subject to this chapter at the time of the
submission of a permit or development plan by the applicant.
CONTROL PERIOD
The time a MPHU is subject to resale price controls and owner
occupancy requirements. The control period is 20 years and begins
on the date of sale for new or resale MPHUs.
DATE OF SALE
The date of settlement for purchase of a new or resale MPHU.
DENSITY INCENTIVE
Any increase in density pursuant to §
72-7A that allows a residential development to achieve a density greater than would have been possible under the applicable provisions of current and future Zoning Ordinances and the County's Subdivision Regulations.
DEPARTMENT
The Sussex County Department of Community Development and
Housing unless a DDE is the applicant or has provided any funding,
in which case Department will refer to the DDE.
DEPARTMENT-DESIGNATED ENTITY (DDE)
Any agency, authority or political subdivision of the State
of Delaware or any other public housing development agency or nonprofit
housing corporation, land trust or similar entity designated by the
Department and approved by the County Administrator.
[Amended 11-20-2007 by Ord. No. 1941]
DIRECTOR
The head of the Sussex County Department of Community Development
and Housing or head of a DDE, as applicable.
DWELLING UNIT
A building or part of a building that provides a complete
living facility for one family, including, at a minimum, facilities
for cooking, sanitation and sleeping.
ELIGIBLE BUYER
Person(s) whose household is of moderate income, who has
been found eligible to purchase an MPHU and who holds a valid certificate
of eligibility from the Department. Eligible buyers of equal moderate
income may qualify for different maximum sale prices (defined below)
based on the size of the eligible buyer's household.
EXCESS PROCEEDS
A.
For sale of a new MPHU in the open market without deed restrictions pursuant to §
72-10A(7), "excess proceeds" means 95% of the sale price to the open market buyer less the applicant's actual out-of-pocket closing costs as shown on the HUD-1 settlement sheet less the applicable maximum sales price.
B.
For sale of a resale MPHU in the open market
without deed restrictions, "excess proceeds" means the resale price
to the open market buyer less the seller's actual out-of-pocket closing
costs as shown on the HUD-1 settlement sheet less a market rate third
party sales commission (if a broker is used) less the approved resale
price.
C.
For sale of an MPHU as the result of a foreclosure
event, "excess proceeds" means the accepted bid at the foreclosure
sale less the approved resale price, provided that the accepted bid
exceeds the sum of the outstanding principal balance, interest, taxes,
insurance, fees provided for in the mortgage and any foreclosure-related
expenses, including, but not limited to, expenses of marketing the
property due to the first mortgagee and any other costs associated
with the foreclosure sale payable to junior lien holders.
D.
The Seller is obligated to discharge any mortgages
or other debt associated with the MPHU out of the maximum sales price
or approved resale price.
FORECLOSURE EVENT
A foreclosure, deed-in-lieu of foreclosure or other court-ordered
sale.
MODERATE INCOME
Those levels of income established by the County Administrator
which prohibit or severely limit the financial ability of persons
to buy housing in Sussex County. Moderate income is established as
50% to 125% of area median income adjusted for household size as defined
by the U.S. Department of Housing and Urban Development (HUD). Income
includes salary, wages, dividends, interest and all other sources
recognized by HUD from the eligible buyer and all other adults who
will occupy the MPHU. Further, for persons or households with significant
assets that do not produce income, the Department will establish criteria
for imputing income to such assets.
[Amended 11-20-2007 by Ord. No. 1941; 4-23-2013 by Ord. No. 2302]
MODERATELY PRICED HOUSING UNIT (MPHU)
A dwelling unit which is:
[Amended 11-20-2007 by Ord. No. 1941]
A.
Offered for sale and sold to eligible buyers
through or pursuant to regulations promulgated by the Department and
approved by the County Administrator; or
B.
Sold under another government program designated
by the County Administrator and designed to assist in the construction
or occupancy of moderately priced housing.
QUALIFYING LAND
All land:
A.
Owned by or under contract to the applicant;
and
B.
In a Town Center, Developing Area or Coastal
Area and zoned for any type of residential development to which a
density provision applies or land that is designated on a town’s
comprehensive plan as lying within the town’s growth and future
annexation area; and that
[Amended 11-20-2007 by Ord. No. 1941; 5-21-2019 by Ord. No. 2656]
C.
Requires the submission of a development plan
or, where a development plan is not required, a building permit; and
that
D.
Is served by a public sewer and water system;
and that
To participate in the MPHU program and to secure
a density incentive, an applicant must execute an MPHU agreement negotiated
with the Department and the County Attorney. Each agreement must include,
at a minimum, the following information and/or evidence the following
agreements and any others deemed necessary by the Department and the
County Attorney to properly implement the chapter.
A. The specific number of MPHUs to be constructed in
each price level meeting the maximum sale prices established by the
Department. An amendment to the MPHU agreement will be made to incorporate
approved development plans once the plans are available.
B. The schedule pursuant to which the MPHUs will be constructed,
marketed and delivered and the relationship between the delivery of
market rate units and the delivery of MPHUs (i.e., a stated number
of MPHUs to be created for each nonMPHU created).
C. Any economic risk created by changes, whether within
or outside of the applicant's control, in development and construction
costs, interest rates, processing and construction schedules, permitting
and any other factor impacting the applicant's economics are borne
solely by the applicant.
D. The County Administrator may withhold building permits
until the applicant is, in the sole discretion of the Department,
in full compliance with the MPHU agreement.
[Amended 11-20-2007 by Ord. No. 1941]
E. Be signed by the applicant, by other parties having
an interest in the property and by all other parties whose signatures
are required by law for the effective and binding execution of contracts
conveying real property. MPHU agreements must be executed in a manner
that will enable them to be recorded in the land records of the County.
If the applicant is a corporation, the principal officers of the corporation
must sign the agreements individually and on behalf of the corporation.
F. Partnerships, associations and corporations may not
evade the requirements of the MPHU agreement through voluntary dissolution.
G. The MPHU agreement may only be assigned with the written
approval of the Department and only if the proposed assignee agrees
to fulfill and demonstrates the financial ability to fulfill the applicant's
obligations under the MPHU agreement.
H. Applicants are responsible for marketing and selling
the MPHUs. During priority marketing periods, the applicant will work
with the Department to screen eligible buyers and to receive any specific
selection criteria or directions promulgated by the Department.
I. If the applicant is not also the builder, disclosure of the relationship between the applicant and builder as soon as the relationship is established. Further, acknowledgement by the applicant and builder that any deed transferring lots to builder will be encumbered by covenants described in §
72-8K below.
J. MPHU units must be fully integrated into the communities
of which they are a part and shall not be substantially different
in appearance from non-MPHU units. When the MPHU units are a part
of a phased development, a proportionate number or percentage of said
units shall be placed within each phase and/or constructed within
each housing type appearing in the development. The planning and design
of individual MPHUs must be consistent with the planning and design
of market rate units within a single project.
[Amended 11-20-2007 by Ord. No. 1941]
K. The applicant will execute and record covenants confirming
that:
(1) The restrictions of this chapter run with the land;
and
(2) The covenants will bind the applicant, any assignee,
mortgagee, or buyer and all other parties that receive title to the
property, with the exception of the first lien mortgage holder, and
except for a second mortgage which is approved by the first mortgage
lender and the Department prior to the date of sale and the proceeds
of which are used solely to pay or reimburse some or all of an eligible
buyer's down payment and/or settlement costs. In the event the first
lien mortgagee acquires the property through a foreclosure or acceptance
of deed-in-lieu of foreclosure, the resale restrictions will be extinguished.
The covenants must be senior to all instruments securing financing
with the exception of the first lien mortgagee and an approved second
lien mortgage to defray some or all of the down payment and/or settlement
costs, as defined above.
[Amended 11-20-2007 by Ord. No. 1941]
(3) In any later deed or instrument conveying title to
an MPHU, the property remains subject to the restrictions contained
in the covenants required under the chapter during the control period
until the restrictions are released. The source of the deed restrictions
must be included in the public land records so that they are readily
identifiable in a routine search.
L. Where the applicant is a DDE, covenants will be negotiated
between the Department and the DDE so as to be consistent with the
mission, strategies, business plans and operating procedures of the
DDE and may, with Council approval, deviate from the requirements
of this chapter.
[Added 12-9-2008 by Ord. No. 2016]
[Amended 11-1-2016 by Ord. No. 2474]
This chapter seeks to better protect the health, safety and
welfare of Sussex County's residents and workforce by stimulating
the provision of affordable rental housing for residents with low
and moderate incomes and is hereafter known as the "Sussex County
Rental Program" or "SCRP" or "program."
[Amended 11-1-2016 by Ord. No. 2474]
The Sussex County Council hereby finds that a shortage exists
within the County for housing for residents with low and moderate
incomes. Specifically, the Council finds that:
A. It is well known that Sussex County rents have inflated far beyond
the ability of an average wage earner to pay. It is also known that
federal rental assistance programs, such as the state-administered
Public Housing and Section 8 Housing Choice Voucher Programs, are
unable to completely satisfy the need for affordable rental housing.
B. Council finds that new development is not adequately addressing the
rental housing needs of the County's low- and moderate-income residents
and workforce. Without influencing this trend, local employers will
have a difficult time maintaining an ample workforce.
C. Without an adequate supply of affordable rental housing in close
proximity to employment and Town Centers, the County's workforce must
commute a great distance for work. Not only do long commutes have
a negative effect on the environment and transportation, but commuting
also comes with high fuel expenses.
D. Given the proper incentives, the private sector possesses the necessary
resources and expertise to provide the type of affordable rental housing
needed in Sussex County.
[Amended 11-1-2016 by Ord. No. 2474]
The Sussex County Council hereby declares it to be the public
policy of the County to:
A. Encourage the creation of a full range of housing choices, conveniently
located in suitable living environments, for all incomes, ages and
family sizes.
B. Encourage the production of affordable rental units to meet the existing
and anticipated future employment needs in the County.
C. Assure that affordable rental units are dispersed throughout the
County consistent with the Comprehensive Plan.
D. Encourage developments in Growth Areas as defined within the County's
most current comprehensive plan and Areas of Opportunity as defined
by the Delaware State Housing Authority to include affordable rental
units on public water and sewer systems.
[Amended 10-18-2022 by Ord. No. 2889]
E. Provide incentives for developers to construct affordable rental
units through tools such as the density incentive and expedited review
(defined below).
The following words and phrases have the following meanings:
APPLICANT
Any person, firm, partnership, association, joint venture,
corporation, or other entity or combination of entities owning or
controlling via contract qualifying land (defined below) and any transferee
or successor in interest of all or part of the qualifying land pursuing
the development of affordable rental housing under the SCRP that:
[Amended 11-1-2016 by Ord. No. 2474]
A.
Submits to the County for approval or extension of approval
a plan of housing development for any type of site plan review, subdivision
plan or development approval (hereinafter, a "site plan") that provides
for the development of affordable rental units on qualifying land
in one or more subdivisions, parts of subdivisions, resubdivisions,
multifamily townhouse developments or phases of development under
the terms and conditions as set forth in this article.
[Amended 10-18-2022 by Ord. No. 2889]
B.
With respect to land in zones not subject to subdivision approval
or site plan review, applies for building permits for the construction
of affordable rental units on qualifying land under the terms and
conditions as set forth in this article.
AREA MEDIAN INCOME
The midpoint family income for Sussex County, calculated
each year by the U.S. Department of Housing and Urban Development
(HUD), adjusted for household size.
[Amended 11-1-2016 by Ord. No. 2474]
AT ONE LOCATION
All land of the Applicant if:
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A.
The property lines are contiguous; or
B.
The property lines are separated only by a public or private
right-of-way at any point; or
C.
The property lines are separated only by other land of the Applicant
and not subject to this section at the time of the submission of an
application or development plan by the Applicant.
DATE OF LEASE
The date of the initial lease agreement signing of an approved
Eligible Tenant for a SCRP Unit.
[Amended 10-18-2022 by Ord. No. 2889]
DENSITY INCENTIVE
The density permitted by §
72-21 and as a permitted use for SCRP projects in Chapter
115.
[Amended 10-18-2022 by Ord. No. 2889]
DEPARTMENT
The Sussex County Department of Community Development and
Housing or its successors.
DEPARTMENT-DESIGNATED ENTITY (DDE)
Any agency, authority or political subdivision of the State
of Delaware or any other public housing development agency or nonprofit
housing corporation, land trust or similar entity designated by the
Department and approved by the County Administrator.
DIRECTOR
The head of the Department of Community Development and Housing
or head of a DDE, as applicable.
DWELLING
Any building, structure, or portion thereof which is occupied
as, or designed or intended for occupancy as, a residence; and any
vacant land which is offered for sale or lease for the construction
or location thereon of any such building, structure, or portion thereof.
"Dwelling" shall not include hotels, motels, motor lodges, boarding
and lodging houses, tourist houses, or similar structures.
[Amended 11-1-2016 by Ord. No. 2474]
ELIGIBLE INCOME
The levels of income designated by the County Administrator
which prohibit or severely limit the financial ability of persons
to rent a dwelling unit in Sussex County. Eligible Income is low to
moderate income, defined as 30% to 80% of the area median income for
Sussex County adjusted for household size as defined by the U.S. Department
of Housing and Urban Development (HUD). Income includes gross salary,
wages, dividends, interest and all other sources recognized by HUD
from the Eligible Tenant and all other adults (age 18 and older) who
will occupy the SCRP Unit. Income will be verified by a copy of the
filed income tax returns from the previous year and any other personal
and financial information requested by the Landlord in order to accurately
verify the potential tenant's qualifications and income, which may
include, but is not limited to, a credit history report and a criminal
background report on the proposed adult tenants, so long as these
are requirements for all leases in the housing development.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
ELIGIBLE TENANT
Person(s):
[Amended 11-1-2016by Ord.
No. 2474; 10-18-2022 by Ord. No. 2889]
A.
Whose household income is within the Eligible Income.
EXPEDITED REVIEW
A project entering the SCRP will receive priority in the
County's planning and zoning process, with the Director of Planning
and Zoning and the County Administrator to determine the Applicant's
placement in the list of pending applications. The expedited review
is provided to the Applicant to assist the Applicant in managing,
to the extent possible, the risk of changes to cost, interest rates,
schedule and other factors that the Applicant is taking on by virtue
of participation in the SCRP. If an Applicant at any time during processing
elects to withdraw from the SCRP, any approvals granted for the development
through the date of withdrawal will be vacated and the Applicant will
have to resubmit the project through the normal County process. A
project receiving expedited review does not exempt the project from
the County's planning and zoning process, nor guarantee approval through
that process.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
FORECLOSURE EVENT
A foreclosure, deed-in-lieu of foreclosure or other court-ordered
sale of the rental unit or of the subdivision or development in which
the unit is located, subject to rental restrictions continuing in
force after foreclosure sale of disposition.
LANDLORD
The owner of the property that contains SCRP Units or an
entity designated by the owner to manage and lease dwelling units.
[Amended 10-18-2022 by Ord. No. 2889]
QUALIFYING LAND
All land that:
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A.
Is owned by or under contract to the Applicant; and
B.
Allows the SCRP Units as a Permitted Use pursuant to Chapter
115.
SUSSEX COUNTY RENTAL PROGRAM UNIT (SCRP UNIT)
A dwelling which is:
[Amended 11-1-2016 by Ord. No. 2474]
A.
Offered for lease to Eligible Tenants through or pursuant to
the provisions of this article and any regulations promulgated thereunder
by the Department and approved by the County Administrator; or
[Amended 10-18-2022 by Ord. No. 2889]
B.
Leased under another government program designated by the County
Administrator designed to assist in the construction or occupancy
of affordable rental housing.
[Amended 11-1-2016 by Ord. No. 2474]
A. There shall be a preference given to tenants who have worked or resided
in Sussex County for at least one year preceding the application to
the SCRP. In addition, Eligible Tenants must:
[Amended 10-18-2022 by Ord. No. 2889]
(1) Have proof of citizenship.
(2) Be of Eligible Income, as defined in §
72-19 above, and be able to pay the first month's rent and any required security deposit.
(3) Comply with the criminal history and credit requirements for tenants
of all leases within the proposed housing development.
(5) Occupy the SCRP Unit as the tenant's principal residence during
the lease period. Each Eligible Tenant must certify before taking
occupancy that the tenant will occupy the SCRP Unit as the tenant's
principal residence. Any tenant who violates occupancy requirements
will be subject to eviction procedures.
B. Where necessary or advisable to achieve the objectives of this chapter
or to comply with state or federal housing laws, the Department may
propose changes to these standards for approval by the County, including
changes to eligibility requirements for tenants as recommended by
the Department.
[Amended 10-18-2022 by Ord. No. 2889]
A. Density incentive. See Permitted Uses in Chapter
115.
B. Expedited review. A project entering the SCRP through execution of an SCRP Agreement will receive expedited review, as defined in §
72-19 above, through the County's Planning and Zoning process.
C. Incentives will only be granted to projects submitted for new development
that meet all requirements of this program.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A. All parcels in the proposed project must be on qualifying land, as defined in §
72-19.
B. All units contributed as SCRP Units will remain at the affordable rental rates specified herein. SCRP Units shall never be leased as market-rate units, regardless of vacancy, except in accordance with §
72-23N(1).
D. SCRP Units must be fully integrated into the communities of which
they are a part and shall not be substantially different in external
appearance from market-rate units. SCRP Units shall be equipped with
the same basic appliances as the market rate units, such as an oven,
refrigerator, dishwasher, and washer and dryer.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
To participate in the SCRP and secure any incentives provided
for herein, an Applicant must execute an SCRP Agreement prepared by
the Department and the County Attorney. Each agreement must include,
at a minimum, the following information and/or evidence the following
agreements and any others deemed necessary by the Department and the
County Attorney to properly implement the chapter:
A. The specific number of SCRP Units to be constructed in the project.
If a final site plan has not been approved when the SCRP Agreement
is executed, an amendment to the SCRP Agreement will be made to incorporate
the approved final site plan.
B. A description of how the SCRP Units will be marketed and delivered.
The SCRP Units must be constructed and delivered in equal proportion
to non-SCRP Units within the development.
(1) Applicants shall affirmatively market the SCRP Units to diverse populations,
and meet with the surrounding residents early in the development approval
process.
C. Any economic risk created by changes, whether within or outside of
the Applicant's control, in development and construction costs,
interest rates, processing and construction schedules, permitting
and any other factor impacting the Applicant's costs and development
obligations are borne solely by the Applicant.
D. Building permits, performance bonds and letters of credit. No building
permits shall be issued in any subdivision or housing development
where SCRP Units are included until the Applicant executes a valid
SCRP Agreement which applies to the entire subdivision.
E. Be signed by the Applicant and all other parties having an interest
in the property whose signatures are required for the effective and
binding execution of contracts conveying real property. SCRP Agreements
must be executed in a manner that will enable them to be recorded
in the land records of the County.
F. Partnerships, associations, corporations and other entities may not
evade the requirements of the SCRP Agreement through voluntary dissolution,
bankruptcy, or the sale or transfer of qualifying land.
G. The SCRP Agreement may only be assigned with the prior written approval
of the Department and only if the proposed assignee demonstrates the
financial ability to fulfill all of the Applicant's obligations
under the SCRP Agreement.
H. Landlords are responsible for marketing, leasing, and determining tenant eligibility for the SCRP Units. A landlord shall not be permitted to refuse to rent a unit to an Eligible Tenant. The reasons for a refusal to rent to an Eligible Tenant shall be documented and included in the Annual Audit and Certification required by §
72-28.
I. If the Applicant is not also the builder, the relationship between
the Applicant and the builder shall be fully disclosed to the Department's
satisfaction, as soon as the relationship is established.
J. SCRP Units must be fully integrated into the communities of which
they are a part (not separated geographically from the market rate
units and not grouped together) and shall not be substantially different
in external appearance from non-SCRP Units. When the SCRP Units are
a part of a phased development, a proportionate number or percentage
of said Units will be placed within each phase and/or constructed
within each housing type appearing in the development. The planning
and design of individual SCRP Units must be consistent with the planning
and design of non-SCRP Units (i.e., market-rate units) within a single
project.
(1) The ratio of SCRP Units by type must reflect the ratio by type of
market rate units, to the extent feasible. For instance, if a development
has 200 two-bedroom dwelling units and 100 one-bedroom dwelling units,
the ratio of two-bedroom to one-bedroom SCRP Units should also be
2:1.
K. The SCRP Agreement shall be recorded in the Office of the Recorder
of Deeds confirming that:
(1) The covenants contained within it will bind the Applicant, any assignee,
mortgagee, or buyer and all other parties that receive title to the
property. In the event the mortgagee acquires the property through
a foreclosure or acceptance of deed-in-lieu of foreclosure, the SCRP
Agreement covenants will continue in effect. The covenants must be
senior to all instruments securing financing.
(2) In any deed or instrument conveying title by the Applicant, the property
shall remain subject to all of the terms and conditions contained
in the SCRP Agreements by the Applicant required under the chapter.
The source of the SCRP Agreements and any deed restrictions related
thereto must be included in the public land records so that they are
readily identifiable in a routine title search.
L. Where the Applicant is a DDE, agreements will be negotiated between
the Department and the DDE so as to be consistent with the mission,
strategies, business plans and operating procedures of the DDE and
may, with Council approval, deviate from the requirements of this
chapter.
M. The SCRP Agreement requires that the Landlord ensure that the SCRP
Units are occupied only by tenants whose annual income levels do not
exceed the eligible income limit, and shall prohibit tenants from
subletting or subleasing the Units.
(1) In addition, the Landlord must supply the information listed below
in a format acceptable to the Director on an annual basis:
(a)
The number of SCRP Units, by bedroom count, that are leased
to Eligible Tenants and those that are vacant, and the monthly rent
charged for each SCRP Unit;
(b)
For each SCRP Unit, the tenant's name, household size,
and total household income as of the date of the lease, and the effective
date of the lease;
(c)
A statement that, to the best of the Landlord's information
and knowledge, tenants who are leasing the SCRP Units meet the eligibility
criteria.
(2) The Department shall audit the report and may require such additional
information monthly needed to evaluate and accept the annual report.
N. The tenant must vacate the SCRP Unit if the tenant's household
income exceeds 80% of the area median income by 20% at the time of
lease renewal. The Applicant must take the necessary action to have
the tenant vacate the SCRP Unit within six months of receiving information
that the tenant's household income exceeds the Eligible Income
limit.
(1) Notwithstanding the provisions of §
72-23N above, if the Applicant immediately designates an additional comparable unit as an affordable dwelling unit to be leased under the controlled rental price and requirements of the SCRP program, the tenant of such SCRP Unit referenced in §
72-23N above may continue to lease such Unit at the market value rent.
O. The Landlord shall comply with the Annual Audit and Certification Requirements of §
72-28.
[Amended 11-1-2016 by Ord. No. 2474]
A. Rent.
(1) Rent shall be established and updated annually by the Department
based upon 25% of household income for 50% of the area median income
adjusted for household size and unit size and shall not include trash
services, parking, water and sewer utilities and any other charges
to be paid by the tenant.
(2) The Eligible Tenant must provide to the Landlord income tax returns
(and proof of payment of any taxes owed) from the previous year for
all members of the household who were required to file such returns.
If an Eligible Tenant was not required to file tax returns or if the
Landlord believes that information from the previous tax returns is
insufficient to determine income, the Landlord is authorized to request
such information as it deems necessary to confirm the income levels
of the proposed tenants.
[Amended 10-18-2022 by Ord. No. 2889]
B. Unit and household size. Households must be placed in units according
to the following distribution:
|
Unit Size
(number of bedrooms)
|
Household Size
|
---|
|
Efficiency
|
1
|
|
1
|
1 to 2
|
|
1 plus Den
|
2 to 4
|
|
2
|
2 to 4
|
|
2 plus Den
|
2 to 4
|
|
3
|
4 to 6
|
|
4
|
5 to 8
|
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A. Leases to Eligible Tenants.
(1) Every SCRP Unit constructed under this program must be offered to
all Eligible Tenants for lease as the Eligible Tenant's principal
residence. Notification to the public of SCRP Unit availability will
be made by the Landlord and is recommended to be made by advertising
on DelawareHousingSearch.org and similar sites. The Department may,
but is not obligated to, provide notice of SCRP Unit availability
through the Department's website.
(2) The Landlord will determine SCRP tenant eligibility under §
72-20.
(3) Annually, the Department will provide updated income guidelines and
rental rates to the Landlord for use in leasing the SCRP Units.
(4) Lease agreements shall contain the same terms and conditions as the
lease agreements with market-rate renters with the exception of the
rental rates and other terms and conditions as required under this
article.
(5) All lease agreements of SCRP Units shall cover a period of one year.
(6) An Eligible Tenant already occupying a SCRP Unit shall have a first-option
to renew the lease agreement each year, as long as the tenant maintains
good standing with the Landlord and continues to qualify as an Eligible
Tenant.
B. Tenants of SCRP Units shall provide an executed affidavit on an annual
basis certifying their continuing occupancy of the unit as their principal
residence. Tenants shall provide such affidavit to the Landlord by
the date that may be specified in their lease or that may otherwise
be specified by the Landlord.
C. In the event the tenant of an SCRP Unit fails to provide his or her
Landlord with an executed affidavit as provided for in the preceding
subsection within 30 days of written request for such affidavit, then
the lease shall automatically terminate, become null and void and
the occupant shall vacate the Unit within 30 days of written notice
from the Landlord.
[Amended 10-18-2022 by Ord. No. 2889]
A. The Landlord must provide the Department with a copy of any mortgage
default notification immediately upon receipt and a written explanation
of how the default will be remedied.
B. If a foreclosure event occurs, the covenants endure through the transfer
of property.
[Amended 11-1-2016 by Ord. No. 2474]
Improvements to concepts, processes and rules and regulations
of the SCRP program will be incorporated into future amendments of
this article. Council views this article as a living document that
will be modified as needed to respond to economic, housing, development,
land use and other trends in the County and to best practices in affordable
rental programs.
[Added 10-18-2022 by Ord. No. 2889]
The Landlord shall contract with an independent Delaware Certified Public Accountant that has no other relationship with the Landlord/Developer/Owner/Manager to audit the Landlord's Compliance with this Chapter
72, the conditions of approval for the project, the terms of the SCRP Agreement, the rental of the SCRP Units and the status of the Eligible Tenants (and their Eligible Income) within the project. In this engagement, the Delaware Certified Public Accountant will perform this obligation in accordance with attestation standards established by the American Institute of Certified Public Accountants. This annual audit and report shall certify that the project remains in compliance with i) all of the Chapter
72 requirements and the terms of the SCRP Agreement; ii) the status of each of the SCRP Units (whether leased or vacant); iii) certification that each of the Eligible Tenants renting an SCRP Unit within the project is an Eligible Tenant as of the date of the annual audit and report; iv) the status and duration of any vacancy of any SCRP Unit; v) the marketing efforts to re-let any vacant SCRP Unit to an Eligible Tenant; vi) the status of any list of Eligible Tenants waiting for an SCRP Unit to come available; and vii) such other information as the Delaware Certified Public Accountant and/or the Community Development and Housing Office may deem appropriate and necessary. This annual audit and report shall be submitted to both the Office of Planning and Zoning and the Community Development and Housing Office no later than March 1 of each year.
[Amended 11-1-2016 by Ord. No. 2474; 10-18-2022 by Ord. No. 2889]
A. The Department will maintain a list of all SCRP Units constructed
and leased under this program, and the Council hereby authorizes the
County Administrator to promulgate and adopt regulations and approve
the various agreements/documents necessary to administer this program.
Therefore, Sussex County shall commence a comprehensive review of
this SCRP Program on or before January 1, 2028.
B. The Director may, with Council approval, waive or modify the provisions
of the program if the Director finds the program in conflict with
state or federal housing laws.
C. This program applies to all agents, successors, and assigns of an
Applicant. A building permit shall not be issued and a preliminary
plan of subdivision, development plan, or site plan shall not be approved
for a development that will contain affordable rental units to be
submitted to this program unless it meets the requirements of this
program. The County Administrator may deny, suspend, or revoke any
building or occupancy permit upon finding a violation of this program.
Any prior approval of a preliminary or final plan of subdivision,
development plan or site plan may be suspended or revoked upon the
failure to meet any requirement of this chapter. An occupancy permit
shall not be issued for any building to any Applicant, or a successor,
or assign of any Applicant, for any construction that does not comply
with this program. The County Administrator may also withhold or call
in performance bond funds, letters of credit, and certificates of
compliance or occupancy from the Applicant for any violation of this
program.
D. In the event that the Landlord rents any of the SCRP Units at non-SCRP
Unit rates (i.e., market rental rates) so that the proportionate share
of SCRP Units versus non-SCRP Units as originally approved is not
maintained, the Landlord of the project shall be required to pay to
Sussex County the monthly market rent collected from any such SCRP
Unit that is rented at a non-SCRP Unit Rate. Any such funds collected
by Sussex County shall be used for housing purposes and administered
by the Sussex County Office of Community Development and Housing.
E. The Director is authorized to pursue any available remedy, legal
or equitable in nature, to enforce the requirements of this program
or to prevent or abate a violation of this program.
F. The Director may take legal action to stop or cancel any lease of
an SCRP Unit if any party does not comply with all requirements of
this program. The Director may recover any funds improperly obtained
from the rental of a SCRP Unit in violation of this chapter.
G. In the event of litigation to enforce the terms and conditions of
this chapter or any agreement or obligation under the SCRP program,
the Department shall be entitled to an award of legal costs and fees
to be collected from the party who is determined to be in violation
of such agreements and obligations.