Ground Breaking for Chapel Branch Apartments an Affordable Housing Development West of Lewes
Image courtesy DE State Housing Authority
Image courtesy DE State Housing Authority
Ground was broken Friday for Chapel Branch Apartments – an affordable housing development west of Lewes on Dorman Road. Officials from the State Housing Authority and Sussex County were on hand for the ceremony. Chapel Branch Apartments is the first affordable housing development funded with state and federal funds in Lewes since 2003 – the funding is $2.5-million in state funding, $1-million in ARPA funding and $1-million in Low-Income Housing Tax Credits. Chapel Branch will add 42 affordable and market rate units, a community service center and other wrap-around services.
Additional information from DE State Housing Authority:
“It’s no secret that Delaware’s demand for quality, affordable housing has skyrocketed, especially in Sussex County. The 2023 Housing Needs Assessment projected that at least 1,700 rental units will need to be added in Sussex County by 2030 for renters making below 80% AMI to keep up with current demand and growth trends,” said Cynthia Karnai, DSHA Director. “This is a challenging benchmark to achieve, but DSHA and many of our partners here today are up to the task, and developments like Chapel Branch Apartments bring us one step closer. This project is a shining example of the housing community coming together to make an impact for future generations.”
Chapel Branch Apartments, located at 22591 Dorman Road in Angola, will add 42 new affordable and market rate units, and a community service center, which will offer wrap-around services including, food services, nutrition education, financial counseling to residents for free.
“We are delighted to partner with DSHA and Sussex County to create high-quality affordable housing in eastern Sussex County” said Matthew Padron, Managing Director of Development at Volker Development, Inc. “DSHA and Sussex County have both adopted innovated approaches to help facilitate new attainable housing options and we are pleased that Chapel Branch Apartments has served as a successful pioneer development for both DSHA’s Area of Opportunity Land Bank Loan Program and Sussex County’s Rental Program (SCRP).”
SCRP, originally created and approved in 2008, underwent a significant revision and expansion in 2022. The program incentivizes housing developers to incorporate affordable rental units in their projects, specifically in the Coastal Area.
The Area of Opportunity Land Bank Program, launched by DSHA during the COVID-19 pandemic, aims to give affordable housing developers more time to complete the Low-Income Housing Tax Credit (LIHTC) process when developing in Areas of Opportunity. This added time increases the likelihood of their success in developing much-needed affordable housing in the areas.
Chapel Branch Apartments is set to be completed in November 2025, with construction led by EG Stoltzfus Construction, LLC. The property will feature a mix of 2 to 3 bedroom-units ranging from $458 to $1,850 per month.
The brand-new apartments will feature modern kitchens with Energy Star appliances, Luxury vinyl tile flooring with carpeting in the bedrooms, energy-efficient A/C, in unit washer/dryer, Energy Star ceiling fans, and covered patios or balconies. Residents will have access to community amenities, including a clubhouse with an on-site management office, a community room with a kitchenette and patio area, a fitness center, and a business center. Outdoor amenities include walking paths, a bike storage area, a gazebo covered picnic area, and a playground.
“This groundbreaking marks not just the start of construction but a major step forward in local residents have access to safe, quality housing,” said Jake Stern, SVP Business Development at Cinnaire. “The Low-Income Housing Tax Credit (LIHTC) program has proven to be one of the most effective tools for creating affordable housing in areas that need it most, and its role in bringing Chapel Branch Apartments was pivotal. By leveraging LIHTC alongside critical state and federal funding, we’re able to address the pressing need for affordable housing in Sussex County while fostering economic growth and community stability.”
