Construction
Delaware's Housing Reform: Streamlining Permits for Affordable Homes
2025-01-31

Delaware’s construction industry is cautiously optimistic about Governor Matt Meyer’s recent executive order aimed at accelerating the permitting process for affordable housing. This initiative establishes a working group tasked with creating a streamlined "one-stop shop" for permits and licenses, aiming to simplify and expedite the development of new homes. The governor emphasized that housing is a fundamental human right and vowed to make the process more efficient without compromising regulatory standards. Industry leaders like Michael Riemann from the Home Builders Association of Delaware (HBADE) see this as a positive step towards reducing construction costs. However, challenges remain, particularly in synchronizing processes across various jurisdictions and addressing existing regulatory hurdles.

Governor Meyer’s executive order marks his fourth since taking office, reflecting his commitment to tackling the state’s affordable housing crisis. The working group will focus on developing a predictable and user-friendly system for developers, ultimately bringing more housing units to the market faster. Meyer stated that no Delaware resident should be left without access to quality, affordable housing. He believes this reform will bring together stakeholders statewide to collaborate on solutions for rapid and cost-effective homebuilding. The goal is to create a seamless process that maintains regulatory integrity while reducing delays and associated costs.

One of the key obstacles facing developers is the lengthy approval and permitting process, which significantly increases the final cost of homes. Michael Riemann highlighted that these delays add unnecessary expenses, driving up prices for buyers. A streamlined system could mitigate these issues without sacrificing regulatory requirements. Riemann also noted that several states have successfully implemented similar one-stop shops, suggesting that it is feasible for Delaware. However, the biggest challenge lies in harmonizing processes across multiple state and local jurisdictions to ensure efficiency and speed.

Another significant issue is the difficulty in constructing affordable homes due to stringent regulations. Kevin Kelly from Leon N. Weiner & Associates shared his experience, noting that it took his firm 15 years to complete the Emblem Apartments project due to complex county codes. Before breaking ground, they had already incurred $2 million in fees, despite the land being zoned for multi-family use. This situation underscores the need for regulatory reforms to facilitate more affordable housing projects.

Jennifer Cohan, president of Associated Builders and Contractors (ABC) of Delaware, expressed support for the study but emphasized the importance of inclusivity. She stressed that both union and non-union contractors should have a voice in the process. Additionally, she hoped the working group would address the labor shortage, infrastructure costs, and fee standardization. Cohan, a former Department of Transportation secretary, also pointed out that the success of a one-stop shop would depend on efficient inter-agency collaboration, digital integration, and resource allocation.

The executive order mandates that the working group submit its report by April 25. This report will identify specific regulations that can be rescinded or modified and provide guidance on coordinating across agencies while maintaining transparency. The hope is that this initiative will pave the way for more affordable housing options in Delaware, benefiting residents and developers alike.

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