LEWES, Del.- The Milford Housing Development Corporation has withdrawn from the Dutchman’s Harvest workforce housing project in Lewes, citing significant challenges such as rising costs and interest rates.
During a special council meeting Dec. 2, MHDC representatives explained that these financial pressures made it difficult to secure buyers who met affordability requirements. Despite this setback, the project may move forward with a revised model.
Developer Preston Schell announced that his group would no longer purchase 42 units initially intended for workforce housing. Instead, Schell is asking the Lewes City Council to keep $200,000 in American Rescue Plan Act funds allocated to the project.
Schell says Milford's departure was a shock.
"Now we're having to step into their shoes and try to find solutions on our own in an arena that, quite frankly, is vastly different than market rate housing; the kind of complexity and the bureaucracy of affordable housing is something that's entirely new to us," said Schell.
If approved, the funds would be redirected to the Delaware State Housing Authority to support a revised plan for Dutchman’s Harvest. Schell says the Delaware State Housing Authority will help find families making 65 percent or less of Area Median Income to lease 28 of the 42 units. The approximate costs will be $100,000 for a one bedroom, $150,000 for a two bedroom and $200,000 for a three bedroom. For the remaining 14 units of the 42, Schell says they are trying to sell them to households with that same income. As far as the other 98 units, Schell says they will still be about $100,000-$125,000 below market value meant for Sussex County workers.
Dutchman’s Harvest plans to offer a mix of discounted and non-discounted units, aiming to uphold its mission of providing workforce housing. The project’s success hinges on continued support and funding from state, county, and local governments.
Schell emphasized that the original objective of the project remains the same.
CoastTV reached out to Milford Housing Development Corporation on Dec.4 about their decision, but they had no comment.
