Housing authority outlines $48M housing package, adds $1M for homelessness response and a permitting‑streamline plan

Matthew Heckles, director of the Delaware State Housing Authority, presented DSHA’s FY27 priorities to the Joint Finance Committee and urged continued funding to sustain affordable‑housing production and expand homelessness services.

Heckles said the recommended package keeps the Housing Development Fund (HDF) at $4 million in the operating budget and maintains SRAP (State Rental Assistance Program) funding at $6 million; the SRAP program served 833 families last year and DSHA reported roughly 3,000 families served across the life of the program. DSHA also asked for a new $1 million "homeless response and stabilization" line to support low‑barrier shelters, outreach, and exit strategies into rental assistance or permanent supportive housing.

On homelessness, Heckles described an interagency collaborative to end homelessness convened by the governor and DSHA’s new division of homelessness services. He said point‑in‑time counts have increased and that homelessness is driven primarily by housing affordability; DSHA plans to consolidate shelter and transitional housing funding administration to improve flexibility and reduce fragmentation.

On housing supply, DSHA described a technical push to streamline permitting: the agency said it signed an agreement with a vendor (Infila) to build permitting infrastructure and diagnostics so state and local permitting bottlenecks can be identified and addressed more quickly. Heckles framed that work as a precursor to policy changes such as shot clocks and priority lanes for affordable projects.

Heckles also highlighted a downtown development district program and proposed a neighborhood small‑business lending pilot on the bond bill to help small retailers secure property and stabilize downtown investment. Lawmakers pressed DSHA on: (1) HDF spending‑authority adjustments (technical true‑ups of prior one‑time ARPA/settlement authority), (2) how the new $1M would be deployed, (3) SRAP mechanics and partner relationships (DSHA provides rental subsidy; agencies provide case management), and (4) first‑time‑buyer market pressures from investor purchases. DSHA confirmed Hope Center reimbursement rates have been moving toward $100 per night and said SRAP participants pay 28% of their monthly income with DSHA covering the gap.

Nonprofit testimony during the public comment period echoed the needs DSHA identified: providers asked the committee to maintain or increase HDF funding, expand homelessness response funding, and support SRAP and Home for Good pilots that fund outreach and rapid rehousing. Several speakers warned of long wait lists for senior affordable housing and large per‑unit gaps in financing that require state subsidy.

Next steps: DSHA will provide written clarifications requested by the committee (HDF ASF technical adjustments, SRAP counts and partners, and clarification of Hope Center reimbursement arrangements) and the committee will consider the FY27 operating and bond recommendations in upcoming budget deliberations.