Will Controversial Affordable Housing Bill Actually Achieve its Goals?

October 10, 2026

State of Delaware, House Republican Caucus

Earlier this week, Governor Matt Meyer ceremonially signed Senate Substitute 2 for Senate Bill 23, disputed legislation that passed both chambers of the General Assembly on a contested vote. The event was staged to highlight the measure, which had been signed into law nearly three months earlier.

Also known as the Housing for Every Delawarean Act, the new law, sponsored by Sen. Russ Huxtable (D-Milton, Dewey Beach) and Rep. Kendra Johnson (D-Bear, New Castle), aims to increase the availability of affordable housing. However, the bill's methods for achieving its goals are hotly disputed.

The new law requires counties and municipalities with more than 2,000 residents to incorporate affordable housing plans into their comprehensive plans, aiming to make 20% of homes affordable.*

One of the statute’s most controversial aspects is that it establishes a “by-right” review for residential projects that comply with local zoning requirements. Projects meeting this standard can bypass the public hearing process and don't require waivers, special permits, or other discretionary approvals. County and municipal governments must allow it to move forward.

This situation played out recently in Kent County. In early July, the county’s Regional Planning Commission voted 5–1 to deny the proposed Harmony Hills II housing development over several concerns, including the project's single entrance and exit. However, the developers appealed, and the Kent County Levy Court approved the Camden-area project last month, noting that SS 2 for SB 23 compelled their decision.

“My opinion is Huxtable’s Senate Bill 23 tries to fool the people by suggesting it provides affordable housing whereas its purpose is not affordable housing at all,” said former Democratic Sussex County Council member Joan Deaver in a recent social media post. “Its purpose seems to deny the rights of local citizens who used to have public hearings for their testimony on all development applications.”

In a press release issued this week, Sen. Huxtable described his legislation as collaboration “with our local governments to drive outcomes that ensure the workers who serve our communities have the chance to live in them. The Housing for Every Delawarean Act does just that by giving local governments the tools to plan for balanced communities and boost our stock of diverse, affordable housing."

While local governments have some limited latitude under the law, it also imposes broad mandates. For instance, zoning reforms and land use plans must allow increased residential density and authorize a broader range of housing types without requiring conditional-use permits or special exceptions.

Additionally, local jurisdictions must adopt at least five strategies from a list of 11 options, including density bonuses, reduced fees, expedited permitting, and conversion of commercial properties.

Many residents and elected officials in areas already struggling with rapid-development pressures, such as lower New Castle County and eastern Sussex County, have viewed a law that is likely to increase those challenges with skepticism.

The Delaware League of Local Governments, a nonpartisan, nonprofit organization of local government leaders, lobbied against the legislation, noting that its mandates largely usurp local discretion without any assurances that it makes housing more affordable.

SS 2 for SB 23 relies heavily on the idea that making it easier to build more homes faster will improve housing affordability. Critics of the bill concede that removing development restrictions and requiring more housing density should increase availability, but they say availability and affordability are not synonymous.

Housing demand plays a major role in the law's potential to achieve its goals.

Compared with surrounding states, Delaware’s low local property tax rates have incentivized migration into the state. Based on 2024 data, the Tax Foundation reports that Delaware has a significantly lower median effective property tax rate (the annual tax bill as a percentage of a property's value) than New Jersey, Maryland, or Pennsylvania. For instance, the Garden State's effective median property tax rate is three-and-a-half times higher, and Pennsylvania’s rate is more than double Delaware’s.

There is no indication this housing-sales driver will not continue well into the future.

Additionally, a study by the Delaware State Housing Authority found that the state has an existing shortage of nearly 20,000 affordable rental units for low-income households. The new statute does not guarantee that market prices will fall or that homes already out of reach of modest-income families will become any more obtainable. That concern is all the more worrisome considering the average rate for a 30-year fixed mortgage currently tops 7.4%.

Despite the enthusiastic optimism expressed by the bill’s supporters less than four weeks before the general election, the outcome of enacting SS2 for SB 23 will not be fully known for years. The key question in evaluating this law is not just whether more homes are built in the First State, but whether enough homes are built in the right places at price points that meaningfully improve affordability for the people the law is purportedly intended to help.

* Affordability is defined in the bill in terms of the Area Median Income (AMI), which varies by area, the number of people in the household, and whether citizens are renting or purchasing. The law sets two income thresholds: one for rental housing (households earning up to 80% of the AMI) and another for homeownership (households earning up to 120% of the AMI). Although it's not in the law, standard budgeting models suggest that no more than a third of gross income should go toward housing, including rent or mortgage payments, taxes, and insurance.