TITLE 31

Welfare

Housing and Slum Clearance

CHAPTER 40. THE DELAWARE STATE HOUSING AUTHORITY

Subchapter I. Definitions, Purpose and Powers


As used in this chapter, unless a different meaning appears from the context:

(1) "Area" means the State.

(2) "Authority" means a public body corporate or politic, organized in accordance with Chapter 43 or 45 of this title for a purpose, with the powers and subject to the restrictions set forth in those chapters, including a community exercising the powers and duties of a slum clearance and redevelopment authority; provided however, that "Authority" shall not mean the Delaware State Housing Authority.

(3) "Bonds" mean any bonds (including refunding bonds), notes, interim certificates, debentures or other obligations issued by DSHA pursuant to this chapter.

(4) "Community" means any municipality or county in this State.

(5) "Community facilities" include lands, buildings and equipment for recreation or social assembly, for educational, health or welfare activities and other necessary utilities primarily for use and benefit of the occupants of housing accommodations to be constructed and operated under this chapter.

(6) "Conservation" means the preservation of any area or section of a community and the supervision and care of such area or section, to prevent the reoccurrence or spread of slum conditions or conditions of blight.

(7) "Council" means the State Council on Housing.

(8) "DSHA" means the Delaware State Housing Authority created by § 4010 of this title.

(9) "Federal government" means the United States or any agency or instrumentality, corporate or otherwise, of the United States.

(10) "Federally insured mortgage" means a mortgage loan for land development or for residential housing insured or guaranteed by the United States or an instrumentality thereof, or a commitment by the United States or an instrumentality thereof to insure such a mortgage.

(11) "Federal mortgage" means a mortgage loan for land development or for residential housing made by the United States or an instrumentality thereof to make such a mortgage loan.

(12) "Fiscal year" means, in the case of DSHA, a period of 12 calendar months beginning and ending on such dates as DSHA shall determine prior to the issuance of its bonds, notes or other obligations pursuant to this chapter, and in the case of the State, shall mean the fiscal year of the State as may at any time be provided by law.

(13) "Governing body" means the city council, town council, commissioners or other legislative body charged with governing the municipality, or county council or Levy Court commissioners or other legislative body charged with governing the county.

(14) "Government" includes the State and federal governments and any subdivision, agency or instrumentality, corporate or otherwise, of either of them.

(15) "Housing development" means living accommodations provided or to be provided pursuant to this chapter for 2 or more families by a housing sponsor.

(16) "Housing development costs" means the sum total of all costs incurred in the development of a housing development, which are approved by DSHA as reasonable and necessary, which costs shall include, but are not necessarily limited to:

a. Cost of land acquisition and any building thereon, including payments for options, deposits or contracts to purchase properties on the proposed housing site or payments for the purchase of such properties;

b. Cost of site preparation, demolition and development;

c. Architectural, engineering, legal, accounting, DSHA and other fees paid or payable in connection with the planning, execution and financing of the housing development;

d. Cost of necessary studies, surveys, plans and permits;

e. Insurance, interest, financing, tax and assessment costs and other operating and carrying costs during construction;

f. Cost of construction, rehabilitation, reconstruction, fixtures, furnishings, equipment, machinery and apparatus related to the real property;

g. Cost of land improvements including, without limitation, landscaping and offsite improvements, whether or not such costs have been paid in cash or in a form other than cash;

h. Necessary expenses in connection with initial occupancy of the housing development;

i. A reasonable profit and risk fee, in addition to job overhead to the general contractor and, if applicable, a limited profit housing sponsor;

j. An allowance established by DSHA for working capital and contingency reserves, and reserves for any anticipated operating deficits during the first 2 years of occupancy;

k. The cost of such other items, including tenant relocation, as DSHA shall determine to be reasonable and necessary for the development of the housing development, less any and all net rents and other net revenues received from the operation of the real and personal property on the development site during construction.

(17) "Housing Director" means the Housing Director appointed pursuant to § 8603 of Title 29.

(18) "Housing sponsor" means individuals, public bodies, joint ventures, partnerships, limited partnerships, trusts, firms, associations or other legal entities or any combination thereof, corporations, cooperatives and condominiums, approved by DSHA, as qualified, either to own, construct, acquire, rehabilitate, operate, manage or maintain a housing development whether nonprofit or organized for limited profit and subject to the regulatory powers of DSHA and other terms and conditions set forth in this chapter.

(19) "Issuing officer" means the Housing Director.

(20) "Land development" means the process of acquiring land for residential housing construction, and of making, installing or constructing nonresidential housing improvements including, without limitation, waterlines and water supply installations, sewer lines and sewage disposal installations, steam, gas and electric lines and installations, roads, streets, curbs, gutters, sidewalks, whether on or off the site, which DSHA deems necessary or desirable to prepare such land for residential housing within this State.

(21) "Local authority or local housing authority" means a housing authority constituted under Chapter 43 of this title.

(22) "Mortgage" means any instrument which secures an obligation and constitutes a lien on real property or on a leasehold under a lease having a remaining term, at the time such mortgage is acquired, which does not expire for at least that number of years beyond the maturity date of the obligation secured by such mortgage as is equal to the number of years remaining until the maturity date of such obligation.

(23) "Mortgage lender" means any bank or trust company, savings bank, national banking association, savings and loan association, Federal National Mortgage Association or Federal Home Loan Mortgage Corporation, approved mortgage banker, building and loan association or any insurance company authorized to transact business in the State.

(24) "Mortgage loan" means an interest-bearing obligation secured by a mortgage, and a note or bond which is a first lien on land and improvements in the State constituting single family or multi-family units.

(25) "Municipality" means any city, town or county in the State.

(26) "Obligee" includes any bondholder, agents or trustees for any bondholders or lessor demising to the property of DSHA used in connection with a project, or any assignee or assignees of such lessor's interest or any part thereof, and the federal government when it is a party to any contract with DSHA.

(27) "Persons of low- or moderate-income" means persons or families who lack the amount of income which is necessary, as determined by DSHA or the local authority undertaking a project, to enable them without financial assistance to live in decent, safe and sanitary dwellings, without overcrowding.

(28) "Public body" means the State or any municipality, county, township, board, commission, authority, district or any other subdivision or public body of this State.

(29) "Real property" includes all lands, including improvements and fixtures thereon, and property of any nature appurtenant thereto or used in connection therewith, and every estate, interest and right, legal or equitable, therein, including terms for years and liens by way of judgment, mortgage or otherwise and the indebtedness secured by such liens.

(30) "Workable program" means an official community plan of action for using local public and private resources to eliminate and prevent slums and blight and to guide the community's orderly growth and development.

71 Del. Laws, c. 357, § 6.;

(a) It is the purpose of this chapter that DSHA have the authority and capacity to:

(1) Efficiently provide, and to assist others to provide, quality affordable housing opportunities and appropriate supportive services to responsible low- and moderate-income Delawareans;

(2) Encourage persons and families benefiting from activities authorized in this chapter, to the maximum extent feasible, to become economically self-sufficient by assisting in the delivery of social, educational and other supportive services and programs which develop self-sufficiency and by facilitating economic and employment opportunities and similar benefits for persons assisted under this chapter;

(3) Coordinate the housing and redevelopment activities of state agencies and other public agencies and private bodies with such responsibilities within the State;

(4) Provide assistance in the rehabilitation of distressed or substandard housing in an effort to preserve current housing stock and strengthen communities;

(5) Serve as a resource where the housing and construction industries, local governments and the public may obtain information on affordable housing and community development programs, data and trends, including coordinating and promoting assistance to nonprofit housing sponsors who develop affordable housing opportunities for persons of low and moderate income;

(6) Assist the Office of State Planning and other state, local and regional planning authorities in the preparation and implementation of comprehensive plans and programs for rural and urban housing and improvement of housing within the State, especially regarding the planning and development of affordable housing;

(7) Confront adverse social conditions and to lessen the effects of drug and crime problems for residents of DSHA housing for low- and moderate-income persons and families by establishing and implementing policies and taking practical steps to mitigate such conditions and eliminate drug and crime problems;

(8) Carry out and enforce the State Housing Code;

(9) Advise and inform the Governor and the public on the affairs and problems relating to housing and community development and revitalization, and make recommendations to the Governor for proposed legislation pertaining thereto;

(10) Administer such provisions of the Downtown Development District Act as set forth in Chapter 19 of Title 22; and

(11) Operate DSHA's financial affairs in a prudent and sound manner.

(b) This section shall be construed according to the fair import of its terms and shall be liberally construed to further the general purposes stated in this section and the special purposes of the particular provisions involved.

71 Del. Laws, c. 357, § 6; 79 Del. Laws, c. 240, § 7.;

The administrator and head of DSHA shall be the Housing Director as provided in Chapter 86 of Title 29.

71 Del. Laws, c. 357, § 6.;

(a) The Housing Director is responsible for the fulfillment of the purposes outlined in § 4002 of this title.

(b) The Housing Director shall:

(1) Employ, in the Housing Director's discretion, planning, architectural and engineering consultants, attorneys, accountants, construction and financial experts and consultants, Superintendents, managers and such other officers, employees and agents as may be necessary in the Housing Director's judgment;

(2) Call to the assistance of the Council the services of such employees of any federal or state agency as it may require to conduct its investigative powers and as may be available for such purpose;

(3) Delegate any of the Housing Director's powers and duties, except those of an issuing officer, to employees of DSHA;

(4) Create and appoint members of advisory boards;

(5) Supervise the activities of the Council;

(6) Enter into any and all agreements or contracts on behalf of the State or DSHA, execute any and all instruments and do and perform any and all acts or things necessary, convenient or desirable for the implementation or the purposes of this chapter or to carry out any power or duty given in this chapter;

(7) Make an annual report to the Governor and the General Assembly regarding DSHA's operations and render such other reports as may be required by law;

(8) Make and enforce regulations to effectuate the purposes of this chapter; provided however, that no such regulation shall extend, modify or conflict with any laws of this State, or the reasonable implications thereof;

(9) Determine the terms and conditions for the allocation and grant of state funds authorized by this chapter;

(10) Coordinate with the federal government to implement and manage federally funded programs;

(11) Be the issuing officer for DSHA; and

(12) Advise the Governor on issues concerning housing and community development.

71 Del. Laws, c. 357, § 6.;

Whenever the Housing Director determines that the purposes of this chapter and Chapter 43 of this title, will be better accomplished by a revision of the area of operations of any authority or by the consolidation of 2 or more authorities or by the performance of the functions of an authority by DSHA, the Housing Director may after due notice to all authorities affected and subsequent to a public hearing thereon and with the concurrence of the local governing bodies, make such revision, consolidation or perform such functions; provided, that adequate provision shall be made by the Housing Director for the protection of such authority, its creditors, contracting parties and tenants.

71 Del. Laws, c. 357, § 6.;