A Final Push for Pandemic-Era Housing Aid

The Delaware State Housing Authority (DSHA) announced on September 18, 2023 that it would begin issuing the final tranche of federal funding under three temporary programs launched in response to the COVID-19 public health emergency. The programs — the Delaware Mortgage Relief Program (DEMRP), the Delaware Diamonds Home Loan, and the Home Sweet Home Program — were created to address barriers to achieving and maintaining homeownership for Delawareans most affected by the pandemic.

DSHA Director Eugene Young Jr. framed the push as a continuation of the agency's core mission. "Supporting homebuyers and homeowners is at the core of our agency's mission," Young said in the announcement.

Delaware Mortgage Relief Program

DEMRP was launched on June 28, 2022 and funded through the American Rescue Plan Act's Homeowner Assistance Fund (HAF), with the U.S. Treasury Department distributing roughly $50 million to the state of Delaware. DSHA administers the program, which was designed to help homeowners who experienced COVID-19-related financial hardship after January 21, 2020.

At its September 2023 update, DSHA reported DEMRP had disbursed more than $30 million in assistance and reached over 12,000 Delawareans. Eligible homeowners could receive up to $50,000 toward housing-related delinquencies — including mortgage arrears, property taxes, water and sewer utilities, and homeowner or condominium association fees — and up to $20,000 for critical home repairs.

DSHA later scaled back the program on January 9, 2024. By that date, the agency reported more than 2,900 households had avoided displacement or foreclosure through DEMRP, with an average assistance amount of $12,308 per household. Applications for monthly payment assistance were cut off on January 31, 2024, at 4:30 p.m., though homeowners could still apply for help with delinquent mortgage payments, property taxes, and utilities. Assistance for homeowner association fees, insurance, and lot rent was discontinued at that stage. DSHA projected that remaining federal funding would be exhausted by fall 2024.

Delaware Diamonds and Home Sweet Home

Alongside the mortgage relief program, DSHA also designed two homebuyer-focused programs to complement its ongoing loan products. The Delaware Diamonds Home Loan and the Home Sweet Home Program both offered forgivable second loans between $12,000 and $15,000 to help qualified buyers cover the down payment and closing costs on a first home.

As of the September 18, 2023 announcement, the two programs combined had assisted 136 Delawareans in buying homes. DSHA noted that, because these were temporary programs tied to finite federal allocations, they were nearing the end of their funding and would close to new applications once the money ran out. The agency encouraged interested buyers to work with participating lenders quickly and to layer the assistance with DSHA's ongoing Smart State Home Loan and First State Home Loan programs, which are funded through other sources and remained open.

Who Qualified

DEMRP was open to Delaware residents who owned and occupied their home as a primary residence, earned at or below 150% of Area Median Income (or 100% of the U.S. Median Income, whichever was greater), and had experienced a qualifying financial hardship after January 21, 2020. The Delaware Diamonds and Home Sweet Home programs layered on top of DSHA's standard homebuyer eligibility, which includes income limits and a minimum credit score of 620.

Applications for DEMRP were filed through demortgagehelp.com, with telephone support available at (888) 303-4324. Homebuyer programs were accessed through DSHA-approved participating lenders.

What It Meant for Delaware

The September 2023 announcement marked the beginning of the end for a rare window of direct federal housing aid in Delaware. Between DEMRP's mortgage and utility relief and the down-payment forgivable loans, the Homeowner Assistance Fund and related American Rescue Plan dollars gave DSHA a short-term tool to keep owners in their homes and to move renters into ownership at a time when interest rates and home prices were both climbing.

For homeowners still behind on bills or buyers who had been watching for assistance, DSHA's message in late 2023 was straightforward: the federal money that made these three programs possible was finite, and the agency was now working to deploy what remained before it expired.

Sources

State of Delaware News (Sept. 18, 2023): Delaware State Housing Authority To Begin Issuing Final Federal Homeowner And Homebuyer Funding
State of Delaware News (June 28, 2022): Delaware Mortgage Relief Program Now Open
Delaware State Housing Authority (Jan. 9, 2024): DSHA Scales Back Delaware Mortgage Relief Program As Federal Funding Expires

Delaware Housing Authority Begins Issuing Final Federal Funds to Homeowners, Homebuyers