Lewes discusses affordable housing issue

Lewes Mayor and City Council are still trying to finalize the city’s 2015 comprehensive plan, but the stumbling block continues to be the topic of affordable housing. 

As a resort community with high housing values, the issue is a difficult one, and Councilman Rob Morgan said he isn’t willing to promote higher density in order to meet the state’s expectations. 

“We’re trying to work with the county to control density of developments outside the boundaries of the city because traffic is gradually killing us,” he said. “It would be, to my mind, grossly inconsistent to [advocate for lesser] density outside the city and increase the density inside.”

Morgan stood firm with council at a May 25 special meeting, saying he would not support any language that leaves the door open for higher-density affordable housing projects. 

City Manager Ann Marie Townshend said there are ways to meet the state’s expectations, specifically through state programs or third-party facilitators, such as Habitat for Humanity or Diamond State Community Land Trust.

Typically what’s done, Townshend said, is the organization takes the difference between the home’s worth and what a person paid for it, and puts a soft second mortgage on the home that is forgivable over time. It is also restrictive in that it requires the buyer to use the home as their primary residence, which relieves a concern that some people would see lower-priced homes as a cheap way to get a vacation home.

Resident Rick Quill urged council to consider promoting affordable housing, workforce housing opportunities in the city. He pointed to the city’s core values.

“Diversity,” he said. “[The comp plan] has to take into consideration nurses, teachers, police officers. I would love to have one living right by me.” 

Quill said it is impossible for those people to live in Lewes now given the current market conditions, pointing to townhouses that are selling for more than $500,000. He also said the average cost of a home on Lewes Beach is $699,000, while a home in the historic district averages $799,000. 

“Every one of us is fortunate to be here,” he said. 

City Planner Tom West drafted a new affordable housing section for the comp plan. In it, he identified several strategies, including programs that developers or individuals could use to lessen project costs and possibly lower home prices.

“There are parts in there that say the real solution is to work with people in the county and in our neighboring municipalities because our issues aren’t beginning and ending in Lewes,” he said. “It extends across the borders.” 

Deputy Mayor Fred Beaufait was skeptical of the entire endeavor. He said the likelihood of an affordable housing project coming to Lewes is small. 

“I have a basic concern, and that’s reality,” he said. “I think what we’re talking about may not fit reality for Lewes. I think some bureaucrats have gotten their hands to it and they’re trying to get us to do something that I don’t think we’re trying to do.” 

Mayor Ted Becker said the state’s letter asks the city to express a willingness to consider affordable housing opportunities, but it is not forcing them to change their code to provide for affordable housing.

After an hour of discussion, council agreed that West take what was discussed and re-draft the affordable housing section of the comp plan. He is expected to present the latest version in June.

Townshend urged council to not completely rule out density changes.

“I agree you don’t want the comp plan used against you on something that is out of character with Lewes or that will create traffic problems, but there could be a proposal at some point that could make sense,” she said. “Would you necessarily want to shut it out if it’s something that doesn’t necessarily add to the traffic?”