The Kent County Board of Commissioners today unanimously approved the parameters for a new Kent County Affordable Housing Loan Fund and authorized negotiations with nonprofit lender IFF to administer the loan fund. The overall management of the fund will be under the guidance of a yet-to-be formed advisory committee and the Board of Commissioners.

Kent County last December appropriated $17.5 million in American Rescue Plan Act (ARPA) funds to address the affordable housing shortage throughout the county. Partnering with IFF provides a 2.33:1 match, adding $40,833,333 to the Affordable Housing Loan Fund for a total amount of $58,333,333.

“With its proven affordable housing experience and unique funding match, IFF was a clear choice to help ensure the success of our innovative new housing fund,” said Kent County Board of Commissioners Chair Stan Stek. “We listened intently to our residents who wanted us to make housing a priority when allocating our ARPA funding. The loan fund will be transformative for Kent County families who desperately need more affordable housing options.”

A 12-member Kent County Revolving Loan Housing Fund Advisory Committee recommended the loan parameters. The loan fund will support rental and homeownership developments that meeting the following affordability requirements:

• Rental projects will be priced appropriately for households earning at or below 80% of the county-wide area median income. Eighty percent of Area Median Income (AMI) for a family of four currently in Kent County is $71,600.
• Homeownership projects will be priced appropriately for households earning at or below 120% of the county-wide area median income. One hundred and twenty percent of AMI for a family of four currently in Kent County is $107,400.
• All projects will be required to maintain affordability requirements for at least 20% of the housing units for a period of at least 10 years or the length of the loan period, whichever is longer.

The Affordable Housing Loan Fund will launch officially within the coming months.

Additionally, local nonprofit housing organization, Housing Next, received a $500,000 appropriation from Kent County last December to support local governments in increasing affordable housing development through zoning and land use reforms. These reforms are important to increasing the impact of investments like the Affordable Housing Loan Fund and to build the almost 35,000 units needed by 2027 in Kent County.

The Board also voted to fund 30 projects last December that draw on the $127.6 million Kent County received through ARPA. In total, more than $108 million was allocated in this round of funding.