Downtown Development District

In August 2019 Governor John Carney designated the City of New Castle as a Downtown Development District. Under this Act, funding was allocated through the General Assembly to DSHA for the purpose of establishing and administering the DDD Rebate Program. Investors who make Qualified Real Property Investments (QRPI) to commercial, industrial, residential, and mixed-use buildings or facilities may apply to DSHA for a DDD Rebate

Not sure if your location qualifies? CLICK HERE TO FIND OUT

Downtown Development Districts (DDD) Rebate Program

As part of the Act, the General Assembly allocated funding to the Delaware State Housing Authority (DSHA) for the purpose of establishing and administering the Downtown Development Districts (DDD) Rebate Program. The DDD Rebate is the primary incentive that supports and encourages investment in designated areas throughout Delaware.

Small Project Rebates

• For investors with qualified real property investments between $25,000 and $350,000
• Applications are accepted throughout the year, as long as funding is available
• Option to apply for a Lite-Reservation prior to commencement of construction to ensure availability of funds
• Applications for Rebate are submitted after the project is completed and placed in service
• Rebates are calculated at 20% of the qualified real property investment

Large Project Rebates

• For investors with qualified real property investments in excess of $350,000
• Applications are accepted annually and when funding permits a second application round is opened
• Applicants are required to apply and receive a Reservation in order to be eligible for a Rebate
• Application round may be competitive if funding requests exceed available funding. In this event, applications that address the established priorities will receive special consideration:
  • Identified in District Plan as Priority Project
  • Readiness to Proceed
  • Creates Permanent Jobs
  • Creates or Sustains Mixed-Use Development
  • Expands Housing Opportunities
  • Protects Historic Resources
  • Adaptively Reuses Existing Structures
  • Promotes Sustainable Practices
• Requires an independent Certified Public Accountant (CPA) to certify costs
• Applications for Rebate are submitted after the project is completed and placed in service
• Rebates are calculated at 20% of the qualified real property investment up to $500,000
• Rebates in excess of $500,00 are calculated at a lower rate

For more in-depth information about DSHA’s DDD Rebate Program, including program guidelines, available funding, application deadlines and materials, and eligibility of costs, please click here.

City of New Castle DDD Incentives for Qualifying Projects

Building Permit Fee Waiver
No fee for a Building Permit shall be required for:

• New or replacement signage; and/or
• Façade improvements; and/or
• Installation of underground utilities; and/or
• Sidewalk improvements.

Historic Area Commission Fee Waiver

No fee for a Historic Area Commission application
or review certificate shall be required for:

• New or replacement signage; and/or
• Façade improvements; and/or
• Installation of underground utilities; and/or
• Sidewalk improvements.

City Realty Transfer Tax Waiver for First Time Homebuyers

• The City Will Waive One-half (½) of the total
  transfer taxes due.

City Business License Fee Waiver for New Businesses

• The business license fee requirement shall be waived for the first twelve (12) months of
  operation for any business newly established in an existing building.
• The business license fee requirement shall be waived for the first thirty-six (36) months of operation for any business newly established in a building newly constructed for purposes of housing that business.

City Property Tax abatement on the increase in property taxes caused by an increase in assessed property values resulting from certain improvements made to properties within the Downtown Development District

• On improvements that are greater than $25,000.
• The $25,000 shall be based on “eligible expenses” as defined in the Delaware State Housing Authority DDD Guidelines.
• After five years owner will be responsible for taxes on the increase in assessed property value.

OTHER DDD INCENTIVES

Please click here to visit the Office of State Planning Coordination’s Centralized DDD Incentives webpage to view incentives available to District investors from state and local partners, such as Delaware Historic Tax Credits, Kent County Incentives, Sussex County Incentives, Delaware Sustainable Energy Utility Incentives, bridge loans, and more.

LINKS TO RESOURCES

Delaware State Housing Authority
Office of State Planning Coordination
Division of Small Business, Opportunity Zones