Riverside housing project secures $10 million in tax credits

A redevelopment project underway in Northeast Wilmington’s Riverside neighborhood has scored the highest among five Delaware organizations applying for $10,000,000 in Low Income Housing Tax Credits (LIHTC) from the Delaware State Housing Authority.

The project is a partnership between the nonprofit REACH, the Wilmington Housing Authority and developer Pennrose LLC. The group will direct $10 million towards the redevelopment of the first 74 of the 500 planned affordable homes.

“We are honored to have the highest score in this year’s competition and this award is a good indication of the City, County and State support for the overall Riverside redevelopment project,” said Ryan Bailey, senior developer of Pennrose, LLC who submitted the application on behalf of the team.

Overall, 600 new homes with a mix of affordable and mixed income properties will be developed in Riverside along with a new Kingswood Community Center.

The LIHTC program is an indirect federal subsidy that finances construction and rehabilitation of low-income affordable rental housing. Created

The next steps for the project are to work with the Delaware State Housing Authority, City of Wilmington, County of New Castle and the US Department of Housing and Urban Development to close on all financing and land development approvals and start construction in the first quarter of 2020.

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