$3.4 million in credits invested in latest award cycle

Milford, Del. – October 16, 2025 – The Delaware State Housing Authority (DSHA), with Governor Matt Meyer, developers and housing advocates, kicked off Mispillion Station II, an affordable housing project that will renovate 32 apartments and build 16 new units in the Milford community.  

The joint venture of Severn Companies LLC, and Searfoss Development LLC, is made possible with a low-income housing tax credit (LIHTC) allocation of nearly $547,000 and more than $5 million in supplemental funding. In addition to that 2023 LIHTC allocation, the developers have received a 2025 LIHTC preliminary award to preserve 40 housing units as part of Mispillion Station III.

“Every unit of safe, affordable housing has the potential to change lives,” Governor Meyer said. “These credits don’t just build housing – they leverage public and private investment, create jobs, support local economies, and ensure long-term affordability for working families.”

Thursday’s event illustrates the impact on affordable housing that the LIHTC program has made possible in Delaware. It also celebrated the most recent LIHTC allocations, announced in September, that will provide $3.4 million in tax credits to four development projects, bringing the creation of 105 affordable units and the preservation of 116 existing affordable units.   

DSHA Director Matthew J. Heckles said, “The LIHTC program is money well spent to increase and preserve the housing supply in Delaware. For every $1 of tax credits invested, we raise a minimum of approximately 90 cents in equity. That allows developers to preserve and build housing across the income spectrum and families who earn less than 60 percent of the area median income to obtain quality rental housing.”

Arthur W. Edwards Jr., President of the Severn Development Company LLC, said, “Mispillion Apartments has been in business since 1979, providing safe, decent, affordable housing. We are honored to receive the support from DSHA, the U.S. Department of Housing and Urban Development (HUD) and Rural Development to reinvest and grow the number of families that we can support with this project.  My father, Arthur Edwards Sr., who originally built Mispillion Apartments, would be proud to see the changes that are going to be brought about because of this substantial investment.” 

Grant Searfoss, President of Searfoss Development LLC, said “Mispillion Station II is a unique project that achieves both preservation of existing units and the creation of new affordable housing units for the residents of Milford, Delaware. This project wouldn’t be possible without the partnership and investment of DSHA and the rest of the development team. We are extremely excited to provide high quality, affordable units to our residents.” 

The following projects also received 2025 LIHTC allocations: 

• Village of Francis and Clare, Wilmington – The first high-rise DSHA is allocating LIHTC credits to, this will be a senior site bringing 51 units in a new construction project. 
• Willows at Northstar, Lewes – An area of opportunity, this site is part of a larger master-planned development that incorporates affordability into market rate development. This project will bring 46 units in new construction. 
• Georgetown Apartments I, Georgetown – This project preserves existing rental subsidy contracts and with Georgetown II Apartments soon to be renovated with LIHTCs, it is contributing to substantial improvements of a larger community. Georgetown Apartments I will preserve 76 units. 

DSHA receives an annual tax credit amount and awards credits annually through a competitive process. Recipients were selected based on criteria outlined in DSHA’s Qualified Allocation Plan, which include Area Median Income (AMI) rent restrictions, location, accessibility, development amenities, and more. The equity raised through the tax credit investment allows developers to attract the additional financing needed to create or preserve low-income rental housing. 

Developers claim tax credits over 10 years, which allows them to balance the construction or rehabilitation costs incurred during the rental housing development. All buildings financed with the LIHTC must remain affordable and in compliance with other program policies for a minimum of 30 years. 

The LIHTC was created in 1986 to encourage private/public investment to preserve and construct affordable rental housing nationwide. Alone and combined with tax-exempt private activity bonds, the LIHTC has been the most productive source of affordable housing financing in the nation’s history. 

DSHA has administered LIHTC since 1987, adding more than 10,000 affordable units to the state’s housing inventory. 

For more information about the LIHTC program, please visit Low Income Housing Tax Credit (LIHTC) – State of Delaware – Delaware State Housing Authority.