On Oct. 21, members of the Southern New Castle County Alliance stated they plan to bring a Chancery Court lawsuit against New Castle County for its workforce housing ordinance, which they say will result in an “economic nightmare” for taxpayers.
“Workforce housing is bad policy,” said Leann Ferguson, vice president of the SNCCA.
More than 10 development plans have been submitted or re-submitted as workforce housing. While these plans have not gone through the majority of the land use process, they have the potential put more than 2,000 dwelling units in southern New Castle County.
Ferguson said the area does not need these houses, especially with the poor economy and the high amount of foreclosures in the area.
“We’ve never said ‘don’t develop,’ ” she said, “but this is too much, too soon.”
Chuck Mulholland, president of the SNCCA, said it is because these plans have been submitted under the ordinance that a lawsuit is necessary. The county government could stay or overturn the ordinance, and the state government can create a law saying county development plans must ensure concurrency with the Delaware Department of Transportation and/or the Appoquinimink School District, but these plans would still go through due to ex post facto law.
“They can’t make a law tomorrow for something that passed back in February,” he said.
New Castle County’s workforce housing ordinance, No. O07150, passed unanimously in February. It was intended as a method to bring affordable housing in mixed-use areas to the county, but residents have protested that the workforce housing plans submitted so far are in areas without the necessary infrastructure, in particular without adequate roads or schools.
“We have nothing against people who want to buy a $250,000 home,” Ferguson said. “It’s density.”
The workforce housing ordinance contains developer incentives, such as a density bonus for a development if it has 20 percent workforce housing, and some are for low-income or very-low income housing. If at least half of the 20 percent is for low or very-low income housing, developers get a 100 percent density bonus. If less than half, they get a 50 percent density bonus.
Builders can receive development fee waivers as well, such as one that waives all land development fees for a 100 percent workforce housing project. A workforce housing project is also entitled to an expedited review in which “whenever a response or decision is required by the Department [of Land Use], it shall be issued in writing within 10 days of receipt of a complete submission.” An already-approved plan can also be re-submitted as a workforce housing plan with no additional preliminary plan approval.
“In a time when county and state governments are cash-strapped in a way they never were before, these guys get a free pass,” Ferguson said.
The SNCCA announced they have teamed up with two area residents, Carol Vesier and Frankie Mayo, to create a Web site, www.stayoutofmypocket.com, which is intended to raise money for the lawsuit.
The Web site’s name is in reference to the group’s belief that workforce housing is primarily an economic issue, as taxpayers will have to fund the money for the roads and the new schools to service those in the new houses.
“They’re taking my money to put in the pocket of the developer,” Vesier said.
Ferguson said the alliance has enough money to pay the lawyer’s retainer, but not the rest.
Veiser said the suit is expected to cost around $50,000.
Mayo, who founded Operation AC, which buys air conditioners for troops in Iraq, said she has high hopes for the suit.
“We’re going to organize an army of people,” she said. “And we can do it because I’ve done it nationwide.”


