Sussex County canceled public hearings for two cluster subdivision applications last week and announced it would pause all public hearings for major subdivision applications — projects including more than five lots — in response to a new state law that county leaders said raises “serious, fundamental concerns” about the future of local control.
The cancellations came after Governor Matt Meyer signed Senate Bill 23, also known as “The Housing for Every Delawarean Act,” into law last week, a day before Sussex County officials announced the land use applications were pulled. The new state law aims to speed up the development process by removing public hearings for some proposals, a provision that critics say reduces transparency but developers say will shorten the homebuilding timeline.
The two cluster subdivision proposals pulled from the Planning & Zoning Commission agenda were Windy Acres near Millsboro and Shadowridge near Harbeson. The cancellation comes with the temporary pause of all public hearings on major subdivisions in Sussex County, with county legal staff using that time to consider how to proceed with the land use development process.
What changed
How the new law reshapes Delaware’s development process
Senate Bill 23 eliminates public hearings for residential developments that meet local zoning requirements.
Governor Meyer signed SB 23 into law on July 13, 2026, making it effective immediately. In an effort to improve housing availability in Delaware, SB 23 requires most localities to ease restrictions on building more dense housing, like apartments and townhomes. The bill asks Delaware’s county governments and towns larger than 2,000 to include affordable housing plans in upcoming comprehensive plans, which localities are required to adopt every 10 years and review every five years.
The most controversial provision allows certain residential developments to be approved “by-right.” That means if the application meets local zoning standards, it can be approved without a public hearing. One of the provisions creates Title 29 Section 22-23, which eliminates public hearings for certain types of residential applications, including major subdivisions, which would ordinarily have a public hearing in front of the Sussex County Planning and Zoning Commission.
Senator Russ Huxtable and Representative Kendra Johnson introduced the Housing for Every Delawarean Act, with the introduction coming just over a year after the Affordable Housing Production Task Force — co-chaired by Sen. Huxtable and Rep. Johnson — submitted its final report to the General Assembly and Governor. The bill required a two-thirds majority vote because it affected municipal charters.
Key requirements in SB 23
The legislation requires towns to rezone within 12 months to match their plans and creates a benchmark that 20% of housing qualifies as affordable. The 20% target is for housing priced for renters who make no more than 80% of the median income in their area, or 120% if they are homeowners. The legislation also asks localities to include at least five of 11 strategies outlined in the bill for increasing housing stock, including waiving impact fees for income-restricted housing, allowing more transitional housing and speeding up the approval process for affordable homes. Starting in 2028, the Delaware State Housing Authority and the State Office of Planning will publish an annual report each May showing each town’s progress toward meeting affordable housing plan goals.
The controversy
Why local officials oppose the law
County leaders say the state is eroding local control and eliminating public input.
“This year’s General Assembly session has brought about serious, fundamental concerns about the nature of government and local authority here in Delaware,” Council President Douglas B. Hudson said. “With the implementation of SB23, the State has ripped away the public hearing process for certain types of residential applications, including major subdivisions, not just affordable housing developments”.
Sussex County spokesman Chip Lawson said that Sussex County officials didn’t see the bill until it circulated in the General Assembly, and upon reading it, the county voiced concerns that were not addressed. “If we are misinterpreting the bill, then that further justifies why we were so upset that it got pushed forward in the first place and all these questions were not answered before it got passed,” Lawson said.
Janelle Cornwell, executive director of the Delaware League of Local Governments, said the by-right provision “takes away the voice of the public,” removing transparency and public input for development applications and the ability for neighbors to improve an application. Sussex County Councilman Steve McCarron said he opposes the bill because it requires local municipalities to increase allowed housing density without requiring any of those homes to be income-restricted.
The agenda for the Sussex County Council’s July 28 meeting includes a line item about discussing the implementation of SB 23. The full text of the law is available on the Delaware General Assembly’s website.
The housing crisis
Why Delaware passed the law
The state faces a severe shortage of affordable housing, with half of renters cost-burdened.
Delaware is short almost 20,000 rental units for households that earn less than half the region’s median income, according to a 2023 study conducted by the Delaware State Housing Authority. Half of renters in the state are defined as “cost-burdened,” meaning they pay more than what they can reasonably afford for housing.
Sarah Fulton, the communications director for Delaware Senate Democrats, said “The legislative intent for Senate Bill 23 has been clear since the day it was introduced: this bill is designed to increase the stock of affordable housing in communities across Delaware”. Jon Horner, president of the Home Builders Association of Delaware, argued that people often use the public hearing process to stop or delay housing projects.
The debate reflects broader tensions in housing policy nationwide. While supporters argue that streamlining approvals will accelerate construction and lower costs, critics worry about unintended consequences. Some say the law will not deliver affordable housing, and the changes are having the unintended effect of speeding up the construction of unaffordable housing in Sussex County.
For Delaware homebuyers, the law could mean more housing options in the coming years, particularly townhomes and apartments, though whether those units will be affordable remains uncertain. If you’re looking for help with a down payment or closing costs in Delaware, see our guide to Delaware home buyer programs, which covers state assistance, grants, and low-interest loans. First-time buyers may also qualify for first-time buyer programs that don’t require perfect credit. And if you’re working with a tight budget, explore zero-down and low-down payment options available in 2026.
What happens next
Sussex County officials will meet on July 28, 2026 to discuss how to implement the new law. Until then, all major subdivision applications in the county remain on hold. The law took effect immediately upon the governor’s signature on July 13, meaning any development that meets local zoning requirements can now be approved without a public hearing. Local governments have 12 months to update their zoning codes to comply with the new affordable housing planning requirements.
Quick answers
Delaware’s housing law: common questions
Does SB 23 eliminate all public hearings for new housing developments?
No. The law eliminates public hearings for residential developments that meet local zoning requirements — called “by-right” approvals. If a project doesn’t meet zoning standards or requires variances, it would still go through the traditional approval process. However, Sussex County officials say the law appears to apply to major subdivisions (projects with more than five lots), which previously required public hearings.
What does “affordable housing” mean under this law?
The law sets a benchmark that 20% of a community’s housing stock should be affordable. For renters, that means housing priced for households earning no more than 80% of area median income. For homeowners, it’s 120% of area median income. However, the law doesn’t require new developments to include income-restricted units — it only requires localities to allow denser housing types like townhomes and apartments.
When does the law take effect?
The law took effect immediately when Governor Matt Meyer signed it on July 13, 2026. Local governments have 12 months to update their comprehensive plans and zoning codes to comply with the new requirements. The Delaware State Housing Authority will begin publishing annual progress reports in May 2028.
Will this law actually make housing more affordable in Delaware?
That’s the central debate. Supporters argue that allowing more dense housing and streamlining approvals will increase supply and lower costs. Critics, including some Sussex County officials, say the law will speed up construction of market-rate housing without guaranteeing affordability. Delaware State Housing Authority Director Matt Heckles has said the state needs smaller homes like townhomes and duplexes, which the law is designed to encourage.
Can residents still comment on new developments in their area?
Yes, but the process has changed. Under the by-right process, local jurisdictions decide whether to hold a public meeting about an application. Residents can still attend those meetings if held, but the Planning & Zoning Commission may not have the legal authority to vote down a project that meets zoning requirements. Previously, public hearings were mandatory for major subdivisions.
What happens to developments that were already scheduled for hearings?
Sussex County pulled two applications (Windy Acres near Millsboro and Shadowridge near Harbeson) that were scheduled for hearings on July 15, 2026. The county has paused all major subdivision hearings while legal staff determines how to proceed under the new law. The county council will discuss implementation at its July 28 meeting.