Could ‘pocket neighborhoods’ help lower housing costs in New Castle County?

New Castle County will vote next week on an ordinance that opens the door for developers to build “pocket neighborhoods,” or dense neighborhoods of single-family lots, in areas targeted for growth, but situated on difficult-to-build parcels.

Ordinance 24-137 was first introduced Sept. 17 by New Castle County Councilman Penrose Hollins, after concern about such a proposal in Centreville was scuttled earlier in the summer.

At a Nov. 26 Community Services Committee meeting, officials from the New Castle County Department of Land Use delivered a presentation on recommended changes to the ordinance, which was met with broad support from council members and those in public comment.

Yet the ordinance was also met with questions about affordability and the split between ownership and rental options. Now, the ordinance is set for consideration at a county council meeting on Dec. 10.

What is a ‘pocket neighborhood’?

Pocket neighborhoods look to use land that’s targeted by the county and the state for growth, but may be difficult to develop on in a traditional sense. 

In Delaware, a few examples already exist, including on Corinne Court near Bellefonte. The homes don’t have their own driveway, and all of the houses face toward one central green area, with a path that connects them back to the main street.

Within this courtyard area, there are 12 single-family homes on a relatively small spat of land.

The neighborhoods as proposed would be restricted to suburban (S), suburban transitional (ST) or traditional neighborhood (TN) zoning districts, which would require water and sewer access to residents, according to Matthew Rogers, a county planner.

A consideration from the land use department was making sure all pocket neighborhoods were at least a half mile away from heavy industry (HI) districts.

Delaware targets its growth based on recommendations from the Office of State Planning Coordination (OPSC), as well as comprehensive plans put together by each county, which guide zoning and development decisions for years at a time.

When it comes to targeting growth, land is given a rating from “Level 1” to “Level 4,” with lower levels being more desirable. In New Castle County, pocket neighborhoods would be built exclusively in the level 1 and 2 districts.

Affordability, flashbacks to Centreville

During a Nov. 26 presentation, Rogers said projects looking to build more than 25 homes would have to offer at least 15% of the homes as moderately priced dwelling units. Hollins estimated the homes could cost anywhere from $265,000 to $400,000, but those rates could change.

Councilman Jea Street Sr. raised questions about that range.

“I don’t know how we continue to use the term ‘affordable housing’,” Street said. “The overwhelming majority of people that I represent in District 10 can’t get to $300,000 and we all know that.”

New Castle County Land Use Director Charuni Patibanda argued that when more homes are built at those lower rates, surrounding rental units and homes would also see their prices drop.

And a key part of the proposal is getting more starter homes on the market at a reasonable price.

“Right now, nothing is affordable, I agree with you on that,” Patibanda said. “But we need more density, we need more units to be offered.”

When it comes to rental versus ownership options, that ratio will be set by the developers looking to build pocket neighborhoods.

Hollins recalled a previous attempt by the county council to bring a pocket neighborhood to Centreville, which was met with fierce resistance by residents.

Following the backlash, the county rescinded an ordinance that would have allowed for multiple cottage-style homes to be built on a small lot in the affluent community. But in spite of that, Hollins said the idea wasn’t worth discarding completely.

“We didn’t throw the idea away,” Hollins said. “We decided [there was value] in providing these kinds of options.”

Developer in support

Rich Przywara, CEO of the Todmorden Foundation, an offshoot of the Woodlawn Trustees that develops affordable housing, said he supported the ordinance, calling it a “step in the right direction.”

Michelle Williams, the executive director of the Fuller Center for Housing of Delaware, said she was also in support of the ordinance.

She noted that the size of homes is trending upward, which makes it harder for people looking for starter homes or looking to downsize to find options. Williams added that building more homes on smaller lots would bring down the cost of construction for developers.

“Maybe we should think of using the term ‘starter home’ again, because then that would avoid NIMBYism and promote ‘YIMBYism,’” Williams said.