Chapel Branch Apartments represents a transformative investment in rural affordable housing, delivering both critical housing options and measurable economic impact. Located at the intersection of Route 24 and Dorman Road in Lewes, Delaware, this 42-unit new construction project is the first affordable housing development in the area to be funded with state and federal resources since 2003. It is the initial phase of an 84-unit development designed to serve households earning between 30% and 80% of the Area Median Income.
This project directly addresses a critical shortfall in rural affordable housing—Sussex County needs at least 1,700 new rental units for low- to moderate-income residents by 2030. Rents will range from $458 to $1,850 per month, offering both deeply affordable and workforce housing options.
Developed by Volker Development, Chapel Branch Apartments is a model public-private partnership made possible by $2.5 million in state funds, $1 million in American Rescue Plan Act (ARPA) funding, and $1 million in Low-Income Housing Tax Credits (Housing Credit). The development also utilizes Sussex County’s Affordable Rental Ordinance and the Delaware State Housing Authority’s Area of Opportunity Land Bank Loan Program.
Beyond housing, Chapel Branch will provide a community service center offering wrap-around services including food assistance, financial counseling, and nutrition education, at no cost to residents.
