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DDD & Building Incentives

Official resources for property owners considering construction, rehabilitation or investment in Delaware City.

Official sources reviewed October 29, 2026

Start with your property’s location

The Downtown Development District (DDD) is a designated area—not all of Delaware City. Check the city’s district plan and boundary map before assuming a project qualifies. Main Street Delaware City does not approve or award state rebates.

City DDD overview, plan & boundary map

State · Cash rebate

DDD Rebate Program

Administered by Delaware State Housing Authority (DSHA). Eligible projects may include rehabilitation, expansion and new construction for residential, commercial, industrial or mixed-use properties inside an approved district.

Rebate calculations, investment thresholds and application steps depend on the current guidelines and project category. Not every cost qualifies.

DSHA program & applications

City · Tax incentive

New-development tax abatement

Delaware City’s code provides a property-tax abatement for qualifying new residential or commercial development in the DDD. This is a limited new-development incentive, not a general renovation grant.

Ask the city to confirm assessment requirements, project eligibility and the current application process.

Read the city’s abatement rules

Historic buildings · Tax credits

Historic rehabilitation

Historic-property rehabilitation may qualify for applicable state or federal preservation tax credits. These are tax credits, not DDD construction grants.

Historic-district rules can affect exterior changes and construction. Consult the city’s preservation staff before planning work.

Historic preservation resources

Help finding business grants

Starting or expanding a business? A Delaware Division of Small Business adviser can help connect you with relevant funding and support programs. Explore EDGE for competitive small-business grants and check the current round’s eligibility, matching requirements and deadlines directly with the state.

City business applications & first steps →

Before committing to a project

  1. Verify your parcel against the official DDD boundary map.
  2. Discuss your project with the city and DSHA before starting work or committing funds.
  3. Read the current guidelines for your project size, eligible costs and application timing.
  4. Confirm funding availability directly with DSHA. The February 26, 2026 large-project deadline has passed; a new round is not confirmed here.

Delaware City Town Hall

407 Clinton St, Delaware City, DE 19706

(302) 834-4573Ask about local requirements

DSHA Housing Development

18 The Green, Dover, DE 19901

(302) 739-4263Ask about state rebate eligibility