DOVER, Del. - A recently introduced bill in the Delaware General Assembly could significantly reshape how housing developments, road improvements, and land use projects move through the approval process across the state.
House Bill 450, known as the "Reforming Opportunities and Accelerated Development for Delaware Act," or ROAD-DE Act, aims to streamline permitting requirements that proponents say have slowed economic development, housing construction, and infrastructure projects for years.
The legislation is sponsored by State Rep. William Bush and a bipartisan group of representatives and senators. According to the bill's synopsis, Delaware's permitting process can take more than 24 months, making Delaware less competitive than neighboring states.
“In the region, Delaware’s competitors, including Maryland and Pennsylvania, can achieve substantially faster permit approvals, making them more attractive locations for economic development and affordable housing,” the proposed legislation reads.
Among the bill's biggest changes is a new statewide transportation impact fee program. The Delaware Department of Transportation would be required to establish fees by Jan. 1, 2027, with developers paying into a fund intended to help cover the costs of road, intersection, sidewalk, and other transportation improvements tied to growth.
Under the proposal, DelDOT would determine transportation impact fees for each county based on the projected costs of bringing transportation infrastructure up to state standards. The fees would be used to fund planning, engineering, design, construction, and right-of-way acquisition for transportation projects.
The bill would also change what projects would be required to conduct traffic impact studies. Instead of relying on daily vehicle trip estimates, DelDOT, counties, and municipalities would be required to use peak-hour traffic projections. In most cases, traffic impact studies would only be required for projects expected to generate at least 500 peak-hour trips, according to the legislation.
HB450 would additionally require counties and municipalities to allow residential developments in designated growth areas to be built at a minimum density of four dwelling units per acre. Local governments would also have to permit housing types such as townhomes, apartments, and stacked flats in those areas.
The measure also directs DelDOT to expand its use of technology, including automated traffic monitoring systems, digital imaging, roadway sensors, and artificial intelligence-based tools to analyze traffic patterns and manage transportation infrastructure.
A separate one-percent surcharge would be added to transportation impact fees. Revenue from that surcharge would be distributed among Delaware's Farmland Preservation Fund, land and water conservation programs, coastal resilience efforts, and bicycle and pedestrian infrastructure projects.
The exact amount developers would pay under the transportation impact fee program remains unclear. State officials say DelDOT would establish the fee structure through a future regulatory process.
House Bill 450 was first introduced on May 21. On Tuesday, June 9, it was passed out of the Economic Development/Banking Insurance & Commerce Committee and now awaits consideration in the House.
