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SB 23 for Small Delaware Investors: How By-Right Approvals Change What You Can Build
For a small investor, a parcel’s potential is about more than its current use. Could an existing home support a duplex? Might a small multifamily project fit on a vacant lot? And how much time and uncertainty could come between an idea and a building permit?
Two Delaware laws signed on July 13, 2026, could affect those questions: Senate Substitute No. 2 for SB 23, the Housing for Every Delawarean Act, and House Substitute No. 1 for HB 450, the ROAD-DE Act. Together, they change parts of the state’s housing-planning, zoning, and review framework.
The practical takeaway is promising, but not automatic: qualifying projects that already meet zoning and objective standards may face less discretionary review. But a law does not make every parcel buildable or guarantee a particular number of units. The property’s location, local zoning, site conditions, and permitting requirements still matter.
What SB 23 changes about by-right review
“By-right” generally means a use is allowed under the applicable zoning rules without needing a special exception, conditional-use permit, or variance. SB 23 provides that applications for qualifying residential development, and mixed-use projects with a majority residential component, must go through administrative review and approval when they comply with objective standards.
A local planning commission or similar body may still review an application. But that review must focus on measurable requirements, such as applicable zoning and planning standards. The state’s initial implementation guidance explains that a public meeting may take place, but it is not to function as a formal public hearing where discretionary opposition can override a compliant application.
That distinction can matter. A project that requires a rezoning, variance, or conditional-use approval is different from one that already meets the rules. Those requests can still involve separate procedures and public hearings. By-right review does not erase those processes; it aims to keep compliant projects from being treated as discretionary ones.
The measure took effect on July 13, 2026, according to the Delaware General Assembly’s SB 23 bill record.
Where the four-units-per-acre figure fits
The four-units-per-acre figure is easy to misread. It does not mean an investor can build four homes per acre anywhere in Delaware.
That density provision comes primarily from HB 450. It applies in designated growth areas. Areas identified in a comprehensive plan and consistent with the state’s development policies. Within those areas, local governments must establish residential density requirements that begin with a minimum of four units per acre for single-family homes, with higher minimum thresholds for other housing types. The law also allows density to vary across different parts of a growth area.
Counties and municipalities must still implement the requirements through their regulations or planning processes. The state guidance identifies June 1, 2027 as a deadline for counties and municipalities to adopt density requirements and related traffic-study rules.
So, for an investor evaluating a lot, “four units per acre” is a prompt to investigate, not a buildable-unit calculation. You’ll need to confirm whether the parcel is inside a designated growth area, what local rules apply, and how those rules address the specific housing type you’re considering.
HB 450 also directs growth-area zoning to accommodate a range of housing, including townhouses, multifamily homes, apartments, stacked flats, and mixed-use residential development. See the General Assembly’s HB 450 bill record for the enacted measure.
Could duplexes or accessory units create new options?
SB 23 requires covered jurisdictions to include affordable-housing plans in their comprehensive plans. Those plans must address increased residential density, a wider range of housing types, and how standards such as setbacks, lot sizes, building height, and lot coverage affect development.
The housing types named in the state’s guidance include duplexes, triplexes, multifamily housing, accessory dwelling units (ADUs), cottage housing, and manufactured housing. The goal is for local rules to allow a mix of housing types without requiring a conditional-use permit or special exception simply because of the type of home proposed.
For an owner, that could eventually make certain small-scale projects more practical. A property that currently holds one home might have options for an additional unit, or a vacant lot might support a different housing type than before. But local zoning and implementation determine what is allowed on a specific parcel. An ADU, for example, still needs to meet applicable standards and may require building, utility, and other approvals.
A faster review is not the same as a guaranteed approval
By-right review can reduce exposure to discretionary hearings for projects that comply with applicable rules. That may help an investor estimate timelines and reduce one source of uncertainty.
It does not mean that every compliant project will be approved instantly, or that every project is compliant. Site plans may still need to address access, drainage, utilities, fire safety, building codes, environmental constraints, parking, and other requirements. A project that needs a variance or zoning change may follow a different process.
The ROAD-DE Act also changes how traffic-impact-study thresholds are determined, shifting the focus to peak-hour trips. The guidance sets a minimum threshold of 500 peak-hour trips for residential development, subject to further implementation. That is a project-level issue, but it reinforces the broader point: zoning is only one part of development feasibility.
And while SB 23 sets a framework for affordable-housing planning, it does not promise that every local government will make the same choices or change its rules on the same day. Some comprehensive-plan content requirements are tied to the next planning cycle, with a limited timing provision for jurisdictions expecting to adopt a plan before February 1, 2027.
A practical checklist before you buy or expand
Before you make an offer, or spend money on plans, work through these questions:
Is the parcel in a designated growth area? Start with the county or municipality’s comprehensive plan and official maps.
What zoning applies today? Confirm permitted uses, density, dimensional requirements, and whether the intended project is by-right.
Are local rules changing? Ask the planning office about implementation of SB 23 and HB 450, including applicable deadlines and any proposed ordinance updates.
What site constraints could affect the plan? Check access, utilities, stormwater, easements, wetlands, parking, and other relevant requirements.
Which approvals are still needed? Confirm whether the project requires administrative review, a building permit, or separate zoning relief.
Does the financial model work at a realistic unit count? Estimate construction and carrying costs, taxes, insurance, maintenance, leasing, and potential rent, not just the maximum density a rule might allow.
Treat possible additional units as an opportunity to investigate, not as guaranteed value. A project that looks attractive on a zoning map can change considerably once you account for site work, infrastructure, permitting, and financing.
What Delaware landlords should do now
These laws make it worthwhile for owners to revisit parcels they have set aside for future development or properties where a modest expansion may be possible. But the useful first step is parcel-specific research, not assuming a new statewide rule has changed every local zoning map.
At Advanced Realty Solutions, we bring 15 years of experience as real estate investors and property operators. If you’re weighing an acquisition, rehab, or expansion, our property management team can help you think through the operational side of a rental plan. For questions about your property, contact our team.
This article is general information, not legal, zoning, engineering, or investment advice. Confirm current requirements with the relevant county or municipality and consult qualified professionals before making a purchase or development decision.
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