DOVER, Del. — Delaware officials released the results Tuesday of a statewide rent reporting pilot program designed to help renters improve their credit by including rent payments in credit scores. The project makes Delaware only the second state in the country, after Colorado, to complete a program of this kind. The Delaware State Housing Authority (DSHA) led the one-year pilot with support from Lt. Governor Kyle Evans Gay and Governor Matt Meyer.
The initiative provided 12 months of free rent and utility reporting for 225 residents across the state. Participants also received monthly credit score updates, credit alerts and the option to add up to two years of past rent and utility payment history to their reports. Eligible residents either received housing assistance through one of Delaware’s five public housing authorities or had household incomes at or below 250 percent of the federal poverty level. Funding for the project came from $200,000 in American Rescue Plan Act allocations secured through the General Assembly.
According to DSHA, participants’ average credit scores rose by nine points over the course of the program. Fourteen percent of renters moved from subprime to prime credit categories, a key change that can open access to lower interest loans and mortgage eligibility. Nearly one quarter of the participants chose to keep reporting their rent payments for free after the pilot ended, while nine percent continued utility reporting for a small monthly fee. DSHA said several participants later qualified to purchase homes. Governor Meyer said the program rewards residents for financial responsibility. “Rent reporting gives hardworking Delawareans credit for the payments they’re already making and opens doors to opportunity,” he said. “This pilot represents measurable progress for families across our state.”
Lt. Governor Gay first proposed the pilot while serving in the state Senate and helped secure its funding. “The results show what is possible when we work together to create opportunity,” she said. “This report will help guide future decisions to improve financial outcomes for more Delawareans.”
DSHA partnered with Austin-based Self Financial and the nonprofit NeighborGood Partners to operate the program. Self’s technology linked with participants’ bank accounts to verify on-time rent and utility payments, which were then reported to national credit bureaus. NeighborGood Partners provided optional financial coaching and education. DSHA Director Matthew Heckles said credit building is an essential part of addressing Delaware’s housing affordability challenges. “Helping renters establish or improve credit is one more tool that can make housing more accessible,” Heckles said.
NeighborGood Partners Executive Director Karen Speakman said the project proved both cost-effective and practical. “Reporting rent payments to credit bureaus makes sense,” she said. “When renters combine that with financial education, it can lead to lasting financial improvement.” Officials say the pilot’s success could inform larger efforts to expand rent reporting across Delaware. DSHA is reviewing the findings and exploring options for future participation.
More information about DSHA programs is available at www.destatehousing.com or by calling (888) 363-8808.
Delaware Lt. Governor Kyle Evans Gay
Photo: Delaware.gov
Photo: Delaware.gov