On July 16, 2026, Delaware Governor Matt Meyer signed into law revisions to the Delaware Code pertaining to the criteria that determine whether a Traffic Impact Study ("TIS") is required as part of the land use permitting process. House Substitute 1 to House Bill No. 450 ("HB 450") is part of Delaware's effort to shorten the time required for land developers to complete the land use permitting process.
HB 450 standardizes the criteria that trigger a TIS across all Delaware counties and municipalities. The threshold for requiring a TIS in every Delaware jurisdiction for a proposed land use change or development or new access for an existing land use is now set at 500 peak-hour trips. Previously, the Delaware Department of Transportation (“DelDOT”) had a threshold of 500 vehicles per day, but local jurisdictions could and did set stricter standards. In addition, no TIS will be required for a proposed land use change or development or new access for an existing land use located in a Downtown Development District or Downtown Development Corridor.
Specifically, HB 450 implements several changes affecting DelDOT’s obligations, including: (1) requiring DelDOT to establish a TIS threshold of 500 peak-hour trips for residential developments and 500 peak-hour trips, excluding pass-by trips, for all other developments; (2) requiring DelDOT to deploy and operate technological systems to automate the monitoring, analysis, and management of transportation infrastructure; (3) authorizing DelDOT to use automated or continuous data collection systems to conduct traffic studies; and (4) requiring DelDOT to establish and collect transportation impact fees to fund rationally related off-site transportation improvements. HB 450 also authorizes higher transportation impact fees for developments located outside of Transportation Improvement Districts ("TIDs") to encourage development within TIDs.
By January 1, 2027, the DelDOT shall establish a transportation impact fee applicable to each of the following: (1) areas of the State designated for growth per the Strategies for State Polices and Spending as indicated by a county or municipality in a comprehensive plan that are not located within an established TID; (2) areas of the State outside of designated growth areas and not within an established TID. DelDOT shall determine the transportation impact fees for each county based on the reasonable proportionate share of new development of the projected total costs to bring applicable transportation infrastructure up to State standards.
In addition, HB 450 requires that county and municipal governments apply the same criteria as DelDOT when determining whether a TIS is required. County and municipal governments shall also adopt zoning ordinances and land development regulations within “growth areas” that: (1) permit a variety of housing types including townhouses, multifamily dwellings, stacked flats, apartments and mixed-use residential development; (2) establish bulk, dimension and design standards that reasonably accommodate the aforementioned housing types; and (3) encourage development patterns that reduce trips, increase pedestrian connectivity and support transit oriented development.
By June 1, 2027, county and municipal governments shall adopt residential growth area density requirements that do the following: (1) develop and periodically update residential density requirements applicable to growth areas throughout the county, beginning with a minimum density threshold of four units/acre for single-family homes and increasing minimum density thresholds for other housing types; (2) require residential development meet density requirements while recognizing that varying development densities may be appropriate within different portions of a designated growth area; and (3) encourage compact, infrastructure-efficient and housing-supportive development patterns within growth areas.
Collectively, these changes are intended to expedite the land use permitting process by establishing a uniform statewide threshold for requiring a TIS while creating a transportation impact fee program to fund off-site improvements necessary to bring existing transportation infrastructure into compliance with current State standards.
