Housing Virginia explores the troubles in the housing pipeline.

Download PDF

They are the firefighters who saved your neighbor’s home, the police officers who keep your neighborhood safe, the teachers who teach your children and the young working families just trying to get a start. Yet for them, the cost to live in the neighborhoods where they work is too high.

Existing home prices and escalating prices of new homes have put the cost of housing out of the “affordable” level for many people. Our police officers, firefi ghters and teachers can no longer “afford” homes. “Affordable,” in this context, refers to homes that people at an average income level can purchase without financial strain. Housing costs have skyrocketed, but public servants’ salaries have not kept pace. New data released by the Census Bureau shows that in almost all Virginia counties and cities, housing costs have more than doubled since 2000. Virginia ranks sixth in the nation in housing costs.

Even Habitat for Humanity, the organization that built and sold affordable homes in the $50,000 range, cannot sell a home for less than $120,000 in many communities. Many income-eligible buyers cannot afford homes in this price range. Two low-income rental projects, St. Andrews and Cary 2000, which were built by the Better Housing Coalition and had vacancies for years, are completely booked. This shows the increase in the number of people eligible for low income housing.

How Can We Make Housing Affordable?

Virginians can decrease housing costs. They can start by supporting legislation to adopt and fund a Virginia Housing Trust Fund that would ensure a stable source of annual income. The trust fund would provide incentives and supplemental funds, encouraging developers to create, build and maintain affordable housing and mixed-income communities. Developers would also be encouraged to build affordable rental units. The fund would provide homebuyers with financial assistance and matching funds for public or private resources and local housing groups. Currently, 76% of states already have housing trust funds that collectively generate $1.6 billion a year.

Legislation would enact a state housing policy for Mandatory Inclusionary Zoning. The policy would mandate that every new development build at least 10% of the units as smaller, more affordable homes. This regulation would support housing needs of people in the low to moderate income bracket. In addition, regulation would create more economically sound, mixed income communities. Developers would realize a fair profit while providing quality housing choices for families of all income levels.

The Virginia Housing Trust Fund would ensure that affordable housing refers to more than price or rent. The fund would stabilize the cost of living in communities and oversee the quality of development. The Better Housing Coalition (BHC) has proven that housing costs can be regulated without sacrificing the quality of the homes. BHC’s EarthCraft Virginia program is one example. BHC’s Carter Woods II project of restricted income apartments was the first Earth Craft multi-family project in the state. Apartments were built using high energy efficiency and sound construction, guaranteeing occupants low utility bills and low maintenance costs. Earth Craft also has a single family residential program. BHC has shown that housing costs can be regulated while maintaining the quality of homes and communities. With this example in place, Virginians should support legislation for the Virginia Housing Trust Fund. The alternative is unthinkable: skyrocketing housing costs that further divide communities and make housing only affordable to those in the highest income brackets.