Virginia Beach launches Attainable Workforce Housing Performance Grant to address affordability crisis

The Virginia Beach Development Authority convened on March 11, 2025, to discuss a significant initiative aimed at addressing the city's affordable housing crisis. The meeting featured a presentation on the newly proposed Attainable Workforce Housing Performance Grant, designed to incentivize the construction of affordable rental units in the area.

The grant proposal comes in response to a housing study presented to the city council in January 2024, which highlighted that approximately one-third of Virginia Beach households are burdened by housing costs, spending more than 30% of their income on housing. This situation is particularly dire for low-income residents, especially those earning at or below 30% of the area median income (AMI). The study revealed a pressing need for more rental units to accommodate this population, particularly in sectors like retail and hospitality.

The Attainable Workforce Housing Performance Grant aims to provide developers with a percentage of the incremental real estate tax generated by new affordable housing developments. This funding mechanism is designed to make affordable housing projects financially viable without relying on existing city funds. The program will focus on new construction projects that meet specific eligibility criteria, including a requirement for a minimum number of affordable units.

Key benefits of the grant include the potential for increased funding for affordable housing projects and the ability to address the significant gap in affordable rental units in Virginia Beach. The program is modeled after a successful initiative in Richmond, which has already seen numerous projects underway.

During the meeting, members of the Development Authority raised questions about the program's administration and its impact on public services, such as schools. The discussion emphasized the importance of ensuring that new developments undergo thorough planning and zoning processes to assess their broader implications for the community.

The city council is expected to review the grant program documents soon, with an ordinance anticipated to be presented in April 2025. This initiative represents a proactive step towards alleviating the housing affordability challenges faced by many residents in Virginia Beach, aiming to create a more inclusive community where all residents can find suitable housing.