Blacksburg council approves broader utility-fee waivers for affordable housing

Blacksburg — The Town Council approved Ordinance 2069 on first reading to amend town code provisions that govern waivers of water and sewer availability fees for affordable housing.

The ordinance broadens eligibility, extends minimum affordability terms and gives council discretion over fee waivers, staff said. Matt Hanratty, a town staff member who presented the item, said, "the proposed change is to bump that up to a 20% of the area median income." He also described a proposed 15-year minimum affordability term and language to allow a wider range of federal, state and local financing programs to qualify for waivers.

The changes are intended to give the town flexibility to support projects with deeper affordability levels and to coordinate waivers with a broader set of funding sources. Hanratty said the amendment would also allow projects on land owned by the New River Home Trust to be considered for fee waivers. He described the change as moving from an automatic waiver for some programs to a structure that allows Town Council discretion on a project-by-project basis.

There was no public comment on the ordinance at the hearing. A motion to approve Ordinance 2069 passed on a roll-call vote with councilors Mattingly, Watson, Anderson, Ford and Edgar Smith recorded as voting aye.

The ordinance text and the staff presentation describe four policy changes: (1) expand income eligibility to developments serving households at 20% of area median income or below; (2) set a 15-year minimum affordability period; (3) broaden eligible financing sources beyond HOME and low-income housing tax credits; and (4) give Town Council discretion to approve waivers across programs. The ordinance does not specify an effective date in the presentation heard at the meeting.