Board backs 80‑unit affordable housing project with revitalization resolution and brief tax abatement to aid LIHTC application

The Frederick County Board of Supervisors on Feb. 26 approved a revitalization-area resolution and a separate tax‑abatement ordinance to support a developer’s Low‑Income Housing Tax Credit (LIHTC) application for a proposed multifamily project at 3266 Valley Pike.

County planning staff told the board the property is about 4.2 acres in the Back Creek Magisterial District, zoned Residential Performance (RP), and can be developed by right. The applicant, Server Development and Consulting LLC, proposed two apartment buildings totaling about 80 units (conceptually 50 units in a front building and 30 units in a second phase), and is seeking county actions to strengthen its LIHTC application.

Mr. Pearson, county planning staff, summarized the project’s LIHTC unit mix as presented by the applicant: of 50 units shown in the applicant’s initial pro forma, 5 units would target households at below 30% of area median income (AMI), 21 at below 50% AMI, 6 at 60% AMI and 18 at 80% AMI. Pearson said the applicant estimates a capital investment “upwards of $10,000,000” and that the current parcel assessment is roughly $500,000; annual taxes on the improved property were estimated at about $51,000, compared with roughly $2,500 pre‑development.

County staff recommended two separate board actions because each is authorized under different Virginia Code provisions: (1) a revitalization‑area resolution that signals local support and can improve the applicant’s LIHTC scoring, and (2) a short-term tax abatement ordinance to give the applicant additional scoring points in the competitive LIHTC round. Staff characterized the requested abatement as “nominal,” describing it as roughly $2,000 over an initial multi‑year period, after which full taxes would apply.

Jen Server, representing the applicant, described project administration and tenant eligibility. “The answer to your question is annual recertifications,” Server said when asked how the program addresses tenant income changes; she explained that LIHTC properties require yearly income and asset recertification for occupied units.

Board members asked about neighbor notice and confirmed the county’s policy: because the project is not a zoning action and the property can be developed by right, the county does not mail separate notices beyond statutory public‑notice requirements for the types of actions involved. Several supervisors said they supported the mixed‑income approach and framed the project as a source of housing for local workers at employers such as Trex and HP Hood.

The board approved the revitalization resolution and then the tax‑abatement ordinance by recorded vote; board members present voted aye on both motions. The county will include the actions in the applicant’s LIHTC submittal and staff will continue to work with the applicant during site‑plan review.