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Council waives up to $5,000 in permit fees per home for HRA’s three-home pilot project
Summary
The Committee approved waiving up to $5,000 in city building permit fees per home to support a Virginia HRA application for state funding to build three single‑family homes intended to address a local housing shortfall.
The Virginia Committee of the Whole on Aug. 5 voted to waive building permit fees up to $5,000 per home for a three‑house project proposed by the Virginia HRA. Gigi Grahek, representing Virginia HRA, said the organization has applied for state funding and needs the local contribution to bridge a funding gap because estimated build costs of $400,000–$500,000 per house would substantially exceed expected appraised values of $250,000–$280,000.
"According to the city's housing study, there's an immediate need for 25 to 35 new single family homes," Grahek told the council. She said the HRA had partners waiving fees — including the school district and utilities — and asked the city to waive building permit fees as its local support. The HRA estimated combined annual property taxes for the three homes of about $9,000.
Councilor Johnson moved to waive up to $5,000 per home; the motion was supported by Councilor Bach Schneider and approved by voice vote. Staff noted the waiver is a local contribution to make the HRA’s grant application more competitive. Councilors said they viewed the measure as a way to increase housing stock and the city’s tax base if the state funds are secured.
Next steps: the waiver will be applied if the HRA project proceeds and state funding is awarded. The council did not adopt additional funding commitments beyond the fee waiver at this meeting.
