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EDA discusses affordable housing options, church and nonprofit land assets and potential development sites

6438997 · October 17, 2025
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Summary

Authority staff outlined discussions with faith-based organizations, Habitat for Humanity and others about using donated land and county-owned properties for affordable housing, and said public investment will likely be needed to produce affordable units.

Lancaster County economic development staff briefed the authority on ongoing work to identify land assets and partners for affordable housing development, including meetings with faith-based organizations, Habitat for Humanity and Bay Aging and consideration of county-owned properties.

The staff member said some local churches hold land assets and that recent action by the Virginia General Assembly (described at the meeting as "affirmative legislation") recognizes a pathway for faith-based institutions to support affordable housing on their properties. He said he has met with the county’s Baptist Association and the Ministerial Association and that both organizations have shown interest in exploring affordable-housing projects.

Habitat for Humanity owns a 14-acre parcel near the intersection of River Road and Belle Isle that the presenter said the county donated years earlier; staff said they are exploring a Virginia Housing planning grant to evaluate development scenarios for that parcel. The presenter also noted other county assets that could be considered for redevelopment, including a 150-acre property on Good Luck Road and vacant school buildings that have been redeveloped as housing in other localities.

The presenter described market trends in and around Kilmarnock, noting recent rezonings and residential developments near East Church Street and Hill’s Quarter, and said market prices for new units are above what the county typically requires for affordability. He said creating affordable housing often requires public investment or partnerships (tax credits, public funding, or donated land) and cited Mercer Place in Kilmarnock as an example that combined private donations, public funding, and tax credits.

Staff said they are exploring a Virginia Housing planning grant and continuing conversations with Habitat for Humanity, faith-based partners and regional organizations on how to assemble assets and funding for affordable units. No formal decisions were made during the informational meeting because the authority lacked a quorum.

The presenter recommended convening partners to identify specific financing strategies and next steps.