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Development Authority approves two attainable‑housing projects under new workforce program
Summary
The Virginia Beach Development Authority approved resolutions to support Grand Lake Senior Apartments (172 units) and The Silo (workforce apartments) under the city’s Attainable Workforce Housing program; both awards are structured as multi‑year incremental tax rebates tied to affordability performance.
The Virginia Beach Development Authority on Oct. 14 approved two resolutions to authorize participation in the Attainable Workforce Housing program and to execute support agreements with the city for two proposed affordable rental projects.
Sharon Shope, Housing Development Manager in the City of Virginia Beach Department of Housing and Neighborhood Preservation, presented details on both projects and the program. The program uses incremental real‑estate tax revenue generated by a completed project to fund a rebate to the developer if the project meets affordability and performance requirements; staff emphasized the program is self‑sustaining and does not draw on general fund revenues.
Grand Lake Senior Apartments: Staff said Grand Lake Senior Apartments is a proposed new‑construction, fully affordable senior project with 172 units for households age 62 and older. The applicant (Grand Lake Limited Partnership / Franklin Group principal, as stated in the presentation) plans to finance the development using Low Income Housing Tax Credits (LIHTC). Staff reported a funding gap of roughly $2.1 million for the project, which is located on a subdivided parcel along Virginia Beach Boulevard (near 5366) in Council District 4. The authority’s estimate of first‑year incremental grant payments for the project was roughly $188,000; staff described a proposed 30‑year grant term with the second 15 years conditioned on capital improvements (about $10,000 per unit) and ongoing income‑target compliance. The developer told staff that more than half of units will serve households at or below 50% of area median income, with a unit mix that includes one‑ and two‑bedroom apartments.
The Silo: Staff presented The Silo as a workforce rental project using 4% LIHTC (non‑competitive) on roughly 8.5 acres near Princess Anne Road in Council District 2. The presentation said the project will be 100% affordable residential, with a funding gap on the order of $2.8 million. Staff estimated first‑year incremental grant payments at about $216,000 and described a requested 30‑year term with capital improvement commitments during the first 15 years.
Tenant selection and compliance: Shope said tenant selection and eligibility verification will be managed by the project owner or its management company; Virginia Housing oversight and program recertifications apply for LIHTC projects. The presenter explained staff reviews pro formas, funding sources, and cost reasonableness to verify a financing gap before recommending incentives.
Motions and votes: Commissioners approved the Grand Lake resolution after a motion by Commissioner Nikhil and a second by Guitor; the meeting record shows one member identified as David abstained from items 6 and 7 and noted a letter on file. The board approved The Silo resolution after a motion by Commissioner Bronkie and a second by Commissioner Standing. Both resolutions carried.
Next steps: Staff will brief City Council (the presentation was scheduled for Oct. 14 and council action may be requested Oct. 21 if council requests the ordinance), finalize support agreements and monitor compliance if projects proceed to construction.
