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Fairfax proposes WDU administrative guideline changes, limiting transfers from for‑sale to rental

Fairfax County Housing Committee · November 26, 2024
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Summary

Planning staff presented proposed administrative guidelines for Workforce Dwelling Units that implement bedroom proportionality and minimum size rules, adjust sale/resale formulas and propose limits on transferring for‑sale WDUs into rental products; staff will revise language based on stakeholder comments before public hearings in March.

Megan Van Dam, Planning and Inclusionary Housing Division Director, presented proposed revisions to the Workforce Dwelling Unit (WDU) administrative guidelines intended to implement policy changes adopted by the Board in September 2024.

Key changes described by Van Dam include: clarifying bedroom proportionality and minimum unit sizes recommended by the task force; refining requirements for integration and dispersion of WDUs within developments; adjusting initial sale and resale price formulas to account for homeownership costs such as insurance and high condo fees; and simplifying the document into plain English and a more chronological format for ease of use.

Van Dam said staff are not proposing broad changes to the existing language on transfers within buildings, phases and unit types because the current provisions already speak to integration and dispersion, though wording will be simplified. The largest policy question remains transfers between for‑sale and rental products: Van Dam said staff propose generally limiting conversions of for‑sale WDUs into rental WDUs to protect homeownership objectives, while retaining flexibility in some situations (for example where a fully affordable building would produce many more units).

Committee members asked for monitoring schedules and how the county will continue to review the guidelines after adoption; Van Dam said routine monitoring is planned and staff will outline specifics. Members also raised two practical concerns: (1) removing preferential treatment for prequalified buyers to speed sales while ensuring buyers still must qualify, and (2) whether the financing control language explicitly prohibits refinancing above the controlled price or cash‑out of equity. Van Dam said the intent is to prevent cash‑out and staff will confirm the financing and foreclosure language is clear.

Van Dam said staff received high‑level comments from development industry groups and plan follow‑up discussions; revised guidelines are expected to be prepared for public hearings and returned to the Housing Committee in March.