James City County’s Board of Supervisors voted 3-2 Tuesday to approve the construction of up to 45 houses aimed to be affordable for residents with lower-than-average incomes.
Elliott York of American Eastern, Inc. applied for a special use permit to construct the 45 residential units on roughly 16 wooded acres in the county’s Forest Glen neighborhood. The homes will be classified as affordable or workforce housing.
“Affordable housing is in high demand now,” York said at Tuesday’s meeting. “We do understand there is no quick and easy solutions at all to provide affordable housing. But we do have a proposal that we are bringing before you tonight that does fit the definition of affordable.”
The county defines “affordable” housing as property with a monthly rent equal to or lower than 30 percent of a household’s monthly income. The household must earn between 30 and 80 percent of the area’s median income.
The county’s second designation of “workforce” housing would be available for those earning between 80 and 120 percent of the area median income and would be priced at 30 percent of a household’s monthly income.
James City County’s median income in 2016 was $74,464 in 2016, according to the county’s economic development website.
A home considered affordable would cost between $116,214 and $228,648, according to the meeting agenda, and a workforce home would cost between $228,648 and $358,605.
The county commissioned a housing study in 2016 — conducted by researchers at Virginia Tech and CZB, LLC — and its results indicated affordable housing is needed in James City County.
“Lower-cost units are currently in short supply in James City County,” stated the county’s website. “Moreover, the number of households with housing affordability challenges is becoming severe: more than 13,000 households (48 percent) are not in a position to buy a home in the County and more than 5,300 cannot afford to rent.”
Thirty percent of James City County households are “cost-burdened,” meaning they are in need of more affordably-priced housing according to the study. Cost-burdened households spend more than 30 percent of their income on housing, and therefore may struggle to afford other necessities such as food, medical care, clothing and transportation.
Furthermore, the study also indicated 13 percent of county households are severely cost-burdened, meaning they spend more than 50 percent of their income on housing.
The study concluded the lack of affordable housing has direct consequences on county residents who cannot find housing that adequately fills their needs, as well as secondary consequences for the county as a whole. These secondary consequences include more commuting for low-income county workers, leading to higher infrastructure costs, more traffic, lower property values and a lessened quality of life.
When workers struggle to find housing they can afford, employers struggle to retain them and to attract new employees to the area, according to the study.
“The County’s economy is increasingly service-sector-oriented, but its housing market is not accommodating the workers on whom the continued success for many employers (Riverside Regional Hospital, Busch Entertainment, Walmart, Ball, Eastern State) depend,” stated the study. “The County’s goal should be to align the supply of housing in James City County, including price, quality, and location, with the County’s long-term economic interests.”
Supervisor Michael Hipple and Chairman Kevin Onizuk ultimately supported the proposal, but both said they were wary about a few of its details, including a motion of understanding signed by the applicant to create a stormwater drainage pond for the neighborhood. The county would cover half the costs of the drainage, control of which would then be given to the neighborhood’s homeowner association.
Additionally, the price points of the houses would cost the county an estimated $206,000 annually, according to planning staff.
“It is as we’ve heard tonight what we’ve asked for,” Onizuk said. “It is per our definition affordable housing. Being in a real estate business myself, there is a high demand for homes in that price point. It’s difficult to build in James City County much below that price point.”
While the application states each of the 45 new homes would be classified as either affordable or workforce, the permit would only guarantee 40 percent, or 18 homes listed as affordable or workforce.
The applicant needed to apply for a special use permit because of the density of the homes. 45 homes built on 16.11 acres is a density of 2.79 per acre, and projects with a density above one acre requires a SUP from the board.
Supervisors John McGlennon and Ruth Larson both voted against the proposal. Larson said she wanted to wait for the county’s Workforce Housing Task Force to make recommendations. McGlennon said the price points of the homes were not where the county’s housing issues existed, and expressed concerns that the property may go to market, leaving the county in control of the stormwater pond.
James City County planning staff reviewed the proposal before it reached the board, and staff found several factors of the proposal to be favorable. These included its consistency with the County’s Comprehensive Plan adopted in 2015, proposing 100 percent affordable and workforce housing, and is not expected to disturb adjacent properties.
Staff recommended the approval of the proposal to the board.
The county’s Planning Commission, however, was deadlocked in a 3-3 tie when they considered the proposal in May. The commission expressed concerns included the price points of the homes, which some of the planners felt may have been too high to meet the county’s workforce housing need, and the net negative fiscal impact the project may have on the county.
The Board of Supervisors voted unanimously to postpone a decision on the proposal at their June 13 meeting, expressing the same concerns.
While the same concerns were echoed by the board members Tuesday evening, the perceived benefits of the proposal won out.
“There’s a lot of benefits here, there’s a few items that I’m concerned about. I think it’s going to be a good project in the neighborhood,” Hipple said. “I think it answers a lot of the other things we’re looking for. There’s give and take on everything we do.”
