HomeMy WebLinkAboutHOUSING STUDY RECOMMENDATIONS Council Presentation 01232024Virginia Beach Housing Study
Final Report – Highlights & Insights
City Council – Jan. 23, 2024
1
Today’s Goals
Consultants:
Virginia Center for Housing
Research (VCHR)
Mel Jones, Research Scientist
HousingForward Virginia
Jonathan Knopf, Executive
Director for Programs
2
Review:
•Housing study process
and timeline
•Highlights and insights
presented in consumer
report prepared by
consultants
Why This Housing Study Update Was
Needed
•Post-recession vs. post-pandemic markets
•End of COVID-19 assistance
•Stronger local housing policy knowledge
3
How Did
We Get
Here?
•NOV. 2022: Council approves ordinance to fund
updated study
•JAN. – FEB. 2023: VCHR data analysis & public
meetings
•MARCH – APRIL 2023: Online survey & expert focus
groups
•JUNE 2023: City Council interviews with consultant
•AUG. 8, 2023: Briefing on key findings and potential
goals for solution options
•SEPT. 26, 2023: Briefing on affordable housing policy
and program recommendations
•OCT. 2023 – JAN. 2024: Consultant completes and
submits housing study report to staff.
4
Changing Demographics
•The average household is getting smaller.
•Many seniors live on their own.
•Younger generations are less able to form households and
buy homes.
5
Tightening Market
Homeownership Market
•Prices grow with strong
demand.
•Market stabilizes but
tightens.
Rental Market
•Rent growth challenges
lower-wage workers.
•Lack of options leads to
housing instability.
6
Housing Affordability
•1 in 3 households in VB are
housing cost-burdened.
•Older residents need support
to reduce their housing
costs.
•Average wages for the most
common jobs still put
affordable housing out of
reach.
7
8 Proposed Program & Policy Solutions
8
Strategic Priorities Easy Wins Background Work
Develop a City-managed
Housing Trust Fund (HTF)
Create a Housing Assistance
Fund for workers
Pursue self-sustaining mixed-
income, mixed-use rental
development
Use VB Development
Authority (VBDA) to fund
new large-scale, mixed-
use development projects
Leverage Virginia Statewide
Community Land Trust (VSCLT)
to create permanent affordable
homeownership opportunities
Research opportunities to
simplify and streamline the
permitting and review
processes
Design housing education
campaign to incorporate
into successful community
engagement
Consider advisory board to
guide new zoning changes and
redesign Workforce Housing
Program
Strategic Priority 1
9
Develop a City-managed Housing Trust Fund (HTF)
•Housing Trust Funds (HTF) are used throughout Virginia and
other states
•Provides capital to address diverse housing needs
•Supplements limited federal and state resources
•Legal structures and governance models are available
Strategic Priority 2
10
Use VBDA to fund new large-scale, mixed-use
development projects
•Leverage VBDA powers to support affordable housing and
complement efforts to boost business diversity and tourism
•Expansion into housing aligns with growing state support and
recognition of its role in economic vitality
Strategic Priority 3
11
Design housing education campaign to incorporate
into successful community engagement
•Overcome stigma around increased housing density and
affordability
•Bridge stronger connections between housing and other
sectors
•Dispel misconceptions and foster broad community support
Easy Win 1
12
Create a Housing Assistance Fund for workers
•Mitigate challenges arising from essential workers living outside
VB due to housing costs
•Financial assistance could include down payment assistance,
temporary rental assistance and/or relocation assistance
•Enhance community integration and quality of life for critical
members of economy
Easy Win 2
13
Leverage Virginia Statewide Community Land Trust
(VSCLT) to create permanent affordable homeownership
opportunities
•CLTs maintain long-term housing affordability and community
stability
•Beneficial for low- and moderate-income residents
•Working with VSCLT eliminates need for a new organization
Background Work 1
14
Pursue self-sustaining mixed-income, mixed-use rental
development
•Utilize public financing to support development by the private
sector
•Provide short-term financing at below-market interest rates to
reduce construction costs and equity investments to reduce long-
term borrowing costs
•Potentially eliminates the need to use federal and state subsidies
to create affordable housing units
Background Work 2
15
Research opportunities to simplify and streamline the
permitting and review processes
•Focus group attendees/stakeholders: Administrative challenges
slow down and add costs to residential development
•Explore comprehensive assessment of development procedures
•Implement “fast track” and “green tape” best practices
Background Work 3
16
Consider advisory board to guide new zoning changes and
redesign Workforce Housing Program
•Establish zoning advisory board to facilitate revisions to zoning
ordinance
•Focus on residential and mixed-use zone, and improve
effectiveness of current Workforce Housing Program
•Involve diverse community voices in shaping policies
Next Steps
•Opportunity for Council
to review full report
•Staff will return at a later
date for Council
feedback and direction
on proposed solutions
17
For More Info
Report will be available online:
VirginiaBeach.gov/HousingStudy
Ruth Hill, Director
(757) 385-5752 | rdhill@vbgov.com
Karen Prochilo, Housing Development
Administrator
(757) 385-5803 | kprochil@vbgov.com
Thank You
Questions and Comments
18