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Home My WebLink AboutAttainable Workforce Housing Performance Grant ApplicationsAttainable Workforce Housing Performance Grant Applications Grand Lake Senior Apartments & The Silo Apartments Housing & Neighborhood Preservation |City Council: Oct. 14, 2025 Why Are We Here? Provide Overview: •Housing affordability challenges in Virginia Beach •Attainable Workforce Housing Performance (AWHP) Grant Program and eligibility requirements •AWHP Grant requests for Grand Lake Senior Apartments and The Silo Apartments 2 Housing Affordability Challenges in Virginia Beach •One in three households is housing cost-burdened = About 59,000 spend more than 30% of their income on housing costs •Median rent in Virginia Beach:$1,730 •Income Needed = About $70,000/year, or $33/hour, full time •Critical concern: Lack of rental units affordable to very-low-income households, many of whom are employed in the region’s top 10 most common occupations. •Often bear the burden of high housing costs to remain in the city. 3 New Program to Help Meet the Need •September 2025: Launched Attainable Workforce Housing Performance (AWHP) Grant Program •City of Virginia Beach and City of Virginia Beach Development Authority (VBDA) partnership •Provides an incentive for private development of safe, quality,affordable multi-family rental housing. •Self-sustaining and performance-based: Annual grants are provided to a developer based on a percentage of the incremental real estate taxes generated by their approved development. 4 Eligibility Requirements •Must be new construction •Must be developed by a for-profit entity •Only new multi-family affordable rental housing units that have not started construction •Applicants must have a demonstrable gap in project financing, as evidenced by their development and operating pro forma •May be fully affordable, mixed-income and mixed-use (commercial and residential components) •Projects that involve the demolition of existing rental housing units are eligible only if they build a minimum of 20% affordable housing units in the new project •Projects should have their zoning approval or are in the process of obtaining approval through the City’s Planning process. 5 Grant Request 1: Grand Lake Senior Apartments •172 senior housing units (age 62+),100% residential •Development by Grand Lakes, L.P.; Principal is the Franklin Group Cos. •New construction on vacant land; no other improvements currently on the property •Will be developed using Federal Low-Income Housing Tax Credits (LITHC) •Council approved conditional rezoning: Dec. 10, 2024 •Expected to start construction December 2025 •Funding gap:$2,150,000 6 Grand Lake Senior Apartments: Location and district 7 Grand Lake Senior Apartments: Affordability •100% (172 units) affordable for households whose incomes are, on average, 60% of Area Median Income (AMI). •89 of the 172 units (about 52%),will serve households at or below 50% AMI. 8 Units Area Median Income 1 Person 2 Person 3 Person 4 Person 19 30%$22,380 $25,560 $28,770 $31,950 19 40%$29,840 $34,080 $38,360 $42,600 51 50%$37,300 $42,600 $47,950 $53,250 14 60%$44,760 $51,120 $57,540 $63,900 69 80%$59,680 $68,160 $76,720 $85,200 172 •Developer has also indicated project will provide housing to households with maximum annual gross incomes listed below (based on 2025 HUD published AMI), which are based on household size: Grand Lake Senior Apartments:Fiscal Impact •First year grant amount: Estimated at $188,503 or $1,096/unit •Estimate is based on recent assessed values of multi-family affordable housing. •Estimated assessed value of project at completion = $21,278,350 •Estimated 1st year tax revenue is ($21,278,350/$100) * 0.97 = $206,400 •FY 25/26 current assessed value of property = $1,845,000 •FY 25/26 tax revenue is $1,845,000 /$100) * $0.97 = $17,897 •100% of Incremental taxes: $206,400 - $17,897 = $188,503 •Applicant will pay an administrative fee to VBDA of 1% of the annual grant amount 9 Recommended Grant Agreement Terms •Recommend following Grant Agreement terms: •Base Real Estate Tax amount of $17,897 •Annual Grant payment of 100% of the incremental real estate taxes •Grant term of 30 years, with 2nd 15 years on condition of capital improvement requirement •Capital Improvements of $10,000/affordable unit, or $1,720,000 for first 15 years •Average income of 60% for the grant term (30 years) 10 Grant Request 2: The Silo Apartments •200 units; 100% residential •Development by The Silo Apts., L.P.; Principal is the Franklin Group Cos. •New construction on vacant land; no other improvements currently on the property •Will be developed using Federal Low Income Housing Tax Credits •Council approved conditional rezoning: July 8, 2025 •Expected to start construction June 2026 •Funding gap: $2,775,000 11 The Silo Apartments Location and district 12 The Silo Apartments: Affordability •100% (200 units) affordable for households whose incomes are, on average, 60% of AMI. •Developer has also indicated the project will provide housing for households with incomes at 50% AMI to 80% AMI 13 Area Median Income 1 Person 2 Person 3 Person 4 Person 50%$37,300 $42,600 $47,950 $53,250 60%$44,760 $51,120 $57,540 $63,900 70%$52,220 $59,640 $67,130 $74,550 80%$59,680 $68,160 $76,720 $85,200 •Maximum annual gross incomes are listed below (based on 2025 HUD published AMI), which are based on household size: The Silo Apartments: Fiscal Impact •First year grant amount: Estimated at $216,179 or $1,081/unit •Estimate is based on recent assessed values of multi-family affordable housing. •Estimated assessed value of project at completion = $27,216,495 •Estimated 1st year tax revenue is ($27,216,495/$100) *0.97 = $264,400 •FY 25/26 current assessed value of property = $4,930,000 •FY 25/26 tax revenue is ($4,930,000/$100) * $0.97 = $47,821 •100% of Incremental taxes: $264,400-$47,821=$216,179 •Applicant will pay an administrative fee to VBDA of 1% of the annual grant amount 14 Recommended Grant Agreement Terms •Recommend following Grant Agreement terms: •Base Real Estate Tax amount of $47,821 •Grant payment of 100% of the incremental real estate taxes •Grant term of 30 years, with 2nd 15 years on condition of capital improvement requirement •Capital Improvements of $10,000/affordable unit, or $2,000,000 for first 15 years •Average income of 60% for the grant term (30 years) 15 Next Steps •City Council Ordinance: October 21st •Comments and questions? 16