Private developers HHHunt and Mungo Homes are set to build 30 units of affordable housing that will be made available through Henrico County’s Affordable Housing Trust Fund, county officials announced Tuesday.
HHHunt has planned 25 affordable units as part of its 123-home Parkside Townes development on Whiteside Road in Sandston, while Mungo Homes is set to build five affordable units in its Discovery Ridge subdivision at Gayton Road and Lauderdale Drive in western Henrico.
Board Chair Tyrone Nelson of Varina spoke at the Sandston groundbreaking, thanking his colleagues and staff for fulfilling the promise they made to constituents.
“For decades, Henrico has committed to creating a community that offers both affordability and a high quality of life for our residents,” Nelson said. “The Affordable Housing Trust Fund program shows once again that Henrico County is willing to take bold, creative steps to address our community's challenges.”
Henrico established the housing trust fund in June, with $60 million in previously unbudgeted real estate tax revenue from the county’s data centers, one of Virginia’s fastest-growing industries.
The county’s community revitalization department developed the program criteria in partnership with the nonprofit Partnership for Housing Affordability, which is helping administer the program.
PHA executive director Jovan Burton told VPM News that developers were invited to submit proposals in September . Applications are accepted on a rolling basis, and developers must be able to start construction within 12 months of applying for participation.
The beauty of this program, Burton said, is its flexibility: “It's a rolling application. There's never a deadline — folks can apply when they feel comfortable or when it makes sense for them.”
“I think after today, we'll probably have some more inquiries about how folks can get involved,” he added.
Approved developers enter into an agreement with PHA that establishes a maximum sale price for the affordable units and sets the income eligibility thresholds for buyers.
In most cases, the trust fund is expected to reimburse builders and developers for potential land costs and other expenses associated with construction. Buyers will also benefit through waivers of county fees for utility hookups and other permits.
Burton said the program is designed for individuals with household incomes between 60% and 120% of the area median income, as defined by the U.S. Department of Housing and Urban Development.
Henrico’s housing trust is specifically geared toward helping households who are a part of the “missing-middle,” according to Burton. “This program was designed to serve a lot of households that are seeking home ownership on the market right now and simply can't be competitive with all cash buyers or investors or folks who aren't first-time homebuyers.”
All qualifying dwellings must be owner-occupied, and each lot will carry deed restrictions for at least 10 years even if it’s resold. During that period, any new homebuyer must meet the same qualifications as the original purchaser.
Some homes, such as the units in Parkside Townes, could remain affordable in perpetuity.
Burton said Henrico is aiming to eventually support the construction and sale of 100 to 150 homes per year through the trust fund.