A Community Approach to Workforce and Affordable Housing

1. A Community Approach to Workforce and Affordable Housing Presented by Andrew M. Friedman On behalf of myself and members of the Virginia Beach Partner Group October 24, 2005

2. Contact Information • Andrew M. Friedman • Director of Housing and Neighborhood Preservation, city of Virginia Beach • Phone 757-426-5752 • Fax 757-426-5766 • Email afriedma@vbgov.com

3. About Virginia Beach • Population = 430,000+ • 162,000 Housing Units • 70,000 Children in K-12 • 69%+ homeownership rate • 50,000 renter households • Median income $49,000 • Recent housing sales averaging 53% above assessments

4. Background • In April, 2004 Council Member Rosemary Wilson told Virginia Beach City Manager James Spore that we needed to look into the problem of housing affordability. • Based on discussions about how to do this with appropriate stakeholder input, we formed the “Partner Group.”

5. Policy Context • Virginia Beach’s Comprehensive Plan, adopted in December 2003, says in part, that we want to “Provide an adequate supply of safe, decent, attractive and diverse housing, with a range of values including owner-occupied and rental units, to accommodate the present and future needs of all Virginia Beach residents. “

6. Facts and Information • As part of the overall effort, we needed much more information about our situation. We therefore contracted with the Virginia Center for Housing Research at Virginia Tech to conduct a Housing Market Analysis and Needs Assessment.

7. What is the Partner Group? • The Virginia Beach Partner Group was formed by the Department of Housing and Neighborhood Preservation in April of 2004 in order to involve all key stakeholders in developing a community understanding of, and approach to the issues of workforce and affordable housing.

8. What is the Partner Group? • The Partner group is an open-membership organization consisting of anyone interested in working toward community understanding and solutions for workforce and affordable housing • All key actors in the housing industry have been invited to be represented.

9. What is the Partner Group? • It is now consists of over 100 people representing organizations with roles and/or interests in housing and neighborhoods in Virginia Beach and the region.

10. Why Did We Create the Partner Group? • The City has a practice of involving citizens when it addresses complex issues • The Dept. of Housing needed to create an ongoing input function to replace an older advisory committee • Housing is a complex problem and we wanted both citizens and industry experts to help define and understand the problem and develop solutions.

11. Who is Participating in the Partner Group? • Tidewater Builders Association • Hampton Roads Realtors Association • Virginia Beach Council of Civic Organizations • Empower Hampton Roads • Tidewater Mortgage Bankers Association • Virginia Beach Community Development Corporation (VBCDC)

12. Who is Participating in the Partner Group? • Samaritan House – local non-profit • Virginia Housing Development Authority • Tidewater AIDS Crisis Task Force • Section 8 Residents Advisory Board • VB Human Rights Commission • Many others

13. Participating City Agencies • Planning Department • Economic Development Department • Human Services Department

14. How is the Group Organized? We have created sub-groups based on the following issues or approaches: • Land Use • Financing • Homelessness • Public Awareness

15. Reporting Relationships • The Partner Group advises city staff, specifically the Department of Housing, but also the Planning Dept and others. • Recommendations of the Partner Group will be processed through regular staff processes through the City Manager.

16. What Was Done to Move Forward? • Publicized and conducted an initial organizing meeting - attended by 50+ people • Identified sub-topics and started working • Held a meeting with all major developers to get their input • Held a “Town Hall” meeting – attended by approx 170 people - to get broad community input • Involved group in helping guide the Virginia Tech study

17. What Was Done to Move Forward? • “Broadcast” emails used to keep people informed and share information such as meeting minutes, articles, copies of presentations.

18. What has been Achieved? • Raised community awareness and created a constructive focus for discussion of issues • Created definitions of key terms and issues • Community discussions have been enhanced by the facts and analysis provided by the Virginia Tech study.

19. What has been Achieved? • City Council understanding and awareness increased through four briefings • We achieved consensus among stakeholders for three goals that made it possible for Council to take action.

20. What has been Achieved? • City Council approved a resolution on September 27 that asked the Planning Commission to formally study and recommend changes to land use policy and regulations to achieve three goals, based on the community consensus:

21. Three goals adopted by Council for Study: Adopt zoning and related land use policy changes that: • 1)Allow and encourage increased density and mixed-used development in the strategic growth areas NOT AFFECTED BY AICUZ ZONES.

22. Three goals adopted by Council for Study: • 2) Increase the production of housing affordable to the workforce as part of new housing production

23. Three goals adopted by Council for Study: • 3) Help to preserve the character and value of neighborhoods and housing and assist in their preservation and enhancement

24. Upcoming Activities • Assessing the Impact of the BRAC Commission recommendations and the City’s plan to address them • Working with the Planning Dept. and Commission to develop land use policy • Developing a Housing Trust fund proposal • Focusing public and policy maker awareness on “why housing matters” • Working regionally on homelessness

25. The Builder’s Perspective Presented on behalf of Steve Lawson, President The Lawson Companies

26. The Lawson Companies • The Lawson Companies are a proven real estate firm with a diverse portfolio encompassing Custom Homes, Development, Asset Management and Property Management. • Our Mission is to always offer the highest quality housing and services to the residents of our communities and to the owners of our homes while providing a fair return to our investors and adhering to the highest standards of integrity.

27. The Builder’s Perspective… • There Is An Affordable Housing Problem! • Lack Of Affordable Land • Law of Supply and Demand • Shortage of Developable Land • Anti-Growth Zoning Policies & Public Sentiment • Cumbersome Zoning Approval Process • Risk Associated With Rapid Price Appreciation

28. The Builder’s Perspective… • Why Participation Is Important • Public Awareness • Political Awareness • Industry Awareness • Create A Dialog With Stakeholders • Economic & Social Benefits To Citizens • Prevent Unintended Consequences

29. The Builder’s Perspective… • Barriers To Success • Lack Of Public Awareness • “Why should we care?” • Lack Of Political Awareness • “Why should we care?” • Lack Of Direct Consequences For Inaction • “Creeping” changes

30. The Builder’s Perspective… • So Why Should We Care? • Worsens the Quality of Life • Forces Moderate Income Families Out • Creates More Traffic Congestion • Drives Up The Cost of Living • Drives Up The Cost Of Goods & Services • Drives Businesses Away • Responsibility To House All Income Levels

31. The Builder’s Perspective… • Result Of Our Efforts • Mostly Remains To Be Seen • Public Dialogue • Succeeded In A City Council Decision To Study The Problem • Problem May Have to Get Worse Before It Is Taken Seriously

32. The Builder’s Perspective… • Lessons Learned • Education, Education, Education • Educate The Public, Politicians, And City Staff To Get Them Invested In The Problem • Address The Whole Problem • Need Comprehensive Changes In Land Use Policies That Directly Address The Imbalance Of Supply & Demand

33. The Advocate’s Perspective Presented on behalf of Tim McCarthy Empower Hampton RoadsHousing Equity Taskforce, Chairman

34. We are the people we’ve been waiting for!

35. Who Are We? E.H.R. is a coalition of over 30 diverse faith communities from throughout Hampton Roads Region. Currently we represent over 50,000 people throughout the region. E.H.R. has a membership base in; Virginia Beach Norfolk Portsmouth Suffolk Hampton Newport News Yorktown

36. Our Vision Empower Hampton Roads will be a recognized, organized, interfaith force creating equity for all people in a just and united Hampton Roads region.

37. E.H.R.’s First Issue Campaign • Empower Hampton Roads chose housing as one of the primary issues to begin our quest for equity in the region. • Through careful research and an informed analysis the E.H.R. members chose Mandatory Inclusionary Zoning as the tool by which our region could begin to address the lack of affordable and inclusive housing.

38. What is Inclusionary Zoning? • Inclusionary Zoning allows or requires affordable housing to be part of new development in a community. For instance, in Virginia, localities may adopt Inclusionary Zoning whereby housing developments of 50 or more units include at least 12.5% affordable units in exchange for allowing a 20% increase in density. Affordable housing is housing that people who earn less than 80% of the area median income can afford.

39. What is Inclusionary Zoning? • Inclusionary Zoning is more than just a way to increase the supply of affordable housing. It also begins to reverse the isolation of income groups that has occurred because of exclusionary zoning practices and that denies people of modest incomes equal access to jobs and schools in high growth areas

40. Empower Hampton Roads Position • Anyone who works in a community should be able to live in that community. • Workforce housing should be opportunity based, - located in mixed income neighborhoods, where the majority of the housing is market rate housing. • Inclusionary Zoning policies must serve all income levels of the workforce, including provision for the purchase or rental of one-third of the affordable units by public or non-profit agencies.

41. Empower’s Role in the Partner Group and the City • The Creation of the VB Partner Group provided an opportunity for Empower to both participate in the development of policy and advocate for inclusionary zoning • Empower members played important roles in several Partner Group sub-groups.

42. Empower’s Roles in the Partner Group and the City • Empower co-sponsored Virginia Beach’s Town Hall forum, which attracted over 170 people, including many Empower members. • Empower members played leading advocacy roles with Virginia Beach leaders, holding numerous individual and group meetings.

43. Empower’s Roles in the Partner Group and the City • Invited regional political leaders to learn about inclusionary zoning and special meetings • Sponsored and supported public forums in Virginia Beach to educate people on inclusionary zoning

44. Empower’s Roles in the Partner Group and the City • Sponsored and organized a trip to Fairfax for regional leaders to learn directly from Fairfax Redevelopment and Housing Authority • Participated in many meetings with area developers and the Builders association to advocate for IZ.

45. The Non-Profit Perspective Presented on behalf of Mary Kay Horoszewski Executive Director Virginia Beach Community Development Corporation

46. Virginia Beach CDC • Created in 1985 by the City of Virginia Beach City Council • 501 (c)(3) nonprofit corporation • Purpose: Provide housing opportunities for low-and moderate-income families and assist City in neighborhood revitalization

47. Who do we serve? • Low-mod income families, elderly, disabled, and homeless • 2/3 of our tenants make < 50% AMI • Median income of our tenants is $19,590,for a family of three, is < 40% of the AMI • 75% of our tenants are working families • Of the 25% that do not work, the majority are disabled or elderly

48. VBCDC’s Role in the Partner Group • Participated and helped organize and manage several sub-groups • Did research and suggested policy options • Identified possible roles in programs under consideration

49. Partner Group Assessment • Barriers: • Members of group not always consistent • Time spent on “catching up” returning members • Large group size hinders productivity • Complex problem: lack of land, zoning barriers, funding, development review process, competing interests

50. Partner Group • Benefits: • Diverse group of professionals, private citizens, builder/developers, non-profits and city employees • Various levels of expertise/perspectives • General agreement on need for affordable housing • On going commitment of members • Raised Awareness: News media is focusing on the problem • Shared concerns by group members