HomeMy Public PortalAbout2020_11-23_Staff Memo_AffordableHousing ADU-Residential Development (002)
Date of Council Meeting: November 23, 2020
TOWN OF LEESBURG
TOWN COUNCIL WORK SESSION
Subject: Affordable Housing/ADU- Residential Housing
Staff Contact: Susan Berry Hill, Director
Council Action Requested: Work session discussion requested by Council regarding affordable housing.
Staff Recommendation: Staff recommends no further discussion or action regarding affordable housing
issues at this time. However, staff recommends discussion of affordable housing within the context of
the draft policy in the Legacy Leesburg Town Plan in the spring of 2021. This would also include
discussion of implementation strategies for addressing unmet housing needs in Leesburg.
Commission Recommendation: None at this time.
Fiscal Impact: None at this time.
Work Plan Impact: None at this time.
Executive Summary: On October 26, 2020, Council requested a work session discussion of the Town’s
current policy on affordable housing and regulatory requirements for developers who propose residential
projects.
Background: The Town Plan contains policy for housing in Chapter 7. The housing goal states:
Leesburg will have a high-quality housing stock that accommodates future population and workforce, and will be diverse in
terms of building types and affordability levels.
The housing objectives in the Town Plan emphasize housing to meet all income levels and diversity of housing
types. The objectives stress that the Zoning Ordinance should permit a diversity of housing types and not restrict
affordability through excessive lot size requirements or other regulation. Diversity in housing should address
accessibility and special needs populations, first-time buyers, and empty nesters. The provision of diverse housing
should not come at the expense of converting vacant land that is designated for business uses nor should it convert
exiting non-residential buildings for residential purposes.
These Town Plan policies and objectives provide the basis for regulation in the Zoning Ordinance to
address affordable housing. In the 2008 timeframe, Council adopted provisions in Article 3 of the Zoning
Ordinance for inclusionary zoning with new residential development. Section 3.17 contains these
requirements and requires developers to provide a percentage of proposed housing as affordable housing.
Key provisions include:
• Applies to projects that are 24 units or more, receiving public utilities, and are at least 1 unit/acre.
• Bonus density of 20% can be requested when 12.5 % of the units are provided as affordable.
• 50% of ADU’s shall be provided with 50% of the market rate units. 100% of ADU’s shall be
provided with 75% market rate units.
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November 23, 2020
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The Town entered into a Memorandum of Agreement (MOA) with Loudoun County on May 29, 2009
to administer the Affordable Dwelling Units (ADU’s) that have been accepted through residential land
development proposals in Leesburg. This agreement committed that the Town would accept no more
than 30 affordable units per Section 3.17 of the Zoning Ordinance and that the County would agree to
administer 30 units. Administration of the ADU program includes, but is not limited to, identifying
general specifications and construction costs; identifying for-sale costs and rental costs; determines the
eligibility of applicants to buy and rent units; and undertakes modifications to regulatory provisions
governing affordable units as needed.
Initially, the Town accepted ADU’s primarily in the PMW Farms development. As the number of ADU
approached the 30-unit cap in the MOA, Town staff found that application of the ADU Ordinance in
Section 3.17 had to be suspended until such time as the cap was increased in the MOA. On March 26,
2018, the MOA was updated by the Town and Loudoun County to increase the number of units the
County would administer up to 120 units. Today, projects that have proffered ADU units include PMW
Farms, Church and Market, and White Oak. The ADU ordinance continues to be applicable to all
residential projects per the criteria in the Ordinance. Staff has not identified other issues with the ADU
ordinance, and will continue to administer the ordinance provisions consistent with the MOA with t he
County.
The broader issue of affordable housing is increasingly problematic in Loudoun County and the Towns.
It was a key issue during the Loudoun County update of the comprehensive plan. The adopted 2019
Comprehensive Plan contains policy language to heighten the importance of the issue, and calls for a
strategic approach to address housing affordability. As an implementation step, in 2020 Loudoun County
established an office dedicated to addressing unmet housing needs through the development of a strategic
plan. The County has begun their process by collecting and analyzing data about housing needs in
Loudoun County. Housing needs are measured in terms of housing costs as a percentage of Average
Median Income (AMI). AMI in Loudoun County is $126,000. The housing needs continuum spans
from the greatest needs including homelessness and those residents who need federally supported housing
vouchers. The spectrum then spans to programs that address housing needs that are often labeled
“affordable”, “work force”, or “attainable” housing. This portion of the housing needs spectrum ranges
from 30-70% of AMI. The County is developing an Unmet Housing Needs Strategic Plan to address all
housing needs. The goal of the Unmet Housing Needs Strategic Plan is to define how the county will
address unmet housing needs in a systematic and comprehensive way with integrated programs. They
note that there is no one tool that will address all the housing needs. Specific tools should be selected to
meet the specific needs. Attachment 2 is a one-page description of Loudoun County’s Unmet Housing
needs initiative.
Like the County, work on the Legacy Leesburg Town Plan project has identified affordable housing as
an issue in Leesburg. The project team includes a consultant who has provided general market
information and analysis for Leesburg regarding housing. The market study found that there is an
affordability gap in Leesburg. Given income levels of renters in Leesburg, rents are about double what is
considered affordable. The inventory of residential homes for sale continues to be low forcing up the
price of housing and limiting affordability. Public input received through the Legacy Leesburg Town
Plan project validated the market study and indicates that housing affordability is a big concern to many
people. Empty nesters are finding limited existing housing opportunities to downsize and remain in
Leesburg. Millennial children of empty-nesters noted that they cannot afford to move to Leesburg to be
closer to parents. Further anecdotal input also indicates housing affordability is a concern for businesses
in Leesburg who have a problem hiring staff due to the fact that workers cannot afford to live here. The
Town’s Economic Development Department staff have heard from the retail, restaurant, and hospitality
Affordable Housing /ADU – Residential Development
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sectors that there is not enough affordable housing in Leesburg. As such, this will be a key issue identified
in the Legacy Leesburg Town Plan, and it will likely be identified as an action step to work on after the
Plan is adopted.
Proposed Legislation: None at this time.
Draft Motions:
1. I move to resume discussion of unmet housing needs in Leesburg within the context of the review of
the Legacy Leesburg Town Plan in 2021.
OR
2. I move an alternate motion.
Attachments:
1. First Amendment to the MOA between Loudoun County and Leesburg to Administer ADU’s
in Leesburg, dated March 26, 2018.
2. Loudoun County Unmet Housing Needs initiative