The purpose and intent of this article is to encourage the development of high-quality housing that is affordable by households with annual incomes falling within a prescribed range for prospective purchasers and prospective renters of workforce housing, respectively, set forth in the Workforce Housing provisions of chapter 16 of the City Code and who live or work in Virginia Beach. Because such households generally, although not uniformly, consist of one (1) or two (2) working members, such housing is termed "workforce housing." In order to accomplish that goal, this article establishes incentives for the construction of workforce housing in areas of the city, including Strategic Growth Areas, in which the Comprehensive Plan recognizes increased density to be appropriate. Equally importantly, this article also ensures that workforce housing will be well-designed, of high quality, and well-integrated into the overall development of which it is a component.

(Ord. No. 2997, 8-28-07; Ord. No. 3214, 1-24-12)

The city council hereby finds that:

(a)

Housing prices have risen much faster than incomes during the past few years, thereby eliminating, for many people, the option of purchasing a home, and for others, the option of renting without causing an undue financial burden;

(b)

The most effective approach to preserving the quality of the city's housing and neighborhoods is to maintain and improve upon their diversity. This diversity includes the type, value and design of housing and neighborhoods, which in turn, helps the city meet its goals for a quality physical environment, family and youth opportunities and economic vitality. In addition, people from a variety of cultures, backgrounds, ages, races and capabilities will have greater opportunities to find and retain safe, decent and affordable housing;

(c)

The planning and creation of mixed-income and mixed-use developments will advance the city's goal of providing diverse, high-quality and affordable housing in desirable neighborhoods. Allowing a greater mix of incomes within neighborhoods increases the affordability of housing and reduces the isolation of income groups. Further, mixed-use developments are beneficial in the long run because they broaden housing opportunities, increase residents' access to nearby employment and provide a better land use arrangement to accommodate alternative, cost-effective transportation systems.

(d)

Without an adequate supply of workforce housing, employees of local businesses would be forced to live in places that are distant from the workplace, thereby causing financial and social stress upon the families of such employees. In addition, an inadequate supply of workforce housing would discourage prospective businesses from locating in Virginia Beach; and

(e)

Workforce housing is not housing of inferior quality or design, nor will it adversely affect the value of homes in the vicinity. As required by the provisions of this article, the exterior of workforce housing units will be essentially indistinguishable from non-workforce housing units of the same housing type, and the overall quality of construction of the interior of workforce housing units will be comparable to that of non-workforce housing units. Workforce housing units within mixed-use developments, will be subject to applicable design standards set forth in the Comprehensive Plan. In addition, workforce housing units will be integrated into the residential component of a mixed-use development, rather than being located in discrete areas within that component.

(Ord. No. 2997, 8-28-07)

As used in this article, the following terms shall be defined as follows:

(a)

Affordable. Housing is considered affordable if no more than approximately thirty (30) percent of the gross household income of the purchaser or renter is spent on direct housing costs, as set forth in article VIII of chapter 16 of the City Code. For buyers, such costs include mortgage principal, interest, taxes, homeowner's insurance, mandatory homeowners' association dues and condominium fees, but do not include utilities or other related housing costs. For renters, such costs include rent payments and an allowance for tenant-paid utilities other than cable television and telephone service, but do not include other related housing costs.

(b)

Affordability level statement. A statement of the number of workforce housing units that are affordable to eligible buyers at or to eligible renters at designated percentages of Area Median Income.

(c)

Area median income (AMI). The Area Median Income for the Virginia Beach-Norfolk-Newport News, Virginia Metropolitan Statistical Area (MSA) published annually by the U.S. Department of Housing and Urban Development (HUD) and adjusted for household size.

(d)

Bonus density. An increase in the maximum allowable dwelling unit density on a property attributable to the provision of workforce housing on that property.

(e)

Eligible buyer. A person whose workforce housing application has been approved and who meets the home ownership requirements of the workforce housing program. These requirements center on gross annual income, financial assets, and location where the prospective buyer works and lives.

(f)

Eligible renter. A person whose workforce housing application has been approved and who meets the rental requirements of the workforce housing program. These requirements center on gross annual income, financial assets, and location where the prospective renter works and lives.

(g)

Strategic growth area (SGA). Areas of the city that are designated in the Comprehensive Plan to absorb most of city's future growth, both residential and non-residential. These areas, which are planned for more intensive uses than most other areas of the city, are characterized by the integration, not separation, of diverse but compatible uses including, where appropriate, residential uses.

(h)

Workforce housing (WFH). Housing that is generally affordable to households with working members who live or work in the City of Virginia Beach. For home ownership, it is housing that is priced to be affordable to households with annual incomes within a range prescribed in section 16-46 of the City Code. For rentals, it is housing that is priced to be affordable to households with annual incomes within a range prescribed in section 16-51 of the City Code.

(i)

Workforce housing discount. The difference in sales price between a market rate unit and an equivalent workforce housing unit. This amount is calculated to be the reduction in sales price necessary to make a workforce housing unit affordable to a household at a targeted income level.

(j)

Workforce housing unit (WFH unit). A dwelling unit that is reserved for sale or rent by an eligible buyer or eligible renter, as the case may be, at a price incorporating the workforce housing discount. Workforce housing units are constructed as a result of the bonus density provisions that allow the construction of a greater number of dwelling units on a specific parcel of land than is otherwise allowed in exchange for the provision of workforce housing on the parcel.

(Ord. No. 2997, 8-28-07; Ord. No. 3054, 10-28-08; Ord. No. 3214, 1-24-12)

The Workforce Housing Overlay District shall be limited to property in areas of the city in which increased density of residential development is consistent with the Comprehensive Plan, including strategic growth areas; provided, however, that no property within any accident potential zone or noise zone of 65—70 dB DNL or greater or any property in the R-10 through R-40 Residential Districts shall be included within the district.

(Ord. No. 2997, 8-28-07)

(a)

All development within the Workforce Housing Overlay District, including, but not limited to, uses, site layout, building design, open space, parking and other improvements shall conform to the land use plan approved by the city council in accordance with the provisions of this article. The approved land use plan shall supersede any conflicting provisions of the underlying zoning district, but shall conform to all requirements of the Subdivision Ordinance except those for which a variance has been granted.

(b)

Within the Workforce Housing Overlay District, uses shall be allowed in accordance with the use regulations of the underlying zoning district; provided, however, that where the underlying zoning district is residential, single-family, duplex, semi-detached, attached and multiple-family dwellings shall be allowed notwithstanding any contrary provision of the regulations of the underlying zoning district.

(Ord. No. 2997, 8-28-07)

(a)

In addition to any other information generally required for rezoning applications, applications for the Workforce Housing Overlay District shall contain the following information:

(1)

A survey of existing site conditions, including trees, contours, floodway, Special Flood Hazard Areas, waters, wetlands and other natural features;

(2)

A narrative statement of planning objectives for the proposed development;

(3)

A construction schedule, including a schedule of construction of workforce housing units;

(4)

A detailed land use plan, which shall, at a minimum, consist of:

a.

Architectural elevations for proposed structures, including building materials and colors;

b.

A general landscape plan and tree preservation plan;

c.

A detailed description of the differences in size, interior layout and construction materials between workforce housing units and other dwelling units of the same type;

d.

An affordability level statement;

e.

The total area to be included in the Workforce Housing Overlay District as part of the application;

f.

The location of residential uses and total number and type of proposed dwelling units, including the location, number and type of workforce housing units;

g.

Types of nonresidential uses proposed, if any, including the area and gross floor area proposed for such nonresidential development;

h.

Gross floor area of all structures;

i.

Location of all buildings, streets, alleys and pedestrian walkways;

j.

Regulations governing height, setbacks, floor area ratio, lot coverage, impervious surface, accessory structures (sheds, swimming pools, etc,), signs and fences;

k.

Number and location of parking spaces, including parking structures;

l.

Proposed improvements to adjacent public streets;

m.

Open space and recreation areas, including areas inside buildings;

n.

Green development features, such as porous paving or pavers, native plant landscaping, reduced street lengths, reduced pavement width, bio-retention islands, shared parking, vegetated swales in lieu of curb and gutter or other features of development intended to enhance environmental quality.

(b)

No substantial modifications of the approved land use plan shall be allowed except pursuant to an amendment to such plan approved by the city council in accordance with the procedures set forth in section 107 of this ordinance. For purposes of this section a "substantial modification" shall include any changes to the approved land use plan that, in the judgment of the planning director, are not clearly in keeping with the intent of the city council in approving the plan. The term shall also include any modifications of the number, location, design or affordability level of workforce housing units.

(Ord. No. 2997, 8-28-07; Ord. No. 3310, 11-26-13)

The dwelling unit density in the Workforce Housing Overlay District may be increased by a maximum of thirty (30) percent over the density allowed in the underlying zoning district if all of the following conditions are met:

(a)

Not less than seventeen (17) percent of the total number of dwelling units are workforce housing units. In the event the maximum allowable density is not increased by thirty (30) percent, the percentage of workforce housing units required shall maintain the same ratio of thirty (30) percent to seventeen (17) percent;

(b)

Workforce housing units shall be integrated into the development to the same extent as other dwelling units and shall not be clustered in discrete locations separate from other dwelling units;

(c)

The construction of workforce housing units shall reasonably coincide with that of other units;

(d)

Workforce housing shall conform to the Workforce Housing Design Criteria and any other applicable design standards in the Comprehensive Plan, including, but not limited to, the following standards:

(1)

The exterior of workforce housing units shall have the same building materials and finish, and be effectively indistinguishable from, non-workforce housing units of the same housing type;

(2)

Workforce housing units shall be comparable in bedroom mix, design, and overall quality of construction to the market rate units in the development, except that workforce housing units shall not be required to exceed three (3) bedrooms per unit; and

(3)

The square footage and interior features of workforce housing units shall not be required to be the same as other dwelling units in the development units, so long as they are reasonably similar in size and quality and are consistent with the current building standards for new housing in the City of Virginia Beach.

(Ord. No. 2997, 8-28-07)