By Marlene Dolla

Henrico County is preparing to make available the first installment of its $60 Affordable Housing Trust fund to buy and retain housing lots throughout the county, in a bid to expand access to “affordable” homeownership. The trust, funded by data center tax revenue and managed by the county and the Partnership for Housing Affordability, will be used to buy buildable lots in communities throughout the county to create more affordable homes.

“Using our affordable housing trust, Henrico County will work with partners to buy buildable lots in communities throughout the county to create homes that will be affordable today, tomorrow and forever,” said Board of Supervisors Chairman Tyrone E. Nelson, (Varina District). “This is another example of Henrico County’s strong leadership on a tough issue. It shows we’re committed to working with partners in the private and nonprofit sectors to fulfill our vision for One Henrico – a place that welcomes, values and supports everybody.”

The county released trust plans last month and last week , U.S. Sen. Mark R. Warner (D) stopped by the Fairfield Area Library for a roundtable discussion on how Henrico is preparing to use the tax revenues.

“This conversation follows four years of skyrocketing home costs due in part to high demand and elevated interest rates,” notes Warner.

County leaders said skyrocketing housing costs is a crisis that threatens Henrico’s continued prosperity and quality of life.

“Home costs have skyrocketed over the past four years due to a combination of demand outstripping supply and elevated interest rates,” said County Manager John A. Vithoulkas. “As a result, the household income needed to afford a home in Virginia has increased by 76%, and the median price of a home in Henrico jumped to $355,000 in 2023 – an amount that would be affordable for less than one-third of the county’s households.

“The American dream of homeownership is falling out of reach for many. This is unacceptable, unsustainable and – quite frankly – a threat to our quality of life.”

The trust is set to provide grants to nonprofit and for-profit entities to offset the costs of residential lots in subdivisions or other developments that meet program requirements. Henrico notes that it has used the same model to create affordable homes in several planned or existing communities, including 14 homes in the River East subdivision, 20 in the Arcadia community and 12 at various infill sites.

Under the land trust model, the county trust will retain ownership of used lots, even after homes are built and sold to eligible buyers and subsequent dwelling owners. This, according to the country, will significantly lower the homeowner’s monthly mortgage costs. Each owner and the trust will share in the overall equity earned by their combined investments.

To further limit the costs of homes in the program, Henrico notes that it plans to waive its fees for water and sewer connections as well as for building permits. The county will also expedite its planning review of proposed developments, which include affordable units.

“We’ve outlined a fiscally sound strategy that uses unbudgeted cash – not additional debt or higher taxes – to help improve the lives of many in our workforce, including often unheralded frontline workers in hotels, restaurants and other businesses. By giving them an opportunity to build wealth through homeownership,” said Nelson, “we’ll also help lift their families for generations to come.”