Mission: Affordable

In the case of Dominion Terrace, IDI Group volunteered to work with Arlington County to fill its ranks with EAH employees -- without any government incentives -- and, thus, had the right to set the parameters for ownership: first dibs went to existing tenants, then EAH employees with household incomes under $100,000, then random individuals from the notification list and, finally, people who happened to notice the property on the street. Sales were not advertised to the public.

Typically in Arlington, deals with the developer involve the developer getting something in return -- say, increased density or a subsidy -- for selling a certain number of discounted homes. In those instances, the developer is required to let the county divvy up the discount units among the individuals on the list.

For example, a couple years ago, developer Mark Silverwood, president of Silverwood Associates, arranged with the county to redevelop an old apartment property into 96 new condos, including 10 work force units, with new affordable rental apartments on the side.

In exchange, his company got increased density and a loan for building the reduced-price units. The development, called The Sierra, is situated in Columbia Heights West in south Arlington.

The Sierra's one-bedroom condos started at $255,000 for the general public, while the work force one-bedrooms -- which boasted the same floor plans and amenities -- went for $115,000 each. The market price for its two-bedrooms was between $370,000 and $400,000; reduced-price two-bedrooms sold for between $135,000 and $140,000.

The whole project sold out in three months. "It was a pretty orderly process," Silverwood said. "It also keeps the onus off the developer, so it's not like there's favoritism."

Silverwood said he believes there will be affordable homes nationwide eventually, but acknowledges it will be a tricky maneuver. The Sierra project required five pieces of financing from Arlington County and Wachovia Bank, both of which he credits with making the American dream possible for his customers.

Still, Silverwood's profits would have been about $1.8 million higher without the work force units.

Montgomery County, Md., has taken the bold step of trying to require that developers price some new construction units at levels realistic for working professionals.

In October 2005, the county introduced a bill that would create

a work force housing program for people whose incomes are too high for the county's existing moderately priced dwelling unit (MPDU) homeownership program, which is capped at 70 percent AMI. The new program would cover people who make between 70 and 120 percent AMI -- equivalent to $86,000 for a two-person household.

The law would apply to future developments in certain high-density zones near Metro stations. In addition, some developers who purchase county-owned land would be required to set aside work force housing.