FAIRFAX DEVELOPMENT

Effort for County Worker Housing Is at Issue

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By Sandhya Somashekhar
Washington Post Staff Writer
Sunday, December 21, 2008

Fairfax County's plan to build a 270-unit apartment complex on the sprawling grounds of its government center was hailed as a chance to provide low-rent housing to firefighters, teachers and other county workers who find themselves locked out of the county's pricey real estate market.

But critics of the project say it is not living up to promises because Fairfax is barred from offering the units exclusively to county employees. The Board of Supervisors learned this week that the developer of the residential project obtained a $2 million tax credit on the condition that most of the units be made more widely available. That means that anyone making less than the area's median income of $99,000 for a family of four can live there, regardless of where he or she works.

Former supervisor Elaine McConnell (R-Springfield), who was part of the initial negotiations for the project in 2006, said the deal undercuts the original purpose of the development.

"It should not be opened up to the entire community," McConnell said. The purpose "was for our county to do something for our employees who live far away and have to travel forever because they can't afford to live in Fairfax County."

Supporters of the project, including a majority of the supervisors, say they plan to heavily market the apartments to the people who work at the government center. Moreover, they said, the county has a shortage of housing for low- and middle-wage workers of all stripes -- grocery clerks, taxi drivers, nurses and others -- who often travel long distances from more affordable counties to get to their jobs each day.

The debate underscores the challenges of providing affordable housing in one of the country's wealthiest communities, where the average house sold for about $550,000 in the early part of this year, according to county figures. Landlords collected almost $1,300 a month from the average renter last year, according to the U.S. Census Bureau. County officials estimate that rents have stayed steady or risen since this year's collapse of the housing market as people experiencing foreclosure have flooded the rental market.

Three years ago, the county embarked on an ambitious effort to purchase, build and preserve the dwindling supply of lower-rent housing, funded through property tax collections. In its largest purchase, the county bought Wedgewood Apartments, a 672-unit complex in Annandale, last year for $107.5 million.

Among the greatest needs is "workforce housing" -- affordable homes set aside for middle-income workers such as teachers, entry-level nurses, firefighters, police officers and others whose work is deemed essential to the community but whose salaries often preclude them from living in the communities they serve. County figures show that about half of Fairfax employees live in other jurisdictions.

The county has about 48 units set aside for workforce housing, established through partnerships with the fire and police departments, the sheriff's office and Inova Health System, which operates five hospitals in Fairfax. The pending project, known as the Residences at the Government Center, is intended to add more than 200 units to that tally.

Some county officials had hoped that the Residences could be geared specifically toward county employees, especially because of its location. It is on county government grounds, just southeast and within walking distance of the center, where about 3,000 of Fairfax's 16,000 employees work.

"If we are going to promote living where you work, and you have thousands of employees who work on that particular site, then we shouldn't have a problem limiting this one to our county employees," said Supervisor Jeff C. McKay (D-Lee), who supports the project.

The complex is being built through an agreement between the county and the developer, JPI, which is footing the projected $47 million price tag in exchange for the tax credit and use of the land. The average apartment will be 900 square feet and rent for about $1,300 a month, said Greg Lamb, an executive vice president of the company. Fifty-four of the units will be set aside for low-income tenants, who make less than $50,000 for a family of four.

By setting aside the 54 units, the developer qualifies for tax-exempt bonds and low-income housing tax credits, Lamb said. But as a result, "we can't discriminate between employees and non-employees" under federal fair housing laws, he said.

In the initial request for bids issued by Fairfax in 2006, the county said it would favor proposals that give "preference to county employees." County officials later concluded that it would have been difficult to find developers willing to agree to such restrictions because of the financing and because of the risk involved in limiting the pool of potential tenants.

Several supervisors said they are content seeing the apartments made available to anyone who qualifies to live there, regardless of where they work.

"I think we will find in the end that it is mostly occupied by county employees," said Supervisor Sharon S. Bulova (D-Braddock) during Monday's Board of Supervisors meeting. "If in the net we capture some employees from Wegmans, some technicians from the medical labs in the area, some cooks from Coastal Flats, then, frankly, those folks are welcome to live among our employees as well."

The issue of affordable housing is a key point of contention between Bulova, who is aiming to replace outgoing board Chairman Gerald E. Connolly (D) next year, and her opponent, Supervisor Pat S. Herrity (R-Springfield). Herrity has criticized the county's efforts to buy and build affordable housing units.



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