Housing Matters: More than 300 Units of Affordable Rental Housing Are in the Pipeline in Virginia Beach with Help from New Grant Program

The Virginia Beach City Council and the City of Virginia Beach Development Authority (VBDA) recently approved the use of the Attainable Workforce Housing Performance (AWHP) Grant Program for two affordable multi-family rental housing developments in Virginia Beach.  

Affordable Senior and Workforce Housing

Grand Lake Senior Apartments and The Silo Apartments are the first developments to be approved for AWHP grants since the City and VBDA partnered to launch the program in September. When completed, the communities will provide a total of 372 new units for households with incomes that are, on average, 60% of the Area Median Income (AMI).   

Grand Lake Senior Apartments will provide 172 housing units for residents ages 62 and older. About half of the total units will serve and be affordable to households at or below 50% of the AMI. Council previously approved the rezoning for the new development at 5366 Virginia Beach Blvd. on Dec. 10, 2024. Construction is expected to start this December.  

The Silo Apartments will provide 200 units that will serve and be affordable to households with incomes that range from 50% to 80% of the AMI. Council previously approved the rezoning for the new development near the Municipal Center on July 8. Construction is expected to start June 2026. This development also is using the City of Virginia Beach Workforce Housing Bonus Density Program, which allowed the developer to increase the number of units from 154 to 200, or a bonus of 46 units. 

A New, Innovative Approach to Meet the Need 

The AWHP Grant Program aims to promote the private development of safe, quality, affordable, multi-family rental housing to help meet housing affordability challenges in Virginia Beach. According to the most recent study of the city’s housing market, one in three households are considered housing cost-burdened, meaning they spend more than 30% of their income on total housing costs. A critical concern is a lack of affordable rental units, especially for residents with very low income. Essential workers who live alone and seniors on fixed incomes also have difficulty affording housing. 

“This program comes at a crucial time and will make a significant impact on meeting the critical need for more housing that is affordable for seniors and workforce members in our community,” said Ruth Hill, director of Housing & Neighborhood Preservation. “Council’s longstanding commitment to make the creation and maintenance of affordable housing a top priority in Virginia Beach, and VBDA’s additional support for this initiative, played a pivotal role in leveraging this new development tool and getting this innovative solution off the ground.”  

The partnership between the City and VBDA is made possible by a 2022 General Assembly amendment to the Industrial Development and Revenue Bond Act, which allows local development authorities, in conjunction with their local governing bodies, the power to make grants associated with the construction of affordable housing. The amendment was designed to combat the affordable housing shortage, further economic development and incentivize the development of affordable housing across the Commonwealth.  

In May 2024, City Council approved a recommendation from the housing study directing staff to advance discussions with VBDA to fund new large-scaled mixed-use development projects. Staff studied a successful model in Richmond and worked with VBDA to draft a similar program for Virginia Beach. Earlier this year, Council approved an ordinance and VBDA passed a resolution to officially create the City’s AWHP Grant Program — becoming the only other locality in Virginia to implement this type of program so far.   

The program is intended to make affordable housing development more feasible by helping to fill funding gaps. Annual grants are provided to a developer based on a percentage of the incremental real estate taxes generated by their approved development. The incremental real estate tax is the difference between the taxes generated before and after the development is completed. The program is self-sustaining and performance-based since the annual grants are created by the real estate tax revenue generated by the development itself. The grants are awarded after the development is completed and if all criteria of the grant agreement have been met, including occupancy and rent restrictions.  

The City Council approved resolutions on Oct. 21 to approve the AWHP Grant to The Silo Apartments L.P. and Grand Lakes L.P., authorize the city manager to execute the grant agreement and support agreement, and request that VBDA approve the grant. The developer for Grand Lake Senior Apartments and The Silo Apartments is the Franklin Group Companies.  

For questions about the AWHP Grant, contact Sharon Shoff, Housing Development manager, at 757-385-5836 or SShoff@VBgov.com.  

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City Council approved the development of an education campaign on affordable housing, which was recommended in the 2024 Housing Study report. Housing Matters is the City’s educational and outreach initiative led by Virginia Beach Housing & Neighborhood Preservation that aims to increase residents’ understanding of affordable housing and the need in Virginia Beach.