Housing Matters: Five Key Ways the City Expands Affordable Housing Opportunities

Our entire community thrives when all residents have the opportunity to live in safe, stable and quality housing they can afford. When residents have access to affordable housing, they don’t have to choose between paying for housing or other basic needs, such as childcare, food, health care or transportation. It also allows for additional income for maintaining and investing in their property, accessing higher education and job training, and spending in our local economy.  

What does “affordable housing” mean? 

Generally, housing is considered affordable when a household does not spend more than 30% of its pre-tax income on total housing costs. This definition for affordable housing is widely used by the U.S. Department of Housing and Urban Development (HUD), the City’s Department of Housing & Neighborhood Preservation (HNP) and across the housing industry. In Virginia Beach, one in three households — about 62,000 — is considered housing cost-burdened, meaning it spends more than 30% of its income on housing. 

What is the City’s role in expanding affordable housing? 

In Virginia Beach, there is no public housing authority, which means the City doesn’t own, operate or manage housing. The City also doesn’t set minimum or maximum housing sales and rent prices. And, while  policies can guide or encourage development, the City doesn’t direct developers to create affordable housing.  

Still, many affordable housing opportunities have been created or are in the works because of strategies and support from the City. Here are five key ways we help to address housing affordability challenges for residents: 

1. Supporting Development 

The City provides direct and indirect support toward the construction and rehabilitation of affordable housing. Since 2000, the City has invested more than $15 million in federal and local funding to help create 1,280 affordable rental housing units and rehabilitate 413.  

Two developments that will provide a total of 76 new units of affordable housing for seniors and the most vulnerable individuals experiencing homelessness are expected to open later this year:  

• The Judeo-Christian Outreach Center will complete its new campus, which will include 38 units for individuals exiting homelessness. The City contributed $500,000 in American Rescue Plan Act (ARPA) funds and an additional $500,000 in federal HOME Investment Partnerships Program (HOME) funds toward the new construction of these permanent supportive housing units.  
• Tranquility at the Lakes II (TATL II) is expected to open this summer in the Burton Station area of the city. It will provide 38 units of affordable rental housing for seniors with very low income — below 60% of the Area Median Income (AMI). The City contributed $2.2 million in federal HOME funds toward construction costs. 

The City also provides indirect support to help expand affordable housing development, such as selling or contributing public land and building or sharing the cost of infrastructure. For example, the City facilitated the sale of about 1.5 acres of City-owned land for TATL II. 

Implementing form-based zoning in selected areas of the city and approving re-zonings where appropriate are other ways to expand affordable housing development. With Seaside Harbor (pictured below), the approval of form-based zoning in the Resort Area helped streamline the development process and shorten the completion time. The community serves households with incomes ranging from 40% to 60% of the AMI, including those with physical and developmental disabilities. 

2. Providing Housing Assistance 

HNP administers various federal-, state- and City-funded assistance programs to help families and individuals attain affordable housing and remain stably housed.   

This includes the federally funded Housing Choice Voucher Program, which assists more than 2,000 households in Virginia Beach with extremely low income to afford rental housing in the private market by subsidizing all or part of their rent. This subsidy is paid directly to the landlord.  

There are also rental assistance programs that serve other vulnerable populations, such as youth aging out of foster care, individuals with developmental disabilities, homeless veterans, and families and individuals who are experiencing homelessness or at risk of losing their housing. HNP coordinates with its Homeless Services division and the Department of Human Services to receive referrals of eligible households for these programs. This means households cannot apply directly for assistance. 

3. Creating Programs and Policies 

The City’s Workforce Housing Program ordinance and the new Attainable Workforce Housing Performance (AWHP) Grant Program provide incentives to developers for creating new affordable housing. 

The Workforce Housing Program is a voluntary program for developers. Program participants that create new workforce housing — rental or for sale — are offered an increase in density for the development. 

The AWHP Grant Program promotes the development of affordable, multi-family rental housing by helping to fill funding gaps. Annual grants are provided to developers 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, because 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.    

Since launching in September 2025, the AWHP Grant Program has helped advance more than 370 affordable senior and workforce housing units now in the pipeline. 

4. Facilitating Partnerships 

The City relies on valuable partners who are willing to work together to meet the affordable housing need. Landlords and property managers play a key role by renting their units to participants of housing assistance programs.  

HNP also helps bridge non-profit and for-profit developers interested in affordable housing development with landowners and industry experts.  

5. Connecting to Resources 

Many other organizations offer resources that can assist with a variety of housing needs. The department has compiled an Affordable Housing Resource Guide with information on housing counseling agencies, down payment/closing cost assistance, homebuyer education classes, affordable rental housing lists, home repair and rehabilitation assistance, and other resources for renters, homebuyers and homeowners.  

HNP’s Housing Development staff also provides developers and owners with technical assistance and makes referrals to financing and development tools to help them expand or maintain affordable housing opportunities.  

Stay Connected

• Subscribe to the Housing Matters e-newsletter: Get news and updates on affordable housing developments, related resources and programs offered by the City and in the community, feature stories, HNP events and more. 
• Become a housing partner: Opportunities are available for landlords, developers, nonprofits and contractors. 
• Be informed and raise awareness: Email HousingMatters@VBgov.com to invite an HNP representative to attend or present at your organizational meeting or event. 

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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.