Town Crier Articles

The Evolution of Affordable (Workforce) Housing in New Town

Posted on June 1, 2026 6:55 AM by Mary Cheston

A major issue for the greater Williamsburg/James City County area is the availability of affordable housing especially for service industry employees. As a mixed use community, New Town was built with commitments for its developers to provide a certain percent or number of homes for sale to households earning 80 percent or less of the area median income or to be sold at a set below-market price listed in the developer’s proffers. A total of 78 New Town lots were identified for these affordable homes. However, only the initial sale of the property was governed by these economic conditions. Over time, ownership changed and subsequent home sales rose to market prices.

What is the situation in New Town today? Of the 78 homes (locally referred to as cottages) built to provide mixed housing, only 34, including all 16 of the newer (2024) cottages in Shirley Park, are original owner-occupied. 19 cottages – including 7 purchased solely by investors even when originally listed as affordable housing – are rental units. The 37 remaining homes have resold as many as 5 times.

Beyond the purchase of a home, New Town is an HOA community with owners subject to annual dues/assessments. With the exception of Eagle Construction of Virginia who mandated that 3 Village Walk homes receive a 30% neighborhood assessment reduction each year, New Town’s developers did not provide any allowances for reduced assessments for owners of workforce housing. The covenants/governing documents for the New Town Residential Association require full general assessments for all owners.

If New Town’s experience holds, affordable housing without any time stipulations/obligations or assessment reductions, likely remains “affordable” only for a short period. Are there lessons to be learned for future mixed use housing developments?

Proposed Housing Proffers for Eastern State Hospital Developments (as of May 30)

Per James City County’s website, “The purchasing power of highly paid workers and well situated retirees has driven up the average cost of housing and encouraged private sector development to focus on the more profitable end of the housing spectrum.” To encourage developers to include affordable and workforce units, the county utilizes the following:

Expedited Permitting: Fast-track subdivision, site plan, and building permit processing for developments that qualify.
Fee Waivers/Reductions: Potential to waive, reduce, or rebate development and permitting fees.
Density Bonuses: Allowance for higher residential density in exchange for including affordable housing units in the Primary Service Area.
Land & Cash Contributions: The county accepts land or cash contributions from developers of by-right and residential projects to fund dedicated affordable housing trust funds. (The planned James City County Community Land Trust seeks to create and preserve permanently affordable housing and community assets by leasing land for long-terms (e.g. 99 years) while selling homes on the land to income-qualified owners or organizations.)

The 2045 County Comprehensive Plan recommends that at least 20% of a development’s proposed new dwellings be affordable. Ultimately, developers can propose whatever incentives or mix of approaches fit their situation when seeking JCC zoning approval.

Westwood Park is offering at least 20 percent of its 155 units for sale or offered for rent “targeted at households earning 80% or less of the Area Median Income.” Their application sets a maximum sale price then defines the way sale prices will be calculated in subsequent years. ABVA further provides for a second deed of trust with shared appreciation with the County for any affordable homes sold for a period of 7 years (versus the 10 and 15 year trusts in New Town). Rental units are to be made available for 20 years at reduced rates (30% of household income for qualified households) with an annual report submitted to the County Zoning Administrator. [Note: ABVA has requested that Board of Supervisors further defer their rezoning application to its July 14, 2026 meeting. “We will be submitting revisions to the application shortly.”]

The proffers for Cardinal Ridge’s application have evolved from initially offering only affordable rental units to similarly offering at least 20 percent of its sale or rental residences (202 units) to households whose income is equal or less than 80% of the Area Median Income. Prices for the initial home sales with annual adjustments are specified with a seven-year second deed of trust for the County covering the difference between the sale and market rate price appreciation. The affordable rental units (set at less than 30% of household income for qualified households) are also for a period of “at least 20 years.”

[Note: our Area Median Income is currently $106,500.]

Essentially both proposed Eastern State Hospital land developments are offering about the same terms for residences that they have proffered to be affordable including commitments to long-term reduced rental units.

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