Translate[Archived] Question #37: Can staff provide the potential impact on Affordable Housing for Alexandria residents in regards to Amazon HQ2?
Question:
Can staff provide the potential impact on Affordable Housing for Alexandria residents in regards to Amazon HQ2? (Councilman Seifeldein)
Response:
The economic development activities generated by the location of Amazon HQ2 and the Virginia Tech Innovation Campus in National Landing will bring thousands of new jobs and new workers to Arlington and Alexandria, increasing the need for a variety of housing options in both communities, as well as in locationally-efficient (offer public transit access to National Landing) neighborhoods in Fairfax County and Falls Church.
The job growth anticipated, including in the technology and higher education sectors, as well as among the retail, hospitality, construction, and services businesses that will support HQ2 and Virginia Tech, is expected to occur over a ten to 15-year (or longer) period, at a pace and trajectory typical for economic growth in the metropolitan area. A large portion of Amazon hiring will also already live in the Washington, D.C. metropolitan area. Still, it is inevitable that some short to mid-term cost pressures will occur in Alexandria’s housing market as developers and property owners take advantage of the perception of an “Amazon effect” before new efforts to preserve existing housing affordability and to expand affordable housing development can be fully implemented with the additional resources that will be invested to meet housing need.
Given Amazon’s impact on the Seattle housing market (which did not have transit oriented growth plans already in place which the D.C. region does, nor a regional heavy rail transit system), enhancing local housing affordability and choice has informed Alexandria’s planning for the proposed economic activities: during brainstorming sessions regarding anticipated housing affordability needs organized by the City and the Alexandria Economic Development Partnership (AEDP) as part of the request for proposals process, regional housing and economic development staff, as well as Virginia Housing Development Authority (VHDA) and nonprofit housing leaders identified the potential range of housing options required, including levels of affordability and types of tenure (rental/sales) and products, taking into consideration National Landing’s projected professional and administrative workforce (25,000 Amazon jobs at an annual average salary of $150,000), as well as potentially many more created in support of HQ2, including in lower wage sector jobs like retail, construction, hospitality and services all needing housing affordability at 60% area median income or below.
Housing capacity and economic growth assessments are currently underway among several groups, including the Metropolitan Washington Council of Governments (with both City Housing and Planning staff supporting this effort), the Urban Institute and the Greater Washington Partnership. Regional solutions and collaboration with Arlington will help amplify the City’s efforts, and Housing and AEDP staff are also part of a new Northern Virginia stakeholder group, convened by VHDA, to identify how the $75 million in REACH funds committed by VHDA to target housing needs related to economic development, should be programmed and prioritized. Alexandria, in particular, will focus its efforts on the neighborhoods closest to National Landing – in particular, Arlandria – to work with neighbors to preserve community identity and existing housing resources and explore opportunities for the development of new housing assets.
While more information is developing about future jobs and their timelines related to HQ2 and Virginia Tech, and refining housing needs and impacts as well as the resources required to provide a range of housing options, Alexandria is preparing to meet housing needs through the following actions:
- Continue to fulfill commitments to implement the 2013 City Housing Master Plan, including its target of new affordability in 2,000 units by 2025
- Provide annual resources for affordable housing of at least $8 million, including $2 million in Housing Trust Fund dollars, $5 million in dedicated Meals Tax Revenues and $1 million in new CIP funds the City Manager added to the City’s CIP to meet Amazon HQ2/VT housing impacts as proposed in the annual FY 2020 budget
- Utilize all non-financial tools to maximize affordable housing and secure committed units through the development and planning processes, including bonus density, the residential multifamily zone, use of city-owned property and co-location
- Explore new regulatory tools, including accessory dwelling units and inclusionary zoning
- Explore opportunities to leverage City resources through impactful third-party investment (including JBG-SMITH Social Impact Fund) as well as through philanthropy, business, healthcare, technology and other new actors now investing in housing affordability
- Track rental housing costs on a monthly basis in Arlandria
- Work with a network of nonprofit partners, and with VHDA, to preserve housing facing potential expiration of affordability over the next decade (estimated ~1,500 units)
- Work with nonprofit and other partners to develop and structure creative affordable rental projects that leverage tax credits and non-city resources, including the new VHDA REACH funds and tax credits allocated to prioritize innovation
- Expand the existing homeownership program to provide a wider range of workforce-affordable housing options with Alexandria’s substantial stock of condominiums
- Continue culturally competent outreach to the Arlandria community, offering technical and financial assistance to property owners and residents, including resources to preserve, improve and expand existing housing affordability resources, avoid/mitigate displacement and empower residents to participate in (including financially) development decisions impacting their housing
- Support the upcoming Mount Vernon Avenue planning initiative (Del Ray to Arlandria), including conducting an assessment of housing affordability and strategies to preserve/expand affordability (Housing is exploring VHDA community impact grant resources for the assessments and to underwrite outreach)
- Explore opportunities to jointly fund and/or redevelop affordable housing with Arlington in areas proximate to National Landing
- Explore Opportunity Zone incentives and resources potentially available in areas near National Landing and elsewhere in the City to maximize development/redevelopment to expand housing affordability
- Continue to work with the state to expand financial resources for housing affordability pursuant to Governor Northam’s Executive Order #25, signed in November, which makes housing affordability and stability central to Virginia’s economic development strategy
Key to the City’s success will be its efforts to leverage its resources, so that the additional $1 million per year proposed in the FY 2020 – 2029 CIP for housing related to economic development will produce an additional 20-50 committed affordable units beyond those already projected. While supply is important in meeting housing needs overall, by itself, increased supply will not meet requirements for new housing affordability – Alexandria will continue to need to invest and plan for these units with the regulatory tools and incentives available as well as the new resources now being established.